Organic Dairy Products Market By Type (Liquid milk, Milk powder, Cheese & butter, Others (Ice-cream, yogurt, and cream)) By End User (Children, Adults, The Aged) and Region - Global Forecast to 2026

The global organic dairy products market was valued US$ 12 Bn in 2017 and is expected to register a CAGR of 7.2%. The report offers in-depth insights, revenue details, and other vital information regarding the global organic dairy products market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report also offers insightful and detailed information regarding the various key players operating in the global bioethanol market, and their financials, apart from strategies, acquisitions & mergers, and market footprint. The global organic dairy products market is segmented on the basis of type, application, and region.

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Organic dairy products are the products from livestock raised according to organic dairy methods. The livestock are feed with organic feed i.e., feed cultivated without use of fertilizers or pesticides.

Global Organic Dairy Products Market Dynamics:

Increasing popularity of organic products owing to heath awareness among the people is expected to be major factor driving growth of the global organic dairy products market. Growing awareness regarding the health benefits associated with consumption of organic products coupled with increase in number of diseases due to consumption of conventional food is expected to drive the market growth.

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More than 50% of the people in North America and Europe prefer organic products. Increasing obesity rate in these region make the households to go for organic products rather than other substitutes. Conventional food products are cheap but they aren’t healthy for body, so most of the people go for organic food than conventional food products, which is expected have positive impact on market growth.

Furthermore, health benefits associated with consumption organic dairy products is expected to be another factor driving market growth. Organic dairy products contain omega 3 fats such as linolenic acid, eicosapentaenoic acid (EPA), and docosapentaenoic acid (DHA) which are essential fatty acids for humans. Moreover, organic milk also contains rich amount of conjugated linoleic acid, which is a cancer fighting fatty acids.

However, high cost of production of organic dairy products is primary factor which is expected to hamper the growth of the global organic dairy products market. Manufacturers has to obtain milk from cow that has not been treated with antibiotics or growth hormones and further, has to be fed with organically grown feed which increases the production costs and affect market growth.

The availability of organic dairy products due to growing prominence of organized retail, coupled with increasing global connectivity is expected to boost the demand for organic dairy products. Major retail players such as Walmart, Carrefour, Costco, Schwarz Group, Tesco, Kroger, Aldi, Auchan, etc., has helped to create awareness regarding the organic dairy products which is expected to fuel market growth. Moreover, increasing number of e-commerce stores is expected to create high potential revenue opportunities for existing as well as new entrants in the organic dairy market.

Market analysis by type:

On the basis of type segmentation, organic milk segment is expected to contribute major revenue share and is expected to maintain its dominance over the forecast period. Growing awareness regarding the benefits of organic milk through promotional activities is expected to boost the market. Increasing adoption for organic milk in foodservice sector namely by McDonalds and Pret a Manager is estimated to boost the sales of organic milk. Manufacturers can promote and sell the products through e-commerce sites which is expected to increase the customer base for organic liquid milk over the forecast period.

Market analysis by end user:

Among all the end user segments, children segment is expected to be fastest growing end user segment in the global organic dairy products market, owing to factors such as consumption of organic dairy products provides children calcium, protein, iodine, riboflavin, and vitamin B12. Organic dairy products provide many health benefits to children such as healthy bones, good teeth, prevents dehydration, prevents obesity, and controls blood pressure, which is expected to drive market growth.

Analysis by Region:

Europe organic dairy products market is expected to dominate the global organic dairy products market, and it accounts for largest market revenue in 2017, as compared to that of markets in other regions. Dominance by Europe market is expected to continue over the forecast period and is expected to grow with a CAGR over 6.4%.

According to Agriculture and Agri-food Canada, some European governments encourage milk consumption by supplying milk in schools to children to fulfil their dietary requirements. In Europe to manufacture and sell organic dairy products the foam must be registered with organic control body and should adopt the organic standards specified. In UK, registrations are implemented by Department of Environment and Food and Rural Affairs.

In Europe, the council regulation (EC) No. 834/2007 manages the legal framework for all levels production, distribution, control, and labeling of organic products. To import organic products in Europe, the products needs to fulfill EU legislation and in particular both organic and general food legislation.

North America is expected to be fastest growing region in the global organic dairy products market. As per the standards of USDA’s National Organic Program (USDA, Agricultural Marketing Service, 2008a) to become a certified organic dairy, the cropland providing feed to the dairies must be organically managed for 36 months. The feed given to the animals should be 100% organic. Furthermore, the animals should receive organic health care of 12 months before being certified. The organic dairy animals should not give hormones such as rBST or antibiotics. Furthermore, increasing popularity of organic dairy products for high nutritional level, high vitamins, and more antioxidants is expected to drive the growth of organic dairy products market in North America.

In Asia Pacific, the China market is expected to contribute the major revenue share. Various companies import organic dairy products from Australia, US, and Japan. The dairy products are sold with Chinese organic logos. Consumers prefer organic products over conventional products due to health benefits offered by the organic products. Moreover, the melamine scandal in which many infant children ware dead due to consumption of conventional milk which boosted the demand for organic milk in China in Asia Pacific.

Global Organic Dairy Products Market Segmentation:

Global organic dairy products segmentation, by type:

• Liquid milk
• Milk powder
• Cheese & butter
• Others (Ice-cream, yogurt, and cream)

Global organic dairy products segmentation, by end user:

• Children
• Adults
• The Aged

Global organic dairy products segmentation, by region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa