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Global Organic Milk Powder Market to Reach $3 Billion
Minnesota Ag Connection - 08/09/2017

Freshness, purity, and nutrition are among some of the most valued health beneficial attributes of organic products. Consumers across the globe are inclining towards food products that are purely organic and do not contain any artificial ingredients in them. Besides, genetically modified food items are often linked with the cause of various lifestyle diseases. Despite growing concerns over degrading food quality and its adverse effects on health, suppliers continue to flood markets with grade B food items in order to cope with the ever-increasing demand. Which is why regulatory bodies that are responsible for quality control are enforcing laws to restrict excessive use of artificial ingredients in food and beverages. One particular product that remains under severe scrutiny is milk, which is considered as a staple item in most parts of the world. Among various milk products, global demand for organic milk powder has surged rapidly over the recent past. Future Market Insights (FMI) in its latest study found that the global organic milk powder market surpassed a valuation of US$ 1,734 Mn in 2016.

In terms of sale revenue, the market is set to register a CAGR of 5.4% over the forecast period (2017-2027).

According to FMI's findings, in 2016, global production of organic milk powder grew by 2-2.5% as compared to the previous year. Owing to a positive perception of its role in providing essential nutrients to the human body, consumption of organic milk powder is on the rise. Consequently, production volume of organic milk has also increased by 0.5% between 2016 and 2017, as the overall organic milk powder industry witnessed an uptick in sales. Towards the end of 2017, around 112,076 MT of organic milk powder is likely to be consumed worldwide. On the other hand, factors such as poor organic dairy farming practices and stringency in obtaining organic certifications are observed as the major challenges for the market.

Based on organic milk powder type, demand for whole milk is expected to remain robust throughout the forecast period, registering a CAGR of 5.8% in terms of value. In addition, whole milk is projected to account for 53.6% value share of the market by 2017-end.

By sale channel, preference for indirect sales is likely to grow relative higher than direct sales in the near future. Currently, the indirect sales channel accounts for around 49% value share of the market and is projected to register a CAGR of 5.5%% in terms of value over the forecast period.

By end-use, the food segment is estimated to account for a value share of over 66% by 2017 end and is anticipated to register CAGR of 5.6% in terms of value over 2027. In addition, the segment is projected to reach a market valuation of around US$ 2,082.5 Mn towards the end of the forecast period.

Western Europe is estimated to account for a relatively higher value share of the global market throughout the assessment period, expanding at a CAGR of 5.9% in terms of value. This is primarily owing to increased household consumption of organic milk products and favourable government policies for the organic agricultural sector. North America currently holds the second spot and is anticipated to register a CAGR of 5.3% in terms of value over 2027.

Nestle SA, Arla Foods amba, Fonterra Co-operative Group, Hipp GmbH & Co., Vertrieb KG, OMSCo, Aurora Foods Dairy Corp., Organic Valley, SunOpta, Inc., Ingredia SA, Sodiaal Union SCA, Bellamy's Organic, Holle baby food GmbH, Ausnutria Hyproca B.V., B. Engelhardt & Co. AB, Emmi AG, Prolactal GmbH, DANA DAIRY GROUP, Miraka Ltd, GMP Dairy and Organic West Milk, Inc. are some of the leading players operating in the global organic milk powder market.

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