Published on : Apr 12, 2016
The market for dairy products is amongst the most dynamic markets globally. The increasing concerns on health owing to non-vegetarian food consumption has resulted in customers opting for dairy products along with vegetarian food. Dairy products comprise of a wide range of products including yogurt, cheese, ice cream, butter, lactose-free milk, ice-cream, cream, and frozen desserts, among others.
There are a number of trends which will influence the growth of the market for dairy products. The coming future of this market is dependent on its response to the risks and opportunities as results to the major drivers propelling the growth of the market. The prime opportunities in the dairy products market have been discussed as under:
- Shifting Global Economics: The shift in the global economic scenario will lead to a rising demand and increased buying throughout the consumer segments, forcing industry to rise their efforts research and development, particularly in new areas such as infant nutrition, whey protein, and dairy-based beverages. The changing demographics and lifestyles will also result in an increased skim powder demand, particularly within milk-deficient markets.
- Industry Consolidation: The dairy products market’s consolidation via mergers and acquisitions will result in a growing requirement for business process standardization in all the merged entities. Organizations will easily be able to benefit from the economies of scale and will bring in more flexibility for targeting the top opportunities in all dairy categories.
- Adoption of Numerous Digital Technologies for Product Innovation and Consumer Engagement: The evolving digital era holds lucrative opportunities for the dairy products market. The digital technologies help in identifying the gaps in the already present products and helps to develop new ways for packaging and product utilization and helps in paving the way into fresh markets. By utilizing analytics and Big Data, companies are able to perform real-time evaluation for understanding the consumption patterns, which can aid in modifying the marketing and production strategies for achieving better results at economical costs.
Thus, these factors will in all raise the demand for dairy products in the coming years. However, reduced milk trade amongst nations may inhibit the growth of the dairy products market in the coming years.