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Global deliveries of milk have started to fall, while dairy markets are showing only modest demand growth. Despite upward movement in prices at the end of Q2 growing inventories will continue to overhang the market as the world works its way through the current glut, according to the Rabobank Global Dairy Quarterly Q2 2016.
In Q2, the world’s farmers started to react to protracted lower farmgate prices by slowing growth in production—as anticipated, production will start to fall in response to low farmgate prices, leading to sharp reductions in export surpluses. Despite higher buying from China in the first half of the year, poor economic performance, low oil prices and geopolitics continue to weaken demand in many regions. Global stocks continue to increase, with current stocks estimated to stand at 6.4m tonnes higher than the five-year average in liquid milk equivalent (LME) terms, representing around 7.5% of annual trade.
The global market for drinking milk continued to grow in 2015, rising by 2.4% to 251 billion litres, according to a new report from food and drinks industry consultancy Zenith International. White milk remains by far the most commonly consumed type, capturing 93% of total volume, with flavoured milk accounting for the remaining 7%. Both segments are forecast to strengthen in the years to 2020, with annual growth of 2% and 7% respectively.
The majority of consumption takes place in the Asia Pacific region, with volume in excess of 130 billion litres making up 52% of the global market. This is followed by West Europe, North America and Latin America, with a combined share of 35%. Sales in all regions apart from North America increased in 2015.
Innovation is widespread in the industry, with manufacturers striving to capture market share through offering consumers added value. A number of innovation trends have emerged in recent years, from vitamin-enriched milks, confectionery-inspired flavours and premium positioning to weight-loss and gender-focused products.
Future Markets Insight has published a new report on the global yogurt market.
In the report North America is expected to be the major contributor in terms of value followed by Europe in yogurt market. However, these region is predicted to be a mature market for set yogurt, and is expected to show a stable growth in the near future.
Introduction of new variant in flavors coupled with offering low fat products may fuel the growth of yogurt market in these region. In developing countries of Asia Pacific region China is expected to dominate the market in terms of yogurt consumption followed by India. Moreover Japan is expected to show a substantial growth during the forecast period. Increasing consumption of flavored yoghurt especially in countries such as China and Japan is predicted to support the growth yoghurt market across Asia Pacific region during forecast period.
Rising disposable income coupled with shifting consumer eating habits is expected to drive the demand of yogurt market in the near future. Moreover, increasing availability of flavored yoghurt especially in developing region is predicted to be major factor supporting the growth of ice cream and frozen dessert market during the forecast period. In addition, rising awareness among the people regarding the benefits of yogurt such as it has good bacteria or probiotics that boost the immune system, provide calcium, and help combat constipation and diarrhea and others is also expected to drive the growth of yogurt market in the near future.
Some of the major players operating in yogurt market includes Danone Groupe, Ultima Foods, Chobani, Sodiaal, NESTLÉ, General Mills and Kraft Foods Group, and Yakult Honsha among others.