Rapid growth for UHT milk market in Asia

THE UHT milk market will grow at a CAGR of 12.8% from 2013 to 2019 to hit about $137.7 billion by 2019 from $60.8 billion in 2012, according Transparency Market Research. The segment has been volatile in the past few years due to mergers and acquisitions. The presence of private-label companies has increased price competition, especially in European countries such as Germany, France, Spain, Italy and the U.K.

However, the apartment culture in developed countries and the resulting preference for bulk purchases to save on time is giving the market a boost. More consumers are turning to UHT milk, which has a lifetime of six to nine months and can therefore be stored for a longer period.

Rapid growth in Asia

The market in China, which imports large quantities of UHT milk, is growing at a faster rate, thus attracting market players to increase their investment there. Some of the other major milk markets in Asia-Pacific region such as Australia, India and Pakistan are also expected to witness increasing demand for UHT milk, although the current consumption levels in these countries are very low compared with the overall milk consumption.

Besides increasing urbanisation and the apartment culture, weak global economic conditions are boosting the consumption of UHT milk as the latter’s lower price encourages consumers to switch from pasteurised milk. Further, even as total milk consumption is declining in some of the developed countries of Europe, it is the opposite trend in Asia-Pacific. Expanding population coupled with growing income in developing countries such as China, India and Pakistan have changed consumer habits in favour of packaged food products. This has also resulted in the rise in the apartment culture in these countries, where people generally stock packaged food and beverage items. In the western countries, consumers prefer to store packaged and processed food items because of their longevity and ease of use.

Asia-Pacific countries are following the same trend as evidenced by the increasing preference for processed food and beverage items. More than 60% of the total milk consumed in China is UHT milk. The country is expected to add another 300 million to 400 million people to the urban population by 2030. Unlike the rural population, the urban population is more influenced by western cultures owing to their better income levels.

Australia is another country with a growing UHT milk market, although the share of UHT milk was only about 10% of the total milk consumption in 2012. This is, however, expected to increase during the forecast period.

Access the full report.