The dairy market is often among the most heavily regulated agricultural markets.
Operators in the dairy product industry mainly manufacture dairy products such as pasteurized milk, cream, yogurt, and dry, condensed and evaporated milk.
As the global population is divided between two major types of food consumers, vegetarian and non-vegetarian, the recent and latest health concerns over non-vegetarian foods consumption has slightly prompted consumers to switch to vegetarian and dairy food products.
Today, there are newer and inventive products introductions in the ice cream, frozen dessert, cheese and yogurt sectors and they have attracted a large group of consumers to boost the dairy products market.
What are the key factors that are driving the market growth?
- Consumption of convenience food
With health-conscious consumers wanting products that promise better health, they are creating demand for dairy products that are low in both sugar and fat. According to McKinsey & Company Consumer Packaged Goods, the top three attributes consumers associate with healthy eating are ‘all-natural,’ ‘low sugar’ and ‘organic’. As a result, the dairy manufacturers are under pressure to innovate, produce and deliver products that not only taste good, ut also offer nutritional benefits.
With life expectancy expanding, and the global population growing older, consumers are becoming increasingly aware of the role of healthy eating in ageing and disease prevention. For senior consumers specifically, strength and healthy joints are of particular importance. As a result, industry players are developing products that promote improved bone health and mobility.
Innovation in yogurts, such as fat-free, flavored, and drinkable yogurt, is expected to provide the manufacturers with significant growth opportunities. Innovation in the packaging, such as small portion size, on-the-go packs, and single-serve, is also driving the product demand, providing a massive opportunity to the manufacturers.
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