is considered to be a complete food for human diet. For any mammal,
milk is the primary source of nutrition, especially for infants, since
this white liquid is easily digestible. Numerous health benefits
associated with the consumption of milk include, but not limited to
improved bone strength, stronger immune system, reduced risk of
cardiovascular diseases, and healthier skin. Adequate consumption also
aids in the deterrence of diseases such as dental decay, dehydration,
obesity, and many other chronic diseases. Milk contains nutrients
including Calcium, Vitamin A, B12, D, Phosphorus, Magnesium, Selenium,
Protein, Riboflavin, Zinc, Carbohydrates, etc.
Milk accounts for
around 14% of modern agricultural trade, along with its other products.
Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) are the most
demanded and traded commodities, whereas fresh milk accounts for only
less than 1% of production traded. Infant Formula Milk is another highly
demanded commodity with products such as Starting Milk Formula,
Follow-on Milk Formula, Toddlers Milk Formula, and Special Milk Formula.
According to Food and Agriculture Organization of the UN, by production
tonnage, milk ranked third with a production of 770 billion liters and
was the most demanded agricultural commodity in terms of value globally
Global milk industry depends on breeding animals such as
cows, goats, sheep, buffaloes, and camels for milk production. However,
lactose-free alternatives such as soy milk and almond milk are also of
significant demand in the milk industry. However, cow milk is estimated
to hold an 80% share of the global milk production. Buffalo milk,
although produced in fewer quantities than cow milk, is produced and
traded mainly in countries such as Pakistan and India. The milk
production system can be categorized into four, namely specialized
landless system, market-oriented system, subsistence-oriented integrated
dairy-crop systems, and pastoral systems.
Market Dynamics, Trends, and Outlook:
global milk industry is driven by the substantial demand from countries
with dietary guidelines recommending milk as a staple food. Milk
provides an average 134 kilocalorie of energy per capita per day. It is
also an affordable source of nutrition to meet the daily recommended
levels. For instance, in the United States, 100 kilocalorie milk costs
only around US$ 0.23, whereas other sources such as egg, vegetables, and
poultry cost around US$ 0.41.
North America accounts for a major
share in the global milk industry with the U.S, Canada, and Mexico
contributing significantly to the growth. Whereas, in South America,
Brazil and Argentina dominate the industry and countries such as Uruguay
and Chile are projected to exhibit slow growth.The milk industry in
Russia exhibits a stunning growth with around 40% of the gross product
of animal husbandry. The largest milk producer in the world is India
followed by the U.S., China, and Pakistan, among others.
demand for milk and its products is projected to register a substantial
growth, which in turn will result in price volatility. The industry is
expected to witness erratic changes in prices in the upcoming years. The
changing lifestyle, food habits, population growth, etc. are some of
the factors bolstering the growth of the global milk industry. In a
nutshell, the hike in milk production and consumption worldwide is the
key factor boosting the global milk industry growth.
the European Union was regulated by a milk quota system until 2015,
according to which every member state had a national production quota.
In case if any state exceeded its quota, it must pay a set penalty to
the EU. The abolishment of this system has been affecting the global
milk industry on a positive note, which in turn is expected to spur the
growth of the global milk industry in the near future.
of a variety of flavors, attractive packaging, and availability in
different forms elevate the consumption of milk globally. For example,
in March 2016, Prairie Dairy Farms introduced two fresh flavors, namely
Strawberry Créme and Orange Crème, of its Peeps flavored milk. The
packaged milk with new flavors and colors has gained strong market
demand in the developed countries. The key participants in the global
milk industry are slowly shifting their focus toward the developing
countries in order to explore the market opportunities.
schedule of citizens in developing countries opens up a gargantuan scope
for the multinational companies to gain a foothold in such markets
focusing on breakfast products. Selling products through advertisements
highlighting easy breakfast and on-the-go options will propel the growth
of the global milk industry. Growing health concerns encourage the
consumers from abstaining from carbonated soft drinks and other juices,
which in turn creates an opportunity for the milk industry.
from the aforementioned factors driving flavored milk market, the rising
awareness on healthy diet hinders the market growth to an extent.
However, the unflavored milk market witness a steady growth in the
global milk industry and the trend is expected to continue over the
upcoming years as well.