Organic Milk Market Size (2024 - 2029)

Organic Milk Market Analysis

The organic milk market is projected to register a CAGR of 6.21% during the forecast period, 2022-2027.

The organic milk market is witnessing significant growth and will grow steadily in the next few years owing to the changing consumer preference for the consumption of organic and natural food and beverage products. Moreover, the COVID-19 pandemic has caused an alteration in the food habits of consumers and they are more inclined toward healthy foods to strengthen their immune function. According to the Organic Trade Association (OTA), organic food sales in the United States increased by 13% with a value of USD 56.5 billion in 2020. As a result, the demand for organic milk has increased during the pandemic period owing to the health benefits its offers and hence boosting the market growth.

Further, the Government initiatives to encourage organic dairy farming by launching educational campaigns and offering technical and financial assistance are expected to create lucrative opportunities for market expansion in the coming years. For instance, the United States Department of Agriculture (USDA) unveiled an additional investment of USD 80 million in the Dairy Business Innovation (DBI) initiatives. Similarly, USDA published the Origin of Livestock (OOL) final rule of organic dairy to promote a fair and more competitive market for all organic dairy producers. Therefore, government assistance in organic dairy farming is anticipated to fuel the growth of organic milk in the market. Furthermore, the technological advancement for formulating innovative organic milk products with low fat and sugar content is expected to drive market growth in the forecast period.

However, the high cost associated with organic dairy farming has impacted the net price of organic milk. Hence, the cost of organic milk is much higher than conventional milk. As a result, it restrains the market growth. Additionally, the stringent government regulation on organic feed imposed for organic dairy cows acts as a hampering factor for market growth.

Organic Milk Industry Segmentation

Organic milk is the type of organic dairy product obtained from the livestock raised in the organic agricultural setting. The global organic milk market (henceforth referred to as the market studied) is segmented by type, source, distribution channel, and geography. By type, the market is segmented into skimmed milk and whole milk. By source, the market is segmented into cow, buffalo, and others. Based on the distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. It provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, the Middle East, and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).