Global Liquid Milk Replacers Market - 2023-20230

Overview

Global Liquid Milk Replacers Market reached US$ 3.21 billion in 2022 and is expected to reach US$ 5.99 billion by 2030, growing with a CAGR of 8.1% during the forecast period 2023-2030.

The liquid milk replacers in the livestock sector, are experiencing increased adoption as farmers look for economical and efficient alternatives for feeding young animals like calves, lambs, and piglets. These replacers closely mimicked natural milk's nutrition, promoting animal health and growth. Advancements in production technology improved their quality, while sustainability and ethical concerns are influencing sourcing practices.

To cater to the growing demand for liquid milk replacers, manufacturers are developing innovative products and expanding the liquid milk replacers market growth. In February 2021, Pet-Ag, Inc. introduced Goat's Milk Esbilac Liquid Milk Replacer through its channel partners in the Distributor and Retailer partners. To satisfy the expanding needs of pet parents and professionals, this innovative liquid is ready to use and offers convenience and more options.

Calves hold a significant share of the liquid milk replacers market due to their large-scale population. Europe held a significant share of the liquid milk replacers market due to its growing livestock industry. Liquid milk replacers provide essential nutrients and vitamins for young or undernourished animals, helping them grow and thrive.

Dynamics

Increasing Awareness of the Benefits of Milk Replacers

Liquid milk replacers for animals offer several benefits, making them a valuable resource in livestock farming. Milk replacers provide a consistent and controlled source of nutrition for young animals. This consistency ensures that animals receive the necessary nutrients for growth and development. Milk replacers can be tailored to the specific nutritional requirements of different animal species.

Government regulations and subsidies in some regions may promote the use of milk replacers in animal farming. In India, the Dairy Development Department, Kerala State is implementing the CALF ADOPTION PROGRAMME during the year 2022-2023 with the goal of creating a strong herd for the future by providing Calf Starter and Milk Replacer to a newborn animals up to 90 days of age.

Rising Demand for Dairy Products

The global demand for dairy products such as milk, cheese, and yogurt is on the rise. As a result, dairy farming has expanded to meet this demand. According to OECD-FAO research, global milk output would rise by 1.6 percent annually between 2020 and 2029, reaching 997 billion tonnes in that year. This expansion has led to an increased number of calves, lambs, and other young animals being born in dairy farms. This creates a demand for liquid milk replacers to ensure the proper nutrition and growth of these young animals.

In dairy farming, it is common practice to separate newborn animals from their mothers shortly after birth to maximize milk production for human consumption. This separation means that these young animals need to be fed with a substitute, such as liquid milk replacers. The demand for dairy products indirectly drives the need for milk replacers to support the nutrition of these separated animals.

High Cost of Milk Replacers

The high cost of liquid milk replacers is primarily due to the need for precise nutritional formulations tailored to specific animal species. Achieving the right balance of proteins, fats, vitamins, minerals, and essential nutrients requires careful formulation with quality ingredients, which in turn increases production costs.

Developing liquid milk replacer formulations necessitates significant research and development investments by companies. Thorough research is vital for producing nutritionally balanced milk replacers that foster the healthy growth of young animals. However, the substantial upfront costs associated with acquiring these products serve as a significant barrier, particularly for small-scale farmers and those with limited financial resources. These farmers find it challenging to allocate a significant portion of their budget to expensive milk replacer products.

Segment Analysis

The global liquid milk replacers market is segmented based on type, livestock, fortification, distribution channel and region.

Large Volume of Calves Population

The global dairy industry is one of the largest consumers of milk replacers, primarily for feeding young calves. Calves represent a significant proportion of the animal population. According to the U.S. Department of Agriculture, In the United States, there were 94.4 billion head of cattle and calf as of January 1, 2020. This large volume contributes to their high market share in the liquid milk replacers market growth.

The demand for dairy products continues to rise globally. Liquid milk replacers for calves are formulated to meet the specific nutritional requirements of dairy calves. The dairy industry's emphasis on maximizing milk production makes it essential to provide the best possible nutrition to young calves.

Geographical Penetration

Europe's Growing Livestock Industry

Europe's advanced and varied livestock industry, covering dairy and beef cattle, sheep, and various animals, plays a pivotal role in the milk replacers market. The demand is propelled by the imperative to rear robust young animals. European livestock farmers are renowned for their dedication to upholding high animal health and welfare standards. This strong livestock industry, and focus on animal welfare drive the demand for liquid milk replacers in that region.

According to the European Commission, around 155 billion tonnes of milk are produced in the EU annually. Germany, France, Poland, the Netherlands, Italy, and Ireland are the top producers. Together, they produce about 70% of the milk in the EU. Calves in dairy operations often rely on milk replacers, boosting the market share.

Competitive Landscape

The major global players include DSM, Liprovit BV, CALVA PRODUCTS, LLC, Pet-Ag, Inc., Nukamel, BEWITAL agri GmbH & Co. KG, Tailspring, Ascend Performance Materials, Nilsen Company, Hubbard Feeds

COVID-19 Impact Analysis

COVID Impact

The pandemic disrupted supply chains, affecting the production and distribution of milk replacers. This led to delays and shortages, making it challenging for some farmers to obtain these products. Economic uncertainty and financial constraints impacted many farmers' ability to invest in higher-cost milk replacers. Some may have opted for alternative feeding methods to reduce expenses.

However, the pandemic underscored the significance of food security and a stable supply of animal-based products. As a result, some livestock farmers have been encouraged to invest in liquid milk replacers to secure the health and growth of young animals. Concerns about animal health and welfare increased during the pandemic, with consumers and farmers alike recognizing the importance of raising healthy livestock. This awareness may have driven the demand for milk replacers.

Russia- Ukraine War Impact

The conflict in the region can disrupt supply chains, including the production and distribution of liquid milk replacers. Instability in the region led to fluctuations in commodity prices, including those related to agriculture. This impacted the cost of production for milk replacers, potentially leading to price increases.

The geopolitical tensions and potential economic sanctions created uncertainty in the region and global markets. Uncertainty can lead to decreased investment and spending in the livestock industry, affecting the demand for liquid milk replacers.

By Type

• Medicated
• Non-Medicated

By Livestock

• Calves
• Piglets
• Lambs
• Kittens
• Puppies
• Foals
• Others

Fortification

• Vitamins
• Organic Acids
• Probiotics
• Minerals
• Electrolytes
• Yeast

Distribution Channel

• Supermarket/Hypermarket
• Convenience Stores
• E-Commerce
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In November 2022, Tonisity International Limited introduced Tonisity PxM, an additive for isotonic milk replacement that aids piglets in overcoming significant production barriers. PxM is Tonisity's third offering in its distinctive line of isotonic drinks for boosting swine production.
• In February 2021, Meyenberg, a producer of goat milk products, introduced a line of milk substitute goods for puppies and kittens. These products are available in both liquid and powder form.

Why Purchase the Report?

• To visualize the global liquid milk replacers market segmentation based on type, livestock, fortification, distribution channel 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 liquid milk replacers 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 global liquid milk replacers market report would provide approximately 69 tables, 74 figures and 181 pages.

Target Audience 2023

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