Asia Pacific UHT Milk Market - 2023-2030

Overview

Asia-Pacific UHT Milk Market reached US$ 41.34 billion in 2022 and is expected to reach US$ 68.77 billion by 2030, growing with a CAGR of 6.57% during the forecast period 2023-2030.

The Asia-Pacific region is witnessing a significant shift in consumer preferences towards convenient food and beverage options due to busy lifestyles. UHT milk, being a shelf-stable product that doesn't require refrigeration until opened, aligns with the convenience factor that consumers seek. The ongoing trend of urbanization in the Asia-Pacific region is leading to busier lifestyles, with consumers looking for convenient, on-the-go options, driving the market growth.

Dairy companies are responding to the increasing demand for convenient and nutritious options by focusing on UHT milk products. Market players are likely to introduce innovative packaging, fortification with additional nutrients, and marketing strategies that highlight the nutritional benefits of UHT milk.

Manufacturers expand their distribution networks to make UHT milk more widely accessible. For instance, on July 31, 2023, Akshayakalpa Organic broadened its market presence to encompass 42 cities across India. The company has strategically entered new markets in Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, and Kerala, introducing an innovative UHT milk pack to meet the evolving needs of consumers.

Dynamics

Increasing Demand for Convenient and Nutritious Milk

Consumers are increasingly aware of the importance of maintaining a healthy diet, and UHT milk retains essential nutrients while providing a longer shelf life compared to traditional pasteurized milk. The market is witnessing a shift towards healthier beverage choices, and UHT milk aligns with this consumer trend by offering a convenient and nutritious option.

The hectic lifestyles of consumers in the Asia-Pacific region, coupled with the need for on-the-go and easily accessible food and beverage options, are leading to a preference for products that require minimal preparation. UHT milk, with its extended shelf life and no refrigeration requirement until opened, fulfils this demand for convenience, making it an attractive choice for busy consumers.

Manufacturers are also developing nutrition-rich UHT milk to meet consumer demand. For instance, on July 26, 2023, Tetra Pak Ltd., a global leader in food processing and packaging solutions, partnered with dairy processors to initiate a campaign aimed at promoting awareness of UHT milk. In collaboration with the Rwanda FDA, this campaign seeks to educate consumers about the nutritional advantages of UHT milk.

Rising Demand for Functional Beverages

The growing awareness among consumers regarding the health benefits associated with functional beverages. UHT milk, with its extended shelf life and ability to retain essential nutrients, is positioned as a functional and nutritious beverage. The market is responding to this heightened consumer consciousness by providing a convenient and readily available option that aligns with the demand for functional beverages.

Furthermore, the incorporation of additional functional ingredients into UHT milk products is contributing to the market's expansion. Manufacturers are responding to consumer preferences by fortifying UHT milk with vitamins, minerals, and other health-promoting components. This strategic approach caters to the rising interest in functional beverages that offer not only convenience but also specific health benefits.

Consumer Perception of Inferior Taste

Consumers perceive UHT milk to have a different taste compared to traditionally pasteurized milk, often describing it as having a slightly cooked and burnt flavor. This taste can deter consumers from choosing UHT milk, leading to a potential constraint on the market's growth. The market is sensitive to these subjective perceptions, and negative taste experiences can impact consumer acceptance and adoption of UHT milk.

Cultural factors and traditional preferences for fresh and minimally processed products in certain Asia-Pacific regions contribute to the perception that UHT milk has an inferior taste. The market must navigate these cultural nuances to effectively address consumer concerns and preferences. To mitigate the impact of taste perception on the market, need to focus on educating consumers about the benefits of UHT milk without compromising on taste.

Segment Analysis

The Asia-Pacific UHT milk market is segmented based on source, product, form, category, packaging, distribution channel, end-user and region.

Increasing Traditional Consumer Preference and Versatility in UHT Cow Milk

The cow milk segment holds the largest share of the Asia-Pacific UHT milk market. Cow milk has long been a staple in the diets of consumers in the Asia-Pacific region. The familiarity and traditional preference for cow milk contribute significantly to its prominent position in the UHT milk market. The nutritional profile of cow milk aligns with the preferences of consumers seeking wholesome and natural dairy products, further bolstering its market growth.

The cow milk segment offers a diverse range of UHT milk products, including whole milk, skimmed milk, and variations with added nutrients. This versatility caters to a broad spectrum of consumer preferences, enhancing the market presence of cow milk. Manufacturers are also responding to consumer demand in the market by developing new UHT milk products in the Asia-Pacific.

For instance, on October 19, 2023, Gokul, renowned for being a leading provider of packaged milk and milk-based products in India, launched Gokul Select in Mumbai. This UHT-treated milk offers an extended shelf life of six months, allowing it to be conveniently stored at room temperature. The one-litre pack of Gokul Select is available for Rs 64.

Geographical Penetration

Increasing Demand for Convenient Food Products in India

India dominated the UHT milk market in Asia-Pacific. With changing dietary habits and hectic lifestyles, consumers of this country are actively adopting the use of products that are easy to use and have a longer shelf life for their convenience. Increasing consumer demand for convenience food products and a rise in consumer awareness regarding the benefits associated with the use of UHT milk are driving market growth in India.

In addition, the support from the government and organizations in building the multiple dairy industry and a high focus on boosting the sector growth through schemes and funds help me increase the market scope in the country. According to USDA 2022, The Indian government's National Action Plan for Dairy Development aimed to double organized milk production to 41 percent by 2022 and to 50 percent by 2023-2024.

The establishment of new UHT milk plants in the country has positively impacted the market growth with high availability and easy reach of the product to the end-user. For instance, in April 2021, Creamy Foods built a standalone UHT milk plant in India. GEA India has won an order to supply a complete UHT production line for Creamy Foods in Uttar Pradesh.

Competitive Landscape

The major Asia-Pacific players in the market include: China Mengniu Dairy Company Limited, Gujarat Cooperative Milk Marketing Federation Ltd. (Amul), NESTLE, Arla Foods amba, Karnataka Milk Federation, FrieslandCampina, Almarai, Vinamilk, Fonterra Group and Dutch Mill Group.

COVID-19 Impact Analysis

The COVID-19 pandemic had both positive and negative impact on the Asia-Pacific UHT milk market. The sudden declaration of lockdown by the multiple Asia-Pacific country governments has caused various challenges for the UHT milk manufacturer in the region to handle the necessary resources required for product production and distribution.

Procuring raw materials from the resources and maintaining the required workforce in the industry harmed the market growth. In addition, the shutdown of dairy farms and retail stores that sell UHT milk reduced product demand in the primary phase of the pandemic. Further, most people in the region increased their preference towards buying the product that has more shelf life.

With less availability of fresh products and the need for products that can be consumable for longer periods, the sales of UHT milk increased during the pandemic. According to RS Sodhi, chairman of Gujarat Cooperative Milk Marketing Federation, Amul, stated that of the 5.25 crore liter of packaged milk sold daily in India, around 5% is UTH milk. Furthermore, the high use of e-commerce platforms for product sales has improved the product reach to end-users.

Russia- Ukraine War Impact

The international conflict between Russia and Ukraine has had a bad impact on multiple markets worldwide. Asia-Pacific UHT milk market also got impacted to an extent due to unfavourable war conditions. The war disrupted the import and export transactions of various products including UHT milk at the global level. The Asia-Pacific UHT manufacturers also faced challenges in importing and exporting production from between Asia-Pacific and global countries due to interrupted supply chain activities.

By Source

• Animal-Based Milk
  • Cow Milk
  • Goat Milk
  • Buffalo Milk
  • Other
• Plant-Based Milk
  • Almond
  • Coconut
  • Soy
  • Others

By Product

• Whole Milk
• Semi-Skimmed Milk
• Skimmed Milk
• Others

By Form

• Powder
• Liquid

By Category

• Flavored
• Unflavored

By Packaging

• Cartons
• Plastic Bottles
• Sachets
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Retail Stores
• E-Commerce Stores
• Others

By End-User

• Infant Formula
• Bakery & Confectionery
• Beverages
• Others

By Country

• China
• India
• Japan
• Australia
• Rest of Asia-Pacific

Key Developments

• In July 2023, Akshayakalpa Organic, Bengaluru-based, India's first certified organic dairy company announced its expansion into 42 cities over India. The company also announced its introduction of a new UHT milk pack.
• In October 2021, the Grass to Milk brand, based in Ireland taped the lifestreaming route to market their premium grass-fed UHT milk products to all age groups and children in China.
• In November 2020, Lactel, Lactalis French milk brand introduced UHT milk 1 liter packet in India. The brand acquired Tirumala, Anik and Prabhat dairy brands in India previously.

Why Purchase the Report?

• To visualize the Asia-Pacific UHT milk market segmentation based on source, product, form, category, packaging, distribution channel, end-use and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Asia-Pacific UHT milk market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Asia-Pacific UHT milk market report would provide approximately 51 tables, 47 figures and 224 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies