Bullish Growth For Dairy Soy Food Market

Friday, October 7th, 2016 | 598 Views

United States, China, and India are the top three markets globally, while China, India and Russia are projected to have the highest growth rates, according to research by Canadean.

With the top five brands holding less than six percent of the world’s combined market share, the global dairy soy food market is highly fragmented. Kraft, one of the leading brands of cheese in North America, holds a 43 percent value share in Hong Kong and 25 percent share in Singapore.

Consumers in emerging countries including Brazil, China and India, place a greater emphasis on nutritional value, following health and wellness trends. For example, clean label natural or organic dairy soy food products are preferred by consumers in China. The Asia Pacific region is the second largest regional market and is predicted to be the fastest growing region during 2015-2020, with growth driven mainly by China and India.

Research revealed that consumers in developed markets preferred to make beverage choices on their level of personalisation, whether they can be consumed on-the-go, and whether they provide a novel taste or experience.

Additionally, private label brands have a strong presence in North America and Western Europe when compared to other regions. However, milk consumption in North America is falling, as consumers are opting for alternative beverages such as juices and vitamin-infused water.

Western Europe is the largest market region, with Germany and France being the largest markets. In East Europe region, Russia is the largest market for dairy soy products in value terms, and is expected to grow at a compound annual growth rate of 8.7 percent during 2015-2020.

With the robust rise in per capita consumption of dairy by the growing middle-class population in developing markets in the APAC, MEA and Eastern Europe regions, growth is expected globally.

However, rising feed prices, economic and political volatility, and a widening gap between demand and supply are the key factors that may restrain growth globally.