Coherent Market Insights

Organic Milk Market Potential Growth with Hike in Share, Demand in Food Industry Till 2027


Seattle, WA -- (SBWIRE) -- 11/11/2019 -- Organic milk is a milk which is produced through organic farming methods such as feeding livestock with organic feed which doesn't have any artificial additives in the feed such as antibiotics and growth hormones. The living conditions should offer livestock free movement in an open space. Therefore, all livestock used to produce organic milk should be monitored and maintained by using organic farming methods.

Market Dynamics

Growing demand for organic food and beverage products across the consumer is projected to propel the market growth of organic milk. According to reports published by the Food and Drug Administration of the United States, six in 10 U.S. citizens believe that organic food products are better for their health. Also, according to the U.S Department of Agriculture, 4% of the total food sales in the U.S. in 2016 were organic products. The organic retail sales in Europe stood at US$ 30.85 billion in 2014, as estimated by The International Federation of Organic Agriculture Movements

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Also, growing awareness regarding the harmful effects of chemical ingredients present in the milk is further fueling the market growth of organic milk. Use of synthetic fertilizer which has harmful toxins such as heavy metals, nitrates, and metal salts, leads to various health issues. Whereas, organic farming doesn't induce any harmful chemical and is purely based on 100% organic feed to livestock. Hence, growing awareness regarding organic food as they are safe and are projected to augment the market growth of the organic milk over the forecast timeline

On the flip side, high cost associated with organic milk is expected to hamper the market growth. For instance, the United States Department of Agriculture (USDA) established guidelines for organic certification. Under USDA organic regulation (7 CFR 205), farms need to follow standards such as Land Requirement (205.202), the origin of livestock (205.236), Livestock Feed (205.237), and Livestock Healthcare Practices (205.238) to be eligible for organic certification. Therefore, such strict rules and regulation compel producers to maintain product quality and thus is presumed to limit the product demand

Market Outlook

Based on the distribution channel, the supermarket's segment is projected to tremendous traction in the overall market over the forecast period. Supermarkets are focusing on initiatives to tap the potential opportunity in the organic milk market. For instance, in February 2017, Asda, one of the key retailor in the U.K. started to sell Dairy Farmers 'free-range dairy milk', to meet consumer demand for organic milk in the U.K. Asda identified potential 109 stores and started selling organic milk under the Pasture Promos logo. Such marketing strategies are projected to boost sales of organic milk products through supermarkets

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North America accounted for the highest revenue share in global organic milk market in 2017 and the region is projected to lead the market throughout the forecast period. In North America, the U.S. is the most lucrative market for organic milk. According to Agricultural Marketing Services USDA 2018 report on Organic Fluid Dairy, total organic milk products sales for February 2018 were pegged at 205 million pounds, up by 1.0% from February 2017. Total organic milk products sales for February 2018 were pegged at 85 million pounds, which is up by 10.9% compared to February last year

Europe accounted for the second-largest market share and the trend is projected to continue over the forecast period. European Union is actively promoting organic farming through the EU Common Agricultural Policy (CAP). Under the current CAP for the period 2014–2020, organic farming is supported by Pillar 1 (direct payments) and Pillar 2 (Rural Development Programme). Such factors are presumed to boost the availability of organic feed to livestock and in turn aiding in the growth of the organic milk market in Europe

Key Players

Key players operating in the global organic milk market include 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, among others

Leading market players are launching new organic milk products, to meet rising demand from consumers. For instance, in September 2017, Arla Foods launched its first branded organic milk production in the Middle East. The product was strategically launched by the company to tap the potential market outside Europe. The product was launched in all leading retail chains in UAE such as Union Coop, Choithrams, Lulu, Geant, and Spinney's hypermarkets. Moreover, Arla Food is planning to expand its organic food business in Saudi Arabia and Kuwait in 2018. Such activities are projected to have positive impact on the growth of the market in the Middle East

Market Segmentation

By Product Type

- Standard Organic Milk

- Fat-Free Organic Milk

- Low Fat Organic Milk

- Others

By Distribution Channel

- Hypermarkets

- Supermarkets

- Convenience Stores

- Online Stores

- Others

By Region

- North America

- South America

- Europe

- Asia Pacific

- Middle East

- Africa

Key Developments

Major players operating in the organic milk market are adopting various strategies such as mergers & acquisitions and product portfolio expansion in order to strengthen their position in the global organic milk market.

For instance, In August 2019, Organic Valley, one of the largest cooperatives of organic farmers based in America, announced the launch of new & improved FUEL high protein ultra-filtered organic milkshake. This product was developed to meet the demand for low sugar and high protein product without artificial and toxic pesticides across the consumer.

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In August 2019, Nutricia, a global leader in specialized nutrition, announced the launch of the company's first toddler sheep milk formulation, Karicare, a vital step for the sheep dairy industry in New Zealand. In 2018, Lewis Road Creamery launched new premium and organic milk, Gold Top, white Jersey milk containing A2 B-Casein Protein. This added to the company's existing product portfolio.

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