Global Flavored Milk Market - 2023-2030

Global Flavored Milk Market - 2023-2030

The Global Flavored Milk Market US$ 57.6 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 89.5 billion by 2030. The market is growing at a CAGR of 5.6% during the forecast period 2023-2030.

Consumers' increasing focus on health and wellness is driving the demand for flavored milk products that offer nutritional benefits. Manufacturers are responding by introducing healthier options, such as low-fat or reduced-sugar variants, organic or natural formulations, and products fortified with vitamins, minerals, or functional ingredients. The emphasis on health-conscious choices and clean labels is shaping the development of flavored milk products.

The flavored milk market is influenced by flavor innovation and diversity. Consumers are seeking unique and exciting flavor experiences. Manufacturers are expanding their flavor offerings beyond traditional options like chocolate and strawberry, introducing innovative and unconventional flavors. Examples include exotic fruits, indulgent dessert-inspired flavors, and combinations of different flavor profiles. The focus on flavor innovation and diversity aims to attract consumers looking for new taste sensations and flavor combinations.

Market Dynamics

Rising Demand for Plant-Based and Alternative Milk Flavors is Indeed Driving the Market Growth of Flavored Milk

Plant-based diets, including vegan and vegetarian lifestyles, are gaining popularity due to concerns about animal welfare, environmental sustainability, and personal health. As more consumers adopt plant-based diets, the demand for non-dairy milk alternatives, such as almond milk, soy milk, oat milk, and coconut milk, is on the rise. For instance, according to GFI, As of 2020, plant-based milk already represented 15% of the total dollar sales of retail milk in the developed market of the United States.

Flavored milk manufacturers are tapping into this trend by introducing plant-based flavored milk options. By offering plant-based and alternative milk flavors, the flavored milk market can expand its consumer base beyond traditional dairy consumers. People with lactose intolerance, milk allergies, or dietary restrictions can now enjoy flavored milk beverages without compromising their preferences or dietary needs. This expanded consumer base contributes to the overall market growth.

Convenience and On-The-Go Consumption Play a Significant Role in Driving The Market Growth of Flavored Milk

Consumers today lead busy and hectic lifestyles, often seeking convenient and ready-to-consume beverage options. For instance, At least once a week, more than 40% of customers worldwide drink while they are on the go, with fortified milk, sipping yogurt, and energy drinks being some of their preferred options. Flavored milk provides a convenient and portable choice for those who are constantly on the go.

Flavored milk's packaging, such as bottles or pouches with secure closures, makes it easy to carry and consume while on the move. Whether it's during a commute, at the gym, in school or the office, or while traveling, consumers can conveniently enjoy flavored milk without the need for additional equipment or utensils. This convenience and portability factor attracts time-pressed individuals and contributes to market growth. For instance, in 2021, the average volume of flavored milk consumed in Norway amounted to 9.17 liters per person.

Shelf Life and Storage Requirements of Flavored Milk Can Hamper the Growth of the Flavored Milk Market

Flavored milk is a perishable product, meaning it has a limited shelf life compared to other beverages. The presence of flavorings and added ingredients in flavored milk can contribute to microbial growth, reducing its shelf life. This perishability poses challenges for manufacturers in terms of distribution, inventory management, and product wastage. Consumers may also be deterred from purchasing flavored milk if they perceive it as having a short shelf life, opting for longer-lasting beverages instead.

Flavored milk typically requires refrigeration to maintain its quality and extend its shelf life. This requirement poses logistical challenges for manufacturers, distributors, and retailers. Cold chain infrastructure, including proper storage, transportation, and display refrigeration, becomes crucial to ensure that flavored milk products remain fresh and safe for consumption. Limited access to refrigeration facilities in certain regions or during transportation can hinder market growth for flavored milk.

COVID-19 Impact

With lockdowns and restrictions in place, people spent more time at home, leading to increased consumption of at-home meals and snacks. Flavored milk, often considered a comforting and nostalgic beverage, gained popularity as a part of home-based consumption. Consumers sought familiar and indulgent products, including flavored milk, to bring a sense of comfort during challenging times.

However, the closure or limited operations of food service establishments, such as restaurants, cafes, and schools, significantly reduced the demand for flavored milk in these channels. Flavored milk products are often consumed as part of meals or snacks in food service settings. The decline in out-of-home consumption opportunities led to decreased sales and demand for flavored milk during the pandemic.

Segment Analysis

The global flavored milk market is segmented based on flavors, packaging, distribution channel, and region.

Rising Utilization of Flavored Milk in Diary-based Beverages

The global flavored milk market has been segmented by flavors into, vanilla, chocolate, strawberry, and others

In 2022, based on flavor, the chocolate flavor segment held the highest share of the flavored milk market. Chocolate is a universally loved flavor that appeals to a wide range of consumers, including children and adults. For instance, according to Tastewise, in 2023, 12.58% of restaurants offer Chocolate Milk on their menus. The fastest rising consumer need for Chocolate Milk is Snack

Chocolate flavor has a rich and indulgent taste that is often associated with comfort and indulgence. Chocolate flavor offers a variety of options within the flavored milk category. It can range from classic milk chocolate to variations like dark chocolate, white chocolate, or chocolate blends with other flavors such as caramel or mint. This wide range of chocolate flavors provides consumers with diverse choices and keeps them engaged in the market.

Geographical Analysis

Growing Health Consciousness among consumers in Asia Pacific Region is Expected to Drive the Market Growth in this Region

In 2022, the Asia Pacific region had a significant share of the flavored milk market. Flavored milk products have long been popular in the Asia Pacific, with a strong cultural preference for dairy-based beverages. With a rising preference for healthier and more nourishing food choices, the flavored milk market is experiencing significant growth, particularly in the Asia-Pacific region. This region, led by India as the world's largest milk producer, is witnessing a surge in demand for flavored milk products. This demand has spurred innovation and exploration of novel flavors in the flavored milk segment.

Furthermore, the Asia-Pacific region's dairy production practices are known for their efficiency and sustainability, which have positively impacted the expansion of the market. Manufacturers are also actively catering to consumers' individual requirements, offering options such as low-sugar, no-sugar, and fat-free variations of flavored milk.

Competitive Landscape

The major global players in the market include Danone SA, Amul Industries Pvt. Ltd., Associated Milk Producers, Inc, Dean Foods Company, Arla Foods Amba, Saputo Inc., The Hershey Company, Nestle S.A, Dairy Farmers of America, Inc., and Hiland Dairy

Why Purchase the Report?
• To visualize the global flavored milk market segmentation based on flavors, packaging, and 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 flavored 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 Global Flavored Milk Market Report Would Provide Approximately 61 Tables, 60 Figures, and 102 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies