Milk powder is defined as a dry dairy product which is formed by dehydrating milk using evaporation. The only aim of making milk powder is to increase the shelf life of milk without using the refrigerator. The demand is increasing for the milk powder, mainly due to it offers many advantage such as longer shelf life, due to presence of low moisture content. So, milk powder can be easily stored at ambient temperature, without requirement of cold chain infrastructure, and can be stored for the longer time. The global milk powder market was valued at $27,783.3 million in 2017 and is projected to reach $38,086.1 million by 2028, growing at a CAGR of 4.4% from 2019 to 2028.
Top Driver: Increasing Health Concern Catalysing the Milk Powder Market
The expansion of advanced technologies in milk powders, which helps to retain the nutrient content of milk even after the drying process and also consists of very trace amounts of fat which in turn makes it low in calorie content, is driving the courtesy of the people towards the consumption of milk powder. This helps people to lose or maintain weight and also aids in promoting a healthy heart. Furthermore, being a rich source of complete proteins, which helps in building and maintaining lean muscles, its consumption has also increased among athletes. According to a study by FAO, 2019, the countries, such as China, Mexico, Egypt, and Indonesia have increased their import demand of skimmed milk powder from the United States, Europe, and Mexico and the global milk powder exports have increased by 8.6% during 2018 as compared to the previous year. Owing to the factors above, the consumption of milk powder has increased which calls for increased dependence on exports.
Also, infant food manufacturers have a high demand for powdered milk as they use an enormous amount of powdered milk in infant food products. Nutritional food and supplementary food products manufacturers have a high demand for whey powder because it contains a high amount of nutrition. Thus, the nutritional and supplementary food sector fueling the expansion of the worldwide powdered milk market.
Infant formulas conquered the market with the highest share of 32.10% in 2017
Based on application segment is segmented into nutritional food, infant formulas, confectionaries, baked sweets, savouries, and others. Infant formulas dominated the market with the highest share of 32.10% in 2017. Rise in a number of women working outside their houses and the growing participation of women in the labor force, which drives the growth of the infant formulas segment growth. Infant formulas present an appealing alternative to working mothers for their babies as per the convenience and need.
Based on type segment is classified into dairy whitener, whole milk powder, skimmed milk powder, buttermilk powder, fat-filled milk powder, and other milk powder. The whole milk segment dominated the market and valued around USD 7.85 billion in 2017. Whole milk is the most natural form of milk. Whole milk powder contains higher calories and is suitable for people who require high amounts of calories. It is also used as an ingredient in food items that need a thicker consistency. It has longer shelf life and does not need to be refrigerated, further boosting the growth of whole milk powder demand.
Europe as a Global Player in the Dairy Trade
World milk prices and milk imports are affecting the functioning of domestic markets in developing countries. Improvements in processing and shipping technology, reduction in transport costs and the use of export subsidies have promoted international trade in milk powder and encouraged its rise, although to a lower level than meat. Developing countries, such as India and China and even the African countries rely on Europe for milk powder imports. The share of China in EU exports has slightly diminished, with the US, Hong Kong, and Saudi Arabia following in the ranking in milk powder exports. There is a huge potential for the growth of the milk powder market in developing countries, such as Asia-Pacific as various emerging economies such as China, India, and Japan are majorly importing milk powders to satisfy their growing dairy needs. also, in South America, the Middle East, and Africa regions, the market is highly dominated by Danone.
The share of China in EU exports has slightly diminished, with the US, Hong Kong, and Saudi Arabia following in the ranking in milk powder exports. There is a huge potential for the growth of the milk powder market in developing countries, such as Asia-Pacific as various emerging economies such as China, India, and Japan are majorly importing milk powders to satisfy their growing dairy needs. also, in South America, the Middle East, and Africa regions, the market is highly dominated by Danone
Players to Focus on Industrial Milk powder Market
Key players functioning in the global milk powder market include Arla Foods amba, Dairy Farmers of America Inc., Danone, Dean Foods Company, Fonterra Co-operative Group, Kraft Foods Inc., Lactalis Group, Nestle S.A, Saputo Inc., and Schreiber Foods Inc. among others. To augment their market position in the global milk powder market, the key players are now centering on adopting the strategies such as recent developments, mergers & acquisitions, product innovation, joint venture, collaborations, and partnership.
Lactalis: in September 2017, Lactalis announced the acquisition of the nutrition business of South African company, Aspen Pharmacare, for USD 743.23 million as it aims to expand in the infant formula market.
Dairy Farmers of America Inc: In November 2017, Dairy Farmers of America Inc. announced the opening of its new milk powder plant in Garden City, Kansas for growth in domestic and international demand for milk powder and a desire to support the industry’s growth in the area.
Saputo Inc. : In October 2017, Saputo Inc. announced the acquisition of Murray Goulburn Co-Operative Co. Limited, a dairy foods company, to add and complement the activities of the Company’s Dairy Division (Australia).
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