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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