Milk Tank Cooling System Market Forecasts to 2030 - Global Analysis By Type (Ice Bank Tank, Direct Expansion System Tank and Other Types), Configuration (Closed End and Open End), Capacity, Cleaning Type, Application, End User and By Geography

According to Stratistics MRC, the Global Milk Tank Cooling System Market is accounted for $673.23 million in 2023 and is expected to reach $872.45 million by 2030 growing at a CAGR of 4.5% during the forecast period. A milk tank cooling system is a vital component of dairy farms and processing facilities. Its primary function is to rapidly cool and store raw milk after it has been collected from the dairy cows. This helps to preserve the freshness and quality of the milk until it is ready for further processing or distribution. The primary purpose of a milk tank cooling system is to quickly lower the temperature of milk to inhibit bacterial growth. This ensures that the milk remains fresh and safe for consumption.

According to India's National Dairy Development Board (NDDB), demand for around 266.5 million metric tons of dairy products is likely in 2030.

Market Dynamics:

Driver:

Global increase in milk production

The exponential increase in milk output is presently driving up the need for milk tank cooling systems. To meet the needs of the expanding population, production volume is rising along with global population growth. To prevent contamination, the milk must be chilled both before and after processing. In milk farms or places where raw milk is collected, these systems are becoming more widely used. These cooling devices are increasingly being used in milk transportation due to the increasing number of remote milk collection stations. The rise of milk tank cooling systems should be further aided by a rise in milk export volume.

Restraint:

Diversification challenges

The market for milk tank cooling systems is severely restricted by diversification issues, particularly in areas with a well-established dairy industry. Due to the market being saturated with existing milk tank cooling systems and the lack of potential clients for product portfolio expansion, this constraint exists. The market for milk tank cooling systems is distinguished by a high level of product uniformity, with the majority of systems providing comparable functionality and features. Manufacturers seeking to expand their product offerings may face difficulties due to the limited potential for product differentiation.

Opportunity:

Increasing demand for quality milk

Demand for pure milk is growing with time, as people are becoming more conscious regarding their health. Consumers prefer pure milk instead of any mixture resulting from added preservatives. Milk handling activities related to preservation determine the hygienic value of fresh milk. Maintaining the hygiene of milk is important for the manufacturer of high-quality dairy products, leading to taste and flavor retention and long-term quality. This factor makes the installation of milk tank cooling systems essential for the preservation of milk which is thereby propelling the demand.

Threat:

Availability of numerous dairy players

The milk tank cooling system market may see market saturation, particularly in areas with developed dairy businesses. This problem happens when there is little chance for future growth or expansion and a sizable number of the potential clients, such as dairy producers, already have adequate milk tank cooling systems in place. If such systems are already in place, dairy producers might not feel the immediate need to invest in new equipment unless their current ones become old, unsuccessful, or need to be changed due to wear and tear. This factors hampers the market growth.

COVID-19 Impact:

The COVID-19 pandemic has halted the manufacturing of a number of products in the worldwide milk tank cooling system market, primarily as a result of the extended state of emergency in several developed nations. This has considerably slowed the growth of the market for milk tank cooling systems worldwide. The pandemic highlighted the importance of food security. Ensuring the proper functioning of critical equipment like Milk Tank Cooling Systems became a priority to prevent food waste and maintain a stable supply of dairy products.

The 1000 to 5000 litre segment is expected to be the largest during the forecast period

The 1000 to 5000 litre segment is estimated to have a lucrative growth. Milk tank cooling systems with capacities ranging from 1000 to 5000 liters are crucial for dairy farms and processing facilities. These systems typically have a storage capacity ranging from 1000 to 5000 litres, making them suitable for small to medium-sized dairy operations. These capacity tanks cater to a range of dairy farm sizes, allowing for scalability based on production needs. The rising small scale dairy farms are fuelling the segment growth.

The milk processing unit segment is expected to have the highest CAGR during the forecast period

The milk processing unit segment is anticipated to witness the fastest CAGR growth during the forecast period. Milk tank cooling systems play a critical role in milk processing units by maintaining the freshness and quality of raw milk as it moves through various stages of processing. They are used to quickly lower the temperature of the incoming milk to the desired storage temperature, typically around 4°C (39°F). In a milk processing unit, the effective use of milk tank cooling systems is essential for maintaining product quality, safety, and compliance with regulatory standards. It minimizes the risk of spoilage and contamination.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Agriculture in the Asia Pacific region is heavily influenced by environmental and sustainability issues. In order to employ environmentally friendly refrigerants and consume less water during the cooling process, milk tank cooling systems are becoming more common. Moreover, as part of their overall agricultural policy, certain Asian countries are providing farmers with financial incentives or subsidies to make investments in energy-efficient and environmentally friendly milk tank cooling systems.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. European dairy farmers are well-known for using cutting-edge technologies and farming methods. The region's milk tank cooling systems frequently include cutting-edge components including automatic temperature monitoring and control, energy-efficient cooling mechanisms, and remote monitoring capabilities. Additionally, for dairy products, especially milk, European nations have stringent laws and quality standards. To guarantee the secure and superior storage of milk, milk tank cooling systems must meet these requirements. Hence, specific temperature requirements for milk storage are frequently specified by these laws.

Key players in the market:

Some of the key players profiled in the Milk Tank Cooling System Market include: Danfoss, GEA Group AG, Dairymaster, Serap Group, Wedholms AB, RØ-KA Indutries A/S, Milkplan, Delaval, Packo Cooling, Fabdec Ltd, Boumatic, Daviesway Pty Ltd., Bel Brands, Marcold Ltd, Wedholms AB, Mueller, Metodika AB, Fullwood Packo SAS, Kilkenny Cooling Systems and Airtech Cooling Process Pvt. Ltd.

Key Developments:

In September 2021, Wedholms, a dairy equipment manufacturer based in Sweden launched a CO2 milk-cooling tank. The CO2 used by the tank is a product of recycling from industrial processes. The tank also offers significant energy savings compared to conventional solutions.

In August 2021, Bel Brands USA announced a collaboration with the Dairy Farmers of America (DFA) for launching a sustainable dairy cooling programme. The aim of the collaboration was to keep greenhouse gas emissions in check.

Types Covered:

• Ice Bank Tank
• Direct Expansion System Tank
• Other Types

Configurations Covered:

• Closed End
• Open End

Capacities Covered:

• Less Than 1000 Litres
• 1000 to 5000 Litres
• 5000 to 10000 Litres
• Above 10000 Litres

Cleaning Types Covered:

• In-plant
• In-farm
• Other Cleaning types

Applications Covered:

• Milk Processing Unit
• Milk Farm
• Other Applications

End Users Covered:

• Food
• Cold storage
• FMCG
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances