EXPORT OPPORTUNITY ANALYSIS - GLOBAL MILK MARKET
Competitive
Landscape
Since 2012, Hong Kong, United Arab
Emirates, and Saudi Arabia experienced higher milk exports growth value at an
increase of 308.8%, 69.2%, and 42.3% respectively. Denmark (down -28.3%),
Belgium (down -24.5%), New Zealand (down -23.5%), Australia (down -23.2%), and
France (down -22.8%) suffered a decline in their milk export sales. New Zealand
incurs the highest surplus in the global trade of milk, which represents its
strong competitive advantage for this specific product category. Meanwhile,
China has the highest deficit in the international trade of milk. Although this
negative cash flow signifies its competitive disadvantage in the milk market,
China can explore opportunities for milk-supplying countries that help fulfill
growing consumer demand.
Key Trends
Milk Exporting Companies. There are ten
major global milk-processing corporations that dominate the international trade
of milk. These companies represent Fonterra Co-operative Group Limited (New
Zealand), Zott (Germany), FrieslandCampina (Netherlands), Lactalis (France),
Borden Milk Products (United States), Canberra Milk (Australia), First Milk
(United Kingdom), Almarai (Saudi Arabia), Arla Foods (Denmark), and La Serenísima (Argentina).
Changing Consumer Preferences. From 2012 to
2016, whole milk and full-fat flavored milk sales generated approximately 1.1
billion pounds. In 2017, whole milk sales were up 2.4 percent, reduced
fat-flavored milk were up 1.6 percent, and flavored whole milk sales were up
9.2 percent. Organic milk sales have mainly remained flat, and
reduced-fat-non-flavored milk were down over the years.
Key Flavors. The four major flavored milks are
chocolate, strawberry, vanilla, and banana milk. During the first quarter of
2017, chocolate milk held 93.75% of the market share while strawberry milk
represented 4.38% of the market share. In addition, vanilla-flavored milk held
1.74% of the market share and banana milk held 0.13% of the market share. The
volume of flavored milk sold through retail stores increased by 15.8% from 2014
to 2016. Four in ten households buy flavored milk during one year.
Innovations. Varied
flavors, package types, and package sizes appeal not only to children, but also
to different households as well. For example, in 2003, Shaken Udder introduced
fresh milkshakes that are gluten free, has no artificial colors, flavors, or
preservatives, and suitable for vegetarians. These milkshake flavors include
Top Banana, which contains 5% real banana puree, and Chocolush, which consists
of two types of Belgian chocolate. In 2017, the World Dairy Innovation Awards nominated
the company as one of its finalists.
Sources:
http://www.worldstopexports.com/top-milk-exporting-countries/http://berryondairy.blogspot.com/2017/06/flavored-milk-trends-its-golden-age-of.html
https://www.fb.org/market-intel/trends-in-beverage-milk-consumption
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