Outlook of the flavored milk market

Extensive research carried out by the analysts at Technavio has shown that the global flavored milk market is expected to witness steady growth and will post a CAGR of more than 4% over the forecast period. The inclusion of flavored milk as part of school meal plans in several countries such as the US and India will drive the growth of this market over the coming years. The increasing consumption of flavored milk by children has led to a significant decrease in the consumption of soft drinks and other beverages, which lack nutritional benefits. Moreover, several professional health organizations such as the American Academy of Pediatrics and the American Academy of Pediatric Dentistry support the consumption of flavored milk by children as milk is a rich source of essential nutrients including calcium, potassium, and magnesium.

An emerging trend gaining significant traction in this market is the launch of products with new flavors. The majority of vendors are expanding their flavor portfolio to keep the customers interested in the market. For instance, in March 2016, Prairie Dairy Farms launched two new flavors for its Peeps flavored milk. The two new flavors offered by the vendor are strawberry créme and orange créme. The introduction of new flavors is likely to result in the increasing consumption of flavored milk during the predicted period.

Competitive landscape and key vendors

The global flavored milk market is highly dynamic due to the presence of numerous well-established global and regional vendors. Several vendors are coming up with new innovative products and are also investing heavily in research and development to remain competitive in the market. To cater to the changing consumer preferences, the players are launching products with new flavors. Also, new and innovative packaging are introduced by vendors to seek the attention of the consumers and also to extend the shelf life of the product. The competitive environment in this market is expected to intensify with an increase in product/service extensions, technological innovations, and M&A.

Key vendors in this market are -

• China Mengniu Dairy Company
• Danone
• Gujarat Cooperative Milk Marketing Federation (GCMMF)
• Inner Mongolia Yili Industrial Group
• Nestlé

Other prominent vendors in this market are Arla Foods, Associated Milk Producers, Bright Food, Dairy Farmers of America, Dean Foods, FrieslandCampina, Grupo Lala, Land O’ Lakes, Morinaga Milk Industry, and Muller.

Product segmentation and analysis of the flavored milk market

• Long-life flavored milk
• Fresh flavored milk

In terms of revenue, the long-life flavored milk segment dominated the market and accounted for a market share of more than 61% during 2015. Long-life flavored milk has a shelf life of about six to nine months as they are produced using the ultra-heat treatment (UHT) technique. The main advantage of dairy products produced using the UHT technology is that it can be stored for a longer period without refrigeration. Moreover, this segment is also driven by the launch of new products, for example, in 2014 Trioni launched its Daioni brand of flavored drinks in three flavors, strawberry, chocolate, and banana.

Geographical segmentation and analysis of the flavored milk market

• Americas
• APAC
• Europe
• MEA

In terms of geography, the APAC region led the global flavored milk market and is likely to hold close to 69% of the revenue market shares by 2020. The market is expected to grow in the region due to various factors including increasing milk production and the rise in the number of middle-income families in the region. Moreover, the expanding population in the region will also contribute to the growth of this market in APAC over the next four years.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global flavored milk market?
• What are the key market trends impacting the growth of the global flavored milk market?
• What are the challenges to market growth?
• Who are the key vendors in the global flavored milk market?
• What are the market opportunities and threats faced by the vendors in the global flavored milk market?
• What are the trending factors influencing the market shares of the Americas, APAC, Europe, and MEA?
• What are the key outcomes of the five forces analysis of the global flavored milk market?

Technavio also offers customization on reports based on specific client requirement.

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