Dairy Products Market is Estimated to Witness High Growth Owing to Rising Health-Conscious Consumers and Increasing Demand for Nutritious products
The Dairy Products Market is estimated to be valued at USD 129.60 billion in 2024 and expected to exhibit a CAGR of 8.2% over the forecast period 2024-2031. The market for dairy products is growing owing to rising health consciousness among consumers and increasing demand for nutritious foods. Furthermore, innovation and product launches catering to specific dietary needs are also fueling market growth.
Rising Health Consciousness
Consumers are increasingly becoming health conscious and prefer foods that are low in fat, cholesterol, sugar and calories. Dairy products such as yogurt and cottage cheese are viewed as healthy options. The nutritious profile of dairy including calcium, vitamins, proteins etc. is boosting its demand.
Growing Working Population
With rapid urbanization, the working population has increased significantly over the past few years. This has led to a rise in demand for convenient, on-the-go snack and meal options. Products like flavored milk, dairy-based beverages are gaining traction owing to their portability and nutritious value.
Increasing Health Awareness and Demand for Nutritious Food
Consumers are becoming increasingly health conscious and focusing more on nutrition. Dairy products are considered very nutritious as they provide various essential vitamins, minerals and proteins. Milk and yogurt in particular are excellent sources of calcium, vitamins D and B12 which are important for bone health. The rising awareness about the health benefits of dairy is driving up the demand. People are incorporating more dairy into their diets for improved nutrition and health.
Population Growth and Changing Lifestyles
The global population is growing steadily which directly impacts the demand for food and beverages. As populations increase, more dairy products will be required to meet the nutritional needs. Additionally, lifestyle changes are influencing consumption patterns. People now lead busier lives and prefer convenient, on-the-go food and beverage options. This works in favor of dairy products like milkshakes, flavored milk, cheese slices and yogurt tubes or bottles which can be easily consumed anywhere. Ready-to-consume dairy items are seeing tremendous popularity due to their portability and convenience.
Inflation and Rising Cost of Production
Rising costs of key inputs like cattle feed and farm equipment are pushing up the overall costs for dairy farmers. At the same time, fuel and transportation costs are spiraling due to high inflation. These increased costs are narrowing margins for dairy producers. Higher production costs are also reflected in increased retail prices of dairy products, restraining their demand to some extent. Customers may shift to cheaper alternatives if dairy products become too costly. Producers will need to control costs to maintain profitability and competitiveness.
Alternative Milk and Dairy Free Trends
The market faces a threat from the rising popularity of plant-based milk alternatives like soy milk, almond milk and oat milk. A section of consumers, especially those with lactose intolerance or vegan preferences, are opting for these dairy-free substitutes over regular milk. Specialty brands are marketing alternative milk products as more ethical, sustainable and environment-friendly options. Their innovative packaging, flavors and improved taste appeal to a widening customer segment. This is posing challenges to the growth of conventional dairy milk.
Emerging Economies with Growing Consumption Power
Developing countries like China, India, Brazil, Indonesia and others present large opportunities for dairy producers due to their growing populations and rising disposable incomes. As living standards improve in emerging economies, consumption of high-protein foods and beverages increases substantially. Dairy consumption in developing markets is lower than global averages currently, signaling huge untapped potential. Local and multi-national companies can capitalize on this by expanding their presence in developing countries.
Innovative New Product Development
The dairy industry needs to focus on developing innovative, value-added products to attract more customers. There is scope for new formats, flavors, ingredients blends and nutritional enhancements. For example, cheese products with added fiber, herbs or vitamins. Protein-enriched yogurts, chilled coffees containing dairy, exotic fruit flavors in milk could all widen the customer base. Advanced product R&D will help keep the industry dynamic and generate new demand in the mature markets.
Link - https://www.coherentmarketinsights.com/market-insight/dairy-products-market-5036
Key Developments
- In January 2024, the Gujarat Cooperative Milk Marketing Federation (GCMMF), the parent organization of the popular Amul brand, launched its new skimmed milk product called Sagar across India. This launch is part of GCMMF's strategy to expand its dairy product portfolio and cater to the growing demand for healthier milk options among consumers.
- In May 2024, Amul, one of India's largest dairy cooperatives, reportedly launched its iconic milk brand in the United States. This move marks a significant milestone for Amul as it expands its global footprint and introduces its high-quality dairy products to the American market.
- In 2023, Mother Dairy, a leading dairy brand in India, announced plans to launch about 100 new products over the next three years. As part of this initiative, the company has already introduced 15 new products in 2023, further diversifying its product portfolio and catering to the evolving preferences of Indian consumers.
- In 2023, ITC Limited, a diversified conglomerate in India, launched its new milk brand called Aashirvaad Svasti Daily Milk. This launch is part of ITC's strategy to expand its presence in the dairy market and offer high-quality milk products to consumers under the trusted Aashirvaad brand.
Key Players
Arla Foods Amba, Dairy Farmers of America Inc., Danone S.A., DMK Group, Fonterra Co-operative Group Limited, Frieslandcampina, GCMMF, Lactalis International, Meiji Holdings Co. Ltd., Nestle S.A., Dean Foods Company, Saputo Inc., Megmilk Snow Brand Co. Ltd., Parmalat S.p.A., Unilever N.V., The Kraft Heinz Company, Royal FrieslandCampina, and DMK Group.
