Source: ReportLinker
Major companies in the dairy food market include Nestle; Dairy Farmers of America; Fonterra Group Cooperative Limited; Danone and Arla Foods. The global dairy food market is expected to grow from $675.
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78 billion in 2020 to $722.14 billion in 2021 at a compound annual growth rate (CAGR) of 6.9%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $956.26 billion in 2025 at a CAGR of 7%.
The dairy food market consists of sales of dairy products by entities (organizations, sole traders and partnerships) that produce dairy products from raw milk and processed milk products, produce dry, condensed, concentrated and evaporated dairy, and/or produce some dairy substitute products. The companies in the industry package and distribute their products through various distribution channels to both individual customers and commercial establishments. The dairy food market is segmented into milk and butter; cheese; dry, condensed, and evaporated dairy products and ice cream and frozen dessert.
Asia Pacific was the largest region in the global dairy food market, accounting for 42% of the market in 2020. Western Europe was the second largest region accounting for 25% of the global dairy food market. Africa was the smallest region in the global dairy food market.
The internet of things (IoT) technology is increasingly being used to track dairy products and ensure safe product handling. IoT technology consists of a network of devices, vehicles or other items that continuously exchange data and provide insights about a process or system. This technology is being used to track ingredients being used in products. Equipment connected to the internet in trucks and storage coolers can be used to monitor dairy products and tag them with environmental conditions like temperature or location that provide information about safe product handling during transportation. For instance, the Chinese government implemented the National Food Quality Safety Traceability Platform, using IoT technology to improve quality and safety of food production supply chains.
The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the dairy food market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Food and beverage manufacturers depend on supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, restrictions on trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline. The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the dairy food market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy
The increasing demand for local, sustainable and organic food production is expected to positively impact the dairy food market during the forecast period. Organic food production including organic dairy products places a strong emphasis on consumer health, environmental protection and animal welfare. Consumers now are becoming more concerned with how food is raised and prepared and are willing to pay a little more for something they recognize as healthy. Across Europe, there is a very high import rate (especially for fruits and vegetables) as the rate of production is far lower than the consumption demands for organic produce. For instance, according to the Soil Association, sales of organic products in the UK increased by 4.5% in 2019 to reach £2.45 billion. Similarly, sales of organic food in the US increased by 5.9% to reach $47.9 billion, according to the 2019 Organic Industry Survey. This growing demand for organic products offers considerable opportunities for dairy products producers in both developed and developing countries, thus likely to drive the market during the forecast period.
Read the full report: https://www.reportlinker.com/p06018948/?utm_source=GNW
