Global UHT Milk Market Outlook, 2028

Shelf-stable milk that has been sterilised and heated at high temperatures is known as UHT milk. Pathogens, bacteria, and other organisms that cause spoiling are eliminated during the heating process. Regular pasteurisation just heats milk to a lower temperature and does not sterilise it, unlike the UHT method. UHT milk does not require refrigeration until it is opened and has a prolonged shelf life of several months. Additionally, it is a great source of calcium, phosphorus, potassium, riboflavin, zinc, vitamins A and B12, magnesium, and other important elements. Depending on the type of milk used, the high temperature employed during the process also lends it a distinctive flavour and scent. Since many households lack refrigeration facilities due to small homes and limited space, regular milk cannot be kept fresher for longer. As a result, UHT milk can be kept at room temperature for an extended period of time, which is advantageous for working people and smaller households. Market participants are also spending money on milk packaging to give it a longer shelf life and greater sustainability. The demand for UHT milk in restaurants, bars, and cafes is rising since it can be carried without cold chains. Due to the high frequency of lactose intolerance in both adults and children, the demand for lactose-free UHT milk is also rising in many countries. Consumers today are conscious about their fitness and health. Due to their high levels of absorbable protein and suitability for post-exercise recovery, full-cream milk and skim milk are becoming more and more popular. To broaden their product offerings, market participants frequently engage in mergers, acquisitions, and product launches. For instance, in April 2021, Creamy Foods in Uttar Pradesh, India began receiving a complete ultra-high temperature production line from GEA Group India. A brand of Creamy Foods called Madhusudan receives its UHT dairy products from GEA.

According to the research report, Global UHT (Ultra-high Temperature) Milk Market Outlook, 2028, the market is anticipated to reach a size of over USD 117 Billion by 2028, up from USD 76.77 Billion in 2022. The market is expected to grow at 7.57% CAGR by 2023-28. Additionally, UHT milk, or long-life milk, continues to dominate the market as consumer demand for convenient and healthful food products rises. It is difficult to store milk and keep it fresh for an extended period of time due to the rise in the working population around the world. Factors such as growing urbanisation, which has influenced consumers' fast-paced lifestyles and made it simpler for them to purchase packaged food and beverages, are factors contributing to the rising adoption of UHT milk across homes. In recent years, there has also been an increase in the number of expats relocating to countries like the United States, Germany, the United Kingdom, and the United Arab Emirates. Milk can be kept at room temperature for long periods of time without the use of preservatives thanks to the UHT process, which preserves all of its nutrients. Numerous businesses have created a line of UHT milk products supplemented with vitamins and minerals to address dietary needs for physical functions in response to the increased demand for quick and wholesome solutions. There are also lactose-free options available to meet the needs of people who are lactose intolerant. For instance, Stonyfield Organic introduced a new organic, shelf-stable or UHT, lactose-free milk in January 2021. Both 2% reduced-fat chocolate milk and 2% reduced-fat plain milk are options for the product. Additionally, because UHT milk does not require refrigeration or heating before to use, it is more convenient to use than conventional fluid milk, which also contributes to its popularity among young professionals.

The demand for UHT milk is mostly driven by increased disposable incomes and urbanisation in emerging nations. Additionally, as more people live in cities and adopt more contemporary lifestyles, there is a growing demand for RTD products and convenience. In addition, improvements in UHT milk processing technology are fuelling the market's expansion. Aseptic packaging is one example of how modern technology has increased the effectiveness and efficiency of UHT milk processing, resulting in higher-quality products and lower costs. Additionally, the variety of UHT milk products available to customers with different tastes has increased thanks to the development of new flavours and packaging styles. In order to draw customers from lower socioeconomic categories, major vendors are also launching new products at reduced pricing. Government funding and investments in the dairy sector are also helping to expand the market. Many governments all around the world are promoting dairy production and processing by offering subsidies, grants, and other incentives. Initiatives to enhance cold-chain infrastructure and logistics are also anticipated to increase the accessibility and cost of UHT milk over a wide range of geographical areas. The industry is anticipated to flourish most in developing countries where a persistent shortage of cold storage facilities exists. In addition to developing countries having greater birth rates, there are an increasing number of bodybuilders, weightlifters, and sportsmen worldwide who regularly drink milk and occasionally even need to carry it. The demand for personal storage packs of UHT milk is expected to increase as a result of the significant untapped potential in the global UHT milk market.

Various countries have become more and more concerned about the growing interest in milk among the global populace. Concerns concerning the availability of fresh dairy milk are also increased by the extent of urbanisation. The dairy industry has adopted super high treatment on milk and aseptic bundling of the equivalent in order to meet this growing demand for milk. Variables like a rise in demand for milk without lactose and increased effort through various appropriation channels are major determinants of how the UHT Milk Market develops. In the past, milk was typically drunk with breakfast or dinner. In any event, a change in dietary habits over the past few years has led to its widespread consumption. People currently drink milk in classrooms, playgrounds, gyms, and offices. In many countries, milk has been provided to children by the public sector for the purpose of development. Competitors and businesspeople carry milk with them to quickly consume it. Due to its propensity to be delivered safely and without the need for refrigeration, this pattern has positively impacted the growth of the UHT milk market. Increase in the number of product improvements, such as the addition of organic and flavoured content, by market players has aided in the growth of the sector. High-quality UHT milk with high levels of natural protein was distributed by the Onterra Anchor brand under the names NaturalUp and LiveUp for sale on online marketplaces and offline retailers.

UHT milk is projected to become more popular as customer demand for ready-to-eat and convenient dairy products rises. In France, Germany, Spain, and Italy, the sale of UHT dairy products makes up a bigger portion of the dairy market's revenue. Growing demand for UHT milk is a result of growing per-person consumption of ice cream and fluid milk. It is also anticipated that the widespread availability of aseptic milk in American grocery shops will encourage market expansion. To create shelf-stable ice cream mixtures, a lot of fast food businesses are getting into agreements with aseptic processors. Demand is being fuelled by the higher level of dependability and portability afforded by UHT milk. In addition, rising living levels among consumers in developing nations and a move towards westernising diets and cultures are important market growth drivers. Demand for UHT milk is being influenced by elements including a strong emphasis on food safety, quality, nutrition, and little environmental effect. UHT milk products are becoming more and more popular since they are a pure, unadulterated, wholesome product that is responsibly produced. Since these products do not require refrigeration during storage or transportation of milk products, a lack of adequate cold chain infrastructure in developing nations is also contributing to the rise of the UHT milk market in those nations. The market for these items is increasing because many chains of food outlets and small eateries in Asia and Africa lack refrigeration capabilities. However, difficulties such as the possibility for milk's nutritional content to decline during sterilisation and product quality losses such flavour loss, fat separation, and age gelation, combined with production issues and are projected to hinder market growth.

The global UHT milk market is majorly segmented into five regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Europe is dominating the market with more than 40% share in 2022. Due to the rapid expansion of the dairy goods market in nations like Germany, Belgium, and Holland, there is a considerable demand for UHT milk in this region. Furthermore, the per capita consumption of dairy products has increased significantly over the past five years, and UHT milk is easier to produce and distribute than other conventional goods. Danish customers have been spotted following a similar pattern when it comes to consuming pasteurised foods like UHT milk on a regular basis. Due to the rising income levels in this region, which make it possible for families and individuals to buy this commodity, North America is the second-largest stakeholder in the market. Additionally, it is less expensive, simple to find, and has an excellent nutritional value. Supermarkets and hypermarkets have extensive networks across the continent. Furthermore, Asia-Pacific is expected to have the fastest growth during the forecast period. China and India are two significant emerging economies where this commodity is in high demand. The region's growing population would drive up demand for this commodity in the upcoming years. Many emerging nations in Asia-Pacific and also in the Middle East & Africa are choosing apartments as a result of the adoption of numerous trends relating to lifestyle and Western culture. People are thus being pushed to use products with a longer shelf life in nations like China and India.

Based on the product type, in the following years, the UHT skimmed milk market segment would have the biggest growth due to the preference of health-conscious consumers. Urban culture has instilled in people a fit and healthy way of life, which is anticipated to manifest in an increase in the use of skim milk. Many consumers, notably young ladies, those who value their health, and the elderly, favour UHT skimmed milk above other varieties because of its many nutritional and health benefits. Additionally, major market players are producing large quantities of UHT skim milk while concentrating on advertising and marketing campaigns to draw in new consumers. The food and beverage business has seen tremendous development in the last several decades as a result of shifting customer preferences and rising interest in functional foods. People are becoming more aware of the nutritional advantages of organic and functional foods, which have decreased the market for traditional and artificial beverages. For the purpose of reducing stress, SM Mlekovita, a firm with its headquarters in Poland, offers UHT ready-to-drink milk with a high magnesium and low-fat content. On the other hand, partially skimmed UHT milk industry is expanding as a result of an increase in demand for dairy products in various nations, including the United States, China, and India. The demand for semi-skimmed products with a reasonable quantity of fat content is rising due to their use in the production of dairy products like yoghurt and cheese. Butter and cheese consumption is rising quickly in the US and is predicted to expand further over the next few years. Additionally, the dairy industry's use of additional ingredients including flavours, sweeteners, colours, and preservatives increases consumer demand for these goods.

According to the report, the market is segmented into two source types including animal-based and plant-based. Among them, animal-based segment is dominating the market with lion’s share in 2022. Vitamin D, calcium, magnesium, phosphorus, and high-quality protein are all abundant in cow's milk. The combination of these essential nutrients promotes the body's overall growth, which affects the growth of the segment. The cow milk and buffalo milk segments together accounts for over 95% of the animal-based UHT milk market. However, it is anticipated that the global market for plant-based UHT milk would be profitable. To fit their daily lives, consumers are clamouring for new, cutting-edge products on the market. To take advantage of trends and possibilities, businesses continuously seek to provide consumers new, cutting-edge products that precisely meet their wants. Almond milk segment is dominating the overall market with more than USD 3 Billion market size. Furthermore, the liquid form of UHT milk is the most commonly consumed and widely available in the market. The global demand for liquid UHT milk has been increasing steadily over the years due to its convenience and extended shelf life. This growth can be attributed to factors such as urbanization, changing dietary habits, and the need for longer-lasting dairy products. UHT milk has become popular in regions with inadequate refrigeration facilities or limited access to fresh milk. In addition to liquid UHT milk, there are also solid UHT milk products available in the market. These include UHT milk powders, condensed milk, and other dairy-based products like UHT cream and UHT butter. UHT milk powders are obtained by spray-drying liquid UHT milk, which removes the moisture content and transforms it into a powdered form. UHT milk powders have a longer shelf life compared to regular powdered milk, and they are often used as a convenient alternative in areas with limited access to refrigeration or in the production of various food products. These products offer convenience and are used in various culinary applications.

Based on the end user types, UHT milk is widely available for retail consumers in supermarkets, grocery stores, convenience stores, and online platforms. Retail sales of UHT milk are driven by factors such as longer shelf life, convenience, and the increasing demand for milk products in households. UHT milk is often preferred by consumers who require milk that can be stored without refrigeration or for those who have limited access to fresh milk. UHT milk also serves as a key ingredient in the production of various dairy products. It is used in the manufacturing of butter, cheese, yogurt, milk powder, ice cream, and other dairy-based products. UHT milk acts as a base or a component in these products, providing flavour, texture, and nutritional properties. On the other hand, UHT milk is utilized in the manufacturing of infant formula, which is specially formulated to provide the necessary nutrition for infants who are not breastfeeding. UHT milk used in infant formula undergoes additional processing and quality control measures to meet specific nutritional requirements and ensure safety for infants. B2C sales or indirect sales through HORECA, specialty stores, modern trade, convenience stores, specialised food stores and online merchants have a big impact on UHT Milk sales. As physical establishments stayed closed throughout a prolonged period of lockdown imposed to contain COVID-19, the online retail market is growing rapidly.
Restaurant chains are becoming important consumers in the milk market, particularly for variations with a higher whipping capability. Since milk is typically sold in bulk through institutional and direct channels, these businesses can lower the price per unit of milk purchased by mass consumers. The demand for this milk is also being driven by the defence and security personnel who frequently consume it. UHT processing aids in the microbial eradication of dairy products and dairy substitutes. Service businesses like Starbucks and McDonald's use this adaptable and economical technology because they need high-quality milk to suit both their own needs for a longer shelf life and the high expectations of their customers. During the anticipated period, the retail sector would have the second-fastest market growth for UHT milk. Increasing sales of this product to big-box retailers like supermarkets and hypermarkets, where it is sold under their own private-label brands, will be a major factor in this. Additionally, dairy farms offer their UHT milk through a range of retail channels, including grocery and non-grocery stores, supermarkets, and hypermarkets. However, due to its great nutritional content, milk and other dairy products are in very high demand in the majority of homes. Customers all over the world are engaging in online buying and spending more time online. The greater use of the internet, notably in the U.S. and Europe, has given manufacturers a platform. E-commerce websites are being actively used by businesses looking to increase their online presence and revenues. Because they offer a wide selection of necessities and doorstep deliveries at affordable prices, online businesses have gained popularity with customers. Additionally, the development of the direct-to-consumer distribution channel has accelerated the segment's growth.

Recent Developments:

• In August 2022, Dairy Group (Pty) Ltd., a South African company, launched a new range of dairy products under its brand Creamline. The products include UHT milk, butter, and dairy liquid blends. The products made by Creamline are claimed to be made of milk processed by its homegrown farmers.
• In November 2021, Hochwald Foods opened a new UHT plant in Mechernich. The company collaborated with GEA Group for its product offerings. With the opening of the new plant, the company will be processing about 800 million litres of milk per year into dairy products like UHT milk, UHT cream, and many more.
• In October 2021, Dana Dairy Group, a leading producer and provider of shelf-stable dairy products, launched a new line of organic dairy and non-dairy products. The products include organic UHT milk as well as a new line of non-dairy cooking and whipping cream based on vegetable oil.
• In June 2021, Tetra Pak’s optimal integrated solution helps cut water usage and carbon emissions for the dairy sector. Tetra Pak showcases its new UHT 2.0 heating portfolio and Tetra Pak® E3/Speed Hyper packaging equipment on World Milk Day in support of this year’s theme of sustainability and Dairy’s commitment to innovation to reduce environmental footprint. Adding a Tetra Pak® Water Filtering Station to Tetra Pak® E3/Speed Hyper helps recover 5500 litres of water per filling machine running hour (up to 95%), while contributing to lower water consumption.
• In October 2021, ITS- a UK-based flavour company has been boosting its capabilities in testing flavours for milk with the launch of its new ultra-high-temperature pilot plant in New England. The following development would mean that when flavours arrive with the customer, they will be suitable for development. Installation of the UHT plant allows testing for various notorious flavours testing such as strawberry and would also allow for a crossover between dessert and ice cream flavourings.

Covid-19 Impacts:

Due to the lockdowns and travel restrictions brought on by the COVID-19 epidemic, UHT milk saw a spike in demand from consumers. This resulted in panic buying and stockpiling of food items, especially UHT milk, which raised prices and temporarily disrupted supply. The epidemic, however, also posed considerable difficulties for the dairy sector and the entire global food supply system. Production and distribution capacity were limited as a result of supply chain disruptions and logistical issues. Due to these difficulties, UHT milk is now more expensive and less widely accessible in many nations. Production limitations and, in certain cases, closures have been brought on by a heavy reliance on the personnel and a complicated supply chain. Furthermore, a lack of raw milk for the production of UHT milk resulted from the closing of milk collection centres. Numerous firms experienced losses as a result of the pandemic-related limitations on the transfer of commodities, road closures, higher manufacturing costs, a lack of operational capital, and staff shortages. Nevertheless, the UHT milk market category attracted a huge number of new players due to the increased customer demand for it.

Major Companies present in the market:

Danone S.A., Nestlé S.A., Arla Foods amba, Fonterra Co-operative Group Limited, Royal FrieslandCampina N.V., Saputo Inc. , The Coca-Cola Company, Meggle Group, Emmi AG , Dean Foods, Hochwald Milch eG cooperative, Savencia Fromage & Dairy, Solarec Sa, Darigold, Inc, China Mengniu Dairy Company Limited, DMK Group, Prairie Farms Dairy , Promasidor Nigeria Limited, Gujarat Cooperative Milk Marketing Federation Ltd. (Amul), Mother Dairy.

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global UHT Milk market with its value and forecast along with its segments
• Region-wise Artificial Turf market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia, Switzerland, Denmark, Netherlands)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Product

• Whole
• Skimmed
• Partly Skimmed
• Fat Filled

By Source

• Animal
• Plant

By Form

• Liquid
• Solid

By End Use Application

• Retail Sales
• Dairy Product (Butter, Cheese, Yogurt, Milk Powder, Ice Cream, Others)
• Bakery & Confectionery
• Milk & Milk based Beverages
• Infant Formula

By Distribution Channel

• B2C (Specialty Store, Modern trade, Convenience Stores, Grocery Stores, Specialty Food Stores, Online Retailers, Other Distribution Channel)
• B2B (HORECA)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.