Flavored Milk Market Size
The Global Flavored Milk Market US$ 57.6 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 89.5 billion by 2030. The market is growing at a CAGR of 5.6% during the forecast period 2024-2031.
One of the key drivers for the growth of the flavored milk market is the rising demand for functional beverages. Consumers are increasingly seeking convenient and nutritious beverage options, and flavored milk fits into this category. Flavored is perceived as a healthier alternative to carbonated soft drinks and other sugary beverages. This has been contributing to the growth of the flavored milk market.
Another factor contributing to the growth of the flavored milk market is the expansion of product offerings and flavors. Manufacturers have been introducing a wide variety of milk flavors to cater to diverse consumer preferences, including chocolate, strawberry, vanilla, and more.
Market Summary
| Metrics | Details |
| CAGR | 5.6% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Flavors, Packaging, Distribution Channel, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
Increasing Demand for Healthy Drinks Among Consumers Driving the Growth of the Flavored Milk Market
Flavored milk is often positioned as a healthier beverage option compared to carbonated soft drinks and other sugary beverages. It contains essential nutrients such as calcium, protein, vitamins, and minerals. These nutrients are beneficial for bone health, muscle growth, and overall well-being. As consumers become more health-conscious, they seek beverages that offer both taste and nutritional content, and flavored milk fits this criterion.
For instance, 1 serving (200ml)of flavored milk contains 372 kj energy, 12 g carbohydrates, 3.2 g protein, 50mg sodium, etc. Flavored milk is milk mixed with cocoa powder, coffee, fruit juice, or flavoring, and serves as a convenient and enjoyable for those who are looking to incorporate more protein into their diets. This appeals to individuals engaged in fitness activities, athletes, and those seeking to maintain a balanced diet. The combination of nutritional benefits and fortification with functional ingredients aimed at health-conscious consumers collectively contribute to the market growth of flavored milk.
Rising Demand for Functional Beverages is Driving The Market Growth of Flavored Milk
Consumers are increasingly seeking functional beverages that offer not only taste but also additional health benefits. For instance, according to The Food Institute, in 2022, the global functional beverage market was worth US$ 120 billion functional beverages, including flavored milk fortified with nutrients and functional ingredients, align with this health and wellness focus.
Flavored milk products are often enriched with vitamins, minerals, probiotics, omega-3 fatty acids, antioxidants, and other beneficial components. These functional ingredients offer specific health benefits, such as improved digestion, immune support, or enhanced energy levels. As a result, flavored milk becomes an appealing choice for health-conscious consumers. Hence, Consumers' desire for beverages that provide functional benefits beyond basic nutrition fuels the demand for flavored milk fortified with additional nutrients and functional ingredients.
Competition From Alternative Beverages is a Restraining Factor for the Growth of the Flavored Milk Market
Consumers have a wide range of beverage options to choose from, including carbonated soft drinks, fruit juices, energy drinks, plant-based milk alternatives, ready-to-drink coffee and tea, and more. For instance, according to the British Soft Drink Association, in 2022 the total soft drink market size worth 13,938 million liters in the United Kingdom
This abundance of alternatives creates a competitive landscape, where flavored milk must compete for consumer attention and preference. The availability of diverse beverage options can dilute the market share and limit the growth potential of flavored milk. As a result, flavored milk may face challenges in capturing the attention and loyalty of consumers looking for unique or specific flavor profiles.
Market Segmentation Analysis
The global flavored milk market is segmented based on flavors, packaging, distribution channel, and region.
Strong Consumer Preference for Chocolate Flavor
The global flavored milk market has been segmented by flavors into, vanilla, chocolate, strawberry, and others
In 2022, the chocolate segment had the highest revenue share in the flavored milk market. Chocolate is a universally loved flavor, enjoyed by people of all ages. For instance, Currently, 68.3% of the milk available in schools is flavored, with chocolate being the most popular (61.6% of all milk) report published by Andrew Hanks. The rich and indulgent taste of chocolate appeals to a broad consumer base, making it a popular choice for flavored milk.
The sweet and creamy taste of chocolate in milk creates a delightful sensory experience that is highly sought after. chocolate is often associated with indulgence and treats. By infusing chocolate flavor into milk, flavored milk products create a sense of indulgence and enjoyment. Its familiar and comforting flavor profile has established chocolate as a leading flavor in the market.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Strong Dairy Industry and Shifting Consumer Preferences in Asia-Pacific Region
In 2022, Asia -Pacific had the highest revenue share of the flavored milk market. The Asia-Pacific region has a well-established and thriving dairy beverage industry. For instance, in India, in fiscal year 2022, milk production increased from the previous year's 209.9 million metric tons to a little over 221 million metric tons. The availability of high-quality milk as a base ingredient for flavored milk production has supported the growth of the market.
Additionally, increasing health consciousness and a desire for healthier beverage options have propelled the popularity of flavored milk, which is often positioned as a healthier alternative to carbonated soft drinks and sugary beverages. Hence, a strong dairy industry and shifting consumer preferences collectively contribute to the Asia-Pacific region holding the highest share in the flavored milk market.
Source: DataM Intelligence Analysis (2023)
Flavored Milk Companies
The major global players include Danone SA, Amul Industries Pvt. Ltd., Associated Milk Producers, Inc, Dean Foods Company, Arla Foods Amba, Saputo Inc., The Hershey Company, Nestle S.A, Dairy Farmers of America, Inc., and Hiland Dairy.
COVID-19 Impact Analysis
COVID-19 Impact
The COVID-19 pandemic has had both positive and negative impacts on the flavored milk market. During the pandemic, consumers sought products with longer shelf lives and greater convenience due to lockdowns. This led to increased demand for shelf-stable flavored milk products that could be stored for extended periods without refrigeration. Manufacturers responded by introducing long-life flavored milk options, such as UHT (ultra-high temperature) processed products, which experienced a surge in sales.
The flavored milk market, like many other industries, experienced disruptions in supply chains due to lockdowns, transportation restrictions, and logistical challenges. These disruptions led to temporary shortages, delayed deliveries, and difficulties in sourcing raw materials. The supply chain disruptions affected both production and distribution, leading to potential challenges in meeting consumer demand.
Key Developments
- In December 2022, Nova Dairy, a milk-supplying company, introduced kesar-flavored milk. There are nine important vitamins and minerals in just one serving of the kesar-flavored milk, making it a nutritional powerhouse as well.
- In September 2022, Godrej Jersey, a leading private dairy company in Southern India, expanded its product portfolio and launched a new flavored milk called Nutty Badam.
- In February 2022, a2 Milk Co., a premium milk company, and The Hershey Co., America's milk chocolate brand, introduced their new co-branded chocolate flavored milk. This natural chocolate milk provides nutrition combined with taste.
Why Purchase the Report?
- To visualize the global flavored milk market segmentation based on flavors, packaging, and distribution channel and understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous flavored milk market-level data points all for segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Flavored Milk Market Report Would Provide Approximately 61 Tables, 60 Figures, and 102 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
