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Global Dairy Market to Grow by 2.5% p.a. till 2020

"According to a new report by EMR, ‘Global Dairy Market Report and Forecast 2019-2024’, the global dairy market is expected to grow by 2.5% per annum till 2020. The dairy market was aided by the 2% growth in the milk output in 2018, as compared to the previous year, attaining about 827 million tons."

The global dairy market is being driven by the growing demand for dairy across the world. Dairy demand, especially for products like butter and dairy fat, is witnessing a resurgence in developed countries due to the change in eating habits and a more favourable view of dairy fat in recent years. In developing countries, the consumption of dairy products is expected to increase due to a rise in incomes, population growth, and increasingly globalised dietary habits. However, the per capita dairy consumption in emerging economies, while projected to see a growth, is still expected to remain much lower than developed countries in the forecast period. While fresh dairy products are consumed more extensively in emerging nations like India and Pakistan, the consumers in developed economies tend to prefer processed dairy products. In developed countries, most of the milk produced is transformed into cheese, butter, SMP and WMP. They are expected to witness a 9% growth in milk production in the forecast period with the majority of the milk being processed into cheese followed by SMP, butter, and WMP. In developing countries, the increase in milk production will be over 30% with the majority of the milk being used to produce fresh milk products.

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Asia is a major dairy market globally and defines the climate of the global dairy market as a whole. China, India, and Pakistan are the leading markets in the region with India and Pakistan accounting for most of the projected growth in milk production in the continent. In contrast to developed countries where the surplus milk production is converted to processed dairy products, in India and Pakistan the surplus production of milk is expected to be converted into fresh dairy products meant for domestic consumption.

The United States, another major dairy market, is recovering from drought with increasing dairy production. It aims to export its surplus production of milk which is aided by the subsequent increase in the demand for US dairy, especially from Southeast Asia and Mexico. Algeria has also increased its imports of milk powder. Thus, US dairy export rose by 14% in 2018. The export of dairy from major markets like the US, EU, New Zealand, Australia, Argentina, and Uruguay saw an increase of almost 5.2% in Q1 of 2018 as compared to March 2017. However, the growth in the value of dairy exports for the same period was significantly higher, growing by 15.3% due to increased dairy commodities prices.

Market Analysis by Types and Regions:

  • The major dairy products available in the global dairy market are fluid/UHT/flavoured milk, cream, butter, ghee, anhydrous milk fat (AMF), skimmed milk powder/non-fat dry milk, whole milk powder, whey protein (powder and concentrate), Indian cheese (paneer), lactose, casein, cheese, yoghurt, ice-cream, and probiotic dairy products.
  • Region-wise, the global dairy market is divided into North America, Europe, Asia Pacific, LATAM, and Middle East and Africa regions.

Key Findings of the Report:

  • Cheese is one of the major dairy products consumed globally, and its trade grew by 1.2% in 2018, as compared to 2017, to attain a volume of 2.6 million tons.
  • The dairy production in the US rose by 1.4% in 2017 from the previous year, and was the leading cheese producer globally in 2018. 
  • Australia is a leading dairy exporter, exporter over 50% of its total dairy production.
  • Canada, Belarus, Iran and Turkey are other significant dairy exporters which have been expanding over the years. 
  • Dairy was a leading segment in the Germany food and beverage industry in 2017, falling just behind the meat and meat products segment. 
  • The growing health awareness among the consumers has led to a rising demand for products like yoghurt, soft cheese, milk protein, and flavoured milk.

Key Offerings of the Report:

  • The EMR report analyses the historical (2014-2018) and forecasted (2019-2024) market for global dairy.
  • The report provides a global trade analysis for 2018 by looking into the value and volume of the major dairy importing and exporting countries.
  • It also gives a detailed region-wise historical (2014-2018) and future (2019-2024) price trends in the dairy market.

The key players in the global dairy market analysed by the EMR report are Nestlé S.A, Danone S.A., Lactalis Group, Dairy Farmers of America, Inc, Royal FrieslandCampina N.V., Fonterra Co-operative Group Limited, Arla Foods amba, Saputo Inc., Inner Mongolia Yili Industrial Group Co Ltd, China Mengniu Dairy Company Limited, Dean Foods Company, and Saputo Inc. The report looks in-depth into their capacities, market share, and latest developments like mergers and acquisitions, capacity expansions, and plant turnarounds.

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"Global Dairy Market: By Product: Fluid Milk, UHT Milk, Flavoured Milk, Cream, Butter, Anhydrous Milk Fat (AMF), Skimmed Milk Powder/Non-fat Dry Milk, Whole Milk Powder, Whey Protein (Powder and Concentrate), Lactose, Casein, Cheese, Yoghurt, Ice-cream, Probiotic Dairy Products; By Region: North America,Europe, APAC, LATAM, MEA; Historical Supply and Demand (2014-2018); Supply and Demand Forecast (2019-2024); Regional Price Trends; Trade Analysis; Competitive Landscape; Consumer Analysis"

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