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The dairy food market size is forecast to increase by USD 88.1 billion, at a CAGR of 2.09% between 2023 and 2028. Market growth hinges on multiple factors, notably the increasing embrace of healthy dietary practices, the presence of convenient distribution networks, and the swift urbanization alongside a surge in dairy consumption. As health consciousness becomes more prevalent among consumers, there's a notable shift towards nutritious food choices, driving demand in the market. Additionally, the accessibility of distribution channels ensures the widespread availability of dairy products, catering to diverse consumer segments. Moreover, rapid urbanization trends, coupled with lifestyle changes, contribute to the escalating consumption of dairy foods, further stimulating market expansion. These factors collectively shape the market landscape, indicating a growing preference for dairy products among urban populations and underscoring the importance of health-conscious consumer behavior in driving market growth.
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The market witnesses innovation with premium dairy products and personalized dairy products, meeting diverse consumer needs. Brands like Milkymist and Skyr yogurt introduce novel offerings, while industry initiatives such as the National Dairy Program and efforts by organizations like Walki prioritize sustainable dairy production. Addressing dietary concerns, products cater to the lactose-intolerant population, emphasizing the importance of specific proteins for nutritional fulfillment. Major players like Yum Brands contribute to the market's growth through strategic ventures and product diversification.
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 272.5 billion in 2018. 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.
The dairy food industry continues to thrive with a diverse range of products such as spreads and ice creams, catering to a broad customer base globally, including developing countries. Challenges like labor shortage are addressed through research conducted by institutions like Precedence Research and National Institutes of Health. Innovations in fermented dairy products introduce beneficial components like bioactive peptides and probiotic bacteria, enhancing nutritional value with conjugated linoleic acid and oligosaccharides, ensuring highly absorbable calcium and organic acids for consumer health. Our researchers analyzed the data with 2023 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.
Additionally, 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.
Moreover, 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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
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.
Albertsons Companies Inc. - The company's key offerings include dairy food through its brand Lucerne Dairy Farms.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 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 encounters challenges like milk oversupply, prompting innovation in areas such as lactose-free dairy products and specialty items like Gorgonzola cheese. Responding to changing consumer preferences, the market diversifies with the rise of plant-based foods, including alternatives like oat milk-based beverages. Notably, major players like the Starbucks Corporation contribute to this trend. Across the cattle segment and beyond, there's growing interest in alternative milk sources such as sheep, goat, and even camel milk. Health-conscious consumers drive demand for functional foods featuring probiotic microorganisms, prebiotic fibers, and phytosterols, with products like Functional yogurt and Iron-fortified milk gaining popularity. Supermarkets and hypermarkets play a crucial role in distributing these offerings, aligning with market insights from organizations like the Population Reference Bureau and FMI.
Further, the market is experiencing shifts with the emergence of alternative options like oat milk-based beverages and specialty products such as Sheep milk and Goat milk. In response to lactose intolerance, there's a focus on the lactose segment, with innovations like lactose sugar. Supermarkets/hypermarkets play a vital role in distributing these products, catering to diverse consumer preferences. Additionally, there's a growing demand for dairy products fortified with essential minerals like those found in Activia+ Multi-Benefit Probiotic Yogurt Drinks.
Industry Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.09% |
Market growth 2024-2028 |
USD 88.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.02 |
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 Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agropur Dairy Cooperative, Albertsons Companies Inc., Arla Foods amba, China Mengniu Dairy Co. Ltd., Dairy Farmers of America Inc., Danone SA, DMK Deutsches Milchkontor GmbH, Fonterra Cooperative Group Ltd., FrieslandCampina, Glanbia plc, Gujarat Cooperative Milk Marketing Federation Ltd., Inner Mongolia Yili Industrial Group Co. Ltd., Kerry Group Plc, Meiji Holdings Co. Ltd., Nestle SA, 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, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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