Global Reconstituted Milk Market Size, Share & Industry Trends Analysis Report By Application, By Source (Skimmed Milk, Whole Milk, Anhydrous Milk Fat, and Unsalted Frozen Butter), By Distribution Channel, By Regional Outlook and Forecast, 2023 - 2030

Global Reconstituted Milk Market Size, Share & Industry Trends Analysis Report By Application, By Source (Skimmed Milk, Whole Milk, Anhydrous Milk Fat, and Unsalted Frozen Butter), By Distribution Channel, By Regional Outlook and Forecast, 2023 - 2030

The Global Reconstituted Milk Market size is expected to reach $386.6 billion by 2030, rising at a market growth of 8.1% CAGR during the forecast period. In the year 2022, the market attained a volume of 74,771.8 kilo tonnes, experiencing a growth of 3.5% (2019-2022).

The market expansion is propelled by the rising demand for convenient food solutions in the North America region, fuelled by accelerated urbanization and changing consumer lifestyles. Therefore, North America region is poised to acquire more than 24% share of the market by 2030. Its storage, preparation, and consumption simplicity and adaptability align precisely with the changing lifestyle preferences in these regions. This market trend presents opportunities for businesses that can capitalize on the demand for convenient milk products that have been reconstituted. Some of the factors impacting the market are increasing demand for products with longer shelf life, associated health and wellness factors, and concerns associated with freshness of product.

The shelf stability of reconstituted milk is a significant driver for its market growth, especially in regions with infrastructural challenges, economic constraints, and unpredictable supply chains. In natural disasters, conflicts, or other emergencies where new food supply chains are disrupted, it becomes an essential nutrition source. Its shelf stability ensures that it can be stockpiled and used as required. Thus, the longer shelf life of this product is a key factor influencing its demand, which will propel the market’s growth. The health and wellness considerations surrounding reconstituted milk are multifaceted. Generally, it retains most of the primary nutrients in fresh milk, such as calcium, phosphorus, and protein. Converting fresh milk to milk powder can result in the loss of some vitamins, especially B vitamins and C. The rise in health and wellness trends has also seen a growth in plant-based milk powders, such as almonds, soy, or oats. These can be reconstituted like dairy milk powder and cater to vegans or those with dairy allergies. Hence, the health benefits resulted in its increased consumption, thereby aiding in the expansion of the market.

However, Freshness concern is one of the primary challenges faced by the market. When consumers think of "fresh," they often associate it with natural, wholesome, and higher nutritional value. If milk powder is exposed to moisture during storage, it can clump together or, in worse scenarios, develop mold. Such incidents can further push the narrative that it isn't as fresh or safe as regular milk. Thus, all of the concerns mentioned above may hamper the demand for the product, resulting in declined growth of market.

Application Outlook

Based on the application, the market is categorized into milk, cheese, yogurt, ice cream, and others. The milk segment acquired the largest revenue share in the market in 2022. The importance of reconstitution in the food processing industry cannot be overstated. Concentrated milk solids can be used as constituents in numerous products, including dairy-based delicacies, ice creams, baked goods, candies, condiments, and beverages. Its versatility in multiple cuisine applications contributes to its demand in the sector. In addition, it retains most of the nutritional qualities of fresh milk, such as minerals, vitamins, and proteins. It is a trustworthy source of essential nutrients.

Source Outlook

Based on the source, the market is segmented into skimmed milk, whole milk, anhydrous milk fat, and unsalted frozen butter. The anhydrous milk fat segment procured a significant revenue share in the market in 2022. The demand for reconstituted milk containing anhydrous milk fat (AMF) is driven by its extended storage life, low moisture content, growing consumer markets, and applications in the fast-food sector. The prolonged expiration life and minimal moisture content of AMF make it an ideal choice for long-distance storage and transport. Its extended shelf life enables efficient inventory management and decreases the risk of perishability, making it a dependable option for businesses operating in multiple geographic regions.

Distribution Outlook

Based on the distribution channel, the market is classified into B2B and B2C categories. In 2022, the B2B segment held the maximum revenue share in the market in 2022. Utilizing it in the B2B distribution channel improves supply chain effectiveness. Its non-perishable nature eliminates the need for temperature-controlled storage and transport, reducing logistical complexity and saving money. Additionally, the extended expiration of reconstituted milk minimizes replenishment frequency, expediting supply chain operations and ensuring a reliable milk supply. In addition, the adaptability of reconstituted milk permits its incorporation into a vast array of industries, such as food manufacturing, hospitality, and catering, thereby increasing its demand in the B2B distribution channel.

B2C Type Outlook

The B2C segment is further divided into online sales, hypermarkets/ supermarkets, wholesale stores, and others. The hypermarkets/supermarkets segment garnered the highest revenue share in the market in 2022. Hypermarkets and supermarkets typically carry a range of brands and product options for reconstituted milk, allowing consumers to choose based on brand preference, nutritional content, and packaging size. Consumers are less likely to encounter stock shortages or supply issues compared to smaller stores. Established hypermarkets and supermarkets often have quality control measures in place to ensure the products on their shelves meet certain standards. This can give consumers confidence in the quality and safety of the reconstituted milk they purchase.

Regional Outlook

Based on the region, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region acquired the maximum revenue share in the market. The extended shelf life and convenience of reconstituted milk make it an attractive option for the fast-paced lifestyles prevalent in many Asian nations. The increasing use of it by dairy producers across periods of diminished production capacity drives the demand for recombined milk in this region.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Nestle S.A, Lactalis Group, Fonterra Co-operative Group Limited, Dairy Farmers of America, Inc., Saputo, Inc., Schreiber Foods, Inc., China Mengniu Dairy Company Limited, Meiji Holdings Co., Ltd., and Sodiaal International.

Scope of the Study

Market Segments covered in the Report:

By Application (Volume, Kilo Tonnes, USD Million, 2019-2030)

• Milk
• Cheese
• Yogurt
• Ice Cream
• Others

By Source (Volume, Kilo Tonnes, USD Million, 2019-2030)

• Skimmed Milk
• Whole Milk
• Anhydrous Milk Fat
• Unsalted Frozen Butter

By Distribution Channel (Volume, Kilo Tonnes, USD Million, 2019-2030)

• B2B
• B2C
• Hypermarkets/Supermarkets
• Wholesale Stores
• Online Sales
• Others

By Geography (Volume, Kilo Tonnes, USD Million, 2019-2030)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Nestle S.A
• Lactalis Group
• Fonterra Co-operative Group Limited
• Dairy Farmers of America, Inc.
• Saputo, Inc.
• Schreiber Foods, Inc.
• China Mengniu Dairy Company Limited
• Meiji Holdings Co., Ltd.
• Sodiaal International

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