Global Dairy Products Market 2020-2029 By Region, By Product, By Distribution Channel and Top 20 Country Market Analysis

Market Introduction- Global Dairy Market Analysis

A dairy product is a food made from milk obtained from mammals, typically cattle, draught animals, goats, sheep, and camels. The growing consumption of dairy products and changing consumer preference from meat to dairy items for protein enhancement are vital drivers for the market growth. The availability of dairy products due to cold chain logistics and advanced retail facilities further propels the market growth. Dairy products provide several health benefits since they are rich in riboflavin, calcium, vitamin A, vitamin D, potassium, phosphorus, and niacin.
The market size is expected to grow at a CAGR of 2.5% from 2020 to 2029. Daily consumption develops gut and bone strength and decreases the chances of Cardiovascular Diseases and type 2 diabetes. The growing demand for cheese in emerging economies is also anticipated to propel the market. Before, cheese was deemed unhealthy due to its high-fat content. Nevertheless, modern studies have revealed that cheese is beneficial for heart health and is a source of calcium with lactose intolerance. Rising focus on infant nourishment and desire for organic dairy products are also assumed to increase the market growth. The market has numerous growth opportunities, as customers are ready to try new goods.

Segment Analysis- Global Dairy Market Analysis

The dairy product market can be segmented by Product and Distribution Channel.
Based on Product, The milk product segment of this particular market is estimated for the most substantial revenue share and continues its dominance. This germination is due to growing milk consumption in emerging economies as it is nutritious and provides calcium and protein. Further, milk consumption diminishes the uncertainty of osteoporosis among the elderly population, which is assumed to stimulate its demand at a sturdy rate. The yogurt segment of the dairy product market is to observe notable growth owing to the high demand in countries like China, India, and Brazil. Consumers in China fancy eating yogurt as a part of their staple due to its significance in sustaining a healthy gut, thus, enhancing immunity. Moreover, the desire for slightly sweet and flavored yogurt influences the growth of the overall market.
The cheese product segment is to record the fastest CAGR from 2021 to 2029 due to increasing demand for the product in the Asia Pacific region. The growing trend of western food habits with the easy availability of cheese products is driving the segment growth.
Based on the distribution Channel, the supermarkets/hypermarkets segment is estimated for the largest revenue share. Growth in supermarkets/hypermarkets and the availability of products are the basic factors propelling the segment growth. Supermarkets have regulated temperature shelves for dairy products to dodge any decomposition. Consumers find it useful to buy everyday needs at cheaper prices in these stores, which is likely to propel the segment growth significantly in the coming years.
The online segment is to rise at the fastest CAGR due to the service given by the distribution channels. Some of the popular online shipping channels for dairy products are Sainsbury’s, Ocado, Just Milk, and Walmart. Some firms also deliver through their mobile application. For example, Amul (India) offers milk and dairy products through its mobile application. The increasing usage of the internet and enhanced connectivity will augment the segment growth.

Regional insight- Global Dairy Market Analysis

The European region is estimated to have the largest revenue share and is to maintain its dominance in the coming years. Germany is to observe notable growth due to increasing consumer desire for cheese, milk desserts, and creamers. Moreover, the need for organic and high-quality dairy commodities is likely to propel market growth in the region. North America also gained a notable revenue share. The U.S estimated for the most substantial revenue share of the local market due to the large consumption of milk and cheese in the nation. Moreover, milk products such as low-fat and no-sugar milk are assumed to enhance the consumption of milk.
The Asia Pacific is predicted to be the most significant as well as the most active growing regional market due to the growing demand for high-grade quality and packaged dairy products. Moreover, the germination of the online distribution channels in the region is pushing the market.

Key Companies- Global Dairy Market Analysis

Significant companies focus on merchandise and package innovation to sustain their market position. For example, Arla Foods amba in June 2020 launched its yogurt product skyr bucket in a sustainable packaging form that would commit to a 30% decline in CO2 emission. Many small-scale firms are converging on clean labels and product quality to draw more consumers. Some of the key players in the global dairy products market include Arla Foods amba, Fonterra Co-operative Group, The Kraft Heinz Company, Nestle S.A., Danone S.A., Royal FrieslandCampina and Dairy Farmers of America, Inc.