The UHT (Ultra-High Temperature) milk market is projected to grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031. UHT milk's convenience and portability are attracting a diverse range of consumers worldwide. Key players such as Amul, Nestlé S.A., and Granarolo Group are intensifying the competitive landscape in this market.
The primary drivers of the global UHT milk market are the extended shelf life and portability of UHT milk, which require minimal refrigeration. UHT milk reduces dependency on fresh milk and is increasingly used in confectioneries, hotels, and food chains due to its longevity. Urban population growth and the decreasing production of fresh milk in some countries are boosting the demand for high-shelf-life milk. Additionally, the global trend towards western cuisines and the migration of populations from rural to urban areas are expected to further drive the market.
Despite its benefits, the lack of natural taste in UHT milk and a strong preference for fresh milk in countries like India pose challenges to market growth.
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The global UHT milk market is segmented into whole milk, skimmed milk, semi-skimmed milk, and others. Whole milk dominates due to its high consumption among a broad consumer base. It is a preferred alternative to fresh milk in restaurants, office spaces, and institutional food services because of its extended shelf life and versatile usage.
North America leads the global UHT milk market, driven by increasing consumer awareness and adoption of UHT milk in food chains like coffee shops, restaurants, and institutional food services. The preference for long shelf-life and convenient food products is contributing to market growth in this region.
The Asia-Pacific region, particularly China, is expected to see rapid growth. Imports of UHT milk to China rose by 5% from 2016 to 2017. Chinese consumers are increasingly preferring long shelf-life milk and are confident in the safety of imported UHT milk. The growth of e-commerce food services and home delivery is also boosting the market. China accounted for approximately 40% of total EU UHT shipments, reflecting its significant demand.
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Major players in the global UHT milk market, such as Parmalat S.p.A., LALA Branded Products, LLC, Nestlé S.A., Organic Valley, and Granarolo Group, are focusing on expanding their international presence through acquisitions and new production facilities.
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