The global market for dairy products is forecast to reach $494 billion by the year 2015. Recovery in consumption post global recession, continuing population growth, rising demand from developing countries, trade liberalisation, and continued growth in advertising are expected to fuel market growth. In a latest release of a comprehensive global report on dairy products market, the US-based Global Industry Analysts (GIA) Inc; said that the past three years witnessed rapid growth of the global dairy industry, which was curtailed by the global economic recession, changing weather conditions in export markets and varying feed and other input costs, among others.
The global recession has made a negative impact on the affordability as well as demand for dairy products, changing consumer behaviour across several markets worldwide.
Demand for various milk products slumped in 2009 in the wake of recession. Spot prices in the international market for dairy commodities declined following the recession, and hit the lowest level in the month of February 2009. However, prices registered an increase since then in response to tighter global supplies and improving economic conditions. Demand for dairy products began to recover in the latter part of 2009 and the industry began to witness growth in early 2010.
“The market for dairy products is forecast to gain momentum over the ensuing years. Economic recovery in various parts of the world, along with an inclination for value-added products (organic produce and products with additional nutritional benefits) is expected to add significant market growth,” analysts said.
As customers demand dairy products that fit their diet and nutritional chart, the scope for the growth of new, innovative, and healthier products has increased. Global dairy market, over the recent years, has expanded mainly due to the introduction of new dairy products, including omega-3 fatty acids-enriched milk, and A2 milk.
Other health oriented dairy products include probiotic yogurts, standard milk with less fat, fromage frais and lactose-free goat cheese products. Besides health, convenience also played a vital role in the growth of global dairy market.
“Most of the growth in milk consumption over the recent years has been primarily driven by the developing countries. Growth in the global milk market is primarily attributed to the rising demand in China and India, wherein a large quantity of milk is sold in the unorganized sector. Ice Cream and related products segment represents the fastest growing segment. Butter consumption worldwide is estimated to reach $22.6 billion in 2012. Production-wise, India is the largest producer of butter worldwide, followed by the EU and the US. Other leading producers include New Zealand, Russia and Mexico,” the researchers added.
Major players profiled in the report include Amul (Anand Milk Union Limited), Arla Foods, Dairy Farmers of America Inc; Dean Foods Company, Groupe Danone SA, Groupe Lactalis SA, Kraft Foods Inc., Meiji Dairies Corporation, Nestle SA, Saputo Inc., Unilever NV, among others. PD
—From Food & Beverage News
