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The Organic Dairy Products Market size is projected to increase by USD 9.09 billion and the market size is estimated to grow at a CAGR of 6.52% between 2023 and 2028. Organic dairy products are produced without the use of antibiotics, synthetic hormones, or genetically modified organisms (GMOs). Consumers choose organic dairy products because they are perceived to have higher nutritional value and are produced using sustainable farming practices. E-commerce has boosted the accessibility of organic dairy products to wider consumers. Online sales offer unparalleled convenience and improved shipping and handling processes ensure safe delivery. This has led to increased sales and distribution, accelerating the growth of the market. The market size, historical data (2018-2022), and future forecasts are presented in terms of value (in USD billion) for all these mentioned segments.
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The market witnesses robust demand driven by health-conscious consumers seeking sustainable, natural options. This industry emphasizes organic farming practices, ensuring pasture-fed cows produce milk, cheese, yogurt, butter, and cream free from hormones and antibiotics. Quality and taste are paramount, with an emphasis on nutrition and environmentally friendly packaging, catering to the discerning tastes of health-conscious consumers worldwide.
Rising demand for local and artisanal organic dairy product offerings is an emerging trend shaping the market growth. Local and artisanal dairy products often incorporate regional flavors and locally sourced ingredients, celebrating the unique culinary heritage of specific areas. Local and artisanal producers often provide transparent information about their farming practices and production methods, enhancing consumer trust and knowledge about the source of their dairy products. Many local and artisanal producers establish partnerships with local retailers and restaurants, allowing their products to reach a wider consumer base while maintaining their commitment to local and sustainable practices.
In addition to that, artisanal dairy makers focus on small-batch production, which allows for greater attention to detail and a commitment to high product standards. Thus, the rise of these products will spur the growth of the market during the forecast period.
Fluctuations in the supply of raw materials for organic dairy farming are a significant challenge hindering market growth. The global market is affected by the supply shortage of raw materials. The market is witnessing a huge demand for organic milk, but the dearth of cattle is affecting milk production. Organic cane sugar, organic fruits, and organic milk are used in the production process of these dairy products, such as yogurts, ice creams, and others. As the market is highly dependent on the availability of raw materials, the fluctuations in the availability of such raw materials have direct implications for market growth.
Moreover, the availability of all the related raw materials will also affect the growth of the market as it highly depends on other products. Bad weather conditions can reduce the production of organic milk. Any disparity in climate conditions can negatively affect the volume and quality of production of these products. Thus, the fluctuations in the supply of raw materials will decline the growth of the market in focus during the forecast period.
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. One of the key reasons for the demand is the preference for dairy products made using sustainable methods. It is produced from livestock raised according to organic farming methods. Cows that are raised on natural feed to produce organic milk are not treated with synthetic hormones or antibiotics.
The organic milk segment was the largest and was valued at USD 9.24 in 2018.
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Another reason behind the demand is the rising awareness of the health benefits of organic milk consumption. It contains high levels of nutrients and omega-3 fatty acids free from pesticides and antibiotics. Owing to the awareness of the health benefits, consumers are turning toward organic milk from conventional milk. The health and wellness trend emerging in various countries is another factor driving its purchase. Due to the growing demand and market potential, more farmers are turning to organic dairy farming, and manufacturers are offering various types of milk like organic whole milk, organic fat-free milk, organic low-fat milk, organic high-protein milk, and organic lactose-free milk. 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. North American consumers are increasingly looking for healthier and more natural food choices. They are often perceived as a healthier alternative to conventional dairy products due to the absence of synthetic hormones, antibiotics, and pesticides. The trend toward health and wellness has driven the demand. Consumers are becoming more health-conscious and are seeking products that are free from artificial additives, preservatives, and genetically modified organisms (GMOs). There is growing awareness of the environmental impact of food production. It often emphasizes sustainable and environment-friendly practices, including the use of natural feed, reduced chemical usage, and focus on animal welfare, which resonates with consumers. In addition to this, consumers in North America are concerned about animal welfare.
In addition, the organic cheese market is also booming in the US. Its availability in various forms contributes to the growth of the market. Their demand is mainly due to the nutritional factors and the availability of various flavors. Consumers look for authentic, bold-flavoured cheese. All these factors will drive the growth of the market in the region 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 Global Organic Dairy Products Market is driven by the increasing emphasis on Sustainability Practices and the rising demand from Health Conscious Consumers who advocate for the Clean Label Movement and Supply Chain Transparency. This market thrives on Product Innovation and Technological Advancements in dairy processing. It offers a wide range of options including various Cheese Varieties, Yogurt Products, Butter Assortments, and Cream Options, alongside Organic Eggs and Dairy Alternatives. With a significant growth rate and ongoing development, consumers appreciate the taste and quality of products derived from pasture and grass-fed sources, emphasizing hormone-free options. Additionally, packaging plays a crucial role in attracting environmentally conscious consumers. This market encompasses a broad spectrum, including traditional dairy farms and emerging players, aiming for a larger global market share within the expansive beverage market size, predominantly centered around cow's milk.
This market forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Organic Dairy Products 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 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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