|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 202.2 Billion
|
|
CAGR
(2023-2028)
|
4.15%
|
|
Fastest
Growing Segment
|
Milk
|
|
Largest
Market
|
China
|
Market Overview
Asia Pacific Dairy Products Market has valued at USD
202.2 billion in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 4.15% through 2028. The Asia-Pacific dairy
products market is a dynamic and rapidly evolving sector within the global
dairy industry. This region encompasses diverse countries with varying dietary
preferences and cultural influences, making it a complex yet lucrative market
for dairy products.
The Asia-Pacific dairy products market is one of
the largest and fastest-growing in the world. The region's large and growing
population, increasing disposable incomes, and shifting dietary patterns are
driving the demand for dairy products. In recent years, the market has
witnessed robust growth, and this trend is expected to continue.
The Asia-Pacific dairy market offers a wide range
of products, including milk, yogurt, cheese, butter, cream, and various
dairy-based beverages. These products cater to different consumer preferences
and cultural contexts, making the market highly diverse.
Consumer preferences in the Asia-Pacific region
vary significantly from country to country. For example, dairy consumption in
India is dominated by milk and traditional dairy products like yogurt and ghee,
while countries like Japan and South Korea have a strong preference for yogurt
and dairy beverages. Understanding these preferences is crucial for dairy
companies operating in the region.
There is a growing awareness of health and wellness
in the Asia-Pacific region, leading to increased demand for functional dairy
products like probiotic yogurt and low-fat milk. Consumers are seeking dairy
products that offer specific health benefits, such as improved digestion and
enhanced immunity.
Rapid urbanization in many Asia-Pacific countries
has led to changes in lifestyle and dietary habits. The shift from traditional
markets to modern retail channels, such as supermarkets and convenience stores,
has facilitated easier access to dairy products for urban consumers.
Lactose intolerance is prevalent in some Asian
populations, affecting the consumption of dairy products. This has prompted the
development of lactose-free and dairy alternatives in the region. Additionally,
the dairy supply chain in some countries faces challenges related to
infrastructure, transportation, and storage. Ensuring the availability of fresh
dairy products can be a logistical challenge. Furthermore, different countries
have varying regulations and standards for dairy products, making it essential
for companies to navigate complex regulatory landscapes.
Dairy alternatives like soy milk and almond milk
are gaining popularity among consumers seeking plant-based options, presenting
competition to traditional dairy products. Additionally, there is significant
room for product innovation, including the development of dairy-based snacks,
fortified dairy products, and premium dairy offerings.
In conclusion, the Asia-Pacific dairy products
market is a diverse and rapidly expanding sector driven by changing consumer
preferences, urbanization, and a growing focus on health and wellness. While it
comes with its set of challenges, it also offers numerous opportunities for
dairy companies to innovate, diversify their product offerings, and tap into
the region's growing demand for dairy products.
Key
Market Drivers
Shifting Dietary Preferences and Rising Income
Levels
One of the primary drivers of the Asia-Pacific
dairy products market is the changing dietary preferences of consumers across
the region. As income levels rise and lifestyles become more urbanized, there
is a notable shift in dietary habits. Traditionally, many Asian countries had
diets that were largely plant-based, with limited consumption of dairy
products. However, as disposable incomes increase, there is a growing
inclination toward a Western-style diet that includes a higher consumption of
dairy products.
Consumers in countries like China and India, with
their booming middle-class populations, are increasingly incorporating dairy
into their diets. Milk, yogurt, cheese, and butter are becoming staples in many
households, driven by the perception of dairy as a source of essential
nutrients like calcium and protein. This shift in dietary preferences has
created a substantial market for dairy products in the Asia-Pacific region.
Health and Wellness Trends
The rising awareness of health and wellness is
another significant driver of growth in the Asia-Pacific dairy products market.
Consumers are becoming more health-conscious, seeking products that not only
provide taste but also offer functional benefits. Dairy products, known for
their nutritional value, are well-positioned to meet these consumer demands.
Probiotic-rich yogurts and fermented dairy products
are gaining popularity due to their perceived health benefits. These products
are believed to promote gut health, boost immunity, and aid in digestion.
Additionally, there is a growing interest in low-fat and low-sugar dairy
options as consumers become more mindful of calorie intake and sugar content.
Furthermore, the aging population in several Asian
countries has fueled the demand for dairy products fortified with vitamins and
minerals that support bone health and overall well-being. As a result, dairy
companies are increasingly investing in research and development to create
dairy products that cater to specific health needs, capitalizing on the
wellness trend in the Asia-Pacific region.
Evolving Trade Dynamics and International Expansion
The Asia-Pacific dairy products market has seen
significant changes in trade dynamics and international expansion. On one hand,
countries like New Zealand and Australia have leveraged their dairy industries
to become major players in global dairy exports, supplying dairy products to
markets in Asia and beyond. This has been facilitated by trade agreements and
improved logistics, allowing for the efficient export of dairy goods.
On the other hand, Asian countries themselves are
looking to expand their dairy industries and reduce reliance on imports.
Governments in countries like China and India have been actively promoting
domestic dairy production to meet the growing demand for dairy products. This
includes investments in dairy farming infrastructure, breeding programs, and
the development of dairy processing capabilities.
Moreover, international dairy companies are
increasingly establishing a presence in the Asia-Pacific region. They are
setting up production facilities, forming partnerships with local dairy
players, and tailoring their product offerings to cater to the unique tastes
and preferences of Asian consumers. This internationalization of dairy
companies has contributed to the diversification of dairy product choices
available in the region.
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Key Market Challenges
Changing Dietary Preferences and Lactose
Intolerance
One of the foremost challenges facing the
Asia-Pacific dairy products market is the shifting dietary preferences of
consumers. Traditionally, dairy has been an essential part of many Asian diets,
particularly in countries like India, China, and Japan. However, as
urbanization, globalization, and increased exposure to Western dietary patterns
have become prevalent, there has been a noticeable change in consumption
habits.
Lactose intolerance is a significant factor driving
this shift. A significant portion of the Asian population is lactose
intolerant, meaning they have difficulty digesting lactose, the sugar found in
milk and dairy products. This has led to a growing demand for lactose-free and
plant-based dairy alternatives such as soy milk, almond milk, and coconut milk.
Supply Chain and Infrastructure Challenges
The vast geographical expanse of the Asia-Pacific
region presents unique supply chain and infrastructure challenges for the dairy
industry. While some countries, like New Zealand and Australia, are major dairy
exporters, others in the region struggle with inadequate infrastructure,
inefficient transportation networks, and supply chain bottlenecks.
Cold chain logistics for dairy products are
especially critical due to the need to maintain product freshness and safety.
Ensuring consistent access to refrigerated storage and transportation
facilities across the region remains a challenge, particularly in rural and
less developed areas.
Additionally, cross-border trade complexities and
varying regulatory requirements among Asian countries can hinder the smooth
flow of dairy products within the region. This presents challenges for
international dairy companies looking to expand their market presence.
Quality and Safety Concerns
Quality and safety concerns are paramount in the
Asia-Pacific dairy products market. Several high-profile food safety incidents
involving dairy products have eroded consumer trust and prompted governments to
tighten regulations. Ensuring product quality, traceability, and safety is not
only a challenge but also a necessity for dairy producers and regulators.
Food safety regulations vary from country to
country within the region, and compliance can be complex for multinational
dairy companies. The need to meet diverse regulatory standards requires a
significant investment in quality control and assurance measures.
Counterfeiting and adulteration are ongoing issues
that impact dairy products, particularly in countries like China. Counterfeit
or substandard dairy products not only pose health risks to consumers but also
undermine the reputation of legitimate dairy producers.
Opportunities for Growth and Innovation
While the Asia-Pacific dairy products market faces
these challenges, it also presents substantial opportunities for growth and
innovation. The region's large and increasingly affluent population continues
to create a growing demand for dairy products, including milk, yogurt, cheese,
and butter.
Innovation in product development is a key avenue
for dairy companies. This includes the development of functional dairy products
such as probiotic yogurts, fortified milk, and protein-enriched products that
cater to health-conscious consumers.
Investment in dairy processing technology is
another opportunity. Efficient and sustainable processing technologies can help
address supply chain challenges and reduce waste in dairy production.
Diversification into value-added products such as
dairy-based desserts, ready-to-eat meals, and dairy snacks can capture consumer
interest and boost revenues.
Moreover, sustainability is becoming increasingly
important in the dairy industry. Companies that adopt eco-friendly practices,
reduce greenhouse gas emissions, and focus on animal welfare can gain a
competitive edge and meet the evolving expectations of consumers in the
Asia-Pacific region.
Key Market Trends
Rising Demand for Health and Wellness Products
One of the most prominent trends in the
Asia-Pacific dairy products market is the growing demand for health and
wellness-focused dairy products. As consumers become increasingly
health-conscious, there is a shift towards dairy items that offer functional
and nutritional benefits. This trend is driven by factors such as:
Awareness of Nutritional Benefits: Consumers are
becoming more aware of the nutritional benefits of dairy products, including
their high protein content, calcium, and vitamins. This awareness has led to
increased consumption of dairy products for better bone health, muscle growth,
and overall well-being.
Functional Dairy Products: The market is witnessing
a surge in demand for functional dairy products such as probiotic yogurt,
kefir, and dairy-based beverages enriched with vitamins, minerals, and other
bioactive compounds. These products are marketed for their digestive health
benefits, immunity-boosting properties, and weight management features.
Plant-Based Alternatives: While traditional dairy
products remain popular, there is also a growing interest in plant-based dairy
alternatives such as almond milk, soy yogurt, and oat-based dairy substitutes.
These products cater to lactose-intolerant consumers, vegans, and those seeking
dairy-free options for health reasons.
Clean Label and Natural Ingredients: Consumers in
the Asia-Pacific region are increasingly looking for dairy products with clean
labels, minimal additives, and natural ingredients. This trend aligns with the
preference for wholesome and minimally processed foods.
Premium and Fortified Products: Premium dairy
products, including organic and grass-fed options, are gaining traction among
consumers willing to pay a premium for higher quality. Additionally, fortified
dairy products with added vitamins, minerals, and omega-3 fatty acids are
becoming popular for their health-enhancing properties.
E-Commerce and Digital Transformation
The Asia-Pacific dairy products market is
experiencing a significant shift towards e-commerce and digitalization. This
trend is driven by factors such as:
Online Retail Platforms: E-commerce platforms have
become a preferred channel for consumers to purchase dairy products. The
convenience of online shopping, coupled with a wide range of product choices,
has fueled the growth of online dairy sales.
Direct-to-Consumer (DTC) Models: Some dairy
producers are adopting DTC models, allowing them to establish a direct
relationship with consumers. This approach enables personalized marketing,
product customization, and greater control over distribution.
Digital Marketing: Dairy companies are leveraging
digital marketing and social media platforms to engage with consumers, share
nutritional information, and promote their products. Influencer marketing and
online advertising play a crucial role in reaching a wider audience.
Supply Chain Optimization: Digitalization is
enhancing supply chain efficiency, enabling better inventory management,
tracking, and distribution. This ensures that dairy products reach consumers in
optimal condition and with reduced wastage.
Data Analytics: Dairy companies are harnessing data
analytics and artificial intelligence to gain insights into consumer
preferences, demand patterns, and market trends. This data-driven approach
helps in product development and marketing strategies.
Sustainable and Ethical Practices
Sustainability and ethical considerations are
gaining prominence in the Asia-Pacific dairy products market. Consumers are
increasingly concerned about the environmental and ethical impact of dairy
production. Key aspects of this trend include:
Eco-Friendly Packaging: Dairy companies are
adopting sustainable packaging materials and practices to reduce plastic waste
and environmental impact. This includes the use of recyclable packaging and the
promotion of responsible disposal.
Animal Welfare: Ethical considerations extend to
animal welfare practices within the dairy industry. Consumers are seeking
assurance that dairy products are produced in a humane and cruelty-free manner.
Local Sourcing: There is a preference for locally
sourced dairy products, as they are perceived as having a lower carbon
footprint and supporting local communities.
Sustainability Certifications: Many dairy producers
are obtaining sustainability certifications, such as organic and fair-trade
certifications, to demonstrate their commitment to ethical and sustainable
practices.
Reduced Food Waste: Efforts to reduce food waste in
the dairy supply chain are becoming more pronounced. This includes strategies
to minimize spoilage and the use of unsold dairy products in innovative ways.
Segmental Insights
Type Insights
Milk, often referred to as the "white
gold" of the dairy industry, plays a pivotal role in the Asia-Pacific
Dairy Products Market, commanding a significant share and serving as a
cornerstone of the region's dairy sector. This vast and diverse market
encompasses a wide range of dairy products, including milk, cheese, yogurt,
butter, and more. Among these, milk stands out as a fundamental and versatile
product with widespread consumption across the Asia-Pacific region.
Cultural Significance: Milk has deep cultural roots
in many countries across the Asia-Pacific region. It is a staple in traditional
diets and cuisines, often used in various forms, such as fresh milk, fermented
milk products, and dairy-based sweets. In countries like India, Pakistan, and
Sri Lanka, milk has cultural and religious significance, playing a central role
in rituals and festivals.
Growing Population: The Asia-Pacific region is home
to a significant portion of the world's population, with a growing middle-class
segment. As incomes rise, consumers seek higher-quality diets, including dairy
products. Milk, as a source of essential nutrients like calcium and protein, is
an integral part of this dietary shift.
Urbanization: Rapid urbanization in many
Asia-Pacific countries has led to changes in dietary preferences. Urban
consumers often incorporate more dairy products into their diets due to
convenience and the availability of a wider range of dairy-based options.
Nutritional Benefits: Milk is highly regarded for
its nutritional content. It provides essential vitamins, minerals, and
proteins, making it a vital component of balanced diets, especially for
children, pregnant women, and the elderly.
Diverse Dairy Products: The versatility of milk as
an ingredient enables the production of various dairy products. From fresh milk
to yogurt, cheese, and condensed milk, the dairy industry offers a diverse
array of options to cater to different tastes and preferences.
Health and Wellness Trends: As consumers become
more health-conscious, milk's reputation as a natural and nutritious beverage
aligns with the growing demand for wholesome and functional foods. Fortified
and specialty milk products cater to health and wellness trends.
Food Industry Applications: Milk is an essential
ingredient in the food industry, used in the production of baked goods,
confectionery, beverages, and dairy-based snacks. Its functional properties
contribute to the texture, taste, and nutritional profile of many processed
foods.
Dairy Farming and Supply Chain: The Asia-Pacific
region has a significant dairy farming sector, with countries like India and
New Zealand being major milk producers. A well-established supply chain ensures
the availability of milk and dairy products in both urban and rural areas.
Export Opportunities: Several countries in the
Asia-Pacific region are major exporters of dairy products, including milk
powder and dairy ingredients. This export potential further underscores the
significance of milk in the regional dairy market.
In conclusion, milk holds a substantial share in
the Asia-Pacific Dairy Products Market due to its cultural importance,
nutritional benefits, versatility, and its role as a foundational ingredient in
various dairy products. As the region continues to experience population
growth, urbanization, and evolving dietary preferences, milk is expected to
maintain its central position in the diet and food industry of the Asia-Pacific
countries.
Sales Channel Insights
The Asia-Pacific Dairy Products Market has
witnessed a remarkable transformation in recent years, with the online sales
channel emerging as a significant player in this dynamic industry. The dairy
sector in the Asia-Pacific region is vast and diverse, encompassing a wide
range of products such as milk, cheese, yogurt, butter, and more.
Traditionally, these products were primarily distributed through conventional
brick-and-mortar retail channels, including supermarkets, hypermarkets, and
local dairy stores. However, the rapid growth of e-commerce and online retail
platforms has brought about a substantial shift in consumer buying patterns and
market dynamics.
The rise of e-commerce in the Asia-Pacific region
can be attributed to several factors. Firstly, the region has experienced a
surge in internet penetration and smartphone adoption, making online shopping
more accessible to a larger population. Additionally, changing consumer
lifestyles, particularly in urban areas, have led to increased demand for
convenient shopping options.
One of the key drivers of the online sales
channel's significant share in the Asia-Pacific Dairy Products Market is the
convenience it offers to consumers. Shoppers can browse through a wide variety
of dairy products, compare prices, read reviews, and place orders from the
comfort of their homes. This convenience is particularly appealing to urban
consumers with busy lifestyles.
Online platforms provide an extensive array of
dairy products from various brands and regions, giving consumers access to a
broader selection than what may be available in local stores. This variety
allows consumers to explore new products and brands, driving market growth and
competition.
Online retailers often offer doorstep delivery
services, ensuring that dairy products are delivered fresh and in a timely
manner. This is especially important for products like milk and yogurt, which
have a limited shelf life.
E-commerce platforms frequently run promotions,
discounts, and loyalty programs that attract price-sensitive consumers. These
incentives encourage shoppers to make bulk purchases or try new products,
contributing to increased sales.
Online platforms also serve as valuable sources of
information. Consumers can access detailed product descriptions, nutritional
information, and user reviews, helping them make informed choices about the
dairy products they purchase.
Maintaining the cold chain during transportation is
crucial for dairy products' freshness and safety. Online retailers must invest
in robust logistics and delivery systems to ensure products reach customers in
optimal condition. Additionally, ensuring the quality and safety of dairy products
during storage and transit is essential. This requires rigorous quality control
measures and adherence to food safety regulations. Furthermore, while
e-commerce is booming in urban areas, it may still face challenges in reaching
rural and remote regions where internet access and delivery infrastructure may
be limited.
The online dairy products market is highly
competitive, with numerous players vying for market share. To succeed,
companies must differentiate themselves through product quality, pricing, and
customer service.
In conclusion, the online sales channel has
undeniably carved out a significant share in the Asia-Pacific Dairy Products
Market. Its growth has been driven by factors such as convenience,
accessibility, product variety, doorstep delivery, and promotional incentives.
As e-commerce continues to evolve and expand, it is expected to play an
increasingly influential role in shaping the dairy products industry across the
Asia-Pacific region.
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Regional Insights
China holds a prominent and substantial share in
the Asia-Pacific Dairy Products Market, making it a pivotal player in the
regional dairy industry. This dominance can be attributed to a combination of
factors that have propelled China to the forefront of dairy production,
consumption, and trade within the Asia-Pacific region.
Robust Domestic Demand: China boasts a massive
population, and as its economy continues to grow, so does the demand for dairy
products. Rising incomes and changing dietary preferences have led to an
increased consumption of dairy, including milk, yogurt, cheese, and butter.
This surge in domestic demand has had a significant impact on the Asia-Pacific
dairy market, with China being a major contributor.
Diverse Product Portfolio: China's dairy industry
has diversified its product offerings to cater to a wide range of consumer
preferences. This includes traditional dairy products like milk and yogurt, as
well as innovative dairy-based products such as probiotic beverages, flavored
yogurts, and specialty cheeses. The diverse product portfolio has helped
capture various segments of the market.
Investment in Dairy Infrastructure: China has made
substantial investments in dairy infrastructure, including modern dairy farms,
processing facilities, and distribution networks. These investments have not
only increased domestic production capacity but also improved the quality and
safety of dairy products.
Importance of Dairy in the Diet: Dairy products
have become increasingly important in Chinese diets due to their nutritional
value. As consumers become more health-conscious, dairy is perceived as a
source of essential nutrients, such as calcium and protein. This trend has
further boosted the demand for dairy products in the country.
International Trade: China has emerged as a
significant player in international dairy trade. It is both a major importer
and exporter of dairy products. China imports dairy products, such as milk
powder, to meet domestic demand, while also exporting processed dairy goods to
neighboring countries in the Asia-Pacific region.
Investment in Research and Development: China has
made strides in dairy research and development, leading to advancements in
product innovation and quality. This has enabled the country to produce dairy
items that cater to the preferences and dietary requirements of its diverse
consumer base.
Challenges and Opportunities: Despite its
significant share, China's dairy industry faces challenges, including concerns
about food safety and sustainability. These challenges present opportunities
for further growth, as the industry works to enhance quality control and
sustainability practices.
Recent Developments
- In 2023, Danone and Chr. Hansen embarked on three
new partnerships and a joint business development plan. This collaboration
allows Danone to leverage Chr. Hansen's esteemed biosolutions capabilities,
fostering innovation in the dairy and plant-based sectors by tapping into their
extensive culture collections. Through this partnership, Danone aims to explore
new horizons in terms of product advantages, fermentation technologies,
decarbonization, and finding sustainable solutions that benefit the company, partners,
consumers, and the planet. Chr. Hansen, on the other hand, envisions harnessing
the potential of beneficial bacteria to revolutionize the food system and
promote global well-being.
- In 2023, Morinaga Dairy's Bifidobacterium MCC1274
and Bifidobacterium Memory Countermeasures product series claimed the top prize
at Japan's 2023 Health Food Awards. Held as the 6th Healthy Food Award, this
prestigious accolade recognizes food and raw materials that enhance people's
quality of life. Morinaga Dairy's Bifidobacterium MCC1274 secured the Gold
Medal in the Cognitive Sleep Division, thanks to its robust scientific evidence
and diverse product range, backed by over 20 research papers. This achievement
marks the highest honor among all applicants.
Key Market Players
- Gujarat
Cooperative Milk Marketing Federation Ltd. (GCMMF)
- Yili Group
- Nestle SA
- Yakult Honsha Co., Ltd.
- Meiji Holdings Company, Ltd.
- Mother Dairy Fruit &
Vegetable Pvt. Ltd.
- Dean Foods Company
- The Kraft Heinz Company
- Bright Dairy & Food Co.,
Ltd.
- Fonterra Co-operative Group Limited
|
By Product Type
|
By Sales
Channel
|
By Country
|
- Milk
- Cheese
- Butter
- Dairy Desserts
- Yogurt
- Others
|
- Supermarkets/Hypermarkets
- Convenience
Stores
- Online
- Others
|
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Singapore
- Vietnam
- Malaysia
- Thailand
|
Report Scope:
In this report, the Asia Pacific dairy products market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Asia Pacific Dairy Products Market, By Product Type:
o Milk
o Cheese
o Butter
o Dairy Desserts
o Yogurt
o Others
- Asia Pacific Dairy Products Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Convenience Stores
o Online
o Others
- Asia Pacific Dairy Products Market, By Country:
o China
o Japan
o India
o South Korea
o Australia
o Indonesia
o Singapore
o Vietnam
o Malaysia
o Thailand
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Asia
Pacific dairy products market.
Available Customizations:
Asia Pacific Dairy Products Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Asia Pacific Dairy Products Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]