With increasing awareness, the demand for organic dairy products has been increased over the last decade. The Global Organic Dairy Products market was valued at around USD 20 billion in 2019 and expected to grow at a CAGR of double-digit to reach near USD 40 billion in 2026. The key factor behind the growth of the organic dairy products market is rising awareness about the harmful effects of consuming artificial ingredients along with increasing health concerns owing to growing occurrences of diseases such as blood pressure, diabetes, heart-related problems, etc. Increased usage of synthetic fertilizers and pesticides in non-organic dairy products is resulting in shifting towards organic dairy products. In addition, many government organizations and organic dairy products manufacturers are concentrating on endorsing benefits associated with organic dairy products, and this is expected to drive growth in the global organic dairy products market.
Many countries are taking initiatives to boost organic farming practices among conventional farmers by launching educational campaigns and providing technical as well as financial help. For example, the Government of India is proposing incentives for the cultivation of natural food products under the National Horticulture Mission. Further, technological advancements for developing innovative products with low fat and reduced levels of sodium and sugar are anticipated to drive their demand in the upcoming years. However, the high price of the organic dairy-based product and less shelf life may restrict the limitation of the global organic dairy product market to some extent.
Major players operating in the organic dairy products market are developing innovative products using advanced technologies to address the varied consumers' demands. The report studies few key players of the global organic dairy product market in detail covering the company profile, product list and financial details. The companies included in the report are AMUL, Danone, Arla Foods UK Plc, Dairy Farmers of America Inc. (DFA), Parmalat S.P.A, Dean Foods Company, Groupe Lactalis SA, Fonterra Group Cooperative Limited., Kraft Foods and Meiji Dairies Corp.
The global organic dairy products market is segmented into product type, application, and region.
Analysis, by Product Type
The organic milk segment has dominated the market and expected to keep its dominance over the forecast period. Organic milk is derived from cattle that are provided with organic nutrition without antibiotics. According to the WHO, the use of antibiotics in cattle feed can pose adverse health risks to humans in the long run. In addition, awareness regarding the consumption of non-organic food and the advantages of its organic counterparts owing to the mainstreaming of organic and natural food products has resulted in a significant upswing in the demand for organic milk. Moreover, the high nutrition value of organic milk, largely comprising omega 3 fatty acids can support cardiovascular health, enhance neurological development and functioning as well as fortify the immune system. This factor has propelled the consumption of organic milk, in turn supplementing the growth of its market.
Analysis, by Region
North America dominated the market with over 35% share in 2019. Key factors supporting the largest share are the ability to manage a higher number of herds, increase in per cow milk production, rising awareness levels among people for nutritional products, and launching of advanced equipment for milk processing.
Asia Pacific region is expected to be one of the fastest-growing regions during the forecast period. India contributes about 16% of global dairy production. The surge in population base, robust consumption of dairy products, and increasing economic growth in this region are the factors attributing significant growth.
Market Segmentation covered in the Report:
By Product Type
- Liquid Milk
- Milk Powder
- Cheese & Butter
- Ice Cream
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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