Organic Dairy Market Analysis
The global organic dairy market is currently valued at US$26.53 billion as of 2023. It is anticipated to grow significantly and could reach US$55.02 billion by 2032, marking a compound annual growth rate (CAGR) of 8.44% from 2024 to 2032.
The demand for organic dairy products has increased significantly in recent years, leading to greater availability in mainstream supermarkets and grocery chains. This widespread availability has played a crucial role in the growth of the organic dairy marketplace. As supermarkets and grocery stores have recognized the rising consumer interest in organic products, they have expanded their offerings of organic dairy, making it more convenient for people to include these products in their daily diets. This increased visibility and accessibility have not only met the demand but also fueled further growth in the organic dairy market.
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Growth drivers of the organic dairy market
Increasing Consumer Demand for Organic Products: Growing awareness of the health benefits and environmental sustainability associated with organic dairy products is driving consumer preference towards these options. Organic dairy is perceived as healthier because it is produced without synthetic pesticides, hormones, or antibiotics, which may be present in conventional dairy products. Consumers are increasingly conscious of the potential health risks associated with these additives and prefer organic alternatives that offer a cleaner and more natural product. Additionally, organic farming practices promote animal welfare and environmental stewardship, resonating with consumers who prioritize sustainability. This heightened awareness of both personal health benefits and environmental impact fuels demand for organic dairy products, prompting retailers and manufacturers to expand their organic offerings to meet evolving consumer preferences.
Regulatory Support and Certification: Stringent organic certification standards and government regulations play a crucial role in upholding the integrity and authenticity of organic dairy products. These regulations ensure that organic dairy producers adhere to rigorous criteria regarding farming practices, animal welfare, and the use of synthetic inputs. Certification by recognized bodies verifies compliance with these standards, assuring consumers of the product’s organic status and quality. This transparency fosters consumer trust in organic dairy products, encouraging more individuals to choose them over conventional alternatives. As consumer confidence in the authenticity of organic certifications grows, so does the market for organic dairy, driven by heightened awareness of health benefits and environmental sustainability associated with organic farming practices. Regulatory support thus acts as a catalyst for market growth by establishing a credible framework that reinforces consumer preferences for organic dairy.
Expansion of Retail Channels: The increased availability of organic dairy products across mainstream supermarkets, specialty stores, and online platforms is broadening consumer access and stimulating market demand. As these products become more accessible and visible in retail environments, consumers have greater opportunities to choose organic options that align with their preferences for healthier and environmentally friendly choices. Mainstream supermarkets are expanding their organic product offerings to meet rising consumer demand, while specialty stores and online platforms cater to niche markets seeking certified organic dairy products. This widespread availability not only enhances convenience for shoppers but also reinforces the perception of organic dairy as a viable and desirable choice in the broader dairy market landscape. This trend supports continued growth in the organic dairy sector as more consumers opt for organic alternatives.
Rising Disposable Incomes: Higher disposable incomes empower consumers to prioritize premium organic products, such as dairy, despite their higher price points. This trend is particularly pronounced among affluent and health-conscious demographics who are willing to invest in products perceived as healthier and environmentally sustainable. Organic dairy products are valued for their superior quality, free from synthetic additives and produced using sustainable farming practices. As consumers become more informed about the benefits of organic farming and its impact on personal health and the environment, they are increasingly willing to pay a premium for these attributes. This growing willingness to invest in organic dairy supports market expansion, driving manufacturers and retailers to expand their organic product offerings to meet rising consumer demand and preferences.
United States Government initiatives in organic dairy
In March 2024, the U.S. Department of Agriculture’s Agricultural Marketing Service (USDA’s AMS) announced a significant initiative by offering $5 million in funding for 60 projects through the Organic Market Development Grant application. The purpose of these projects is to support the advancement of current and emerging organic markets, enhance processing capabilities, promote innovative technologies for organic products, and improve the procurement system to meet the increasing demand for organic goods. These projects are expected to benefit over 27,000 producers and 31.8 million consumers.
Organic Dairy company analysis
Arla Foods, The Kroger Company, General Mills, Inc., China Shengmu Organic Milk Ltd., Saputo, Inc., Unilever p.C., Nestle, and SunOpta Inc. are the main organic dairy market players.
Organic Dairy company News
In March 2024, Kaneka Corporation will launch Pur Natur Organic Milk, Made from Organic Raw Milk, which is JAS-certified. This is the second organic dairy product in the Pur Natur brand.
In January 2024, Danone sold its US organic dairy units to Platinum Equity.
July 2022: Yili opened a dairy hub in North China to produce milk, infant formula, and cheese.
March 2022: Yili Group launched China’s first zero-carbon milk, Satine A2β-casein Organic Pure Milk, which is now carbon-neutral certified by Bureau Veritas.
In September 2022, Akshayakalpa Organic raised USD 15 million in a Series B funding round to expand its business in the Chennai, Hyderabad, and Bengaluru markets.
March 2022: Organic Valley has launched premium organic Creamers in French Vanilla and Sweet Cream flavors. These creamers are healthier, with 40% less sugar than the leading flavored creamer brand. They are lactose-free and contain no artificial ingredients, making them perfect for those who value quality and health.
In August 2022, SwadeshiVIP, a prominent A2 organic milk brand in India, has recently introduced A2 Shishu milk, specially formulated for infants and young children.
In April 2022, Tetra Pak and Horizon Organic launched the ‘Organic Milk-on-the-Moo-ve’ product line in the United States. It’s single-serve organic milk packaged in the Tetra Prisma Aseptic carton, providing consumers with a convenient and healthy option.
In November 2021, Vinamilk launched its organic milk products at the Shanghai FHC Global Food Trade Show.
Nov 2021: Arla Foods A.M.B.A. has launched Future26, a strategic initiative to redefine the dairy industry. This comprehensive strategy highlights their commitment to innovation, sustainability, and evolving consumer preferences. It represents Arla’s dedication to shaping the future of the dairy sector.
Product- Global Organic Dairy Market
- Fluid Milk
- Yogurt
- Cheese
- Butter
- Cream
- Others
Packaging Type- Global Organic Dairy Market
- Bottles
- Pouches
- Cartons and Boxes
- Bags and Wraps
- Others
Distribution Channel- Global Organic Dairy Market
- Bottles
- Pouches
- Cartons and Boxes
- Bags and Wraps
- Others
Countries- Global Organic Dairy Market
- North America
- United States
- Canada
- Europe
- France
- Germany
- Italy
- Spain
- United Kingdom
- Belgium
- Netherland
- Turkey
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Thailand
- Malaysia
- Indonesia
- New Zealand
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
All the Key players have been covered from 3 Viewpoints:
• Overview
• Recent Development
• Revenue Analysis
Key Players Analysis
- Arla Foods
- The Kroger Company
- General Mills, Inc.
- China Shengmu Organic Milk Ltd.
- Saputo, Inc
- Unilever plc
- Nestle
- SunOpta Inc.
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