Market Trends of Organic Milk Industry
This section covers the major market trends shaping the Organic Milk Market according to our research experts:
Growing Demand for Non-GMO & Clean Label Products
In recent years, the demand for clean-label dairy products has been growing owing to the increasing nutritional awareness among the population. Furthermore, the clean label dairy products are free from artificial and preservatives which in turn raises the need for organic milk in the market. On the other hand, the growing vegan population across the globe is raising the demand for plant-based organic milk products. In addition, the free-from allergen is one of the top free-from claims favored by consumers, pushing manufacturers of organic milk to introduce new products in the market. For instance, in December 2021, PlantBaby, a nutrition brand in Hawaii launched Kiki Milk which is certified organic, clean label, and dairy-free milk designed to meet the nutritional needs of growing children. Additionally, many start-ups are paving their way in the emerging organic dairy market to cater to the increasing demand for organic milk. For instance, Akshayakalpa Organic, the Indian organic dairy enterprise announced in September 2022 that it has secured USD 15 million in a Series B funding round which will be utilized for the business expansion across Chennai, Hyderabad, and Bengaluru markets.
North America stands out as the Largest Market
North America is leading the global market for organic milk as the consumers in the region are increasingly opting for organic dairy products including milk. According to the government of Canada, the production of certified organic milk has increased from 1,436.4 million liters in 2020 to 1,484.7 million liters in 2021. Similarly, the sales of organic milk in the United States have been increasing rapidly with a value of 2.56 billion pounds in 2021, based on the market study. Thereby, the increasing production rate of organic milk in the region is anticipated to drive market growth over the forecast period. Further, consumers can access a wide assortment of products marketed by private labels as well as global dairy food companies at their convenience across offline and online stores. Additionally, key brands are accelerating their product launch efforts to fulfill the growing consumer requirements for organic milk, which is anticipated to enhance retail sales during the forecast period. For instance, in May 2021, Natrel, an organic dairy producer in Toronto unveiled the launch of 10 percent half & half cream organic milk in the market.
