PRESS RELEASE
Published July 24, 2023
The UHT milk market offered various types of milk, including whole milk, skimmed milk, semi-skimmed milk, and flavored UHT milk (such as chocolate or strawberry-flavored). Different fat percentages catered to the diverse preferences of consumers. UHT milk was primarily available in cartons, pouches, or bottles, depending on regional preferences and consumption habits. The packaging was designed to ensure product safety and preserve the quality of milk during its shelf life.
UHT milk was widely used in households as a convenient dairy product. It was also commonly utilized in the foodservice industry for coffee and tea preparation, in addition to its use in various culinary applications. Consumer perception of UHT milk varied across regions. In some markets, UHT milk was regarded as a convenient and reliable source of milk with a longer shelf life, while in others, there were debates over the taste and nutritional differences between UHT milk and traditionally pasteurized milk.
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One of the significant challenges for UHT milk companies was overcoming consumer perception and preferences. Convincing consumers about the quality and nutritional value of UHT milk compared to fresh milk was essential. However, ensuring an efficient and reliable distribution network to reach distant and remote areas could be challenging. Maintaining the cold chain and avoiding temperature fluctuations during transportation were critical to preserving the product’s quality. Companies need to invest in innovative and sustainable packaging solutions that prevented contamination and maintained product integrity while appealing to environmentally conscious consumers. The pricing of UHT milk needed to be competitive compared to other dairy products, including fresh milk and powdered milk. The rise of dairy alternatives, such as plant-based milk (e.g., almond, soy, oat milk), posed a challenge for UHT milk companies.
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UHT milk is a great source of calcium, phosphorus, potassium, riboflavin, zinc, vitamins A and B12, magnesium, and other important elements. The demand for UHT milk in restaurants, bars, and cafes is rising since it can be carried without cold chains. Due to the high frequency of lactose intolerance in both adults and children, the demand for lactose-free UHT milk is also rising in many countries. Numerous businesses have created a line of UHT milk products supplemented with vitamins and minerals to address dietary needs for physical functions in response to the increased demand for quick and wholesome solutions.
UHT milk is projected to become more popular as customer demand for ready-to-eat and convenient dairy products rises. In France, Germany, Spain, and Italy, the sale of UHT dairy products makes up a bigger portion of the dairy market’s revenue. The market for these items is increasing because many chains of food outlets and small eateries in Asia and Africa lack refrigeration capabilities. However, difficulties such as the possibility for milk’s nutritional content to decline during sterilisation and product quality losses such flavour loss, fat separation, and age gelation, combined with production issues and are projected to hinder market growth.
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Due to the rapid expansion of the dairy goods market in nations like Germany, Belgium, and Holland, there is a considerable demand for UHT milk in this region. Furthermore, the per capita consumption of dairy products has increased significantly over the past five years, and UHT milk is easier to produce and distribute than other conventional goods. Danish customers have been spotted following a similar pattern when it comes to consuming pasteurised foods like UHT milk on a regular basis.
Urban culture has instilled in people a fit and healthy way of life, which is anticipated to manifest in an increase in the use of skim milk. Many consumers, notably young ladies, those who value their health, and the elderly, favour UHT skimmed milk above other varieties because of its many nutritional and health benefits.
On the other hand, partially skimmed UHT milk industry is expanding as a result of an increase in demand for dairy products in various nations, including the United States, China, and India. The demand for semi-skimmed products with a reasonable quantity of fat content is rising due to their use in the production of dairy products like yoghurt and cheese. Butter and cheese consumption is rising quickly in the US and is predicted to expand further over the next few years.
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Vitamin D, calcium, magnesium, phosphorus, and high-quality protein are all abundant in cow’s milk. The combination of these essential nutrients promotes the body’s overall growth, which affects the growth of the segment. To fit their daily lives, consumers are clamouring for new, cutting-edge products on the market. Almond milk segment is dominating the overall market with more than USD 3 Billion market size. Furthermore, the liquid form of UHT milk is the most commonly consumed and widely available in the market.
UHT milk powders have a longer shelf life compared to regular powdered milk, and they are often used as a convenient alternative in areas with limited access to refrigeration or in the production of various food products. These products offer convenience and are used in various culinary applications.
Restaurant chains are becoming important consumers in the milk market, particularly for variations with a higher whipping capability. Since milk is typically sold in bulk through institutional and direct channels, these businesses can lower the price per unit of milk purchased by mass consumers. The demand for this milk is also being driven by the defence and security personnel who frequently consume it. Service businesses like Starbucks and McDonald’s use this adaptable and economical technology because they need high-quality milk to suit both their own needs for a longer shelf life and the high expectations of their customers
Customers all over the world are engaging in online buying and spending more time online. The greater use of the internet, notably in the U.S. and Europe, has given manufacturers a platform. E-commerce websites are being actively used by businesses looking to increase their online presence and revenues. Because they offer a wide selection of necessities and doorstep deliveries at affordable prices, online businesses have gained popularity with customers. Additionally, the development of the direct-to-consumer distribution channel has accelerated the segment’s growth.
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The UHT milk market in North America was relatively smaller compared to other regions, as refrigeration facilities were widely available, and consumers often preferred fresh milk. However, UHT milk still had a presence in the region, particularly in certain segments of the population seeking long shelf life and convenience. Flavored UHT milk products gained popularity among children and young adults.
Europe was one of the significant markets for UHT milk, with a strong presence in countries like France, Spain, and the United Kingdom. UHT milk was widely available in retail stores and supermarkets, offering various fat percentages and packaging options. The convenience factor of UHT milk made it popular for tourists and travelers, as well as in households as a backup supply.
The Asia Pacific region was a major growth market for UHT milk, driven by factors such as rapid urbanization, changing lifestyles, and the growing middle-class population. Countries like China, India, Indonesia, and Vietnam saw a substantial increase in UHT milk consumption due to a rise in disposable income and convenience-seeking consumers. The smaller packaging sizes of UHT milk made it suitable for single-person households and on-the-go consumption.
Latin America had a growing UHT milk market, especially in countries with limited refrigeration infrastructure and warmer climates. UHT milk was favored for its longer shelf life, making it an attractive option for consumers who faced challenges in storing fresh milk. Flavored UHT milk, such as chocolate and vanilla, was popular among children and teenagers.
The Middle East and Africa region showed an increasing demand for UHT milk due to its long shelf life and suitability for areas with hot climates. UHT milk was often imported to regions with limited dairy production or distribution capabilities. The use of UHT milk in the foodservice sector, such as in hotels and cafes, also contributed to its consumption in the region.
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Danone S.A., Nestlé S.A., Arla Foods amba, Fonterra Co-operative Group Limited, Royal FrieslandCampina N.V., Saputo Inc. , The Coca-Cola Company, Meggle Group, Emmi AG , Dean Foods, Hochwald Milch eG cooperative, Savencia Fromage & Dairy, Solarec Sa, Darigold, Inc, China Mengniu Dairy Company Limited, DMK Group, Prairie Farms Dairy , Promasidor Nigeria Limited, Gujarat Cooperative Milk Marketing Federation Ltd. (Amul), Mother Dairy
Aspects covered in this report:
- Global UHT Milk Market size and forecast along with its segments
- Region & Country-wise market analysis
- By Product
- By Source
- By Form
- By End Use Application
- By Distribution Channel
- On-going trends and developments
- Top profiled companies
- Strategic recommendation
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