Flavoured Milk Market Growth, Trends and Forecasts (2020 - 2025)
Global flavored milk market is forecasted to grow at a CAGR of 5.23% during the forecast period (2019 - 2024).
On the basis of packaging, the flavoured milk market is segmented as paper-based packaging, plastic-based packaging, glass bottles, and metal cans. On the basis of distribution channels, the market is segmented as supermarkets/ hypermarkets, convenience stores, online retail stores, and other distribution channels; where other distribution channels include pharmacies and vending machines.
Increasing Demand For Lactose-Free Dairy Propelling the Market Growth
According to the U.S. National Library of Medicine, approximately 65 percent of the human population has a reduced ability to digest lactose post-infancy. Moreover, lactose intolerance in adulthood is most prevalent in people of East Asian descent, affecting more than 90 percent of adults in some of these communities. It is also common in people of West African, Arab, Jewish, Greek, and Italian descent. In these markets, lactose-free dairy products are witnessing immense popularity. Moreover, with rising awareness about a healthy lifestyle, products with low levels of lactose and sugar are considered to be healthier. There is a significant increase in the number of lactose-free products being launched in the market. Products with less lactose content and lactose-free dairy products, such as yogurt, milk, and cheese, are gaining traction in various counties across the globe. For instance, according to a report published by Agriculture and Agri-Food Canada the lactose-free dairy sales are forecasted to grow at a CAGR of 4.7% between 2012 and 2017.
Asia-Pacific Being the Largest Market for Flavoured Milk
According to Tetra Pak, Asia-Pacific had the largest consumption of flavored milk (in billion liters) among all regions across the globe. North America has the second-largest market, followed by Latin America. Although globally, there is an increasing demand for flavoured milk. This led to innovation in terms of flavored milk and the introduction of new flavours. Furthermore, factors, such as efficient and sustainable dairy production in these countries are impacting the market's growth. Further, with increased product innovations, the markets for flavoured milk in North America and Europe are witnessing high growth rates.
The global flavoured milk market is fragmented with the presence of a few global players such as Nestle S.A., Hershey's and Saputo Inc. Due to the dynamic nature of the market, it is highly competitive and fragmented. The companies are adopting strategies such as mergers and acquisitions, new product innovations and launches, expansions and partnerships. Companies also compete in terms of new variants of flavors and attractive packaging. There is ample scope for regional players to gain competitive advantage, provided that they bring in substantial innovation at ingredients and packaging levels.