Top Four Companies Account for Over 30% Share in the Organic Milk Market
Organic milk marketplace is marked by relatively low number of players who control a major share of the overall sales of organic milk. The consolidated nature of the organic milk market has put large scale producers of organic milk in an advantageous position. Four Tier 1 companies namely Danone, Fonterra Co-operative Group Ltd., Agropur Dairy Cooperative and Dairy Farmers of America account for a significant share of over 30 percent in the overall organic milk market. With main emphasis on capacity expansion, these Tier 1 players continue to focus on product line extensions by introducing new organic milk derivatives such as organic yogurt and organic infant formula. Joint ventures are a common growth strategy observed among these major players, in a bid to increase their global footprint and serve new regional markets with high growth potential. However, companies in organic milk marketplace have been facing challenges apropos to following safety regulations imposed by different countries regarding organic milk ingredients. Moreover, complying with stringent regulations imposed by FDA and USDA remains a key challenge for these players.
Oligopoly of Tier 2 and Tier 3 Organic Milk Companies in North America Continues
Presence of tier 2 and tier 3 companies involved in the production and distribution of organic milk continues to remain concentrated in developed counties, particularly the United States and Canada. The Kroger Company holds a significant share in the US. Other companies such as Organic Valley, Straus Family Creamery Inc., and Clover Stornetta Farms Inc. hold a major base in the North America region, with an overall share of around 49 percent in the organic milk market. There are exceptions to this trend though – Arla Foods and Groupe Lactalis S.A generate bulk of revenues from organic milk sales in Europe. While over 50% revenues of Arla Foods come from Europe, the region accounts for a whopping 80% share of Groupe Lactalis’ overall revenues.
Development of Organic Food Chains Complementing Sales of Organic Milk
Growing consumer preference for organic foods on the back of increasing lifestyle disorders such as anxiety, diabetes, high blood pressure and stress, has translated into mushrooming of organic food restaurants and cafes worldwide. Entrepreneurs are venturing into the organic space, investing in organic restaurant establishments to cater to the organic food preferring demographic. In 2017, organic food sector services have risen by more than 10 percent, which has complemented to the sales of organic milk on a large scale. According to research carried out by Soil Association, in November 2017 more than half of consumers aged between 18 to 55 years were inclined toward organic food chains. This factor has substantially impacted the demand for organic milk, consequently pushing the growth of the organic milk market worldwide.
Demand for Organic Milk to Spur as Natural and Organic Foods Go Mainstream
Organic milk is derived from cattle that are provided with organic nutrition devoid of antibiotics. According to the World Health Organization (WHO), use of antibiotics in cattle feed can pose adverse health risks to humans in the long run. In addition, awareness regarding consumption of non-organic food and advantages of its organic counterparts owing to mainstreaming of organic and natural food products has resulted in a significant upswing in the demand for organic milk. Moreover, high nutrition value of organic milk, largely comprising omega 3 fatty acids can support cardiovascular health, enhance neurological development and functioning as well as fortify immune system. This factor has propelled the consumption of organic milk, in turn supplementing the growth of its market.
Clean Labels Continue to Influence Organic Milk Market Growth
Clean labels and food and safety concerns are closely related aspects that are witnessing wide acceptance in the organic milk space. Increasing adoption of clean labels in order to rejuvenate consumer confidence regarding the product they consume has impacted sales of organic milk. Moreover, use of clean label in organic milk packaging on the back of increasing preference for GMO free organic milk is expected to trigger its demand in the forthcoming years.
Affordable Alternatives Impact the Organic Milk Market, as High Price Limits Widespread Adoption
Sales of organic milk are expected to witness a slowdown with availability of cheaper alternatives such as soy milk or almond milk. The pricing of organic milk is relatively higher than conventional milk, which is one of the major limitations restricting the growth of the organic milk market. Albeit its higher nutrient value, consumers are preferring organic milk alternatives owing to their low prices. Moreover, milk provided by grass-fed cows features a higher nutrition cap with omega 3 content over 52 percent as compared to organic milk and 147 percent more than conventional milk. These alternatives are likely to result hamper sales of organic milk.
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The report on organic milk market provides an in-depth assessment on key players involved in the production of organic milk. Various facets of competition including SWOT analysis, product development, mergers and acquisitions, product portfolio and key strategies of players are covered. The organic milk market report has profiled companies such as Fonterra Co-operative group Ltd., Arla Foods, Clover Stornetta Farms Inc., and Danone.
Major companies in the organic milk market are focusing on enhancing their footprint by tapping into emerging economies as well as regions having high GPD per capita at par with Europe and North America. For instance, Arla Foods – one of the largest producers of organic dairy products – has launched organic milk in KSA (Kingdom of Saudi Arabia) in a bid to become a leading organic milk brand in North Africa and the Middle East by end of 2020. Fonterra Co-operative Group Ltd., has entered into a joint venture with A2 Milk Company ltd., a New Zealand based manufacturer of organic milk and infant formula, to enhance its market presence in the Asia Pacific. Organic milk companies are also focusing on introducing lactose free organic milk particularly for lactose intolerant consumers. Clover Stornetta Farms Inc., has launched first unconventional non-GMO verified lactose free milk project encompassing a full line of products derived from organic milk, such as organic whole milk yogurt. Significant diversification in the Australian dairy manufacturing space has been observed. Tier 2 producers in Australia are entering into joint ventures with local organic milk producers in a bid to cater to growing demand for organic milk derivatives. Australian Dairy Farms Group entered into a joint venture with ODFA to produce organic butter in a cost-effective manner using support of the organic milk supplier. CDC (Camper Down Dairy Company) – a subsidiary of Australian Dairy Farms Group – is also focusing on entering into joint venture to produce organic milk and organic infant formula in the coming years. Australian Consolidated Milk Company has recently established a new plant in Girgarre to increase organic milk production. The company is looking forward to expand organic milk pool by 50 to 100 million liters in the forthcoming years.
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Organic milk is obtained from livestock that is raised using organic techniques. This livestock is devoid of antibiotics or growth enhancing hormones. Organic milk market also encompasses milk products derived from livestock that are fed organic feed and have access to fresh pastures. The term organic milk refers to the method used to produce milk and has no association with the nutrient profile of the end-product.
About the Report
The organic milk market is a comprehensive research study focusing on the demand and sales of organic milk across key regions in the globe. Various market dynamics impacting the growth of the organic milk market including trends, drivers, developments, restraints and opportunities are covered in the report. Assessment on every market facet and segment is covered in the report delivering actionable intelligence on organic milk market. The report also includes historical data analysis, current organic milk scenario and forecast highlights for a period of 10 years, from 2018 till 2028.
The organic milk market is segmented on the basis of product type (skimmed milk, whole milk and partly skimmed milk), source (cow, buffalo and other sources), packaging type (pouches, cans, bottles, tetra packs and bulk packs), pasteurization type (high temperature short time method, ultra-pasteurization and vat pasteurization), distribution channel (HoReCa, specialty stores, modern trade, convenience stores, e-retailers and other), flavor type (non-flavored and flavored) and region (North America, Latin America, Europe, CIS & Russia, Japan, Asia Pacific excluding Japan and Middle East and Africa).
Additional Questions Answered
The report on organic milk market answers additional questions such as:
- Which is the most attractive region for organic milk in terms of sales?
- To what extent can government regulations impact the growth of the organic milk market?
- Which trends are impacting sales of organic milk and how can organic milk producers leverage them?
- Which is the most preferred packaging type for organic milk?
- Which type of organic milk is gaining high traction?
- Which is the most lucrative channel for distribution of organic milk during the assessment period?
Data on organic milk market is obtained using robust research methodology. Primary and secondary research techniques have been implemented to glean essential organic milk data along with dependence on external source of information. All the statistics and data are triangulated and compiled to acquire accurate insights on organic milk market.
“Organic Milk Market Forecast, Trend Analysis and Competition Tracking – Global Market Insights 2018-2028” is an analytical compilation of various facets of the organic milk market revealing information on demand and sales assessment across key regions in the globe. The organic milk market includes projections for a ten year period, from 2018 till 2028. The organic milk market report provides historical data analysis, current organic milk market scenario and forecasts for the said period. Assessment on various dynamics impacting growth of organic milk market is also covered in the report.
Chapter 1 – Executive Summary
This chapter in the organic milk market report covers mega trends in the marketplace. An overall analysis on opportunities and other segmental insights are provided in this section.
Chapter 2 – Organic Milk Market Overview
This chapter of the organic milk market report includes introduction, market definition and scope of the report. The chapter also provides overview on organic certification, certification process and GFSI certification snapshot.
Chapter 3 – Organic Milk Economy
This extensive chapter offers intelligence on overall milk production, production of organic milk by countries, insights on organic milk and price premium of organic milk. Future analysis of organic milk production and dairy farm review is also covered here.
Chapter 4 – Associated Industry and Key Indicator Assessment
Assessment on key growth drivers, restraints, trends and opportunities are provided in this chapter. Competitive assessment (fortune wheel), regulatory framework, product proliferation and acceptability, forecast scenario, PEST analysis, Porter’s five forces model and a detailed investment feasibility matrix is covered.
Chapter 5 – Organic Milk Market Trade Analysis
This chapter gives an outline of various trading aspects associated with organic milk. Information on major countries, their trade regulations and laws impacting the global organic milk trade is covered here.
Chapter 6 – Organic Milk Market Price Point Analysis
This chapter includes various factors impacting organic milk prices and pricing analysis across key regions worldwide.
Chapter 7 – Organic Milk Market Analysis
This section covers overall organic milk market outlook along with political, economic and business environment outlook. This chapter also includes outlook on the food and beverage industry. Market value (US$ Mn) and volume assessment (‘000 liters) on all organic milk market segments such as product type, source, packaging type, pasteurization type, distribution channel and flavor is provided here. A year-on-year growth analysis on these segments is also covered.
Chapter 8 – North America Organic Milk Market Analysis
Milk market outlook in North America along with analysis on country wise demand and sales of organic milk and overall segmental snapshot in North America is provided in this chapter. Organic milk outlook across United States and Canada is covered here.
Chapter 9 – Latin America Organic Milk Market Analysis
This chapter includes analysis on organic milk market across key countries such as Brazil, Mexico, Argentina, Chile, and Peru. This chapter also includes business outlook of the overall milk market along with key factors impacting growth in demand of organic milk across Latin America.
Chapter 10 – Europe Organic Milk Market Analysis
The chapter focuses on detailed analysis on the sales and demand scenario of organic milk across EU-4, United Kingdom, Benelux, Nordic and Eastern Europe. A year-on-year assessment on organic milk across these countries is provided here.
Chapter 11 – CIS & Russia Organic Milk Market Analysis
Political outlook, economic outlook and overall business outlook of organic milk. Sales estimations in terms of US$ Mn along with volume forecasts with respective CAGRs are covered in this chapter. Detailed organic milk market segmental snapshot is also provided for the region.
Chapter 12 – Japan Organic Milk Market Analysis
Demand and sales of organic milk across Japan with key insights on macroeconomic and industry related factors impacting organic milk market growth in the country are covered in this chapter.
Chapter 13 – Asia Pacific Excluding Japan (APEJ) Organic Milk Market Analysis
This comprehensive chapter includes assessment on consumption of organic milk across key countries such a Greater China, India, ASEAN and ANZ for the forecast period. The chapter also includes assessment on organic milk market segments for the said period.
Chapter 14 – Middle East and Africa (MEA) Organic Milk Market Analysis
This chapter includes assessment apropos to sales and demand for organic milk across major countries including South Africa, GCC countries, Turkey, Iran and Israel. A year-on-year growth assessment with opportunity analysis for organic milk producers in MEA is covered here.
Chapter 15 – Competitive Assessment
This chapter in the organic milk market report includes a dashboard view of the competition in the organic milk market. It also includes organic milk market structure that provides detailed market share analysis of key companies involved in the production of organic milk.
Chapter 16 – Company Profiles
Major companies in the organic milk market along with their key facets such as global presence, revenue shares, SWOT analysis, region wise share, key developments, mergers and acquisitions and other key financials are provided in this chapter.
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