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Demand for Organic Dairy Products Surges across China, South Korea, and Vietnam

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Published on : Jan 07, 2016

Growing awareness among consumers about healthy eating and concerns regarding adverse effects of pesticides have driven the demand from the global organic dairy products market. Government across nations are taking initiatives to promote organic products. Low interest rate has put a positive impact on the organic dairy food and drinks industry. Further, when it comes to health, consumers prefer quality-centred products over price- centred ones. All these factors have augmented the growth of the global organic dairy products market. However, private labels and fake organic dairy products labels are negatively affecting the overall market. Higher input cost involved in organic milk production has been another constraint. In spite of the restraining factors, the global organic dairy products market is expanding across various regions.

The U.S. and Europe have been the largest consumers of organic dairy products. However, in the recent years, growth of the organic dairy products market in Asia Pacific has been significant. South Korea has emerged as one of the key markets in this region. Foreseeing the potential demand for organic dairy products in the Greater China, British organic dairy brand Daioni has set up a sales team in Hong Kong and is planning out strategies to increase its exports across the Greater China region. The company produces UHT milk, organic milk, flavoured milk, and shakes. The brand has been certified by the China Quality Certification Centre and is capitalizing on the market opportunity. 

In Vietnam, local brands such as Moc Chau, Vinamilk, and TH True Milk have started breeding livestock for the production of organic products. This can be seen as a move to compete with imported organic dairy products that hold more than 70% market share. However, consumers are concerned over the quality of the imported products which has created an opportunity for domestic players to capitalize on organic dairy farming.