ORGANIC MILK MARKET ANALYSIS

Organic Milk MarketSize and Trends

Market Dynamics

• Changing dietary preference of the people towards organic food & beverage products is propelling demand for organic milk products. According to reports published by the Food and Drug Administration of United States, six in 10 U.S. citizens believe that organic food products are better for their health. Also, according to the U.S Department of Agriculture, 4% of the total food sales in the U.S. in 2016 were organic products. The organic retail sales in Europe stood at US$ 30.85 billion in 2014, as estimated by The International Federation of Organic Agriculture Movements.
• Moreover, increasing awareness about harmful effects of chemical traces in milk products are leading to increasing demand for organic milk products. Chemical fertilizers contain harmful toxins such as nitrates, heavy metals, and metal salts, which adversely affects human health and lead to various issues related to cellular metabolic processes. However, organic farming method includes feeding of 100% organic feed to livestock, which do not contain any harmful traces or growth hormones or antibodies. Therefore, increasing popularity of organic food as a safe food is projected to fuel growth of the global organic milk market over the forecast period.
• The cost of organic milk is higher than conventional milk, which is a major challenge for growth of the market. Furthermore, governments across various regions have imposed strict regulations on organic milk products. For instance, the United States Department of Agriculture (USDA) established guidelines for organic certification. Under USDA organic regulation (7 CFR 205), farms need to follow standards such as Land Requirement (205.202), origin of livestock (205.236), Livestock Feed (205.237), and Livestock Healthcare Practices (205.238) in order to be eligible for organic certification. Such strict regulations forces manufacturers to maintain their product quality and thus, is expected to be a major restraining factor for the market growth.