UHT Milk Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019

Increasing population, coupled with the poor cold chain infrastructure in the developing countries is driving the global UHT milk market. European countries have been among the largest UHT milk markets due to their less frequent shopping habits where UHT milk gives them access to storage for longer periods. On the other hand, the Asian countries, especially China, with the fast growing population and increasing urbanization are high growth UHT milk market.  

The cheap private label UHT milk brands in Europe are encouraging the market growth in the financially weaker environment. However, a few restraints are posing challenge to the market growth. For instance, the milk quota in Europe is barring the producers to cross a certain level of milk production. Milk price to the producers has been another concern globally which they claim for their declining profit margins. Despite all these concerns, the UHT milk market in this region is experiencing increasing demand, but at a slower rate.

Despite the poor cold chain infrastructure in China, the UHT milk consumption in the country is around 70% of the total milk consumption, which lays more opportunities for the growth of UHT milk. Australia is also witnessing a growing UHT milk market. The new dietary trends is giving the UHT milk market a new dimension for growth as the industry finds its prospects in school children under the school milk programs run by several governments and the sportspersons who take UHT milk in the field and the office-goers, who consume UHT milk on the go. 

By product segment, semi skimmed UHT milk type had the largest share in the UHT milk market in 2012 followed by whole UHT milk type. The market shares of both semi skimmed and whole segments in the UHT milk market is further expected to grow by 2019 on account of the skimmed milk losing share due to the prevalence of skimmed milk powder.

Few domestic companies in some of the regional UHT milk markets are Parmalat, Candia and Dairy Partners Americas, while the large international players include Nestle, Lactalis and Fonterra operate in the global UHT milk market. 

Longer shelf life of six to nine months is driving the UHT milk market globally. Increasing adaptation to the western culture coupled with the lack of cold chains in the developing countries is making people in these countries to switch to UHT milk from pasteurized milk. The UHT milk market in China is growing at a swift pace. Over 60% of the total milk consumed in China is UHT milk. The global urban population, which was over 690 million in 2011, comprises about half of the population of China. The country is expected to add another 300 million to 400 million people to the urban population by 2030. As compared with the rural population, the urban population is more influenced by the western cultures owing to their better income levels and education. Thus, increasing urbanization is further expected to escalate the demand for UHT milk in China. Australia is another country which has a growing UHT milk market, though the share of UHT milk was only about 10% of the total milk consumption in 2012. However, it is expected to increase in the forecasted period. 

However, there are few constraints associated with this market including presence of unorganized milk market in the less developed countries and perception of consumers in some countries about the low nutritional value of UHT milk. The unorganized milk market in India and China is a major restraint for the processed and UHT milk products. There are large number of unorganized small dairy farmers supplying raw cow and buffalo milk to households in these countries. Most of the people in these countries buy milk every day. However, the increasing income levels and increasing influence of western culture is expected to reduce the impact of this restraint to much extent in the near future. 

The new dietary trend of consuming milk outside home, i.e. in schools, on the sports field, and at the gymnasium is catching up. In many schools, milk is provided to children in order to make drinking milk a habit and here lies the opportunity for UHT milk.