Global Organic Milk Market - 2021-2028
発行: DataM Intelligence
ページ情報: 英文 180 Pages
Organic milk refers to any livestock milk obtained through sustainable, organic means of animal growing. The livestock is raised using organic processes without the use of any antibiotics or growth-enhancing hormones. Also, these organic growing methods include use of organic grown livestock feed, controlled use of veterinary drugs and upholding environmental values. The global organic milk market is expected to rise significantly as the demand for natural and organic food products is increasing. Growing popularity among consumers regarding the health benefits associated with the consumption of organic food has a positive impact on the global organic milk market's growth. The global organic milk market valued USD XX billion in 2020 and is estimated to reach USD XX billion by 2028, at a CAGR of XX% during the forecast period
National governments across the globe are encouraging organic farming practices among conventional farmers by launching educational campaigns and providing technical as well as monetary assistance. For instance, the Government of India is offering incentives for the cultivation of natural food products under the National Horticulture Mission. Similarly, the EU has adopted new rules for organic production and labeling to guarantee fair competition for farmers and operators. The introduction of clean labels to the global market has further influenced the growth of the market as consumers' confidence regarding the impact of what they consume is being rejuvenated. Clean labels and food and safety concerns are closely related aspects that are witnessing wide acceptance in the organic milk space. Increasing adoption of clean labels in order to rejuvenate consumer confidence regarding the product they consume has impacted sales of organic milk. Moreover, the use of a clean label in organic milk packaging on the back of increasing preference for GMO-free organic milk is expected to trigger its demand in the forthcoming years. Cattle that have been fed with organic nutrients devoid of antibiotics is the main source of organic milk. With the report from the World Health Organization (WHO) regarding the adverse effect of the consumption of cattle fed with antibiotics has created the surge in demand for organic milk in the global market. All milk in the US is required to be tested for antibiotics prior to processing, as mandated by the US Food and Drug Administration through the Grade A Pasteurized Milk Ordinance. The FDA reports milk antibiotic test results, and in 2020, only 0.010% of all US milk had an antibiotic residue.
However, the growth of organic milk is expected to witness a sluggish rate with the availability of cheaper alternatives such as soy milk or almond milk. The pricing of organic milk is relatively higher than conventional milk, which is another major factor restricting the market growth.
The market has been segmented by packaging type into pouches, cans, bottles, and tetra packs among others. Tetra packs segment dominated the market with share of XX% in the year 2020. Tetra-packs are considered ideal for the packaging of dairy products as they aid in preserving their overall nutritional value for a longer time. Liquids packed in Tetra Pak cartons do not require preservatives, whether it is milk, juices or any other liquid food. Carton milk, for example, is sterilized by a special technique called UHT (Ultra Heat Treatment) sterilization that ensures that there are no micro-organisms left in the milk. As the packs are mechanically packed, there are no chances of adulteration. Tetra Pak's aseptic technology keeps food safe, fresh and flavorful for at least six months, without refrigeration or preservatives and allows food to retain more color, texture, taste and nutrition.
On the other hand, global organic milk market is bifurcated into organic whole milk, organic skimmed milk, organic fat-free milk and organic toned milk. The skimmed milk account for the major share of the global organic milk market owing to its high nutritional value. Moreover, in developing countries consumer is suffering from obesity and cholesterol problem consumes organic milk on daily basis as a dietary supplement which leads to the increase in demand for organic milk. Furthermore, the on-going technological advancements to develop innovative products with low fat, reduced levels of sugar have fueled the demand for organic skimmed milk over the forecast period.
By geography, Asia Pacific is the largest market for organic milk holding approximately 40% of the global sales value. Rising population of consumers and consumers' changing lifestyles are factors driving the industry's growth in the region. India is expected to hold major share in the Asia Pacific organic milk market. To reach the consumer's demand for organic milk, productivity improvement measures in the Indian government's National Action Plan for Dairy Development are taking place that includes the introduction of cross-breeding, exotic cows, and the improvement of nutrition and hygiene. Furthermore, the integration of dairy tech start-ups with traditional farming industry is bringing the technology, which extends digital India to rural spaces, is, thereby, expected to propel the market growth over the forecast period. Moreover, Akshayakalpa is an initiative where financial assistance is provided to farmers for setting up an organic dairy farm. The farms are free of GMO fodder, which is further anticipated to foster the demand for the market. There are around 5,000 Farmer Producer Organizations (FPOs) including FPCs in the country, which were formed by various initiatives of the central and state governments, NABARD, and other organizations over the last 8-10 years. Formation of FPOs and cooperative societies or the Self-help group (SHGs) based models demonstrated by the NDRI in the dairy sector in villages are expected to enhance farmer's income and value addition. Further, the deployment of organic farming is expected to help the farmers and likely boost the India organic milk market growth during the years to come.
On the other hand, North America is expected to grow with a CAGR of XX% during the forecast period, due to increasing awareness regarding the health benefits of natural products, increasing investment in organic restaurant establishments by entrepreneurs to cater to the organic food preferring demographic, rising change in the policy on pasture to ensure organic pasturing and increasing organic livestock sector in this region. More than 2,500 farms in the United States produced organic milk in 2016. The largest number of farms were located in New York (486), Wisconsin (455), followed by Pennsylvania (303). During 2016, nearly 280,000 dairy cows were certified organic, up from 241,112 dairy cows in 2015. The states with the highest number of certified organic dairy cows were (in order): California (50,136), Wisconsin (27,980), Texas (27,948), and New York (26,246). Organic milk production in 2016 was 4.03 billion pounds. California produced 795.7 million pounds, or 20 percent, of the organic milk.
The global organic milk market is fragmented with key players such as Fonterra Co-Operative Group Ltd., Arla Foods, Clover Stornetta Farms Inc. and Danone among others. Major companies in the organic milk market are focusing on enhancing their footprint by tapping into emerging economies as well as regions having high GPD per capita at par with Europe and North America. For instance, in November 2020, Darigold, the marketing and processing arm of Seattle-based Northwest Dairy Association, debuted two organic milk products: Darigold FIT Organic Milk and Darigold Northwest Organic Milk. Arla Foods, has launched organic milk in KSA (Kingdom of Saudi Arabia) in a bid to become a leading organic milk brand in North Africa and the Middle East by end of 2020. Fonterra Co-operative Group Ltd., has entered into a joint venture with A2 Milk Company Ltd., a New Zealand based manufacturer of organic milk and infant formula, to enhance its market presence in the Asia Pacific. Organic milk companies are also focusing on introducing lactose-free organic milk, particularly for lactose-intolerant consumers. Clover Stornetta Farms Inc., has launched first unconventional non-GMO verified lactose free milk project encompassing a full line of products derived from organic milk, such as organic whole milk yogurt.
The covid-19 pandemic has led to growing awareness towards healthy and nutritional diet among consumers. This has resulted in a demand spike for the organic milk across the globe. During the COVID 19 pandemic the demand for organic food went up as consumers perceived them as being healthier and good for immunity. In India, there has been a paradigm shift post the 2020 pandemic as consumers began to buy more organic foods as a preventive health measure. This change in perception is likely to drive the growth of the organic milk market in future as well. A team of researchers from the INRAE Occitanie-Toulouse center has studied the resilience of French organic dairy cattle farms and supply chains during the COVID-19 pandemic, which were very little affected by the crisis. Of the 86 farms that responded to the survey, 38 farmers reported no impact from the crisis and 43 others experienced minor impacts on aspects such as their income. Very few were affected by problems with the availability of workers. The vast majority of these farms were self-sufficient for livestock feed and relied mainly on grassland. Thus, no farmer reported shortages in the supply of feed or other inputs nor related impacts on the technical functioning of the farm and its productivity.