Organic Dairy Market

Market Overview:

The global organic dairy market size reached US$ 23.9 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 36.0 Billion by 2028, exhibiting a growth rate (CAGR) of 6.5% during 2023-2028.

Organic dairy products are procured from livestock which is raised through organic farming methods. In comparison with the conventional dairy goods, these products are preservative-free and rich in anti-oxidants, vitamins, omega-3 fatty acids and conjugated linoleic acid (CLA). Additionally, these products offer a number of health benefits such as boosting metabolism, strengthening immunity, reducing muscles and joint pain, and minimizing the risk of cancer and heart diseases. On account of the growing prevalence of chronic and lifestyle diseases, consumers are becoming aware about the effects of the consumption of synthetic ingredients. As a result, there has been a rise in the demand for organic dairy products worldwide. 

Market Drivers:

The governments of numerous countries are encouraging organic farming practices among conventional farmers by launching educational campaigns and providing technical as well as monetary assistance. For instance, the Government of India is offering incentives for the cultivation of natural food products under the National Horticulture Mission. Similarly, the EU has adopted new rules for organic production and labeling to guarantee fair competition for farmers and operators. Apart from this, improving distribution and supply chain of organic dairy products in confluence with the burgeoning online food retail sector is increasing the accessibility to these products around the world. Further, technological advancements for developing innovative products with low fat and reduced levels of sodium and sugar are anticipated to drive their demand in the upcoming years. 

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global organic dairy market report, along with forecasts at the global and regional level from 2023-2028. Our report has categorized the market based on product type, packaging type and distribution channel.

Breakup by Product Type:

• Fluid Milk
• Yogurt
• Cheese
• Butter
• Cream
• Others

Organic fluid milk currently accounts for the majority of the total global market.

Breakup by Packaging Type:

• Pouches
• Tetra-packs
• Bottles
• Cans
• Others

Pouches are widely used for packaging dairy products as they are light weight, easy to store and transport.

Breakup by Distribution Channel:

• Supermarkets
• Hypermarkets
• Discount Stores
• Convenience and Grocery Stores
• Organic Specialty Stores
• Online/E-Retailing
• Direct Sales
• Others

Supermarkets represent the largest segment as they attract more buyers and are generally located in the central parts of cities. They have also gained popularity due to the availability of more shelf-space and a large number of products to choose from.

Regional Insights:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Europe enjoys the leading position in the market on account of the rising demand for organic food products in the region. In order to balance the current supply and emerging demand for these products, a large part of Europe’s agricultural land is being managed for organic farming.

Competitive Landscape:

The market is fragmented in nature owing to the presence of a large number of global as well as regional manufacturers who are competing against one another in terms of prices and quality. There is a tough competition in the market which makes it difficult for the local players to survive. Some of the leading market players include:

• Arla Foods A.M.B.A
• Aurora Organic Dairy
• Organic Valley
• Horizon Organic
• Whole Foods Market
• Kroger

Report Coverage: