UHT Milk Market Overview
In terms of volume, the global UHT milk market is expected to grow from 65,161.0 million liters in 2014 to 106,312.3 million liters in 2020, progressing at a CAGR of 8.8% during 2015–2020. Limited refrigeration space, rising disposable income, adoption of Western culture, and low-priced private-label UHT milk offered by supermarkets and hypermarkets are the major factors driving the growth of the market across the globe.
On the basis of segment, the UHT milk market has been classified into whole, semi-skimmed, and skimmed. Among these, in terms of volume, the whole category held the largest share in the market in 2014. Toddlers less than 2 years of age are one of the ideal consumers for whole UHT milk, as it contains the essential nutrients for them to grow properly. Germany, Mexico, and Brazil are the key countries where the whole classification dominated the market in 2014.
Geographically, the UHT milk market has been categorized into North America, Europe, Asia-Pacific (APAC), and Rest of the World (RoW). Among these, Europe held the largest share in the market in 2014 in terms of volume. This is attributed to the growing consumption of dairy products in n countries such as Germany, Belgium, and the Netherlands. Furthermore, the rising per capita consumption of dairy products and easy production and distribution of UHT milk compared to other regions are the other key factors supporting the growth of the market in Europe.
UHT Milk Market Dynamics
Earlier, milk was usually consumed during breakfast or dinner. However, in the past few years, a shift in dietary trends has led to its pervasive consumption. Presently, milk is consumed by individuals in schools, playgrounds, gymnasiums, and offices. The government in many countries have been providing milk to children for their growth. Athletes and businesspersons people carry milk with them in order to consume it on the go. This trend has affected the growth of the UHT milk market in a positive way, as it can be carried safely to places without the need for refrigeration.
A key driving factor driving the UHT milk market is the lack of refrigeration space. Refrigeration is essential for food products that have a higher propensity of bacterial development. Raw milk requires continuous refrigeration till its consumption. The high cost of refrigeration, low refrigeration space, and long power cuts in developing countries are some key factors encouraging customers to use food products that last long without refrigeration. UHT milk can be stored without refrigeration for up to nine months. Moreover, the underdeveloped cold storage infrastructure in developing countries also increases the importance of UHT milk.
UHT Milk Market Competitive Landscape
The UHT milk market is competitive in nature with the presence of a noticeable number of market players. Major players are currently focusing on several strategic developments in order to strengthen their presence. For instance, in September 2014, Parmalat, a subsidiary of Lactalis Group, signed a memorandum of understanding for the purchase of 11 dairy manufacturing plants (including UHT milk facilities) from Brazil-based company, BRF SA. The purchase also included the corresponding assets and trademarks of BRF SA.
Some of the major companies operating in the global UHT milk market include Nestle SA, Groupe Lactalis S.A., Fonterra Co-Operative Group Limited, Danone Limited, Grupo Lala, S.A.B. de CV, Sodiaal Group, Inner Mongolia Yili Industrial Group Co. Ltd., China Mengniu Dairy Company Limited, and Devondale Murray Goulburn Co-operative Co. Limited.
Key Questions Addressed/Answered in the Report
What is the current scenario of the Global UHT milk market?
What are the historical size and the present size of the categories within the market segments and their future potential?
What are the major catalysts for the market and their impact during the short, medium, and long terms?
What are the evolving opportunities for the players in the market?
Which are the key regions from the investment perspective?
What are the key strategies being adopted by the major players to expand their market share?