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The Organic Dairy Products Market size is projected to increase by USD 9.09 billion at a CAGR of 6.52% between 2023 and 2028. The increasing awareness of the benefits of organic dairy products is driving consumer preference towards these products. Additionally, the availability of financial aid and subsidies for organic dairy farming is encouraging more farmers to transition to organic practices, leading to an increase in supply. The rise of e-commerce and online sales channels is further boosting the accessibility and visibility of products, contributing to their growing market share. This convergence of factors is reshaping the dairy industry, with organic products gaining a stronger foothold in the market. Consumers are becoming more conscious of their health and environmental impact, leading to a shift towards organic options. The availability of financial incentives is incentivizing farmers to adopt sustainable practices, further fueling the growth of the sector. E-commerce platforms are providing a convenient avenue for consumers to purchase organic dairy products, driving overall market growth.
Increasing awareness of the benefits of organic dairy products is a key factor driving market growth. The market has experienced significant growth due to increasing consumer awareness and preference for healthier options. In contrast to conventional dairy products, which may contain synthetic feed and potentially harmful additives, organic dairy products offer numerous nutritional benefits. These benefits include higher levels of omega-3 fatty acids, Conjugated Linoleic Acid (CLA), antioxidants, and vitamins. The Yoghurt segment, particularly organic yoghurt, is a popular choice due to its probiotic properties. Packaging options include Tetra packs, aseptic cartons, glass packaging, and plastic packaging. Specialty stores dominate sales in the Asia-Pacific region, where population growth and consumer trends favor organic dairy products for industry applications.
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The report provides a detailed analysis of the market by product (organic milk, organic yogurt, organic cheese, and others), Distribution Channel (Offline and Online), and geography (APAC, Europe, MEA, North America, and South America).
Offline distribution channels like supermarkets, health food stores, and grocery stores offer a selection of organic dairy products. These products are typically found in the dairy section alongside conventional dairy items. Specialty stores, including those that sell natural food products, focus exclusively on natural products. Health food stores are the second-most prominent channel for these products. Currently, the market is witnessing an immense expansion of health food stores, especially food retail stores. It offers stiff competition to offline distribution channels like supermarkets and hypermarkets. Consumers look for convenience as a key factor while shopping. Hence, they prefer shopping at convenience stores in their neighborhoods. For example, JustGreen, one of the largest chains of convenience stores in Hong Kong, offers a wide variety of products like organic yoghurt and organic ghee. Thus, these factors will promote the growth of the global market during the forecast period.
The market share growth by the organic milk segment will be significant during the forecast period. Its demand is increasing rapidly across countries. The market is experiencing significant growth due to increasing consumer trust in sustainable farming practices. Dairy farmers adhering to organic methods raise livestock that consume organic feed, avoiding synthetic hormones and antibiotics. This results in organic milk with higher omega 3 fatty acids and no preservatives, offering numerous health benefits such as improved metabolism, immunity, and cancer disorder prevention.
The organic milk segment was the largest and was valued at USD 9.24 billion in 2018.
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Another reason behind the demand is the rising awareness of the health benefits of organic milk consumption. Consumer demographics are shifting towards a preference for organic fluid milk, cream, and dairy products packaged in various formats like pouches, tetra-packs, bottles, and cans. Supermarkets, hypermarkets, convenience stores, grocery stores, organic specialty stores, online retailers, and direct sales channels cater to this demand. Technological developments enable the production of low-fat and low-sugar content products, catering to diverse consumer lifestyles. Consumer awareness campaigns and rising living standards contribute to the market's growth. Regional producers collaborate with governments to ensure quality and price competitiveness in the organic milk segment. Thus, the absence of synthetic chemicals and reduced antibiotic use are expected to drive the growth of this segment market, which will enhance the global market during the forecast period.
North America is estimated to contribute 37% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is thriving due to heightened consumer trust in organic practices and the associated health benefits. Dairy farmers adhering to organic standards are meeting the demands of a demographic shift towards healthier, more natural food choices. Consumers are increasingly seeking out organic Fluid Milk, cream, pouches, tetra-packs, bottles, and cans, available at supermarkets, hypermarkets, convenience stores, grocery stores, organic specialty stores, and online/e-retailing platforms. Organic dairy products are free from synthetic hormones, antibiotics, pesticides, preservatives, and genetically modified organisms (GMOs). Consumers value the health benefits, including improved metabolism, immunity, and cancer disorder prevention, as well as the absence of artificial additives. Livestock rearing practices focus on Omega 3 fatty acids, ensuring high-quality, price-competitive products. Collaboration with governments and regional producers ensures continued innovation in the market, with technological developments leading to low-fat and low-sugar content offerings. Consumer awareness campaigns and rising living standards further fuel market growth. All these factors will drive the growth of the market in the region during the forecast period.
The market is witnessing significant growth due to increasing consumer health consciousness and environmental sustainability. Regulatory support and certification play a crucial role in the market's expansion. Retail availability of organic dairy products, including yogurt, cheese, milk, and butter, has increased, making them more accessible to consumers. Technological advancements, automation, and data analytics have streamlined production processes, ensuring the highest quality and consistency. Sustainable farming practices are essential in the organic dairy industry, as they align with consumer demand for eco-friendly products. Industry applications in food and beverage, foodservice industry (restaurants and cafes), and geographical trends contribute to the market's growth. Omega 3 fatty acids, a health benefit associated with such products, are gaining popularity due to their role in metabolism, immunity, cancer disorders, muscular discomfort, and chronic disorders. However, the absence of preservatives in such products may limit their shelf life and distribution.
Rising demand for local and artisanal organic dairy product offerings is an emerging trend shaping the market expansion. In the market, there is a growing consumer preference for eco-friendly and transparent packaging. This trend is particularly prominent in the Yoghurt segment, where organic yoghurt is increasingly being sold in containers made of glass or biodegradable materials, such as Tetra packs and aseptic cartons. The use of synthetic feed in organic dairy farming has raised concerns about the authenticity of these products, making transparent packaging essential for displaying certifications and labels. In the Asia-Pacific region, population growth and changing consumer trends are driving demand for clean and clear packaging. Industry applications include specialty stores, which prioritize product quality and sustainability, and the use of probiotics, which require specific packaging to maintain freshness and efficacy. Thus, the rise of these products will spur the development of the market during the forecast period.
Fluctuations in the supply of raw materials for organic dairy farming are a significant challenge hindering market development. The market experiences challenges due to the scarcity of organic raw materials, specifically organic milk. This shortage is driven by insufficient cattle populations, leading to production constraints. As a result, the manufacturing of organic dairy items, including yoghurts and ice creams, faces difficulties in sourcing organic milk, making it unavailable consistently. Organic dairy products are produced using organic cane sugar, fruits, and milk. Synthetically produced feed is not used in their manufacturing process. The yoghurt segment, particularly organic yoghurt, benefits significantly from the addition of probiotics. Packaging plays a crucial role in the industry, with various options such as Tetra packs, aseptic cartons, glass packaging, and plastic packaging. Consumer preferences and trends in the Asia-Pacific region, driven by population growth, influence market expansion. Industry applications continue to evolve, with specialty stores increasingly offering outcomes. Thus, the fluctuations in the supply of raw materials will decline the growth of the market in focus during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
This market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing significant growth due to increasing consumer awareness and demand for healthier food options. Consumer preferences for sustainable farming practices and the absence of artificial additives have fueled this trend. The Consumption of Organic Dairy Products like milk, cheese, and butter is on the rise in various regions, including Europe, North America, and Asia-Pacific. The Regulatory environment plays a crucial role in the market, with countries implementing strict regulations to ensure the authenticity of organic labels. The Farming of Organic Dairy Cows involves practices such as free-range grazing and the use of organic feed. The Superior Taste and Nutritional Value have made them a popular choice among health-conscious consumers. The Future of the market looks promising, with advancements in technology and innovation driving growth. The Use of advanced technologies like Foam Technology and Membrane Technology in the production of is expected to increase efficiency and yield. The market is expected to continue its upward trajectory, with a CAGR of around 10%.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.52% |
Market Growth 2024-2028 |
USD 9.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, Japan, Germany, and France |
Competitive landscape |
Leading Companies, market forecast, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agropur Dairy Cooperative, Amazon.com Inc., Arla Foods amba, Dairy Farmers of America Inc., DANA Dairy Group Ltd., Danone SA, Fonterra Cooperative Group Ltd., General Mills Inc., Gujarat Cooperative Milk Marketing Federation Ltd., Land O Lakes Inc., Meiji Holdings Co. Ltd., MVM Pack Holding AG, Nestle SA, Royal FrieslandCampina NV, Saputo Inc., Savencia SA, Schreiber Foods Inc., Sodiaal, The Kroger Co. |
Market dynamics |
Market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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