|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD
901.07 Million
|
|
Market
Size (2030)
|
USD
1292.06 Million
|
|
CAGR
(2025-2030)
|
6.15%
|
|
Fastest
Growing Segment
|
Milk
and Milk Powder
|
|
Largest
Market
|
South
India
|
Market Overview
India
Dairy Testing Market was valued at USD 901.07 Million in 2024 and is
anticipated to project impressive growth in the forecast period with a CAGR of 6.15%
through 2030. The India Dairy Testing Market is undergoing rapid transformation
within the larger framework of food safety and quality assurance. As consumer
demand for safe, premium-quality dairy products continues to rise, the market
for dairy testing in India has seen substantial growth in recent years.
Projections
for the Indian Dairy Testing Market indicate strong growth over the next 5 to 7
years. This expansion will be driven by several key factors, including stricter
food safety regulations, ongoing advancements in testing technologies, and the
increasing prominence of organized retail channels. Additionally, as consumers
place greater emphasis on health and food safety, the demand for value-added
dairy products and the need for more precise, reliable testing methods will
continue to grow.
Key Market Drivers
Expansion of the Dairy
Industry
The
expansion of the dairy industry in India is a major driver behind the growth of
the dairy testing market. India, as the world's largest producer of milk,
continues to witness rising production volumes, evolving consumer preferences,
and shifts from an unorganized to a more structured dairy sector. These
developments necessitate stringent testing and quality control processes to
maintain high product standards. India's milk production is forecasted to
reach 180 million metric tons (MT) by 2020, up from the current level of 146
million MT, while demand is projected by the National Dairy Development Board
(NDDB) to rise to 200 million MT. The per capita milk availability in India has
already surpassed the global average, standing at 322 grams per day compared to
the world average of 293.7 grams per day. This increase in production
volume creates an immediate demand for larger-scale and more frequent testing
to ensure consistent product quality and safety. As more dairy products—ranging
from liquid milk to value-added products like yogurt, butter, and cheese—are
produced, dairy processors must ramp up testing procedures to prevent
contamination, ensure nutritional consistency, and meet regulatory compliance. Testing
at each stage of production—raw milk collection, transportation, processing,
and packaging—requires sophisticated systems that can handle high volumes of
samples. As a result, the demand for both in-house testing equipment and
third-party laboratory services has risen sharply, pushing the growth of the
dairy testing market.
Historically,
India’s dairy industry has been dominated by small-scale, unorganized producers
who often lack access to advanced testing technologies. However, the increasing
trend toward organized dairy farming and processing is transforming this
landscape. Large cooperatives like Amul and corporate players such as Mother
Dairy and Nestlé India are rapidly expanding, bringing with them more
standardized practices and stringent quality control measures. These organized
players adhere to strict internal and regulatory quality requirements,
leveraging advanced testing technologies to maintain product integrity. Their
scale of operations and adherence to international standards for exports drive
the need for frequent, comprehensive testing, thereby contributing
significantly to the dairy testing market's growth. This shift is also
fostering a higher adoption rate of rapid and high sensitivity testing methods
across the industry. The expansion of India’s dairy industry is not just about
the production of milk but also about the diversification into value-added
products like flavored milk, probiotic drinks, lactose-free milk, cheese,
paneer, ice cream, and ghee. Each of these products has its own specific
testing requirements, whether for nutritional composition, microbial
contamination, or shelf-life evaluation. For instance, fermented dairy products
like yogurt and cheese require rigorous microbial testing to detect spoilage
and pathogens, while nutritional testing is crucial for products marketed as
“low-fat” or “high protein.” This diversification necessitates the use of more
specialized testing equipment and techniques, thus driving market growth.
As
the dairy industry expands, consumer expectations are also evolving. Urban
consumers are increasingly concerned about the safety and nutritional content
of the dairy products they consume. Health-conscious individuals seek out
organic or fortified dairy products, further intensifying the need for strict
quality control and testing procedures. Consumers are demanding transparency
from dairy brands regarding ingredient sourcing, processing methods, and the
nutritional value of the final product. This rising consumer demand for safe,
premium-quality dairy products drives companies to adopt advanced testing
methodologies, both to meet consumer expectations and protect brand reputation.
The larger the dairy industry grows, the more critical it becomes for producers
to maintain the highest possible standards of quality and safety, fueling the
need for more frequent and varied testing protocols. India’s dairy industry is
increasingly eyeing international markets, particularly in the Middle East,
Africa, and Southeast Asia. However, expanding globally comes with stringent
quality, safety, and regulatory standards. To compete on an international scale,
Indian dairy producers must meet the safety and quality benchmarks set by
importing countries, such as those established by the European Food Safety
Authority (EFSA) or United States Department of Agriculture (USDA). This focus
on exports necessitates higher levels of testing for contaminants, pathogens,
antibiotic residues, and heavy metals, among others. Failure to comply with
these global standards could lead to rejected shipments and financial losses,
thus incentivizing producers to invest heavily in comprehensive testing
solutions. The industry’s push toward expanding its export potential is
therefore a critical driver of growth in the dairy testing market.
Rising Consumer Demand for
Premium Dairy Products
The
rising consumer demand for premium dairy products is a significant factor
driving the growth of the India Dairy Testing Market. As Indian consumers,
particularly those in urban areas, become more health-conscious and selective
in their dietary choices, the demand for higher-quality, specialized dairy
products has surged. This shift has created a need for more rigorous testing
procedures to ensure the safety, nutritional value, and quality of these
premium offerings. Indian consumers are increasingly prioritizing health,
leading to a rising demand for functional dairy products that offer added
nutritional or health benefits. Products such as organic milk, probiotic
yogurt, fortified milk (with added vitamins like D and A), lactose-free milk,
and protein-enriched dairy have gained significant traction. These specialized
products often target niche markets but require stringent quality controls to
meet consumer expectations and safety standards. To ensure these products
deliver on their claims, manufacturers must employ advanced testing methods to
verify ingredient composition, nutritional content, and the absence of harmful
contaminants. For example, probiotic dairy products require regular testing for
viable bacterial counts, while fortified products must undergo compositional
testing to ensure that they contain the added vitamins and minerals. This
heightened need for accurate and detailed testing is driving increased demand
for sophisticated testing technologies in the dairy market.
As
the market for premium dairy products expands, consumer expectations regarding
quality and safety have intensified. Urban, affluent consumers are willing to
pay a premium for dairy products that meet high standards of purity, freshness,
and nutritional value. This demographic is also more informed and vigilant
about product quality, seeking transparency in labeling and sourcing. To
maintain consumer trust and command premium pricing, manufacturers must invest
in stringent quality assurance protocols. This involves a variety of tests,
including microbial testing, adulteration detection, and nutritional
composition analysis. For instance, organic milk producers need to verify that
their products are free from synthetic pesticides, antibiotics, and hormones,
while lactose-free products must undergo specific tests to ensure that all
lactose has been properly removed. This demand for precise testing drives the
growth of the dairy testing market as companies strive to deliver products that
meet these heightened standards. Premium dairy products are particularly
vulnerable to adulteration due to their higher market value. With consumer
demand for organic and specialty dairy products on the rise, there is a growing
risk of product tampering, dilution, or misrepresentation. Adulteration not
only compromises product quality but also poses significant health risks to
consumers. To protect their brand reputation and consumer trust, producers of
premium dairy products must implement robust adulteration testing. This can
include testing for the presence of urea, synthetic milk, detergents, and other
harmful substances that are commonly used in milk adulteration. Additionally,
premium dairy brands often conduct advanced testing to ensure the authenticity
of organic claims, including the absence of synthetic fertilizers and
chemicals. As a result, the need for sophisticated and frequent adulteration
testing is a key driver of growth in the dairy testing market.
Consumers
purchasing premium dairy products often seek "clean-label"
options—those with minimal processing, fewer additives, and clear ingredient
sourcing. This trend has led to a growing demand for transparency in the
production process, from farm to table. As consumers become more educated about
the food they consume, they expect detailed labeling that includes information
about sourcing, processing, and nutritional content. For dairy manufacturers to
meet this demand, they must invest in rigorous testing methods that verify the
claims made on product labels. Tests to confirm the absence of artificial
preservatives, antibiotics, and other additives are now common for premium
dairy products. For example, organic and grass-fed milk producers may need to
conduct tests for pesticide residues or genetically modified organisms (GMOs).
The need to back clean-label claims with scientific verification is another
driver of the dairy testing market’s growth, as companies are held accountable
for the accuracy of their labels. The demand for value-added dairy products,
such as flavored milk, probiotic drinks, dairy-based desserts, and high-protein
yogurts, is expanding rapidly. These products typically target health-conscious
and affluent consumers and require advanced formulations, increasing the
complexity of testing requirements. Value-added dairy products often contain
additional ingredients such as probiotics, vitamins, or flavorings, each of
which must be tested for compatibility and safety. For instance, probiotic
products need regular microbial testing to ensure that the live cultures remain
active and effective throughout the product’s shelf life. Similarly,
high-protein dairy products require accurate testing to ensure that they meet
the advertised protein content, while flavored products must be tested for
artificial sweeteners or preservatives. The growing complexity of these
products has led to more specialized testing, contributing to the expansion of
the dairy testing market.
Rising Incidence of Dairy
Adulteration and Contamination
The
rising incidence of dairy adulteration and contamination is a significant
driver behind the growth of the India Dairy Testing Market. Adulteration and
contamination pose severe public health risks, erode consumer trust, and create
long-term reputational damage for dairy companies. As these issues become more
prevalent and more widely publicized, the demand for rigorous testing solutions
has surged. India has a well-documented history of dairy adulteration, where
unscrupulous players dilute milk or add harmful substances such as synthetic
milk, detergents, starch, urea, or formalin to increase volume or shelf life.
Reports from regulatory bodies such as the Food Safety and Standards Authority
of India (FSSAI) have revealed alarming levels of adulteration across the
country. Studies suggest that a significant portion of milk sold in India is
non-compliant with safety and quality standards. This widespread adulteration
crisis has pushed dairy producers and regulators to implement more stringent
quality control mechanisms. Dairy testing for adulterants, including those that
are difficult to detect through basic testing methods, has become essential to
maintaining the integrity of the industry. As a result, demand for advanced
adulteration detection technologies, such as Liquid Chromatography-Mass
Spectrometry (LC-MS) and Near-Infrared Spectroscopy (NIRS), has increased,
driving growth in the dairy testing market.
High-profile
cases of adulteration, often amplified by the media, have heightened consumer
awareness about the risks associated with dairy products. Consumers are
becoming more vigilant, demanding greater transparency and quality assurance
from dairy producers. Media coverage, along with government and
non-governmental organization (NGO) reports, has underscored the health risks
posed by adulterated milk, such as gastrointestinal infections, kidney damage,
and in severe cases, death. This growing consumer awareness has created
significant pressure on dairy companies to improve their quality control
measures. To reassure consumers, many dairy companies have turned to frequent,
third-party testing to validate the purity and safety of their products. This
trend has created a robust demand for both in-house and outsourced dairy
testing services, as companies seek to comply with consumer expectations and
rebuild trust. The rising incidence of adulteration has triggered stricter
enforcement of food safety laws in India. The FSSAI and other regional food
safety bodies have responded by setting more stringent standards and conducting
regular inspections. Recent regulatory frameworks have introduced severe
penalties for non-compliance, including fines, revocation of licenses, and
criminal charges for gross violations. These regulatory pressures have driven
the need for more thorough and frequent testing across the dairy supply chain.
Dairy producers are required to test for a variety of contaminants and
adulterants, including heavy metals, antibiotic residues, pesticides, and
microbial pathogens. Non-compliance can result in significant financial and
reputational damage. Consequently, the demand for compliance-driven dairy
testing services has grown, as companies are compelled to meet regulatory
requirements and avoid costly penalties.
Beyond
deliberate adulteration, contamination also arises from poor hygiene practices
during the handling, storage, and transportation of milk. Dairy products,
particularly raw milk, are highly perishable and prone to contamination by
harmful bacteria such as Salmonella, E. coli, and Listeria. These pathogens can
enter the milk supply chain at any point, from milking to packaging, especially
when proper hygiene standards are not followed. To mitigate these risks, dairy
companies must implement comprehensive microbial testing protocols. Tests for
bacterial contamination, spore-forming microorganisms, and other harmful agents
are essential to ensure the safety of the product. The rise in microbial
contamination incidents has thus led to a surge in demand for testing
technologies, including Polymerase Chain Reaction (PCR), Enzyme-Linked
Immunosorbent Assay (ELISA), and Real-Time PCR (RT-PCR), which can rapidly and
accurately detect microbial contaminants. The health hazards associated with
contaminated milk are well-documented, ranging from mild foodborne illnesses to
severe, life-threatening conditions. Chemical contaminants like pesticides,
antibiotics, and heavy metals (e.g., lead, mercury, cadmium) pose additional
health risks. Pesticide residues can lead to long-term health issues such as
cancer, while antibiotic residues can contribute to the growing global problem
of antimicrobial resistance. To address these concerns, dairy producers must
perform tests for residual chemicals, antibiotic traces, and heavy metals.
Testing for antibiotic residues, in particular, has gained prominence due to
the overuse of antibiotics in dairy farming. The presence of these residues in
milk can render the product unsafe for human consumption and lead to
international trade restrictions, which is especially critical for dairy
exporters. Therefore, chemical contaminant testing has become a crucial aspect
of the dairy testing market, further fueling its expansion.
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Key Market Challenges
Fragmented and Unorganized
Dairy Sector
One
of the most significant challenges facing the dairy testing market is the
highly fragmented and unorganized nature of the Indian dairy industry. Despite
being the largest milk producer in the world, a substantial portion of India’s
dairy production comes from small-scale farmers and local cooperatives. These
small dairy producers often lack access to modern testing facilities, quality
control mechanisms, and advanced technologies. Many rural dairy farmers still
operate in informal markets where hygiene standards and testing protocols are
minimal or non-existent. Their limited financial resources and lack of
awareness about food safety regulations make it difficult for them to invest in
comprehensive testing solutions. As a result, the penetration of dairy testing
services remains low in the unorganized sector, hampering the overall growth of
the market. This challenge is exacerbated by logistical difficulties, such as
the lack of cold storage and proper transportation infrastructure, which
further reduces the demand for organized testing.
Also,
unorganized producers often do not prioritize rigorous testing, relying on
traditional methods of quality assessment like visual checks or taste tests.
Bridging the gap between the organized and unorganized sectors requires
significant efforts in terms of education, infrastructure development, and
regulatory enforcement, which remains a key hurdle to the expansion of the
dairy testing market.
High Cost of Advanced Testing
Technologies
While
technological advancements in dairy testing have improved the accuracy and
efficiency of detecting contaminants and adulterants, the cost of adopting
these sophisticated methods remains prohibitively high for many players in the
Indian dairy industry. Advanced technologies such as Liquid Chromatography-Mass
Spectrometry (LC-MS), High-Performance Liquid Chromatography (HPLC), and
Polymerase Chain Reaction (PCR) are essential for detecting a wide range of
contaminants, including pesticide residues, antibiotic traces, and pathogens.
However, these technologies require significant capital investment, both in
terms of initial setup and ongoing maintenance.
For
many dairy producers, particularly small and medium-sized enterprises (SMEs),
the cost of these testing technologies is a significant deterrent. High
operational costs, including the need for skilled technicians, specialized
equipment, and laboratory infrastructure, make it difficult for these producers
to incorporate advanced testing into their operations. In addition, the lack of
affordable testing solutions for smaller players limits the scalability of the
dairy testing market, as only larger corporations and well-funded entities are
able to fully embrace these innovations.
The
challenge is further compounded by a lack of government subsidies or incentives
that could encourage the adoption of advanced testing technologies,
particularly in rural areas. Without financial support or more cost-effective
solutions, the dairy testing market faces growth limitations, especially among
small-scale producers.
Key Market Trends
Adoption of Blockchain for
Traceability and Transparency
The
integration of blockchain technology into the dairy supply chain is emerging as
a transformative trend that promises to reshape the way quality control and
testing are managed in the dairy industry. Blockchain’s decentralized and
immutable nature enables dairy producers to create transparent, traceable
records at every stage of the supply chain—from farm to consumer. This
transparency is crucial for ensuring the authenticity and safety of dairy
products, especially as consumers demand greater visibility into the origins
and handling of their food.
By
leveraging blockchain, dairy companies can provide real-time, verified data on
production processes, storage conditions, and transportation routes. This level
of traceability is particularly important for premium dairy products, where
consumers are willing to pay a premium for assurances of quality, authenticity,
and ethical sourcing. Blockchain technology can also play a pivotal role in
identifying contamination or adulteration issues early in the supply chain,
allowing for faster corrective actions and reducing the risk of large-scale
recalls.
For
the dairy testing market, blockchain’s role in increasing supply chain
visibility opens up new opportunities for integration with testing protocols.
Automated data from blockchain systems can feed into testing software, enabling
predictive analysis and early detection of potential quality issues. This trend
will drive the demand for testing solutions that can seamlessly integrate with
blockchain platforms, offering both transparency and enhanced quality control
capabilities.
Growth of Digital and
Automated Testing Solutions
The
dairy testing market is experiencing a shift towards digital and automated
testing solutions, driven by the need for greater efficiency, speed, and
accuracy. Traditional testing methods, which often involve manual processes and
Laboratory-based analyses, are gradually being replaced by automated systems
that provide faster results with higher precision. Digital testing platforms,
which utilize artificial intelligence (AI) and machine learning (ML), are
gaining traction for their ability to analyze large datasets and deliver
insights in real-time.
Automation
is particularly valuable in microbial testing, where rapid detection of
pathogens such as E. coli, Salmonella, and Listeria is critical for ensuring
product safety. Automated testing equipment can reduce human error, streamline
sample processing, and shorten turnaround times. For instance, PCR-based rapid
testing kits and biosensor technologies are increasingly being adopted to
detect contaminants in milk and other dairy products more efficiently.
The
adoption of digital platforms also facilitates remote testing and monitoring, a
trend that gained momentum during the COVID-19 pandemic. Dairy producers are
now able to perform routine tests using portable devices or cloud-based
platforms, eliminating the need for centralized laboratories. As the dairy
industry becomes more digitized, the demand for automated testing solutions is
expected to grow, driving the dairy testing market forward.
Segmental Insights
Product Insights
Based
on the category of Product, the Milk and Milk Powder segment emerged as the
dominant in the market for dairy testing in 2024. India has long been
recognized as one of the largest consumers of milk globally, with milk
consumption rising due to changing dietary preferences and increasing health
consciousness among consumers. As urbanization accelerates, the demand for
convenient and nutritious food options, such as milk and milk powders,
continues to grow. This increase in consumption naturally leads to a
corresponding demand for testing services to ensure product quality and safety.
Milk powder has gained popularity due to its long shelf life, ease of
transportation, and versatility in various culinary applications. It is used in
a wide array of products, including infant formula, confectionery, and bakery
goods. As manufacturers strive to meet consumer expectations for high-quality
products, rigorous testing becomes essential. This trend has prompted dairy
producers to invest more heavily in testing services, thereby reinforcing the
milk and milk powder segment's dominance in the dairy testing market. With
increasing consumer awareness of food safety and quality, regulatory bodies in
India, such as the Food Safety and Standards Authority of India (FSSAI), have
imposed stringent quality control measures for dairy products. These
regulations necessitate comprehensive testing for various parameters, including
adulterants, microbial contamination, and nutritional content. The milk and
milk powder segment is particularly affected by these stringent regulations, as
any compromise in quality can directly impact consumer health. To comply with
these regulations, dairy producers are increasingly relying on advanced testing
methods, such as spectroscopy and chromatographic techniques, to ensure the
quality of their products. These testing methods not only help in detecting
adulteration and contamination but also play a critical role in verifying the
nutritional claims made on product packaging. The need for compliance with
regulatory standards amplifies the demand for testing services in the milk and
milk powder segment, further solidifying its leading position in the market.
The
milk and milk powder segment benefits significantly from advancements in dairy
testing technologies. Innovations such as rapid detection methods, real-time
monitoring systems, and machine learning algorithms have revolutionized the
testing landscape. These technologies enable dairy producers to conduct more
efficient and accurate tests, allowing for timely identification of quality
issues. For instance, the introduction of Fourier Transform Infrared (FTIR)
spectroscopy has transformed how milk quality is assessed, enabling rapid and
non-destructive analysis of various quality parameters, including fat, protein,
and lactose content. The ability to quickly and accurately assess these factors
not only meets regulatory requirements but also enhances product development
and quality assurance processes. As manufacturers increasingly adopt these
cutting-edge technologies, the demand for dairy testing services in the milk
and milk powder segment will continue to rise, reinforcing its dominance in the
overall dairy testing market. These factors collectively contribute to the
growth of this segment.
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Regional Insights
South
India emerged as the dominant in the dairy testing market in 2024, holding the
largest market share in terms of value. Southern India is one of the leading
milk-producing regions in the country. Tamil Nadu, for example, is known for
its robust dairy cooperative movement, with well-established organizations like
the Aavin Milk producing large volumes of milk. The high production levels
necessitate rigorous testing protocols to ensure quality and safety, thus
driving the demand for testing services in the region. The Southern states are
often at the forefront of adopting new technologies in dairy production and
processing. This inclination towards modernization extends to the testing
services utilized by dairy companies, which seek to implement advanced testing
methodologies to comply with stringent regulatory standards. The presence of
several research institutions and universities in this region facilitates
innovation and the adoption of cutting-edge testing technologies. With a
growing middle class in Southern India, there is an increasing awareness
regarding food safety and quality among consumers. This trend has led dairy
producers to prioritize quality testing to meet consumer expectations, further
enhancing the demand for testing services.
Recent Developments
- In
July 2024- Researchers at Banaras Hindu University (BHU) have developed a new
technique for testing milk at home using evaporation to detect adulterants. To
validate the method, they created synthetic milk in the lab by mixing
detergent, vegetable oil, urea, and tap water to mimic real milk. This
synthetic milk was then combined with real milk in varying proportions. By
analyzing the unique ring patterns left after evaporation, the researchers were
able to identify adulterated milk. A machine learning model further enhanced
the accuracy of this technique, achieving over 95% accuracy in detecting milk
adulteration.
- In
May 2024, The Food Safety and Standards Authority of India (FSSAI) is set to
initiate a quality check on various food items, including dairy products and
spices, following an investigation into alleged violations of norms in branded
spices. In addition to its ongoing probe, the FSSAI plans to expand its
surveillance efforts to cover fortified rice, fruits and vegetables, salmonella
levels in fish products, as well as spices and culinary herbs. This initiative
aims to enhance food safety standards across the domestic market.
- In
December 2021, PerkinElmer has appointed Everest Instruments Pvt. Ltd. as its
primary distributor for dairy solutions in India. Everest Instruments is a
prominent provider of advanced automation, digital solutions, and devices
tailored for the Indian dairy industry. This collaboration aims to assist
organizations throughout the extensive domestic supply chain in utilizing
innovative technologies that address regulatory requirements and consumer
demands. A key product in this partnership is the recently announced PerkinElmer
IndiScope FT-IR raw milk analyzer.
Key Market Players
- Fare
Labs
- Sms Labs Services Pvt Ltd.
- AES Laboratories Pvt. Ltd
- ALS Testing Services India Private
Limited
- Shriram Institute for Industrial
Research
- Asian Enviro Labs Pvt Ltd
- Essar Laboratories & Research Centre
|
By
Type
|
By
Technology
|
By
Product
|
By
Region
|
- Safety
Testing
- Quality
Analysis
|
|
- Milk
and Milk Powder
- Cheese
- Butter
and Spreads
- Infant
Food
- Ice
Cream and Desserts
- Yogurt
- Others
|
- North
India
- South
India
- East
India
- West
India
|
Report Scope:
In this report, the India Dairy Testing Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Dairy Testing Market, By Type:
o Safety Testing
o Quality Analysis
- India Dairy Testing Market, By Technology:
o Traditional
o Rapid
- India Dairy Testing Market, By Product:
o Milk and Milk Powder
o Cheese
o Butter and Spreads
o Infant Food
o Ice Cream and Desserts
o Yogurt
o Others
- India Dairy Testing Market, By Region:
o North India
o South India
o East India
o West India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India Dairy
Testing Market.
Available Customizations:
India Dairy
Testing 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).
India Dairy Testing 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]