Global Fresh Milk Market - 2023-2030

Overview

Global Fresh Milk Market reached US$ 65.6 billion in 2022 and is expected to reach US$ 100.5 billion by 2030, growing with a CAGR of 5.5% during the forecast period 2023-2030.

The increasing awareness of health and nutrition plays a pivotal role in the revival of the fresh milk market, with consumers actively seeking products that align with their well-being objectives. Fresh milk's culinary versatility has broadened its appeal, as it takes on a central role in an array of recipes, spanning from breakfast cereals to velvety sauces and delightful desserts.

Furthermore, the fresh milk market has adapted to cater to diverse dietary needs through the introduction of lactose-free and fortified options, accommodating the preferences and requirements of lactose-intolerant individuals and those desiring additional health benefits. Health campaigns and endorsements from experts in the field further shape the market landscape, emphasizing the nutritional merits of fresh milk.

Similarly, North America dominates the fresh milk market, capturing the largest market share of over 1/3rd. The growth is due to health-conscious individuals across North America prioritizing fresh milk as an integral component of their diets, recognizing its role in supporting robust bones, muscle development, and overall health. This shared nutritional awareness, coupled with the enduring popularity of fresh milk, firmly establishes it as a dietary cornerstone.

Dynamics

Health and Wellness Trends

In today's global fresh milk market, a notable resurgence is underway, primarily propelled by the heightened awareness among consumers regarding health and nutrition. Fresh milk, often described as nature's elixir, is a nutritional powerhouse. It boasts a significant calcium content essential for strong bones and teeth, alongside critical roles in muscle function and nerve transmission.

Fresh milk's nutritional profile renders it a versatile addition to one's diet, enhancing not only the overall nutrient intake but also culinary versatility. In recent times, a notable shift has occurred in consumer behavior, marked by an increased awareness of health and nutrition. Fresh milk has garnered significant benefits from this transformation in consumer behavior.

In March 2022, DFA announced the 'first-ever' probiotics-fortified UHT milk as a less expensive alternative for kefir and kombucha. The product, created in collaboration with Good Culture, according to Dairy Farmers of America (DFA), is the first lactose-free, long-life fluid milk available on the U.S market that also contains probiotics that help the microbiota.

Consumers increasingly recognize fresh milk as a natural and nutritious source of essential nutrients, an image further bolstered by health campaigns and endorsements from nutrition experts. This heightened perception of the health benefits of fresh milk has been instrumental in its resurgence in popularity. In many Western countries, fresh milk is a customary breakfast accompaniment, commonly enjoyed with cereals or as a standalone beverage.

Elevating Disposable Incomes

The surge in disposable incomes, particularly in burgeoning economies, represents another substantial impetus for the fresh milk market. As individuals and households experience an uptick in their financial resources, they are increasingly inclined to invest in top-tier food products, fresh milk among them. The demand for fresh milk is intrinsically linked to higher income brackets, frequently regarded as a premium, nutrient-rich beverage.

This driving force is particularly conspicuous in urban locales where income levels tend to be more robust. Urbanization has brought about lifestyle shifts and the increased adoption of dietary patterns that incorporate fresh milk as a regular dietary component. With greater economic capacity, people in these regions are better positioned to incorporate fresh milk into their diets, fostering market growth. The expansion of retail chains and supermarkets in urban settings further streamlines access to fresh milk, giving an additional boost to demand.

Perishability Challenges

The highly perishable nature of fresh milk poses a critical constraint for the market. The limited shelf life of milk necessitates meticulous handling, storage, and distribution to safeguard its quality and safety. The perishability factor results in the wastage of unsold milk upon reaching its expiration date. Additionally, the need for refrigeration across the supply chain can heighten energy consumption and environmental impact.

Fresh milk is one example of a perishable item that needs effective supply chain management to reach consumers before its shelf life expires. Milk rotting before it reaches the market as a result of supply chain delays or disruptions can result in waste and monetary losses. The market is nevertheless constrained by perishability despite efforts to address these issues through advancements in packaging and processing techniques such as ultra-high temperature (UHT) pasteurization and aseptic packaging.

Supply Chain Complexities

The fresh milk market faces intricate supply chain issues that can hinder its seamless operation. A pivotal challenge revolves around maintaining a consistent flow of fresh milk from dairy farms to consumers. This necessitates the upkeep of cold storage facilities and a dependable transportation network, both of which can be financially demanding.

Furthermore, supply chain efficiencies are jeopardized by fluctuations in milk production linked to seasonal variations and the health of dairy herds. These oscillations can lead to supply imbalances and price instability, potentially causing delays in the delivery of fresh milk to consumers and retailers. Timely supply chain management is vital in mitigating these hurdles, but it's often hindered by factors like underinvestment, transportation bottlenecks, and insufficient cold chain infrastructure.

Segment Analysis

The global fresh milk market is segmented based on type, category, distribution channel and region.

Increased Demand for Flavored Fresh Milk

The flavored segment held 34.5% of the global market share. Flavored milk has witnessed a surge in demand within the fresh milk market, primarily due to its wide-ranging appeal among consumers. The popularity of flavored milk is underpinned by several compelling factors that make it a favored choice for a diverse consumer base. First and foremost, flavored milk offers a delightful and enjoyable taste experience.

The enhanced taste dimension not only enriches the drinking experience but also leads to increased milk consumption, benefiting both dairy producers and individuals seeking a delectable and nutritious beverage. Additionally, flavored milk has garnered favor as a convenient and nourishing on-the-go drink. Its packaging in portable containers, including single-serve bottles and cartons, makes it a practical choice for individuals with busy lifestyles.

Flavored milk delivers a combination of essential nutrients inherent in fresh milk, such as calcium, protein, and vitamins, all while offering the extra dimension of flavor. This nutritional profile, coupled with the convenience it provides, positions flavored milk as an apt choice for those in search of a swift and gratifying source of sustenance and energy during their daily routines.

In December 2022, in an effort to satisfy the desires of the younger clientele, the Kolhapur Jilha Sahakari Dudh Utpadak Sangh, widely known as Gokul dairy, has introduced flavor-enhanced fresh milk and plans to do the same with masala buttermilk and mango lassi. Furthermore, the allure of flavored milk extends to its versatility in various culinary applications.

Geographical Penetration

Increasing Demand for Fresh Milk and its Products in North America

The North America fresh milk market held the largest market share of 40.3% in 2022 in the fresh milk market analysis. The growth in the region is boosting as the economic capability has translated into a heightened consumption of fresh milk, particularly in urban centers where income levels tend to be more substantial.

The Association of Equipment Manufacturers' most recent paper, "Environmental Benefits of Contemporary Milk, Hay's and Forage Production Technologies," features a number of facts that assist to demonstrate the beneficial effects of contemporary dairy practices in the U.S. and Canada. As an illustration, the North American milk output increased by 350% between 1960 and 2020. In contrast, productivity in the rest of the world only rose by 150% during the same time period.

Equally significant is the rising awareness of the nutritional merits associated with fresh milk, propelling its demand. Fresh milk is renowned for its richness in essential nutrients like calcium, protein, and vitamins, positioning it as a preferred choice for individuals aspiring to maintain good health and overall well-being. As health consciousness gains ground, fresh milk is increasingly regarded as a natural and nourishing source of these indispensable nutrients.

In addition, the adaptability of fresh milk in diverse culinary applications has broadened its appeal. It serves as a key ingredient in numerous traditional and contemporary recipes, spanning from dairy-based confections to savory dishes and beverages. This culinary versatility has rendered fresh milk a highly sought-after component in the culinary landscape of the North America, further elevating its consumption.

Competitive Landscape

The major global players in the market include: Danone, Nestle SA, Danone S.A., Lactalis Group, Fonterra Co-operative Group Limited, Arla Foods Amba, Saputo Inc., Dean Foods Company, Dairy Farmers of America, Inc., Vethaa and GCMMF.

COVID-19 Impact Analysis

The pandemic wrought havoc on supply chains, hindering the collection, processing, and distribution of fresh milk worldwide. Movement restrictions, lockdowns, and logistical challenges had a substantial impact. The pandemic initially triggered a surge in fresh milk demand as consumers stockpiled essential goods. However, evolving consumer behaviors, including an increased interest in long-lasting milk alternatives, influenced the demand for fresh milk.

The closure of restaurants and food service establishments resulted in reduced fresh milk demand in this sector. This surplus supply affected prices and posed difficulties for dairy producers. Global fresh milk and dairy product exports faced hurdles due to border restrictions and delays. Markets relying on exports were particularly affected. Economic instability and job losses during the pandemic impacted consumer purchasing power. Some consumers turned to more affordable milk alternatives or reduced their overall milk consumption.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict engendered geopolitical tensions and sanctions that could disrupt trade and agricultural exports, potentially affecting fresh milk supply in the region. Trade disruptions, especially in major dairy-producing regions, can influence global dairy markets and pricing. Import and export constraints can affect the balance between supply and demand. Conflicts in Ukraine may disrupt local supply chains, from dairy farming to processing, which can influence the availability and cost of fresh milk in the area.

Geopolitical conflicts can lead to market uncertainty and fluctuation, influencing investment decisions and supply chain planning within the fresh milk sector. In regions affected by geopolitical conflicts, economic uncertainties and supply interruptions can prompt changes in consumer behavior, potentially leading to shifts in milk consumption patterns.

By Type

• Whole/Full-Fat
• Reduced-Fat (2%)
• Low-fat (1%)
• Fat-free
• Others

By Category

• Flavored
• Unflavored

By Distribution channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• E-Commerce
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In June 2023, one of West Bengal's top dairy companies, Aashirvaad Svasti, today announced the arrival of its fresh milk product, Aashirvaad Svasti Daily, in the vicinity. The new product is designed to assist women in getting affordable, high-quality milk that will meet their family's daily milk needs.
• In October 2021, Pure-Pak® Classic 500ml Natural Brown Board cartons by Graham's Organic Milk were launched. Additionally, Sainsbury's supermarkets across the country will begin carrying the award-winning dairy's fresh standard milk in 500ml and 1-litre Pure-Pak® Classic cartons. A renewable PE cap is present on each and every new Graham's milk carton.
• In January 2021, A new product was introduced by Malta Dairy Products, a KPH Group company, under the recognizable Benna brand name. During the official press conference held at The Phoenicia Hotel, they unveiled their brand-new, exclusive milk fortified with vitamin D. This new item will always be available alongside the present selection of fresh milk that Benna provides.

Why Purchase the Report?

• To visualize the global fresh milk market segmentation based on type, category, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of fresh milk market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global fresh milk market report would provide approximately 61 tables, 60 figures and 212 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies