The global UHT Dairy Products industry is estimated to be worth USD 84.3 billion by 2024. It is projected to reach USD 138.6 billion by 2034, reflecting a CAGR of 5.1 % over the assessment period 2024 to 2034.
The applications of dairy products in various foods and beverages are growing rapidly. Normally pasteurized milk and other milk products cannot be stored for a long time without refrigeration. The popularity of dairy products has increased and this has fuelled the demand for products with improved quality, longer shelf life and room-temperature storage. The UHT Dairy products are sterilized at very high temperatures for a very short time so that microbial contaminants are completely killed maintaining the original properties of the products.
Nestle and Dana Dairy Group are some of the companies that are leading the industry with UHT dairy products. Nestle has focused on providing a variety of nutritional products for all age group consumers focusing on sustainable packaging solutions. Dana Group has added flavored milk products to its Long Life liquid milk collection.
The poor cold supply chain and storage conditions result in financial losses due to product deterioration. The UHT dairy products can be stored for up to 6 months at room temperature. They provide the ease of storage, handling and transportation to all the consumers. Especially street food vendors are benefitted more as this saves their refrigeration costs.
The shelf life of milk and milk products is affected by many reasons like processing temperatures, microbial load, poor packaging and storage conditions. Many companies are adopting UHT processing technology for dairy products cream, cheese, yogurt, ice cream mix and others to minimize the loss and provide safe and wholesome products.
| Attributes | Description |
|---|---|
| Estimated Global UHT Dairy Products Industry Size (2024E) | USD 84.3 billion |
| Projected Global UHT Dairy Products Industry Value (2034F) | USD 138.6 billion |
| Value-based CAGR (2024 to 2034) | 5.1 % |
The increased milk production and development in the heating technologies in the processing have allowed dairy companies like Amul to increase their daily processing capacity with a wide range of products that offer better stability during storage. With this company is attracting more consumers eventually increasing its profitability and investing more in product development.
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Rising Demand for Products with Extended Shelf Life at Room Temperature
The extended shelf life at room temperature allows for the distribution of the products in in large market and reaches more consumers. Increased urbanization, changing lifestyles and food preferences have led to more consumption of dairy products for good health.
Dairy products are considered a good source of essential nutrients required in the body. Along with milk the demand is rising for products cream, cheese, and ice cream mix due to the rapidly expanding food and beverage industry.
Consumers favor these products because they have limited refrigeration space available at home and it also saves money. In developing and underdeveloped regions the UHT dairy products are of great importance for consumers. The packaging used in these products minimizes the risk of leakage and preserves product quality throughout the distribution channel.
Manufacturers are employing various strategies, which include product formulation required by different consumers as a means of providing desired national benefits and promoting healthy lifestyles.
An industry leader, Fonterra Dairy incorporates such nutritional models to liquid milk and supplies milk in different products like whole milk, low-fat milk, lactose-free milk, toned milk, skimmed milk, and flavored milk. UHT Liquid Milk is the dominant product type and its increasing demand from consumers is expected to contribute to industry growth.
Smart Dairy Farming and Increased Milk Production Are Transforming the Industry
Dairy farming is a global business supporting farmers to earn more with agriculture farming. In the past few years, this sector has seen tremendous technological developments that are transforming dairy farming into a smart, sustainable, and digital business.
Animal tracking via body sensors, automated milking systems, efficient feeding, and real data collection and analysis help maximize milk production.
This allows the farmers to practice sustainable farming by optimizing the use of natural resources like water and feed. Leading companies like Amul are directly collaborating with farmers and providing them with technological help to transform dairy farming into a more profitable business. A good quality continuous supply of raw milk makes dairy processing companies produce high-quality products.
Penetration of smart dairy farming among farmers will boost the growth dairy industry and eventually lead to a rise in UHT dairy product manufacturing.
Reducing Processing Time and Enhancing Microbial Safety Through UHT Treatment
UHT treatment involves heating milk at 135-154oC for 2-3 seconds. The temperature and time vary according to dairy products. This significantly reduces the processing time and effectively inactivates bacterial spores. The UHT treatment can help achieve 12-log reductions eliminating almost all microbes before packaging.
UHT products are aseptically filled and packed into specialized Tetra Pak containers in which products can be stored for 6 to 12 months at ambient temperatures. In this method, the chances of microbial contamination after processing are very low (~0.02%).
Companies like Govind Milk, are taking advantage of this and launching traditional desserts like Basundi into the global markets without adding any chemical preservatives which helps build consumer's faith and attract more consumers.
This technology is useful in enabling the faster production of safe and healthy dairy products and at the same time meets the growing demand for UHT dairy products.
Global sales increased at a CAGR of 4.2 % from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on such products will rise at 5.1 % CAGR.
Between 2019 and 2023 the production of milk increased substantially in the world. The demand for antibiotics-free and additives-free dairy products has increased owing to health concerns.
The UHT method is helping companies to ensure product safety and maintain quality while processing. During this period, the health-conscious customer base has significantly increased fuelling the growth of low-fat milk and yogurt-like dairy products.
From the year 2024 to 2034, the growth of this sector will be accelerated by the increasing milk production and poor cold chain maintenance in developing countries. The approaches of UHT treatment will reduce the wastage of raw milk and the convenience of expanding the marketplace through online platforms will attract more consumers.
The availability of cheaper and variety of packaging options gives UHT products distribution and handling advantage. The increasing urbanization, changing consumers’ lifestyles and food preferences, and rising demand for long-lasting and convenient dairy products will help in the expansion of dairy products.
Principal Consultant
Tier 1 Companies are referred to as the major players of the industry as they are fully established worldwide with majority shares of the business ecosystem. Industry leaders invest more money into research and development and always look for new opportunities to expand the business and set new trends in the market.
They include Nestle and Fonterra. Nestle, with its continuous product development activities, advanced manufacturing technology, and global presence with a large distribution network, is the leading provider of sustainable dairy products which cater to consumer’s daily nutrition and health demands.
Tier 2 Companies are the regional players with adequate market coverage and are known for offering niche products. They are typically more localized and address specific issues of more general ones. AMUL is an example of this, performing well in the Asian territory due to its diverse product portfolio to cater demand of each category of consumers.
In the same way, Yili Group is the leading dairy market in China and it specifically focuses on the production of different types of milk powders and exports worldwide.
Tier 3 Companies are smaller players who are usually limited to the local or regional areas. They tend to service localized areas and do not possess the same level of R&D as bigger companies but are nonetheless helpful in satisfying local needs. These companies are smaller in size but still strong in their target industries due to their deep-seated innovations and customer service.
The following table shows the estimated growth rates of the top three territories. The USA and India are set to exhibit high consumption, recording CAGRs of 9.2% and 8.3%, respectively, through 2034.
| Country | CAGR, 2024 to 2034 |
|---|---|
| The USA | 9.2% |
| China | 7.6% |
| India | 8.3% |
| Germany | 7.1% |
| United Kingdom | 6.8% |
The fast-paced lifestyle and increasing food and beverage industry in the USA will keep it the dominant consumer for UHT dairy products in the North American region. UHT products do not require refrigeration for their storage and their rigid packaging gives handling advantages. As compared to normal milk products, UHT dairy products offer ease of transportation and can be carried along easily.
The fast food industry is one of the major drivers for UHT Cheese and Cream products due to the increasing consumption of a variety of dishes. Due to this, companies like Schreiber Foods with the help of Sojo are developing new packaging solutions to fulfill consumers' demand with multipack and variety pack solutions for dairy products. Over the bottles and cans, the empty packs are easy to store until required delivering efficient storage and distribution services.
Indian economy is based on agriculture and agro-allied businesses. Dairy farming in India is rising and technology-based farming is emerging. The dairy processing plants are growing in every other part of the country. However, there is a problem with the cold supply chain and distribution of dairy products. The UHT-treated dairy products are easy to store and distribute.
The demand for such products is rising from household as well as industrial consumers. The consumption of ice cream mix and whipped cream has significantly increased due to an increase in small food ventures. Companies have started producing more UHT-treated products with more shelf life stability and microbial safety.
Nandini (K.M.F) leading the Southern Indian market by supplying UHT milk in a variety of packaging sizes. All these are contributing to the success of UHT dairy products in India.
China is a dominant producer and consumer of dairy products. With increasing milk production and advanced manufacturing technologies, China is a dominant exporter of dairy-based products. After the COVID-19 Pandemic, the emerging health trends have boosted the daily consumption of dairy products significantly.
The Chinese consumers are popular for their health consciousness. The UHT treatment minimizes the risk of foodborne contamination and illnesses which benefits the consumer’s health. In this regard, companies like Westland Milk Products are developing low-fat whipped cream.
Increasing numbers of premium customers looking for natural and additives-free dairy products are also driving the sales of UHT dairy products in China.
This increased demand for healthy and natural dairy products will significantly increase the consumption of UHT products in China.
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| Segment | Liquid (By Form) |
|---|---|
| Value Share (2024) | 74.6% |
Globally, UHT milk is the dominant product in this sector. Liquid milk is a perishable product and cannot be stored without refrigeration. At present, the companies are crafting formulations in liquid forms such as UHT flavored milk products, Butter Milk, and Ice Cream Mix. The products are easy to consume and attract different age group consumers.
Many Indian companies such as Godrej Jersey and Heritage are providing UHT buttermilk in tetra packaging. The manufacturers streamline production techniques with continuous investment in research and development and adopting novel technologies. UHT treatment gives significant advantages to companies like reduced time and cost of distribution, long shelf life, and fewer chances of contamination.
Due to the increase in the consumption of ice cream desserts, the ice cream mix demand is rising. These products and new product developments in liquid form are expected to increase the UHT Dairy Products sector growth.
| Segment | Cheese (By Product Type) |
|---|---|
| Value Share (2024) | 7.4% |
The production of cheese is increasing globally owing to the rising demand. Cheese is manufactured in different flavors, forms shapes, and textures. Cheese is considered as a rich in nutrients and is used in many food recipes. It is a good source of protein, minerals, and vitamins needed for the body's functioning.
The impact of Western food culture, changes in food preferences and the introduction of different cheese-flavoured products cater to consumer demands. The microbial contamination is prominent in many of the cheese varieties. The UHT-treated cheese offers improved protection from bacterial and fungal contamination.
UHT-treated milk can be used in cheese production which does not require rennet instead of that acid is used. Fast food and quick service restaurants are increasing which is expanding cheese applications and rising demand for the products. DMK, the dominant dairy in Germany has developed innovative solutions and top-quality traditional products to shape the future of cheese products.
The competition landscape of the UHT Dairy Products market is intense. Nestle, Fonterra, and Amul are the major market players and contribute significantly in terms of new product launches, and R&D investment as well as further towards the creation of innovative and sustainable packaging solutions to expand market reach.
Companies like these also seek opportunities to contribute to the development of dairy farming by developing efficient animal feeds and improving recovery processes in the manufacturing and welfare of dairy farmers.
To expand their sales, manufacturers are embracing different strategies including vertical and strategic acquisitions. For instance, Amul is collaborating with local dairy plants to manufacture products and supply the nearby markets increasing their distribution network. By doing so Amul makes sure that they make use best quality raw milk and provide quality products.
Fonterra has expanded its business under the brand Anchor in New Zealand and providing the best quality UHT milk.
For instance:
As per Form, the industry has been categorized into, Liquid, Semisolid and Solid.
As per Product Type, the industry has been categorized into Milk, Cream, Cheese, Yogurt, Sauces, Milk Powder, and Ice Cream Mix.
This segment is further categorized into Cow, Buffalo, Goat, and Others.
As per the sales channel, the industry has been categorized into B2B, and B2C (Distributor, Dairy Shops, Grocery shops, Supermarkets, and Online Platforms).
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe Eastern Europe, Balkans & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The global industry is estimated at a value of USD 84.3 billion in 2024.
The UHT Dairy Products Market is expected to grow at a CAGR of 5.1% between 2024 to 2034.
The USA dominates the UHT dairy products market in terms of consumption.
India is the most promising country for the market growth.
The UHT Cream will gain the most during the forecasted period.
1. Executive Summary 2. Industry Introduction, Including Taxonomy and Market Definition 3. Market Trends and Success Factors, Including Macro-Economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Form 6.2. Product Type 6.3. Source 6.4. Sales Channel 6.5. Region 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Form 7.1. Liquid 7.2. Semisolid 7.3. Solid 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type 8.1. Milk 8.2. Cream 8.3. Cheese 8.4. Yogurt 8.5. Sauces 8.6. Milk Powder 8.7. Ice Cream Mix 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Source 9.1. Cow 9.2. Buffalo 9.3. Goat 9.4. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Sales Channel 10.1. B2B 10.2. B2C 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. Balkans & Baltic 11.6. Russia & Belarus 11.7. Central Asia 11.8. East Asia 11.9. South Asia & Pacific 11.10. Middle East & Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Balkans & Baltic Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Russia & Belarus Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Central Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 20. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 21. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 22. Sales Forecast 2024 to 2034 by Form, Product Type, Source, and Sales Channel for 30 Countries 23. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 24. Company Profile 24.1. Nestle 24.2. Dana Dairy Group 24.3. Anchor 24.4. Amul (GCMMF) 24.5. Grupo Lala 24.6. Fonterra 24.7. Groupe Lactalis 24.8. Yili Group 24.9. Dairy Farmers of America 24.10. Arla Foods 24.11. Mother Dairy 24.12. Others
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UHT Dairy Products Market
