The global ultra high temperature milk market accounted for USD 53.4 billion, in 2018. It is estimated to grow at a CAGR of 7.8% during the forecast period, 2019 to 2025. For the sterilization of raw milk, it is heated at 135 Degree Celsius which helps in killing the germs and parasites present in the milk. This sterilized milk is also called as UHT milk. Useful life (shelf life) of this product is greater than the raw milk without using any preservative. Moreover, it has wide application in ready to drink products. These factors are expected to drive the market growth over the forecast period.
Manufacturers are focusing on product innovation by adding organic ingredients and developing different flavors. For example, Fonterra Anchor which is one of the leading brands in dairy industry introduced a premium range of UHT milk named as LiveUp and NaturalUp. These products are rich in protein and have organic ingredients. They are sold through both online and offline channels. Moreover, high standard of living and changes in lifestyle of people are the factors expected to boost the demand for the product over the forecast period.
This product is more popular among youngsters and has wide application in commercial sector. Students who live in hostels highly prefer this product because of its longer shelf life. Moreover, in emerging countries there are lacks of refrigeration facilities and small food chains and restaurants do not prefer to invest in refrigeration units. Such food outlets highly demand UHT milk as it can be stored at room temperature. Furthermore, pasteurized milk is comparatively cheaper than this product. Therefore, the revenue collected from this product is higher than the revenue obtained from the sale of pasteurized milk.
Digital marketing strategies, penetration of e-commerce platforms, and strong distribution network are the factors providing potential growth opportunities to the manufacturers of unflavored and flavored milk products. Moreover, increase in the disposable income of consumers and rising preference for premium milk products are the factors further contributing to the growth of the ultra high temperature milk market. Furthermore, there has been a high demand witnessed from Gen-X people for flavored milk products which is expected to accelerate the market growth from 2019 to 2025.
Based on product, the UHT milk market is divided into unflavored and flavored milk products. In 2018, the unflavored UHT milk segment held the largest market share of 77.8%. Milk is one of the daily necessities, thus, has the largest number of consumers. Furthermore, it is widely used as a raw material in making homemade beverages as it has longer shelf life. This factor is expected to accelerate the product demand from 2019 to 2025.
The flavored UHT milk segment is projected to grow at a CAGR of 9.9% from 2019 to 2025. This product is available in several different flavors such as spice, chocolate, banana, and strawberry. This property attracts large number of consumers. Furthermore, inclination of people towards healthy and active lifestyle and rapid adoption of new trends are the factors expected to drive the global demand for flavored milk products. Addition of flavors to the pasteurized milk makes it taste better, thus, it is used in preparation of yogurt, cheese sauce, and fruit juices.
Fat Content Insights
Based on fat content, the ultra high temperature milk market is further categorized into skimmed, semi skimmed, and whole fat. In 2018, the skimmed milk segment accounted for the largest market share of 48.9% and is anticipated to grow significantly over the coming years. Consumers who are inclined towards health lifestyle and have healthy drinking habits highly demand this product because of its low-fat content. Moreover, skimmed milk products are available in different flavors and textures and they are rich sources of calcium and protein. This property is expected to contribute to the sales of skimmed UHT milk product over the forecast period.
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The semi-skimmed UHT milk segment is projected to grow at the fastest CAGR of 9.3% over the forecast period owing to increasing demand for milk and milk products in countries like India, China, and U.S. Semi skimmed milk products have medium-fat content and are used in preparation of dairy items such as cheese and yogurt. This is expected to boost the product demand across different regions. For instance, cheese and butter are the products that are highly demanded in U.S., thus, expected to boost the demand for semi skimmed milk products. Furthermore, addition of different coloring agents, sweeteners, preservatives, and flavors make the product more attractive. This factor is anticipated to accelerate the demand for semi skimmed UHT milk over the forecast period.
In 2018, Europe held the largest revenue share of 40.5%. Consumers from countries such as Holland, Germany, and Belgium highly consume dairy products which are expected to contribute to the growth of regional market. Moreover, the demand for dairy products and UHT milk in Denmark has witnessed a significant rise due to inclusion if UHT milk in regular diets of people. This factor is expected to drive regional demand for the product over the forecast period.
Asia Pacific is expected to be the potential market for UHT milk, and it is to grow at the fastest CAGR of 9.1% throughout 2019-2025. Increasing consumption of dairy products in developing countries like India, Japan, and China is expected to fuel the growth. In addition, high consumption of UHT milk in countries like Taiwan, Vietnam, and Thailand has also contributed to the growth of regional market over the forecast period. Key manufacturers are taking strategic decisions such as business expansion owing to large consumer base in the region and growing demand for UHT milk products.
Ultra High Temperature Milk Market Share Insights
Some of the leading players in this industry includeAlbea Group; Amcor Ltd.; First milk; Bemis Company, Inc.; Ardagh Group; Mondi plc; Bormioli Rocco Spa; Koa Glass Co. Ltd.; Saint-Gobain; Sonoco Products Company; MeadWestvaco Corp.; Mother dairy, and A2 Corporation. For gaining competitive advantage over competitors, leading brands are focusing on strategic initiatives such as product innovation, awareness campaigning about advantages of UHT milk, and mergers & acquisitions.