Fluid Milk Market Size to Witness Significant Growth by 2025

Fluid Milk is the industry term used for any milk or milk products, which are made by addition of a substance to milk or any liquid milk product while production and processing, and exposed in the market for human consumption. It is simply the milk products which are consumed in liquid form as beverages. Fluid milk is often fortified with vitamin A and vitamin D. Fortification of the fluid milk with vitamin D is done in order to reduce the incidence of rickets in children. It also helps in calcium absorption, has an important role in bone health, and has a protective effect in cancer, while vitamin A is frequently added in order to reduce fat and can be obtained as low fat and fat-free milk. According to USDA, due to the high demand, around 3.8 billion pounds of packaged fluid milk products were shipped in North America by milk handlers in April 2017. The per person fluid milk consumption gradually declined due to the increased competition from other beverages and because of a smaller percentage of children in the U.S. region. According to the Economic Research Service (ERS), per person consumption of fluid milk in 2016 was 154 pounds.

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The Fluid Milk Market can be segmented on the basis of application, packaging, distribution channel, and region.

By application, fluid milk market can be segmented into food and beverage. In the food segment, fluid milk can be used as skimmed milk in the production of yogurt, processed cheese, natural cheese, cottage cheese, sour cream, and desserts, in which it can be used in the preparations of ice creams, custards, pie fillings, whipped toppings, and other uses. In the beverage segment, fluid milk can be used in the production of buttermilk, specialty milk in which flavoring syrups are added and can also be consumed as skimmed milk, and fat-free milk. Among both the segments, the beverage segment is experiencing a high growth than the food segment, and it is expected to grow further in the forecast period.

By packaging, the fluid milk market can be segmented into tetra packs, P.E.T bottles and jars, glass bottles and jars, carton pouches and others. Among these, the P.E.T bottles, jars and tetra packs are leading the market. Carton pouches are anticipated to grow on a higher scale in the forecast period.

By distribution channel, the fluid milk market can be segmented into the direct and indirect sales channel. The indirect sales channel can be further sub-segmented into modern trade formats, departmental stores, specialty stores, convenience stores, online retail and other retail formats.

By region, the Fluid Milk market can be segmented into five distinctive regions, which includes North America, Latin America, Europe, Asia Pacific, Middle East and Africa. From these segments, North America is leading the fluid milk market, being one of the largest producers of cow's milk in the world, followed by Asia Pacific. In 2016, U.S. supplied around 212 billion pounds of fluid milk domestically as well as internationally.

Due to increase in growth of populations, growing health consciousness, and increasing disposable incomes, the demand for fluid milk is gradually increasing in the market. Fluid milk is considered as an integral part of the staple diet in many developing regions like India and China. There are various milk beverages which are made from fluid milk with added plant sterols, aimed to help improve cholesterol levels in the body. Products made from fluid milk are generally carbohydrate reduced, fortified with protein and calcium, specifically designed for adults. Owing to all the benefits, fluid milk market is expected to penetrate the beverage market on a higher scale in the forecast period.

Apart from all the benefits, the presence of substitutes in the market is inhibiting the fluid milk market to grow. The vegan consumers and the one with lactose intolerance also prefer avoiding dairy-based products, due to which the fluid milk market is in a steady state.

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The rising demand for Fluid Milk in the market is attracting the manufacturers to produce and distribute the products in the market. Some of the key manufacturers in the Fluid Milk market are Nestle S.A., The Dannon Company, Inc., Saputo Inc., Land O'Lakes, Inc., Dean Foods Co., Dairy Farmers of America Inc., Schrieber Foods, and others. 

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