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Phase-Xs | Biologics & Biosimilars | Coherent Market Insights

Organic milk is referred to the milk from livestock, which are raised through organic farming methods. Livestock are fed with organic feed and need to follow organic farming stipulation such as no artificial additives in the feed, no antibiotics, no growth hormones, living condition allow movement of livestock, and the animal should have access to outdoors.

Market Dynamics

  • Changing dietary preference of the people towards organic food & beverage products is propelling demand for organic milk products. According to reports published by the Food and Drug Administration of United States, six in 10 U.S. citizens believe that organic food products are better for their health. Also, according to the U.S Department of Agriculture, 4% of the total food sales in the U.S. in 2016 were organic products. The organic retail sales in Europe stood at US$ 30.85 billion in 2014, as estimated by The International Federation of Organic Agriculture Movements.
  • Moreover, increasing awareness about harmful effects of chemical traces in milk products are leading to increasing demand for organic milk products. Chemical fertilizers contain harmful toxins such as nitrates, heavy metals, and metal salts, which adversely affects human health and lead to various issues related to cellular metabolic processes. However, organic farming method includes feeding of 100% organic feed to livestock, which do not contain any harmful traces or growth hormones or antibodies. Therefore, increasing popularity of organic food as a safe food is projected to fuel growth of the global organic milk market over the forecast period.
  • The cost of organic milk is higher than conventional milk, which is a major challenge for growth of the market. Furthermore, governments across various regions have imposed strict regulations on organic milk products. For instance, the United States Department of Agriculture (USDA) established guidelines for organic certification. Under USDA organic regulation (7 CFR 205), farms need to follow standards such as Land Requirement (205.202), origin of livestock (205.236), Livestock Feed (205.237), and Livestock Healthcare Practices (205.238) in order to be eligible for organic certification. Such strict regulations forces manufacturers to maintain their product quality and thus, is expected to be a major restraining factor for the market growth.

Market Outlook

  • On the basis of distribution channel, supermarkets segment is projected to gain major traction in the market over the forecast period. Supermarkets are focusing on initiatives to tap potential opportunity in organic milk market. For instance, in February 2017, Asda, one of the key retailor in the U.K., started to sell Dairy Farmers ‘free range dairy milk’, to meet consumer demand for organic milk in the U.K. Asda identified potential 109 stores and started selling organic milk under Pasture Promos logo. Such marketing strategies are projected to boost sales of organic milk products through supermarkets.
  • North America accounted for highest revenue share in global organic milk market in 2017 and the region is projected to lead the market throughout the forecast period. In North America, the U.S. is the most lucrative market for organic milk. According to Agricultural Marketing Services USDA 2018 report on Organic Fluid Dairy, total organic milk products sales for February 2018 were pegged at 205 million pounds, up by 1.0% from February 2017. Total organic milk products sales for February 2018 were pegged at 85 million pounds, which is up by 10.9% compared to February last year.
  • Europe accounted for second-largest market share and the trend is projected to continue over the forecast period. European Union is actively promoting organic farming through the EU Common Agricultural Policy (CAP). Under the current CAP for the period 2014–2020, organic farming is supported by Pillar 1 (direct payments) and Pillar 2 (Rural Development Programme). Such factors are expected to increase availability of organic feed to livestock and in turn aiding in growth of the organic milk market in Europe.

Key players in Global Organic Milk Market

  • Key players operating in the global organic milk market include Groupe Danone, Organic Valley, Organic Milk Suppliers Cooperative (OMSCo), Fonterra Co-operative Group Limited, Arla Foods Amba, Agropur Dairy Cooperative, Clover Stornetta Farms, Inc., and Shamrock Foods Company, among others.
  • Leading market players are launching new organic milk products, in order to meet rising demand from consumers. For instance, in September 2017, Arla Foods launched its first branded organic milk product in Middle East. The product was strategically launched by company to tap potential market outside Europe. The product was launched in all leading retail chains in UAE such as Union Coop, Choithrams, Lulu, Geant, and Spinneys hypermarkets. Moreover, Arla Food is planning to expand its organic food business in Saudi Arabia and Kuwait in 2018. Such activities are projected to have positive impact on growth of the market in Middle East.

Market Taxonomy

On the basis of product type, global organic milk market is segmented into:

  • Standard Organic Milk
  • Fat-Free Organic Milk
  • Low Fat Organic Milk
  • Others

On the basis of the distribution channel, global organic milk market is segmented into:

  • Hypermarkets
  • Supermarkets
  • Convenience Stores
  • Online Stores
  • Others

On the basis of region, the global organic milk market is segmented into:

  • North America
    • U.S.
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Russia
    • Rest of the Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • Northern Africa
    • Central Africa
    • South Africa

Key Developments

Major players operating in the organic milk market are adopting various strategies such as mergers & acquisitions and product portfolio expansion in order to strengthen their position in the global organic milk market.

For instance, In August 2019, Organic Valley, one of the largest cooperatives of organic farmers based in America, announced the launch of new & improved FUEL high protein ultra-filtered organic milkshake. This product was developed in order to meet the consumer demand for low sugar and high protein options, produced without using artificial and toxic pesticides.

In August 2019, Nutricia, a global leader in specialized nutrition, announced the launch of the company’s first toddler sheep milk formulation, Karicare, a vital step for the sheep dairy industry in New Zealand.

In 2018, Lewis Road Creamery launched new premium and organic milk, Gold Top, white Jersey milk containing A2 B-Casein Protein. This added to the company’s existing product portfolio.


Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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