Ultra High Temperature Milk Market Size, Share & Trends Analysis Report By Fat Content (Whole, Semi Skimmed, Skimmed), By Product (Flavored, Unflavored), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global ultra high temperature milk market size was valued at 53.4 billion in 2018 and is anticipated to expand at a CAGR of 7.8% from 2019 to 2025. Ultra high temperature (UHT) milk is used as a sterilized milk by heating raw milk above 135 degrees Celsius to kill germs and spores present in the milk. The process preserves essential nutrients and vitamins, making it essential for human consumption. Higher shelf life of UHT milk for more than 3 months without use of preservatives, along with its ready to drink consumption, is driving the global market.

Rise in the number of product innovations such as addition of organic and flavored content by market players has contributed towards the growth of industry. For instance, in May 2017, Fonterra Anchor brand launched a premium UHT milk as NaturalUp and LiveUp made with high protein organic content to be sold on e-commerce platforms and offline stores. Evolving number of milk content issues among consumers is resulting in product innovations. Moreover, rise in the living standards among the working and high class population is expected to contribute to the demand for UHT milk products, thereby boosting the growth of the global UHT milk market.

Demand of this UHT milk can be mostlyseen in younger population and for commercial applications. Larger shelf life of the UHT milk is an ideal factor for growing use among students living in hostels as it needs less refrigeration. UHT milk can be stored at room temperature and hence most of the small scale restaurants and food outlet chains in developing countries use this without investing in refrigeration equipment. It is an ideal product for some of the countries in Africa and Asia, where electricity is one of the major issues and lack of refrigeration system destroys the day to day milk. The product tends to have a high cost than normal pasteurized milk, thereby increasing the revenue sales in the industry.

Impact of e-commerce channels, social media advertisements, and a number of distributors provide a huge growth opportunity for the flavored and unflavored products in the market. The growth is also attributed to a rise in the purchasing power of the consumers and inclination towards the premium priced and long life milk products. Moreover, increasing demand for the anti-bacterial products from Generation X due to their healthy and flavored content is anticipated to boost the growth of the market over the forecast period.

Product Insights

By product, the ultra high temperature milk market is segmented into flavored and unflavored products. Unflavored UHT milk dominated the market and accounted for a share of 77.8% in 2018. These products are daily use products and therefore have a large consumer base. Moreover, higher shelf life of unflavored UHT milk is expected to boost the segment growth over the forecast period due to its use for making homemade beverages. In addition, the product is also used as a raw material for major homemade products.

Flavored UHT milk is anticipated to expand at the fastest CAGR of 9.9% over the forecast period. The segment is driven by the types of these products such as strawberry, spice, banana, and chocolate flavors, which attracts a large number of consumers. Moreover, demand for flavored food ingredients is increasing due to rise in inclination of consumers towards a trendy and attractive lifestyle, thereby driving the demand for the global market. Flavored products also help to mask the burnt taste of pasteurized milk, which makes it more suitable for use in fruit juice, yogurt, and cheese sauce.

Fat Content Insights

On the basis of fat content, the market is segmented into whole, semi skimmed, and skimmed. Skimmed UHT milk held the largest share of 48.9% in 2018 owing to the low fat content in these products, thus attracting a large consumer base with healthy drinking patterns. The segment growth is attributed to a variety of flavors and texture benefits provided by the skimmed products. Moreover, high density of protein and calcium content in skimmed milk products is anticipated to drive the segment demand over the forecast period.

Semi skimmed UHT milk is expected to register the highest CAGR of 9.3% from 2019 to 2025. Rise in demand for dairy products in several countries such as the U.S., China, and India is spurring the growth of this segment. Semi skimmed products with a moderate amount of fat content are used to make various dairy products such as yogurt and cheese, thereby increasing its demand across various applications. In the U.S., demand for butter and cheese is increasing rapidly and is expected to witness significant growth in the coming years. Moreover, added contents such as flavors, sweeteners, colorings, and preservatives in the dairy industry boost the demand for such products in the market.

Regional Insights

Europe led the market and held 40.5% share of the overall revenue in 2018. Demand for UHT milk is high in this region due to strong growth of the dairy products market in countries such as Germany, Belgium, and Holland. Moreover, a significant rise has been observed in per capita consumption of dairy products in the past five years, along with easy production and distribution of UHT milk than other conventional products. A similar trend has been observed among the consumers of Denmark regarding the use of pasteurized products such as UHT milk for daily diet.

Asia Pacific is anticipated to expand at the highest CAGR of 9.1% over the forecast period of 2019 to 2025 due to high consumption of dairy products in countries such as India, China, and Japan. Moreover, increasing demand for dairy products with pasteurization effect is a key factor driving the market. Moreover, consumption of UHT milk products is high in countries such as Vietnam, Thailand, and Taiwan as compared to other conventional products. The leading players in the market are expanding their facilities in Asia Pacific due to high consumption and growing demand for dairy products with ultra-high temperature effect.

Ultra High Temperature Milk Market Share Insights

Key players of the market include Amcor Ltd.; Albea Group; First milk; Ardagh Group; Bemis Company, Inc.; Mondi plc; Koa Glass Co. Ltd.; Bormioli Rocco Spa; Saint-Gobain; MeadWestvaco Corp.; Sonoco Products Company; A2 Corporation; and Mother dairy. Competitive strategies for market growth include mergers and acquisitions, new product innovations, and spreading awareness about the benefits of UHT milk. Rising demand for the dairy products in China, India, and Japan leads to an increase in product innovations and market developments, thereby fueling demand for UHT milk.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global ultra high temperature milk market report on the basis of product, fat content, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)

  • Flavored

  • Unflavored

• Fat Content Outlook (Revenue, USD Billion, 2015 - 2025)

  • Whole

  • Semi Skimmed

  • Skimmed

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • France

  • Asia Pacific

    • Japan

    • China

  • Middle East & Africa

    • South Africa

  • Central & South America

    • Brazil