Fluid Milk – Procurement Best Practices & Sourcing Strategies

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Fluid Milk Market Global Size:

The global fluid milk market constantly flourished in 2023 and reached a US$ 184.9 billion value. In the future, the ELINT Market Research team believes that the industry will grow at a CAGR of 1.9% and achieve US$ 219.7 billion worth by 2032. This forecast is revealed in the detailed procurement intelligence report which also says that key factors like rising urbanization, the need for useful and strengthened dairy products, and the arrival of organic and lactose-free milk substitutes to accommodate people with dietary constraints or lactose allergy drive the market expansion.  

Furthermore, China has long possessed the largest 49% market share for import activities of fluid milk, dairy products, and their alternatives in 2022 due to high regional demands. Additionally, due to inadequate domestic supplies and previous quality breaches, China keeps stealing the worldwide supply of milk imports. In 2022, the nation’s import ratios are predicted to rise by 7.7 percent.

Additionally, in the context of export activities, European shipments increased, primarily to China, because of the lifting of manufacturing quotas in Europe and the Russian prohibition. Thus, China imports liquid milk mostly due to inadequate transportation. UHT imports have increased because Chinese dairy products corporations are buying overseas dairy businesses for reselling to China.

Market Definition:

Fluid milk has attributes like high vitamins, protein, calcium, minerals, and probiotics. It is the unprocessed, raw material that is extracted from the milk glands of mammals, particularly cows, and has diverse varieties like raw milk, no-fat milk, half-skimmed milk, etc. Further, the handy qualities of fluid milk help in various health benefits such as losing weight, muscle growth, and the preservation of healthy bones and teeth. The production of beverage milk involves several processes, including nutrient enrichment, coagulation, preservation, and uniformity.

Fluid Milk Market Drivers:

1. Increasing Awareness for Health and Wellness – 

The foremost reason for the growth in the global fluid milk market is increasing awareness among people for consuming healthy and nutritious food items to enhance their immunity. Fluid milk is famous for containing handy nutrients like vitamin D, calcium, protein, etc. which make it a primary choice of consumers who purchase organic and fortified milk goods. 

2. Introduction of Technological Advancements – 

In the last few years, the global fluid milk market experienced the emergence of technological refinements that help manufacture quality milk products efficiently. For instance, the Internet of Things (IoT) and automation-based systems make production operations fast and easier and also produce milk goods with extended shelf life.

Fluid Milk Market Challenges:

1. Emergence of Fluild Milk Alternatives – 

A significant portion of the worldwide population is vegetarian or vegan which avoids dairy products coming from animals. Thus, key alternatives of fluid milk that derive from plant-based sources like soy, almond, or oat cause challenges for conventional dairy products. Hence, multiple factors such as changing consumer choices, lactose allergy, environmental issues, and ethical regards pose difficulties for fluid milk manufacturing companies.

2. Fluctuations in Prices – 

Another major challenge that occurred in the global fluid milk procurement intelligence market is shifts in prices of dairy sectors because of unfavorable weather conditions and feedstocks. In case of intense weather situations like droughts, heavy rain, high temperatures, etc. the farming of dairy items gets affected. Also, high weather circumstances can impact the health of animals and reduce their productivity. Thus, manufacturers face lowered production of fluid milk.

Fluid Milk Market Opportunities:

1. Methods to Extend Shelf Life of Products – 

Aseptic processing and ultra-pasteurization are substantial methods that help extend the shelf life of fluid milk products. These advancements create great opportunities for manufacturing businesses since they can draw consumers’ attention by offering mil products with longer storage and drive profitability. Moreover, the longer shelf life of dairy items decreases waste, and supply costs, and improves the market reach, mainly in nations that have limited sources for refrigeration.

2. Manufctauring of Lactose-Free Milk – 

Due to the lactose-allergic population, the manufacturing companies preferred making products that are lactose-free and safe for consumers dealing with such allergies. Hence, the introduction of lactose-free milk goods poses vast opportunities for market players in the global fluid milk market. Consequently, customers can enjoy the nutritional advantages of milk without any discomfort. Also, health-concerned people can utilize lactose-free milk to meet their balanced diet needs. 

Fluid Milk Market Segmentation:

1. Types of Sources –

Cow, ship, goat, and buffalo are the four biggest sources of producing fluid milk. Further, the cow milk segment is the most used domain for manufacturing fluid milk because a large portion of consumers accept milk from cows. Also, cows are the conventional and primary source of dairy products and offer essential nutrients. 

2. Various Applications – 

Prominent applications of fluid milk include fortified milk, milk-based beverages, yogurts, cheese, creamy desserts, cakes, cookies, ice creams, and frozen dishes. Further, due to the increasing need for nutritious foods among consumers, the fortified milk segment is anticipated to lead in the global market. 

Key Procurement Intelligence Companies in the Global Fluid Milk Market:

Leading companies in the global fluid milk industry that have made partnerships, acquisitions, expansions, and the creation of new products among other things their primary tactics include Dairy Farmers of America (DFA)​, Groupe Lactalis​, Fonterra​, Danone S.A.​, Arla Foods​, Royal FrieslandCampina N.V.​, Dairy Farmers of America​, Groupe Lactalis​, Fonterra​, Danone S.A​, Arla Foods​, Royal FrieslandCampina N.V.​