Future Market Insights

Organic Milk Powder Market : Rising Consumer Demand for Healthy and Nutritious Products in North America

The rising preference of organic milk powder over ordinary milk among people of various age is driven by these health benefits.

 

Valley Cottage, NY -- (SBWIRE) -- 11/24/2018 -- Revenue from the global organic milk powder is estimated to be nearly US$ 1,816 Mn in 2017 and is expected to reach about US$ 3,060 Mn by the end of 2027. Sales revenue is expected to register a CAGR of 5.4% over the forecast period (2017–2027).

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Rising consumer demand for healthy and nutritious products in North America driving market growth

Growing demand for organic milk products is been witnessed more as compared to conventional milk products. The various beneficial attributes of organic products including freshness, quality, health and nutrition are contributing to the significant increase in sales of organic milk products. According to the USDA, the sales of organic milk products in 2016 were recorded to be 5.3% times higher as compared to 2015. Moreover, significant increase in imports of organic milk powder is being witnessed owing to the consolidation of the organic dairy industry. These trends are driving the organic milk powder market in the North America region.

Increase in the number of certified organic dairy cows in the North America region

The organic dairy products industry is just two decades old in the U.S., despite having shown a significant increase in the count of certified organic dairy cows. According to the USDA, when organic dairy production started two decades ago in the U.S, there were only 6,000 certified organic dairy cows across the nation. However, there has been significant rise in this count. Yet another survey by USDA between 2002 and 2011 represented an increase of 255,000 organic milk cows in 2011 as compared to that of 67,000 organic milk cows in 2002. This count accounts for 3% of the total dairy cows. According to USDA, in 2012, 5% of the total U.S. dairy farms comprised organic dairy cows.

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Lack of harmonisation between supply and demand scenarios hampering market growth in North America

Consumers in the U.S. have an increased interest in organic products. According to the Organic Trade Association, the U.S. organic dairy sector is estimated to account for US$ 6 Bn in sales in 2017, thereby reflecting increasing consumer interest for organic dairy products. However, the major constraint faced by the sector is the inability to suffice consumer demand through the available supply. Factors such as stringent regulatory norms prevailing in the U.S., growing consumer demand, and a transition period of three years for conventional dairy farms to get converted into organic dairy farms, are major challenges faced by diary producers, thereby hampering the growth of organic milk products.

Global Organic Milk Powder Market Attractiveness Analysis, By Type

The Whole Milk segment by type is expected to register relatively high CAGR during the forecast period. The Whole Milk segment is estimated to account for a relatively high value share of 53.6% by 2017 end and is anticipated to register a CAGR of 5.8% in terms of value over the forecast period. The Skimmed Milk segment is estimated to account for a value share of 26.2% by 2017 end, and is anticipated to register a CAGR of 4.7% in terms of value over the forecast period.

Change in policy on pasture to ensure organic pasturing in the United States

Organic dairy processors are required to graze their cattle on organic pastures. However, not all comply with the prescribed standards. Hence, organic stakeholders such as the organic dairy associations have urged the USDA to enforce a policy for the use of pasture. In 2010, the USDA published a new policy to ensure the grazing of organic pasture by cows. These laws prescribed that the animals should graze during the grazing season and at least 30% of dry matter intake should be done while grazing pastures, and processors must have a pasture management plan so as to meet the feed requirements.

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