Flavoured Milk Market - Forecasts from 2023 to 2028

The flavoured milk market is expected to grow at a CAGR of 8.2% from a market size of US$49.23 billion in 2021 to reach US$91.79 billion in 2028.

Flavoured milk is a category of sweetened dairy beverage made from milk, sugar, taste profiles, and sometimes food colouring. It can be offered as a pasteurised, refrigerated product or as an ultra-high-temperature treated product that does not need to be refrigerated. It can also be produced at home and in restaurants by combining flavourings with milk or as a pre-packed product on grocery aisles. Manufacturers in the global flavoured milk market offer new and creative products to cater to the growing demand for innovative flavours as customer preferences shift. This includes creating flavours that are popular in the region, giving fruit-flavoured variations to appeal to younger customers, and presenting flavoured milk with increased functional features. The market for flavoured milk is categorized into various segments, including the type of flavoured milk, distribution channels, and geographical regions.

Individuals are seeking to augment their diets with immune-boosting nutrients and enhance their gastrointestinal health by including fortified dairy products and alternatives with functional claims. Simultaneously, customers are increasingly drawn to functional items positioned to help them relax, sleep better, and boost their mood to cope with persistent uncertainty, worry, and anxiety. Consumers are increasingly demanding functional flavoured milk as a result. Moreover, rising health consciousness has led companies to launch low-sugar or sugar-free alternatives in the flavoured milk category. For instance, in April 2023, Wisconsin-based dairy company DARI LLC announced the debut of their new brand, MOO'VTM, an ultra-filtered, lactose-free whole milk beverage available in three delectable flavours. MOO'VTM is a high protein, low sugar beverage for kids.

The new flavours being launched targeted at millennials.

Flavoured milk companies have continued introducing new beverages for the millennial demographic. This segment always seeks novel and intriguing flavours and sustainable ones since they are passionate about environmental concerns and enjoy diversity. However, the increasing prevalence of lactose intolerant cases and high and volatile prices of raw materials obstruct the growth of the global market for flavoured milk during the projection period.

The growing demand for new innovative and explosive flavour profiles is augmenting the demand for flavored milk products.

Sweet flavours are losing their monopoly over flavoured milk products. Fast-moving vendors are increasingly going outside the box to create bright, punchy solutions that appeal to millennials worldwide. The creamy texture of milkfat allows producers to experiment with spicy, acidic, herbal, and other unusual tastes. Millennials also demand ethnic-inspired flavour profiles in flavoured milk. Such items not only satisfy their taste senses but also provide them with the opportunity to learn about another culture. Tres Leches, shortcakes, figs, pear, pandan, and Thai chilli are increasingly used in flavoured milk as Asian, Mediterranean, and Latin American flavours combine well with dairy. For instance, in September 2022, Indian FMCG brand Godrej launched an RTD-flavoured milk called "Nutty Badam," replicating the famous ethnic Indian drink called Badam Doodh.

In recent years, plant-based milk products have flourished in the market exponentially. Plant-based flavoured milk products face fresh competition as they develop new flavours and ingredients. Animal-free dairy milk, created from whey proteins generated by cellular agriculture, is also available in stores worldwide. This type of milk is lactose-free and cholesterol-free. The growing number of vegan and vegetarian populations is one of the primary fact driving the growth of plant-based flavoured milk. In 2022, the Dutch dairy brand Chocomel owned by FrieslandCampina, launched the vegan version of its hugely popular chocolate milk in the United Kingdom.

The Asia Pacific is anticipated to hold a significant global flavoured milk market share.

Asia Pacific region is anticipated to hold a significant market share in flavoured milk. This region will experience rapid expansion throughout the projection period due to growing demand for new and innovative flavour profiles for milk products. Flavoured milk is in high demand in markets such as India, South Korea, and China. This region's market is also expanding due to the growing millennial population. This region's market is expanding due to changing eating habits and rising demand for healthy beverages. In addition, the prevalence of key market players such as Amul, Nestle, Danone and others also spurs the growth of flavoured milk in this region. The region is also experiencing various launched from niche brands with specialty products and giving tough competition to bigger well-established brands.

Market Developments:

• In April 2023, Breaka, a Lactalis-owned flavoured milk brand, collaborated with Perfetti Van Melle's Chupa Chups to offer a pair of limited-edition candy-flavoured milk. Breaka Chupa Chups Strawberry & Cream flavour milk is inspired by the tastes of Chupa Chups' two best-selling lollipops. In contrast, Breaka Chupa Chups Choco & Vanilla flavoured milk offers creamy chocolate and caramelized vanilla taste.
• In April 2023, Brownes Dairy introduced a new line of flavoured milk emphasizing dairy's advantages by utilizing fresh full cream milk, natural flavours, no added sugar with no artificial colours or preservatives, and only the natural sugar in milk. The Vanilla and Chocolate Natural Flavoured Milk, will first be offered in a 250ml bottle for on-the-go and a 1-liter carton for at-home use.
• In April 2023, Bega Group introduced lactose-free versions of its Dare, Big M, and Dairy Farmers Classic lines. Lactose-free versions of Dare's best-selling double espresso and lactose-free chocolate-flavoured milk from Dairy Farmers Classic and Big M are now available to consumers.

Market Segmentation:

By Type

• Dairy-Based
• Plant-Based

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialist Stores
• Online Retail Stores
• Other Distribution Channels

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others