The global diary market size is slated for steady expansion in the upcoming years owing to increasing demand for dairy and dairy products, finds Fortune Business Insights™ in its report, titled “Dairy Market Size, Share & Industry Analysis, By Product Type (Fluid Milk, Flavoured Milk, Drinkable Yogurt, Cheese, Ice-Cream, UHT Milk, Milk Powder, Others), By Distribution Channel (Specialty Retailers, Hypermarkets/Supermarkets, Convenient Stores, Online Channels, Others) Others and Regional Forecast, 2019-2026”. According to the Agricultural Outlook report jointly produced by the Organization for Economic Co-operation and Development (OECD) and the UN Food and Agriculture Organization (FAO), dairy demand in developed countries is expected to rise to 23.1 kg per capita by 2027 from 22.2 kg per capita in 2017.
In developing countries, the report notes, the growth will be from 10.6 kg to 13.5 kg between 2017 and 2027. Moreover, the report projects that the global dairy production is likely by 22% in 2027 from current levels, with developing countries accounting for nearly 80% of this rise. These projections will drive the dairy market trends during the forecast period.
Market Restraint
Increasing Preference for Veganism to Hamper Growth
Veganism refers to a dietary practice wherein people completely renounce the consumption of all animal-based food and beverage products including dairy, eggs, and meat. The number of people following such diets is rising. In the UK, for instance, The Vegan Society estimates that between 2014 and 2019, the number of vegans rose from 150,000 in 2014 to 600,000 in 2019, quadrupling in a span of five years. The main reason for this prolific growth in vegans in the UK and elsewhere is the spreading awareness about animal cruelty.
In addition to this, there is growing realization about the potential, long-term benefits for the environment as a result of practicing veganism. According to a 2018 study conducted by the University of Oxford, worldwide shift toward fruit- and vegetable-based diets can bring down greenhouse gas emissions by 67% by 2050, saving approximately 8 million lives globally. Furthermore, climate damages and healthcare-related costs worth USD 1.5 trillion can be avoided if the world switches to veganism. This heightened awareness, therefore, may stem the dairy market demand in the coming decade.
Regional Insights
High Dairy Production and Consumption to Augment the Market in Asia-Pacific
Among regions, Asia-Pacific is envisaged to dominate the dairy market share during the forecast period, primarily owing to the high production and consumption level of dairy and dairy products in the region. As per the OECD-FAO report mentioned above, India and Pakistan will account for 32% of global milk production in 2027. Moreover, export of dairy products such as cheese and butter is also expected to surge in the next decade. In 2017 itself the US Dairy Export Council reported that cheese imports from China surpassed 180,000 tons. Supporting this is the expansion of distribution networks in the region through growing number of retail stores, which is further fueling the regional market.
Competitive Landscape
Introduction of Innovative Products to be the Hallmark Feature of Market Competition
Analysis shared in the dairy market report suggests that key players are employing a variety of strategies to cement their position in this market. Chief among these is the increasing investment in R&D to launch to novel and exciting products in a bid to widen their range of offerings and gain an edge in the competition.
Industry Developments:
- December 2018: Danone, a leading food industry company, launched a series of probiotic vegan yogurts under its Light & Fit brand. The product line is called Good Plants and features four flavors based on almond milk – Lemon Meringue, Vanilla, Chocolate Coconut, and Strawberry.
- October 2018: Culture Republick, a Unilever ice cream brand, introduced probiotic premium light ice creams in a unique combination of flavors such as Turmeric Chai & Cinnamo, Pistachio & Caramel, Chocolate & Cherry, and Milk & Honey.
Source: https://www.fortunebusinessinsights.com/dairy-market-102113
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