Global Organic Dairy Market Overview 2018: Demand, Trends, Growth, Share, Opportunities and Forecast

“Global Organic Dairy Market Induced by Government Support”
Over the recent years, the global organic dairy market has been witnessing a healthy growth on account of increasing environmental concerns. This can also be accredited to the improving distribution networks, rising health awareness amongst consumers and initiatives undertaken by government for supporting organic farming methods.

According to the latest report by IMARC Group, titled “Organic Dairy Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, the global organic dairy market reached a value of US$ 18 Billion in 2017. Organic dairy products are obtained from livestock which is raised through organic farming methods. In comparison with conventional dairy items, organic dairy products are considered healthier as they are rich in vitamins, anti-oxidants, omega-3 fatty acids and conjugated linoleic acid (CLA). Moreover, organic dairy products offer numerous health benefits which include boosting metabolism, reducing muscle and joint pain, strengthening of the immune system, and lowering the risk of cancer as well as heart diseases.

On account of growing environmental concerns across the globe, governments of several regions are implementing various schemes in order to encourage organic farming. They are offering technical assistance to conventional farmers for adopting organic farming methods. Additionally, increasing health awareness amongst consumers due to rising incidences of chronic and lifestyle diseases has resulted in a rise in the demand for organic dairy products. With high economic growth, the disposable incomes of people have increased in developing countries in the past few years which has enabled them to spend more on high-quality organic dairy products. Apart from this, the distribution and supply chain infrastructure for organic dairy products has been improving in recent years. Various channels through manufacturers distribute organic dairy products has significantly evolved over the last decade, thus supporting the overall growth of the organic dairy market. Moreover, manufacturers are constantly expanding their product portfolio so as to cater to the taste and preferences of a large number of consumers. Looking forward, the market value is projected to exceed US$ 28 Billion by 2023, expanding at a CAGR of around 8% during 2018-2023.

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Market Summary:

  • Based on product type, the market has been segmented as organic fluid milk, organic yogurt, organic cheese, organic butter, organic cream and others. Currently, organic fluid milk dominates the market, holding the largest share as it offers an unparalleled source of nutrition which includes proteins, calories, fats, omega-3 fatty acids and carbohydrate in comparison with regular milk.
  • On the basis of packaging type, tetra-packs represent the largest segment, followed by pouches, bottles, cans and others. This form of packaging is considered ideal for organic dairy products as they help in preserving the nutritional value for a longer duration, thereby, extending the shelf-life of products.
  • Based on distribution channel, supermarkets exhibit a clear dominance, accounting for the majority of the market share as they offer wider shelf-space for storing numerous brand and product varieties. Supermarkets are followed by hypermarkets, discount stores, convenience and grocery stores, organic specialty stores, online/e-retailing, direct sales and others.
  • Region-wise, the market has been segregated as Europe, North America, Asia Pacific, Latin America, and Middle East and Africa. Amongst these, Europe is the leading market with the majority of the global share on account of high-income levels, easy product accessibility and strict regulations against synthetic food ingredients.
  • The competitive landscape of the market has also been examined with some of the key players being Arla Foods A.M.B.A, Aurora Organic Dairy, Organic Valley, Horizon Organic, Whole Foods Market and Korger.

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