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Grass-fed milk is obtained from the ruminants that are fed on nearly 100 percent grass or forage-based diets. The grass feeding improves the quality of the milk produced by the ruminants and makes the milk rich in omega-3 fatty acids, vitamin E, beta-carotene, antioxidants and conjugated linoleic acid (CLA). The grass-fed milk category is rapidly growing due to the growing trend of consuming “fresh-from-the-farm” food products. The consumers increasing awareness and changing preferences towards nutrient rich products is among the major factors that drives the global grass-fed milk market growth.
The consumers are demanding for organic and clean-label products rather than conventional owing to the perceived health benefits of the products; these factors have contributed in the sales performance of grass-fed milk. Many manufacturers are launching new flavours and variation in grass-fed milk to attract the consumers and for their business expansion. The dairy farmers are also benefitted by rearing grass-fed bovines as it lowers the costs and increases their profitability as they do not have to rely on purchased grains and concentrate feeds. Hence, these factors have cumulatively fuelled the market growth.
The consumers’ awareness regarding health benefits of naturally produced food products is also supporting the growth of the market. Moreover, the grass-fed milk are comparatively tasteful and are obtained from cows that are only fed fresh grass. According to National Centre for Biotechnology Information, many studies have shown that consumers are demanding for natural and environmentally sustainable products as they do not have any negative effect on human health and the environment.
The rising vegan trend among the consumers across the world is a major restraining factor for the market. Consumers prefer dairy-alternative milk and its derived products such as soy milk, coconut milk, almond milk and other plant-based products. Other reasons for shifting towards vegan foods are animal welfare, environment and health benefits.
Key Market Driver -
Growing Consumers Demand for Natural and Sustainable Products
Key Market Restraint -
Rising Consumers Inclination Towards Vegan Products
The key companies operating in the global grass-fed milk market are, Organic Valley, Maple Hill Creamery, LLC, WhiteWave Foods Company, Brookford Farm, HartDairy, Dutch Meadows Farm LLC, BYRNE HOLLOW FARM, Bubs Organic, LLC, Rolling Meadow Dairy, and Working Cows Dairy.
The global grass-fed milk market is segmented by type, application and geography. The grass-fed whole milk market is accounted for holding the major market share as the whole milk contain 147% more omega-3 fatty acids when compared with the conventional milk. Also, the consumers demand for organic milk products have led to the increase in consumption of grass-fed whole milk. Meanwhile, the grass-fed skim milk is expected to observe a significant rise in the coming years as consumers are inclined towards low-fat milk and its derived products.
The dairy segment is holding the largest share in the food and beverage segment as various types of dairy-based products such as cheese, butter, evaporated milk and others are consumed widely across the globe. The grass-fed dairy products have better quality, taste and nutritional properties than conventional milk products. The infant formula segment is also gaining traction as they offer a proper balance of nutrients that help in the overall development of the infants and toddlers.
North America accounts for the major revenue share in the grass-fed milk market due to the factors such as increase in consumption of natural and nutrient rich dairy products. The consumers in the region, especially in the U.S. and Canada are replacing the conventional milk with grass-fed milk and its products due to their perceived health benefits. The growing supply chain have made the mass market retailers as the top sales channel for grass-fed milk. Organic dairy products are the second leading food category in the region which has further fuelled the regional market growth of grass-fed milk.
Asia Pacific region is anticipated to foresee a significant growth, owing to the rapid urbanization and changing food habits. The increase in disposable income of the consumers and their adoption of westernized culture has nudged them to spend on such premium products. Furthermore, the agriculture-based countries such as India and China are the potential market for many grass-fed milk manufacturers, which aids in the market growth.
Europe is observing a significant growth in the grass-fed milk market owing to the consumers shifting preference towards organic dairy-based products. Many manufacturers due to the growing demand of the consumers are incorporating grass-fed milk in various ready-to-drink and fortified beverages which has driven its regional market.
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