Global UHT Milk Market Overview, 2023-28

UHT (Ultra High Temperature) milk is a form of milk that has been heated to a very high temperature (280°F) for a brief period of time to eliminate any potential microorganisms. This procedure lengthens its shelf life, enabling it to be kept at room temperature for a prolonged period of time without going bad. It is also referred to as shelf-stable or long-life milk. One of the main factors influencing the demand for UHT milk globally is the recent rise in popularity of drinking milk on-the-go. Due to their excessively hectic schedules, people today are compelled to look for better alternatives to regular liquid milk, which requires refrigeration but only has a short shelf life for consumption. The most popular substitute for regular milk is UHT milk. It does not require a cold storage environment and has a longer shelf life. The fact that it may be stored at ambient temperature is yet another important aspect that will support the demand on the international market. UHT milk reduces the need for a mobile, high-efficiency cold storage chain that is necessary for traditionally treated milk, benefiting producers and distributors as well as customers without refrigerators. The capacity of UHT milk to be kept at room temperature for a longer period of time benefits both the working population and small residences. To extend the shelf life and sustainability of milk, market parties are also investing in packaging. The inadequate cold chain maintenance in agricultural nations is one of the main causes of the UHT milk market's acceleration. This food item was thoroughly boiled, therefore there is no risk of bacterial growth even after it is stored at room temperature. UHT milk is exempt from contributing to the clod chain in this manner. A substantial populace is avoiding consuming UHT milk in hotels and other places without refrigeration as a result of this essential advantage.

According to the research report, Global UHT (Ultra-high Temperature) Milk Market Overview, 2023-28, 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. Some of the main reasons driving the industry are the increased demand for convenience foods with a long shelf life, rising disposable incomes, and improvements in processing technology. The primary driver fuelling the expansion of the global UHT milk market is the rising demand for milk products with a longer shelf life. Product sales are being driven by frantic lives, extended working hours, and a growing preference for simple-to-use and ready-to-eat goods. Additionally, demand is particularly strong in nations with inadequate or non-existent refrigeration and cold-chain infrastructure. UHT milk is favoured in these areas because of its durability and capacity for room-temperature storage. Additionally, the need for the product is being driven by an increase in flat culture, which has limited or no refrigerated space. Aside from that, there has been a steady rise in consumer knowledge of the advantages of UHT milk over regular milk, which has been fuelled by an increase in marketing initiatives by manufacturers through various forms of media such as newspapers, television, etc. The global demand for UHT milk is anticipated to benefit from this as well. Due to the high price of refrigeration, the scarcity of chilled space and the protracted force reductions in developing nations, consumers are more likely to use food goods that stay a long period without refrigeration. Up to nine months of refrigerator storage are possible for UHT milk. The significance of UHT milk is increased by the underdeveloped cold storage infrastructure in non-industrialized nations.

Furthermore, or cold chain maintenance in agricultural countries also motivate UHT milk market. Since this food item was produced at a high temperature, it can be kept at room temperature without running the risk of bacterial growth. This eliminates the need for UHT milk to maintain the chain of clods. This important benefit is encouraging a sizable population from hotels and other locations without refrigeration to switch to using UHT milk. The lack of refrigerated space is a major factor pushing the market for UHT milk. For foods with a higher propensity for bacterial growth, refrigeration is essential. Until used, raw milk must be constantly refrigerated. Customers are more likely to use food products that last a long time without refrigeration because of the high cost of refrigeration, the limited amount of refrigerated space, and the prolonged force cutbacks in non-industrialized countries. UHT milk can be stored in the fridge for up to nine months. Additionally, the undeveloped cold storage infrastructure in non-industrialized countries increases the importance of UHT milk. Most often, younger people and businesses can be noted to be in demand for this UHT milk. Due to its longer shelf life and reduced refrigeration requirements, UHT milk is becoming increasingly popular with students living in dorms. Since UHT milk can be kept at room temperature, the majority of chain restaurants and small eateries in developing nations use it instead of investing in refrigeration technology. It is the perfect solution for some of the nations in Africa and Asia where a lack of energy is a major problem and daily milk spoils due to a lack of refrigeration. The product typically costs more than regular pasteurised milk, which boosts industry sales revenue.

In 2022, skimmed UHT milk segment is dominating the global market with more than 40% revenue share. With the use of skimmed milk, the fat intake from teas, coffees, and hot chocolate can be lowered without sacrificing flavour since health-conscious customers want a diet with less fat. Customers who enjoy the rich flavour and creamy texture of milk puddings, custards, and coffees love this variation. Further, whole milk accounted for the second-largest share. The most popular type of milk is whole milk, often known as full-cream milk, and it is normally sold with a fat content of 3.5% or more. Whole milk is beneficial during the formative years because it contains high levels of calcium, phosphorus, and vitamins A, B1, and D. Due to its great nutritional value, it is primarily ingested by youngsters, teenagers, nursing moms, and bodybuilders. Whole milk is often used in restaurants and coffee shops since there is a great demand for milk with a high whipping quality there. One of the key drivers of the market is a scarcity of refrigerated space. Food items that are more prone to bacterial growth need to be refrigerated. Raw milk needs to be kept cold until it's consumed. Due to the high cost of refrigeration, the scarcity of chilled space, and the protracted duration of power outages, consumers are more prone to use goods that last a long time without refrigeration in developing countries. Whole milk is best consumed by toddlers under the age of two because it gives them the nutrients they need during critical developmental stages. Given that UHT milk does not require refrigeration and that regular milk is more susceptible to bacterial colonisation, many market players are continually investing in better technology. Therefore, the product's longer shelf life and stability at room temperature are the key factors driving the market. A prime example is the first line of monolayer plastic bottles for milk that Amcor PET Packaging Europe has introduced.

While somewhat less aggressive methods included product introductions, consolidating a tiny portion of the market, the majority of corporations preferred delivering their product to new regions, such as Asia-Pacific and the Middle East. Since 2016, many businesses have made significant strategic moves through mergers and acquisitions across the UHT milk industry's value chain. For instance, Danone S.A. purchased WhiteWave Foods in April 2017 so that it could operate as DanoneWave throughout North America. In order to expand its market presence and product options in the area, Lactalis Group previously purchased Prabhat Dairy in India in January 2019. Global demand for dairy products that have been aseptically packaged and subjected to UHT processing is rising. Value-added food preservation is made possible by technical developments for a variety of foods, including yoghurt, flavoured milk, puddings, custards, creams, and ice cream mixes. Due to changing consumer behaviours and habits during the pandemic, many dairy product firms are approaching the global market with the debut of UHT treated milk with a six-month shelf life. Due to their longer shelf lives and ease of use, Tetra milk products are becoming more and more popular in developing nations. During the forecast period, it is anticipated that rising digital media consumption and the availability of user-friendly connected technologies and platforms for online transactions will propel market expansion.

Europe is the largest market, with a share of more than 40% in 2022, attributed to the stringent regulations in regional countries regarding the shelf life and safety of milk. Moreover, there are certain regulations that allow the import of dairy products from only certain countries and, that too, after extensive treatment and quality testing. Therefore, in order to meet the growing demand for UHT milk, most countries in the region produce it themselves in sufficient quantities. Furthermore, Germany, France, and Belgium have a prominent dairy culture, which results in a considerable growth in sales for the European market players. Additionally, there exist rules that restrict the import of dairy products to only a select few nations, and even then, only after rigorous processing and quality testing. As a result, the majority of the countries in the region produce enough UHT milk on their own to supply the region's growing need for it. Additionally, there is a strong dairy culture in Germany, France, and Belgium, which contributes to a significant increase in sales for European market participants. However, due to the increasing consumption of dairy products in nations like India, China, and Japan, the Asia Pacific region is expected to grow at the highest CAGR by 2023-28. Additionally, a major factor propelling the market is the rising demand for dairy products having a pasteurisation impact. In addition, consumption of UHT milk products is higher than that of conventional goods in nations like Vietnam, Thailand, and Taiwan. Due to the high consumption and rising demand for dairy products with an ultra-high temperature effect, the market's top players are expanding their facilities in Asia Pacific.

Based on the end users, the global market is segmented into retail sales, dairy product (butter, cheese, yogurt, milk powder, ice cream, others), bakery & confectionery, milk & milk based beverages and infant formula. Among them, retail sales segment is dominating the market in 2022. Consuming UHT milk enables consumers to preserve milk for a week, reducing the frequency of their trips to the market. Key market participants are innovating and offering new flavours in eye-catching packaging, which has helped them, acquire a lot of momentum with millennials. In the commercial sector, demand for UHT milk is expanding quickly in terms of volume, supported by the explosive growth in demand for products that are ready to drink. The ingredient is frequently used in a variety of bakery goods, such as cakes, pastries, and cookies, as well as in sweets like chocolates and candies. In addition to this application area, UHT milk also finds use in a number of other industries, such as cheese making and (in some countries) ice cream manufacturing. Further, based on raw material, animal-based UTH milk segment is dominating the market in 2022. Animal-based UHT milk is rich in essential nutrients such as protein, calcium, vitamins (including vitamin D), and minerals. It provides a well-rounded source of nutrition, contributing to bone health, muscle growth, and overall well-being. Animal-based UHT milk is generally well-tolerated and easily digestible for many individuals. The pasteurization process involved in UHT milk production helps in breaking down lactose, making it more digestible for those with lactose intolerance compared to regular milk. Also, animal-based UHT milk is traded globally, allowing individuals in different parts of the world to experience and enjoy the nutritional benefits of animal-based milk. It enables consumers to access milk products from different regions, contributing to cultural diversity and culinary exploration.

Based on the distribution channel, B2C segment is dominating the market in 2022 based on the growth of online grocery shopping. More and more consumers are shopping for groceries online, which is creating new opportunities for UHT milk brands to reach consumers. Also, e-commerce platforms like Amazon and Alibaba are making it easier for UHT milk brands to reach consumers around the world. UHT milk is a good source of protein and calcium, which are essential nutrients for a healthy diet. Also, UHT milk has a long shelf life, which means that it requires less transportation and storage than fresh milk. Consumers are increasingly seeking convenience and flexibility in their shopping habits. The B2C distribution channel allows consumers to easily access UHT milk through supermarkets, grocery stores, online platforms, and other retail outlets. This convenience aligns with the evolving lifestyle preferences of busy consumers who prioritize ease of purchase and accessibility. The expansion of retail chains and the establishment of modern supermarkets and hypermarkets in many regions have contributed to the growth of the B2C distribution channel for UHT milk. These retail outlets offer a wide range of UHT milk products, providing consumers with ample choices and easy access to their preferred brands. The B2C distribution channel for UHT milk has expanded significantly in emerging economies, where the dairy industry is experiencing growth and evolving consumption patterns. The rising middle class, increased disposable incomes, and growing urban population in these markets have contributed to the increased demand for UHT milk, thereby driving the growth of the B2C distribution channel.

Recent Developments:

• In November 2021, Halo Food Co Limited has recently announced that its wholly-owned subsidiary Ketone Enterprises Company had signed a memorandum of strategic cooperation with Theland New Cloud Shanghai Digimart Limited China. Furthermore, Theland is a Chinese Brand distributor with sales capabilities in more than 25 Chinese provinces and is one of the largest importers of powdered and UHT milk products in China. The total deal worth has been disclosed for $ 40 Million which would encompass the development and manufacture of Theland milk powder products in China.
• In Mechernich, Hochwald Foods inaugurated a new UHT facility in November 2021. For its product offerings, the company worked in conjunction with GEA Group. With the opening of the new plant, the business may begin processing about 800 million liters of milk each year into dairy products like UHT milk, UHT cream, and many more.
• In October 2021, the Dana Dairy Group, a leading manufacturer and supplier of shelf-stable dairy products, introduced a new line of organic dairy and non-dairy goods. The goods include organic UHT milk and a brand-new assortment of non-dairy whipping and cooking cream made from vegetable oil.

Covid-19 Impacts:

The effect of COVID-19 Worldwide industries now faces uncertainties as a result of the COVID-19 pandemic. The manufacturing enterprises are only using half of their staff capacities due to government lockup laws and societal distance standards. Additionally, supply chains have been disrupted as a result of the closure of international borders. People's freedom of movement and distance between civilians has been severely restricted by lockdowns. Despite the firms' cratered expansion, the dairy industry is regarded as a crucial sector that has seen positive growth in these unheard-of times. Because they can be stored for longer periods of time, shelf-stable foods are in high demand worldwide. During the COVID crises in March 2020, India saw a nearly 20% increase in the sale of packaged UHT milk and other dairy products. The UHT milk business has suddenly expanded over the last several months as people stock up for uncertain times. On the supply side, the major companies have boosted production of UHT milk, which can be provided in three months, in order to prevent the unexpected difficulties caused by supply chain disruptions. In contrast to its competitors, it aids the major players in reducing losses due to contamination and spoilage, which facilitates the market's progressive expansion over the future years.

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.

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 covered in the report:

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & 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.