The global organic dairy market reached a value of US$ 19.4 Billion in 2018, registering a CAGR of around 8% during 2011-2018. 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.
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. Owing to these factors, the global organic dairy market is further projected to reach levels worth US$ 28.7 Billion by 2024, growing at a CAGR of around 7% during 2019-2024.
Breakup by Product Type:
Organic fluid milk currently accounts for the majority of the total global market .
Breakup by Packaging Type:
Tetra-packs are considered ideal for the packaging of dairy products as they aid in preserving their overall nutritional value for a longer time.
Breakup by Distribution Channel:
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.
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.
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:
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