Increasing Utilization of Dairy Products to enhance Milk Market Growth
The global milk market is anticipated to develop at a consistent CAGR of over 3% over the estimated forecast period. Expanding milk production worldwide is one of the key components driving this market. The worldwide yield in 2019 remained at more than 837 million tons, ascending by 2.1% from 2018. Production is relied upon to grow further in the estimated time of 2020-2025, to reach at 948 million tons in 2025. In the coming decade, milk production is relied upon to observe a normal annual increment of 1.8%.
The global fresh milk market has driving force for its development in the European Union because of the specialization and rebuilding of its production industry since the sparring of the milk quotas production in 2015. In the Americas, the rising populace and developing milk production are favoring the growth of the market. Milk production in Latin America and the Caribbean zone is anticipated to develop by 18% by 2027, despite the fact that its share in the global industry expected to stay stable. China, a significant merchant of dairy items, will expand its household production of milk in the coming period by 1.5% per annum. Comprehensively, the utilization of fresh milk is therefore expected to develop faster than processed dairy items, growing yearly by 2.1% during the forecast period.
Milk Market Dynamics
- Rising health awareness among the consumers globally
- Absence of strict regulatory frameworks
- Increasing volume of funds from private and public sectors
- Lactose intolerance
- Misconceptions associated with the consumption of milk
- The rise in veganism
- The immense demand for lactose-free milk
In the United States 5%, Europe 10%, and China 90%, of the populace are prejudiced to lactose and lactose-based products mainly milk. In these regions, zero lactose milk is seeing tremendous demand. According to most of the population, products with low degrees of lactose and sugar are viewed as sound & healthy. There is a noteworthy increment in the quantity of lactose-free items. The United States represents 29% of all lactose-free milk consumed over the world. The zero-lactose milk market is anticipated to register a CAGR of 7%.
Asia will represent 70% of the growth in worldwide milk production due to the growing populace and disposable incomes. Milk production in the Asia Pacific region’s developing countries is expected to grow annually by 3%, making it the dominant region in the global milk market. Pakistan and India represent the largest part of the anticipated increase in worldwide milk production in the forecast period. These two nations are relied upon to contribute more than one-fourth of the global milk demand in 2027. Europe and North America are expected to be second in line in the global milk market. The expected growth in Europe and the Americas is comparatively slower, anticipated around less than 1% annually.
Global milk demand is consistent and is expected to increase during the forecasted time period. Continuous expansion in the exports of fresh milk is driving the market globally. Moreover, the increasing population, alternate uses of milk, and their increasing consciousness towards the benefits of consuming milk are boosting the demand for the global milk market. APAC seems to be the market leader in the global geographies, china is the major importer of milk worldwide, while India is the largest milk producer in the world with a production capacity accounting for 22% of the global milk production. Europe seems to have similar trends as India, But with a relatively slower growth rate. The huge demand for lactose-free milk in most countries is growing constantly resulting in a great market opportunity for many players. The market is rising due to many factors but less regulatory rules and regulations in the industry and fewer entry barriers to enter into the market, make the milk market more competitive. Increasing veganism and consumer shift towards plant-based food products can hamper the growth of the market. Although, the global milk market is expected to have healthy growth during the forecast period of 2020-2025.