Organic Milk Market Showcases Positive Demand for Major Product Categories during 2018-2028

Posted on 2019-07-24 by Mark Hub in Food & Beverage // 0 Comments

In order to dissert the market scenario prevailing across the organic milk market sector, FactMR has evenly presented a comprehensive market report on organic milk demand to its extensive online repository. With all vital market facets enclosed into this single assessment, readers can learn about different market drivers, opportunities and trends which are likely to influence the overall market space for the organic milk market in the coming years. In addition, factors such as market size, Y-o-Y growth and revenue share are investigated so as to make this research highly authentic and reliable.

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Organic milk marketplace is marked by relatively low number of players who control a major share of the overall sales of organic milk. The consolidated nature of the organic milk market has put large scale producers of organic milk in an advantageous position. Four Tier 1 companies namely Danone, Fonterra Co-operative Group Ltd., Agropur Dairy Cooperative and Dairy Farmers of America account for a significant share of over 30 percent in the overall organic milk market. With main emphasis on capacity expansion, these Tier 1 players continue to focus on product line extensions by introducing new organic milk derivatives such as organic yogurt and organic infant formula. Joint ventures are a common growth strategy observed among these major players, in a bid to increase their global footprint and serve new regional markets with high growth potential. However, companies in organic milk marketplace have been facing challenges apropos to following safety regulations imposed by different countries regarding organic milk ingredients. Moreover, complying with stringent regulations imposed by FDA and USDA remains a key challenge for these players.

Oligopoly of Tier 2 and Tier 3 Organic Milk Companies in North America Continues

Presence of tier 2 and tier 3 companies involved in the production and distribution of organic milk continues to remain concentrated in developed counties, particularly the United States and Canada. The Kroger Company holds a significant share in the US. Other companies such as Organic Valley, Straus Family Creamery Inc., and Clover Stornetta Farms Inc. hold a major base in the North America region, with an overall share of around 49 percent in the organic milk market. There are exceptions to this trend though – Arla Foods and Groupe Lactalis S.A generate bulk of revenues from organic milk sales in Europe. While over 50% revenues of Arla Foods come from Europe, the region accounts for a whopping 80% share of Groupe Lactalis’ overall revenues.

Development of Organic Food Chains Complementing Sales of Organic Milk

Growing consumer preference for organic foods on the back of increasing lifestyle disorders such as anxiety, diabetes, high blood pressure and stress, has translated into mushrooming of organic food restaurants and cafes worldwide. Entrepreneurs are venturing into the organic space, investing in organic restaurant establishments to cater to the organic food preferring demographic. In 2017, organic food sector services have risen by more than 10 percent, which has complemented to the sales of organic milk on a large scale. According to research carried out by Soil Association, in November 2017 more than half of consumers aged between 18 to 55 years were inclined toward organic food chains. This factor has substantially impacted the demand for organic milk, consequently pushing the growth of the organic milk market worldwide.

The organic milk market is segmented on the basis of product type (skimmed milk, whole milk and partly skimmed milk), source (cow, buffalo and other sources), packaging type (pouches, cans, bottles, tetra packs and bulk packs), pasteurization type (high temperature short time method, ultra-pasteurization and vat pasteurization), distribution channel (HoReCa, specialty stores, modern trade, convenience stores, e-retailers and other), flavor type (non-flavored and flavored) and region (North America, Latin America, Europe, CIS & Russia, Japan, Asia Pacific excluding Japan and Middle East and Africa).

Additional Questions Answered

The report on organic milk market answers additional questions such as:

Which is the most attractive region for organic milk in terms of sales?
To what extent can government regulations impact the growth of the organic milk market?
Which trends are impacting sales of organic milk and how can organic milk producers leverage them?
Which is the most preferred packaging type for organic milk?
Which type of organic milk is gaining high traction?
Which is the most lucrative channel for distribution of organic milk during the assessment period?

Research Methodology

Data on organic milk market is obtained using robust research methodology. Primary and secondary research techniques have been implemented to glean essential organic milk data along with dependence on external source of information. All the statistics and data are triangulated and compiled to acquire accurate insights on organic milk market.

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