Global Dairy Market - 2021-2028
発行: DataM Intelligence
ページ情報: 英文 180 Pages
Dairy is one of the early food categories adopted by mankind and is considered as a major part of human nutrition. Dairy products are primarily produced from milk and commercial dairy include products ranging from liquid milk to processed products such as yogurt, cheese, butter, and others. The health benefits associated with milk has been motivating population of all segments towards consumption of dairy based products. Dairy is considered as a package of nutrients essential for a human body and is highly recommended as a source of calcium and healthy fats. The global dairy market valued USD YY million in 2020 and is forecasted to reach USD YY million by 2028, growing at a CAGR of YY% during the forecast period (2021-2028).
The nutritional benefits offered by dairy products is the major driver for the growth of global dairy products market
The rich content of vitamins, minerals, and proteins present in milk made dairy an essential food for humans. For instance, the calcium content of milk help develop healthy bones and teeth among young children, thus making it a vital part of infant nutrition. Furthermore, vitamin D reduces the risk of cancer protection, potassium helps reduce the levels of blood pressure and improves heart health, and fermented milk acts as a probiotics source for improving gut health. The high nutritional value of fermented dairy products is motivating the sales of Yogurt Cheesecakes and other dairy based desserts. Other factors responsible for the growth of dairy market include rising consumer spending, growing population and consumer preference for nutritional rich food products. However, the rise in veganism and plant-based eating preferences of vegetarian population is limiting the consumption of dairy products. Lactose intolerance, dairy sensitivity, consumer shift towards plant-based food products, and misconceptions associated with consumption of milk are other key restraints of the market.
Liquid milk is the major dairy food
The global dairy products market has been segmented by product type covering milk, cheese, butter, whey protein, milk power, and various other dairy products. Liquid milk is the major dairy food and the demand for liquid milk products is rapidly surging with the rising health consciousness and living standards of the consumers. Infants are the major promoters of milk market in the form of infant formula and baby milk. The global market for infant nutrition reached 2.5 million tons in 2017 and likely to witness over 7% growth rate in the next decade. The growing supply of milk is also supporting the growth in this segment. According to the statistics of The Food and Agriculture Organization of the United Nations (FAO), global milk production reached nearly 906 million tonnes in 2020, up 2.0 percent from 2019. World milk production is expected to increase by 1.6 percent annually between 2020 and 2029 and reach 997 million tons in 2029, according to a report prepared by OECD-FAO. In most of the countries including highly populous India and China, milk is considered as a major part of healthy dietary protocol. Liquid milk accounts for over 90% of the demand for dairy products in rural areas and over 85% of that in urban areas in India. Supermarkets and hypermarkets evolved as the largest sales channel for dairy products with a share of nearly 50% in terms of sales value in 2020. The growing retail sales of dairy products in Asian countries owing to 'go to retail market' strategy of manufacturers to reach retail stores is motivating the sales through supermarkets and hypermarkets. For instance, Parag Milk Foods Company in India is planning to widen its retail distribution network by 3x times in next six years. Convenience stores, specialty stores and e-commerce are also holding significant share in the sales of dairy products.
Asia Pacific is expected to dominate the global dairy market during the forecast period
The robust dairy sales in China and rapid growth in demand for fermented milk products in India and Indonesia made Asia Pacific region as the largest market for dairy products. The share of Asia Pacific in total dairy products market reached 36% in 2020 and is likely to hold its dominance over the forecast period owing to lucrative double-digit growth of dairy sales in countries such as India, Vietnam, Pakistan, and Laos. India is the world's largest milk producer, making up 22 percent of global production in milk of all types. The US, China, Pakistan and Brazil follow India in global milk production. India, the world's largest milk producer, increased its production by 4.2 percent in 2019 to 192 million tons according to the OECD-FAO report. The total milk production of the EU (157 million tons), the US (101 million tons), New Zealand (22 million tons), Argentina (11 million tons), and Australia (9 million tons) was estimated to be 301 million tons in 2020, according to same report. This amount is expected to reach 304 million tons in 2021. The production amount of cow's milk alone in the world in 2020 is approximately 532 million tons as per USDA figures. This amount is expected to approach 540 million tons in 2021. In 2020, the largest share in world cow milk production belongs to EU countries with 157 million tons; but on a country basis, the largest producer is the US with 101 million tons. The USA is followed by India with 93 million tons, China with 33 million tons, Russia with 31 million tons, Brazil with 23 million tons, and New Zealand with 22 million tons.
The global dairy products market is highly consolidated at top level with companies such as Nestle, Danone, Lactalis, and Fonterra. The top 10 market players account for over 70% of the total sales. The market is also tapped by the foot prints of many Asian and European players, thus making it highly competitive. The companies in the market are leveraging on acquisitions and collaborations to increase their market share. In January 2019, French dairy products corporation Lactalis has acquired India based Prabhat Dairy in a deal of worth $239 million to gain leading market share in Western India, thereby marching towards its goal of turning into a pan Indian company. Another French dairy food giant Danone had invested $25.6 million in Drums Food International, the seller of Epigamia Yogurt to expand its product portfolio and its distribution network across India. Other key players in the market are Royal FrieslandCampina N.V., Dean Foods, Arla Foods amba, China Mengniu Dairy Company Limited, Yili Group, Kraft Foods Group, Inc., Land O'Lakes, Inc. and Meiji Dairies Corporation.
COVID-19 Impact: Negative impact on the dairy market
The COVID-19 has led to lockdown and has impacted the dairy industry tremendously. The stream of dairy-based products is stable whereas due to the disruption in the production of dairy products have faced crises. Longer lockdown in the dairy industry in the different countries has disrupted the supply chain of dairy milk by the farmers. The sales of dairy-based products such as ice cream, cheese, flavored milk, yogurt, and frozen desserts comprised the highest market revenue in the overall dairy sector which is approximately more than a third of the organized dairy sector's revenue which has declined up-to 2 to 3% CAGR in the first quarter of 2020, whereas, the reduction in the prices and lockdown of the foodservice sector has drastically impacted the local dairy farmers and have stalled overall dairy industry up to 10%. Due to the apprehension about consuming cold products such as ice cream, flavoured milk and yogurt have shown a drastic declination in their consumption pattern.
The pandemic has broken down the price growth pattern due to the stable consumption growth of cows and other milk specifically in food service sector. In Untied States due to the crises farmers have struggled with the prices and due to the supply chain disruption farmers have dumped out their fresh milk. These actions led the by the farmers have led government authorities to take action towards it and various fund have been suggested to recover the downtime of dairy sector. Various interviews with the dairy product processors have been conducted by farm animal investment risk and return (FAIRR) in which they have stated that the dairy processor companies at are high risk due to the pandemic and stalled demand of the dairy products.