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The dairy food market is estimated to grow at a CAGR of 2.73% between 2022 and 2027. The size of the market is forecast to increase by USD 114.46 billion. The growth of the market depends on several factors, including the rising adoption of healthy food habits, accessible distribution channels, and rapid growth in urbanization coupled with the increasing consumption of dairy food.
This report extensively covers market segmentation by product (milk, cheese, yogurt, butter, and others), distribution channel (supermarkets, convenience stores, and online), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Accessible distribution channels are notably driving the market growth, although factors such as the spread of various diseases among dairy animals may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Accessible distribution channels are notably driving market growth. Distributors are crucial to the fresh food supply chain, which includes dairy products. Distributors primarily sell both nationally recognized brands and regional dairy goods. Due to their convenience and affordability, supermarkets and hypermarkets are the most widely used and preferred channels for the purchase of various dairy foods. The availability of discounts and appealing shelf displays in supermarkets and hypermarkets also influence consumer decisions to purchase fresh dairy products.
Furthermore, independent stores also sell a range of dairy products to meet the needs of neighborhood customers making regular or irregular purchases. The rapid expansion of a wide variety of dairy foods' accessibility, convenience, affordability, and availability is promoting the expansion of the global market. Therefore, these factors will boost the market growth during the forecast period.
The rising importance of organic dairy food is an emerging trend in market growth. Synthetic growth hormones are frequently given to cattle to increase milk production. Similar to humans, sick animals are treated with antibiotics to reduce the likelihood that their milk will be contaminated. Consuming such milk and other dairy products over an extended period of time may result in a number of medical conditions, including changes in endocrine function and the transmission of antibiotic-resistant infections from cattle to humans. Thus, there is a growing global demand for organic dairy products due to growing concerns about the negative health effects of consuming non-organic dairy products.
Organic dairy products primarily have higher nutritional value, more antioxidants that fight disease, and beneficial omega-3 fatty acids. Although organic dairy products are more expensive than traditional dairy products, the urban population has a consistent demand for them due to rising disposable income and growing awareness of a healthy diet. Organic dairy products are also offered by many retailers through online distribution channels. Therefore, the growing importance of organic dairy food is expected to propel the growth of the global dairy food market during the forecast period.
The spread of various diseases among dairy animals is a major challenge impeding market growth. Worldwide, only cattle, goats, sheep, camels, and buffaloes are used to produce milk. Numerous transboundary animal diseases have easily spread between nations over the years, which has had a significant negative impact on the dairy industry's overall growth. Due to increased dairy animal trade and travel, which exposes animals to new regions, transboundary animal diseases are on the rise. Dairy animals are prone to a number of highly contagious diseases, including Trypanosomiasis and Rift Valley Fever. Due to their negative effects on fertility, milk yield, milk quality, and puberty timing, these diseases may have a significant impact on production.
Dairy animal diseases may directly affect both the nation's economy and public health. The majority of zoonoses that affect humans are spread by cattle, goats, camels, and sheep. As a result, both the production of dairy food products and their consumption are impacted by diseases in dairy animals. This, in turn, will restrain the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Dairy Food Market Customer Landscape
Vendors 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.
Albertsons Companies Inc. - The company's key offerings include dairy food through its brand Lucerne Dairy Farms.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the milk segment will be significant during the forecast period. Milk is a good source of vitamins and nutrients, including calcium, vitamin B12 (riboflavin), iodine, potassium, phosphorus, and vitamin B2.
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The milk segment was valued at USD 271.28 billion in 2017 and continued to grow until 2021. The major factors promoting the growth of this segment in the global market are rapid urbanization, rising prevalence of osteoporosis in females, rising awareness of healthy eating habits, rising availability of organic milk, and the rising number of international vendors producing milk. Moreover, the calcium content in milk contributes to bone health. Nutritionists and medical professionals advise females to drink milk because, as a result of hormonal changes in their bodies, they are more likely than males to develop bone diseases like osteoporosis. Furthermore, market vendors also sell organic milk. This product is free from pesticides and antibiotics and rich in nutrients and omega-3 fatty acids. Hence, all these factors will boost the growth of the market segment during the forecast period.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in APAC is expanding as a result of a number of factors, including rising urbanization, rising rates of organized retail, rising rates of bone diseases, rising awareness of the advantages of a healthy diet, and the presence of major vendors. The significant demand for dairy food products in APAC is being fueled in part by the rapid growth of the urban population. The urban population consumes large amounts of dairy products like yogurt and cheese. The demand for dairy products will be influenced by the large percentage of this population. This, in turn, is boosting the growth of the regional market currently and is expected to stay the same during the forecast year.
Additionally, the use of online retail channels for the purchase of dairy food products in this region has been boosted by the expansion of internet connectivity. Online retail channels are becoming more and more popular because they provide benefits like ease of purchase and doorstep delivery services. Hence, all these factors will fuel the demand for dairy products, which in turn, will boost the regional market during the forecast period.
COVID-19 pandemic had a negative impact on offline distribution channels of the regional market in 2020. However, online retailers of dairy food witnessed an increase in the demand for products among consumers. Moreover, with the relaxations in lockdown in the region since 2021, there has been a rise in footfall at offline stores as well. Hence, such factors are expected to foster the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global dairy food market as a part of the global packaged foods and meats market under the global food products segment of the global food, beverage, and tobacco market. The global packaged foods and meats market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Dairy Food Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.73% |
Market growth 2023-2027 |
USD 114.46 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.09 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, India, China, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agropur Dairy Cooperative, Albertsons Companies Inc., Arla Foods amba, Dairy Farmers of America Inc., Danone SA, DMK Deutsches Milchkontor GmbH, Fonterra Cooperative Group Ltd., Glanbia plc, Gujarat Cooperative Milk Marketing Federation Ltd., Inner Mongolia Mengniu Dairy Co., Ltd., Inner Mongolia Yili Industrial Group Co. Ltd., Kerry Group Plc, Meiji Holdings Co. Ltd., Nestle SA, Royal FrieslandCampina NV, Saputo Inc., Schreiber Foods Inc., The Kraft Heinz Co., The Kroger Co., and Unilever PLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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