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Organic Milk Products Market Size By Product Type (Organic Full Fat Milk, Standard Organic Milk, Low Fat Organic Milk, and Others), By Distribution Channel (Supermarkets, Online Stores, Hypermarkets, Convenience Stores, and Others), Regions, Segmentation, and Projection till 2030

CAGR: 4%Current Market Size: USD 23.2 BillionFastest Growing Region: Europe

Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022

Global Organic Milk Products Market- Market Overview:

The global organic milk products market is expected to grow from USD 23.2 billion in 2022 to USD 31.7 billion by 2030, at a CAGR of 4% during the Projection period 2023-2030. The growth of the organic milk products market is mainly driven by the increase in demand owing to several health benefits.

Organic milk products are procured from livestock which is raised through organic farming methods. These products are preservative-free and higher in antioxidants, vitamins, omega-3 fatty acids, and conjugated linoleic acid than traditional dairy products (CLA). These products also have a lot of health advantages, including increasing metabolism, boosting immunity, easing joint and muscle pain, and lowering the risk of cancer and heart disease. Consumers are becoming more aware of the repercussions of consuming synthetic chemicals due to the rising frequency of chronic and lifestyle disorders. As a result, the demand for organic milk products has increased globally. The governments of many nations are promoting organic farming methods among conventional farmers by starting educational programmes and offering both financial and technical support. For instance, the National Horticulture Mission of the Government of India provides incentives for the development of natural food products. Similarly to this, in order to ensure fair competition for farmers and business owners, the EU has approved new regulations for organic production and labelling. In addition, the distribution and supply chain for organic milk products are being improved, which, together with the expanding online food retail industry, is making these products more widely available. The development of novel low-fat, low-sodium and low-sugar goods using advanced technology is also projected to increase demand for these items in the coming years.

Sample Request: - Global Organic Milk Products Market

Market Dynamics:

Drivers:                          

  • Increase Demand

Demand for organic milk products is increasing as consumer diet preferences shift toward organic food and beverage goods. Six out of ten Americans, according to studies from the Food and Drug Administration of the United States, think that organic food items are better for their health. The US Department of Agriculture also reports that 4% of all food sold in the US in 2016 was organic. According to The International Federation of Organic Agriculture Movements' estimate for 2014, Europe's retail sales of organic products were US$30.85 billion.

Restraints:                                             

  • High Cost

The price difference between organic and regular milk presents a significant barrier to market expansion. Furthermore, governments in some regions have set stringent rules on milk products made from organic sources. The United States Department of Agriculture (USDA), for instance, developed standards for organic certification. Farms must abide by standards like the Land Requirement (205.202), the origin of the livestock (205.236), Livestock Feed (205.237), and Livestock Healthcare Practices (205.238) in order to be eligible for organic certification under USDA organic regulation (7 CFR 205). Such stringent laws are projected to be a significant inhibitor of market expansion since they force manufacturers to uphold the quality of their goods.

Opportunities:

  • Rising Demand for Organic Foods

Additionally, the demand for organic milk products is rising as people become more aware of the negative consequences of chemical traces in milk products. Chemical fertilizers contain toxic substances including nitrates, heavy metals, and metal salts that are bad for human health and can cause a number of problems with cellular metabolism. However, providing animals with 100% organic feed that is free of any hazardous traces of growth hormones or antibodies is part of the organic farming process. The worldwide organic milk market is therefore anticipated to develop throughout the Projection period due to the rising demand for organic food as a safe food.

Challenges:

  • High Cost of Production and Operations

During the Projection period, the market expansion is expected to be constrained by the high cost of production and operations as well as the product's short shelf life. Additionally, expensive product prices that restrict consumer adoption and a small selection of available products are impeding the growth of the market. The market for organic milk products is being constrained by expensive packaging, logistical, and distribution costs associated with extending shelf life.

Segmentation Analysis:

The global organic milk products market has been segmented based on product type, distribution channel, and region.

By Product Type

The product type segment is organic full fat milk, standard organic milk, low fat organic milk, and others. The organic full fat milk segment led the largest share of the organic milk products market with a market share of around 40% in 2022.  By moving from conventional low-fat milk to organic full-fat milk, you may see a considerable improvement in your health. According to recent studies, organic milk has 62% more omega-3 fats and 25% fewer omega-6 fats than conventional milk. It has been demonstrated that lowering your omega-6 to omega-3 fatty acid ratio significantly improves your cardiovascular and intestinal health. The omega-6 to omega-3 ratio was 2.5 times greater in those who drank conventional milk over the course of a year compared to those who consumed organic milk.

By Distribution Channel

The distribution channel segment is supermarkets, online stores, hypermarkets, convenience stores, and others. The supermarkets' segment led the largest share of the organic milk products market with a market share of around 44% in 2022. Supermarkets are concentrating on programs to take advantage of the potential demand for organic milk. To address consumer demand for organic milk products in the U.K., Asda, one of the major retailers there, began selling Dairy Farmers "free range dairy milk" in February 2017. Asda discovered 109 prospective locations and began selling organic milk under the Pasture Promos brand. It is anticipated that these marketing techniques would increase sales of organic milk products in grocery stores.

Global Organic Milk Products Market - Sales Analysis.

The sale of the organic milk products market expanded at a CAGR of 3% from 2016 to 2022.

The milk from animals raised using organic farming practices is referred to as organic milk. Animals are fed with organic feed and must abide by organic farming rules, such as not using antibiotics or growth hormones, allowing movement of the livestock, and ensuring that the animal has access to the outdoors. The global food business has been somewhat boosted by the rise in popularity of organic foods as consumers are moving away from artificial or synthetic food products. The demand for organic food items and the rise in customers with unhealthy conditions including diabetes, high blood pressure, cardiovascular diseases, obesity, and other ailments are the main factors fueling the growth of the organic milk market globally.

Numerous businesspeople are making significant investments in the organic sector in order to progress the industry during the Projectioned period. Leading industry companies are introducing new organic milk products to satisfy consumers' growing demand. For instance, Arla Foods introduced its first branded organic milk production in the Middle East in September 2017. The corporation introduced the product strategically to explore new markets outside of Europe. All of the major retail chains in the UAE, including Union Coop, Choithrams, Lulu, Geant, and Spinney's hypermarkets, released the product. In addition, Arla Food intends to grow its organic food industry in Kuwait and Saudi Arabia in 2018. Such actions are anticipated to benefit the Middle Eastern market's expansion.

Thus, owing to the aforementioned factors, the global organic milk products market is expected to grow at a CAGR of 4% during the Projection period from 2023 to 2030.

By Regional Analysis:

The regions analyzed for the organic milk products market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region dominated the organic milk products market and held a 36% share of the market revenue in 2022.

  • The North America region witnessed a major share. The United States is the organic milk industry's most lucrative market in North America. The overall sales of organic milk products were estimated at 205 million pounds in February 2018, an increase of 1.0% from February 2017, according to the Agricultural Marketing Services USDA 2018 report on Organic Fluid Dairy. Sales of organic milk products as a whole were estimated to have totaled 85 million pounds in February 2018, an increase of 10.9% over the same month in 2017.
  • Europe is anticipated to experience significant growth during the Projection period. Through its Common Agricultural Policy, the European Union aggressively promotes organic farming (CAP). Organic farming is funded under the current CAP for the years 2014 to 2020 by both Pillar 1 (direct payments) and Pillar 2. (Rural Development Programme). These elements should make organic feed for cattle more readily available, which will help the European organic milk market flourish.

Global Organic Milk Products Market - Country Analysis:

  • Germany

Germany's organic milk products market size was valued at USD 0.19 billion in 2022 and is expected to reach USD 0.23 billion by 2030, at a CAGR of 2.7% from 2023 to 2030. The region's organic milk business has been somewhat boosted by the rise in popularity of organic foods as consumers are moving away from artificial or synthetic food products.

  • China

China’s organic milk products market size was valued at USD 0.34 billion in 2022 and is expected to reach USD 0.45 billion by 2030, at a CAGR of 3.8% from 2023 to 2030. In China, the organic dairy market has been growing rapidly due to increasing consumer awareness about the widespread use of fertilizers, pesticides, and bovine growth hormone (BGH), as a result of which a majority of consumers have shifted towards healthier, organic dairy products.

  • India

India's organic milk products market size was valued at USD 0.29 billion in 2022 and is expected to reach USD 0.37 billion by 2030, at a CAGR of 3.2% from 2023 to 2030. Happy Milk, Govind Milk, Milk Products, and Indicow Dairy Foods LLP are the industry leaders in India for organic milk. The National Action Plan for Dairy Development and Akshayakalpa programs of the Indian government, as well as the union of tech start-ups with the conventional dairy company, are the primary developments projected to have a positive impact on the market.

Key Industry Players Analysis:

To increase their market position in the global organic milk products market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.   

  • Groupe Danone
  • Organic Valley
  • Organic Milk Suppliers Cooperative (OMSCo)
  • Fonterra Co-operative Group Limited
  • Arla Foods Amba
  • Agropur Dairy Cooperative
  • Clover Stornetta Farms, Inc.
  • Shamrock Foods Company

Latest Development:

  • In August 2021, The launch of the updated and improved FUEL high protein, ultra-filtered organic milkshake was announced by Organic Valley, one of the biggest cooperatives of organic farmers in America. This product was created in response to consumer demand for healthy food options that are high in protein and low in artificial and hazardous pesticides.
  • In August 2020, The debut of Karicare, the company's first toddler sheep milk formulation, was announced by Nutricia, a leader in specialised nutrition. This was a significant development for the New Zealand sheep dairy industry.

Report Metrics

Report Attribute 

Details

Study Period

2022-2030

Base year

2022

CAGR (%)

4%

Market Size

23.2 billion in 2022

Projection period

2023-2030

Projection unit

Value (USD)

Segments covered

By Product Type, By Distribution Channel, and By Region.

Report Scope

Revenue Projection, competitive landscape, company ranking, growth factors, and trends

Companies covered

Groupe Danone, Organic Valley, Organic Milk Suppliers Cooperative (OMSCo), Fonterra Co-operative Group Limited, Arla Foods Amba, Agropur Dairy Cooperative, Clover Stornetta Farms, Inc., and Shamrock Foods Company.

By Product Type

  • Organic Full Fat Milk
  • Standard Organic Milk
  • Low Fat Organic Milk
  • Others        

By Distribution Channel

  • Supermarkets
  • Online Stores
  • Hypermarkets
  • Convenience Stores
  • Others               

Regional scope

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Scope of the Report

Global Organic Milk Products Market By Product Type:

  • Organic Full Fat Milk
  • Standard Organic Milk
  • Low Fat Organic Milk
  • Others

Global Organic Milk Products Market By Distribution Channel:

  • Supermarkets
  • Online Stores
  • Hypermarkets
  • Convenience Stores
  • Others

Global Organic Milk Products Market By Region:

  • North America
    • USA
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Russia
  • Asia-Pacific
    • Japan
    • China
    • India
    • Korea
    • Southeast Asia
  • South America
    • Brazil
    • Peru
  • Middle East and Africa
    • UAE
    • South Africa
    • Saudi Arabia

Frequently Asked Questions

What will be the expected market size of the organic milk products market in 2030?

Global organic milk products market is expected to reach USD 31.7 billion by 2030.

What is the CAGR of the organic milk products market?

The organic milk products market is projected to have a CAGR of 4%.

What are the key factors for the growth of the organic milk products market?

Demand for organic milk products is increasing as consumer diet preferences shift toward organic food and beverage goods. Six out of ten Americans, according to studies from the Food and Drug Administration of the United States, think that organic food items are better for their health. The US Department of Agriculture also reports that 4% of all food sold in the US in 2016 was organic. According to The International Federation of Organic Agriculture Movements' estimate for 2014, Europe's retail sales of organic products was US$30.85 billion.

What is the global organic milk products market breakup based on the distribution channel?

Based on the distribution channel, the global organic milk products market has been segmented into supermarkets, online stores, hypermarkets, convenience stores, and others.

Which are the leading market players active in the organic milk products market?

Leading market players active in the global organic milk products market are Groupe Danone, Clover Stornetta Farms, Inc., Organic Milk Suppliers Cooperative (OMSCo), Organic Valley, Arla Foods Amba, Agropur Dairy Cooperative, Fonterra Co-operative Group Limited, and Shamrock Foods Company, among others.