DAIRY PRODUCTS MARKET ANALYSIS

Lactose intolerance has been one of the key barriers in the growth of the dairy products market worldwide. There has been a steady rise in the population suffering from lactose intolerance in the recent past across regions. As per the National Institute of Health, it is estimated that around 65% of the global population has a reduced ability to digest lactose after infancy. This number is as high as 90% among certain communities and ethnic backgrounds like Asia, Africa, and South America. The inability to digest lactose sugar presents itself in the form of various gastrointestinal issues like abdominal pain, bloating, cramps and diarrhea for those consuming dairy products. This leads to a majority of the lactose intolerant population limiting or avoiding dairy altogether from their diet. As dairy remains one of the primary sources of calcium, protein and other nutrients, this poses a significant health challenge for them. Many are forced to look for alternative dairy-free sources of daily nutrition or calcium supplements instead. This self-imposed restriction has negatively impacted the volumes and has stunted the potential reach of the dairy industry.

Market Opportunities: Product innovation

Product innovation provides a significant opportunity for growth in the dairy products market. As consumers are continuously looking for new, nutritious and convenient options, dairy companies need to proactively develop innovative products that meet these evolving needs and tastes. Some areas that allow for innovation include organic products, plant-based alternatives, probiotic offerings, and single-serve on-the-go packaging formats. One example of innovation helping spur market expansion is the rise of oat milk based products. According to data from the United Nations Food and Agriculture Organization, global oat milk production increased by over 30% between 2017 and 2020. This points to growing demand from consumers seeking non-dairy milk choices that provide similar nutrition from plant-based sources. Leading dairy brands have responded by launching their own oat milk yogurts, ice creams, and creamers. The exposure from these new product lines is attracting more customers to dairy aisles while keeping existing customers engaged.