New flavor options and packaging innovation are among the factors that are expected to drive growth in the global milk market.
A new research study from Technavio has revealed that the global fresh milk market is poised to reach $1.94 billion in revenue by 2020. The report, “Global Fresh Milk Marker 2016-2020” offers an in-depth analysis of market growth in terms of revenue and emerging market trends, includes up to date analysis and forecasts for various distribution channels, including supermarkets and hypermarkets, specialist retailers and convenience stores.
“Many vendors have introduced new flavors to expand their reach among consumers in the fresh milk market. In March 2016, Prairie Dairy Farms launched two new flavors of its Peeps flavored milk: strawberry créme and orange créme. In September 2014, Natrel introduced new flavors in its flavored milk segment; these included maple, caramel latte and dark chocolate. Similarly, Nestlé added two limited edition flavors to its Girl Scout flavored milk products: thin mint and caramel coconut,” said Vijay Sarathi, one of Technavio’s lead analysts for non-alcoholic beverages research.
“Packaging innovation is another key emerging trend in the market. With attractive packaging, vendors aim to garner greater visibility and increase the shelf life for their products. In August 2015, researchers from Agrindus, an agricultural firm in Sao Paulo, Brazil, formulated a new packaging solution to increase the shelf life of fresh milk. By adding silver-based micro-particles with bactericidal, antimicrobial and self-sterilizing properties into the plastic packaging, fresh milk remains drinkable for up to 15 days as compared to the current seven days,” added Vijay.
In 2015, convenience stores had a milk market share of 12.4% by revenue. These stores accounted for nearly 34% of all retail stores in the U.S., with 152,794 stores in 2015. The number of convenience stores across other major countries like the UK and Japan is also on the rise.
Market Share by Segment
- Supermarkets and Hypermarkets: 50%
- Specialist Retailers: 18%
- Convenience Stores: 12.4%
- Other: 5.5%