Organic dairy products will grow by more than 50 percent
15 Oct 2020
The global market for organic dairy products is projected to grow by more than 50%, reaching $ 28 billion by 2023.
The global market for organic dairy products reached $ 18 billion in 2017, and is second only to fruits and vegetables. It is estimated that it should reach 28 billion dollars in 2023, being more concentrated in the US (54%), Germany (11%) and France (7%) according to data from the Global Organic Dairy Market. The volume of world organic milk production is growing and, in 2017, it reached 8.100 million liters, which represents 1% of world milk production, with the USA being the main supplier (26.1%) followed from China (10.9%), Germany (10.3%), France (7.7%), Denmark (7.0%) and the United Kingdom (5.1%). However, the U.S. organic dairy market has slowed in recent years, with the most pronounced stagnation for fluid milk. Much of the slowdown reflects the growth of the alternative beverages sector, such as teas, juices, vegetable drinks, among others. Meanwhile, with the coronavirus pandemic, this market for alternative drinks (especially vegetable drinks) has suffered, which may represent opportunities for organic dairy products, highlights a report published by the MilkPoint portal, and replicated by TodoLechería.
- United States: Dairy represents the second largest category in organic food sector sales, behind fruits and vegetables. The US is the largest market for organic milk in the world and has a value of 6.5 billion dollars. Fluid milk has a greater share in the market (5.2% of the total), followed by yogurt and butter.
- China: Rapid growth in organic dairy consumption is attracting investments like those from Shengmu, China’s largest organic dairy company that meets European Union standards.
- Germany: the organic dairy market is worth 1.1 billion (26% of organic food) and is the second largest market in the world. Fluid milk has a greater share, has a greater market share (12.1%), followed by yogurt (7.7%) and cheeses (4.4%). About 30% of the organic milk consumed in Germany is imported. In 2017, the amount of organic milk exported reached 100 million liters, highlighting the powdered milk exported to Asia.
- France: third largest world market for organic dairy products (12.8% of the total). Fluid milk has a greater share, has a greater market share (12.5%), followed by yogurt (4.7%) and cheeses (1.5%). The government program for agriculture aims to reach 15% of agricultural land with an organic production system by 2022.
- UK: The organic dairy market is the largest organic food market in the UK at $ 455 million. It explains 3.9% of the total dairy consumption.
The fluid milk market is valued at $ 202 million, followed by yogurt at $ 182 million and represents 5.1% of all retail sales. Over 25% of UK residents consume organic milk, and 78% of organic milk sales are private label. Organic milk exports went from 30 million liters in 2017 to 50 million in 2019.
STATE IN BRAZIL
The Milkpoint report says that in Brazil, the agri-food chain for organic milk is still incipient, in structure and expansion. However, some producers with dairy products and their own brands have already established themselves in the market for several years and in various regions of the country, mainly supplying the local market (short chains) with pasteurized milk and / or organic derivatives, such as cheese, yogurt. , butter and curd. Recent investments by multinationals in the production of organic milk in Brazil have leveraged the entry of new milk producers, as well as the modernization of already certified properties. These companies recently launched organic dairy products on the market, however, due to the pandemic, the volume of organic milk captured was reduced. Furthermore, as it is an incipient market, the volumes sold are still low. According to data from the IBGE Family Budget Survey, for the period 2017-2018 a family expenditure of less than 0.5% is observed on organic dairy products in relation to the total expenditure on dairy. There are about 100 certified organic producers and the domestic market is approximately $ 18 million in sales.
Source: Diario La Opinión