Global UHT Milk Market to Reach US$137.7 bn on Account of Rising Demand for Sterilized Milk

Longer shelf life of six to nine months is driving the UHT milk market globally. Increasing adaptation to the western culture coupled with the lack of cold chains in the developing countries is making people in these countries to switch to UHT milk from pasteurized milk. The UHT milk market in China is growing at a swift pace. Over 60% of the total milk consumed in China is UHT milk. The global urban population, which was over 690 million in 2011, comprises about half of the population of China. The country is expected to add another 300 million to 400 million people to the urban population by 2030. As compared with the rural population, the urban population is more influenced by the western cultures owing to their better income levels and education. Thus, increasing urbanization is further expected to escalate the demand for UHT milk in China. Australia is another country which has a growing UHT milk market, though the share of UHT milk was only about 10% of the total milk consumption in 2012. However, it is expected to increase in the forecasted period.

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However, there are few constraints associated with this market including presence of unorganized milk market in the less developed countries and perception of consumers in some countries about the low nutritional value of UHT milk. The unorganized milk market in India and China is a major restraint for the processed and UHT milk products. There are large number of unorganized small dairy farmers supplying raw cow and buffalo milk to households in these countries. Most of the people in these countries buy milk every day. However, the increasing income levels and increasing influence of western culture is expected to reduce the impact of this restraint to much extent in the near future.

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The new dietary trend of consuming milk outside home, i.e. in schools, on the sports field, and at the gymnasium is catching up. In many schools, milk is provided to children in order to make drinking milk a habit and here lies the opportunity for UHT milk.

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