Lisa Olivo, Associate Editor10.06.14
Market research firm Amadee+Company predicts that the growing international population will increase demand for protein of all kinds, with dairy and animal-based protein playing a key role in how we keep the world fed and healthy.
According to the Report “Dairy: The Future Of Protein - Global Markets, Competitors And Opportunities - 2014-2019 Analysis And Forecasts,” global animal protein production is a $1.35 trillion business in 2014, with the market for dairy standing out as the leading source of animal-based protein. Production of dairy-based products is expected to reach upward of $354 billion in 2014.
“Most people assume the dairy market is small, mature and boring. The reality is far different,” said Amadee Bender, president, Amadee+Company Inc.
Protein Trends
Rising interest in protein generally is propelling dairy sales. “Further, milk (whey protein) is the highest quality protein in terms of biological value,” said Mr. Bender (See Figure 1).
Biological Value of Protein Sources
He added that animal protein in general dominates the protein market with 49% of the share, while dairy represents 26%, beef 25%, pig 23%, poultry 12%, eggs 9% and sheep 5%.
Dairy Market Insights
The report also found that nearly 41% of U.S. milk sales are private label, and 75% of all U.S. milk sales are through supermarkets and hypermarkets.
The top U.S. yogurt brands include General Mills, Danone and Chobani. However, the companies have shown no growth to negative growth within the last year, Mr. Bender noted.
China Fuels the Dairy Market
The U.S. is the largest dairy producer in the world, with the country’s export to China playing a major part in the market’s overall growth. Having once been a net importer of dairy products, the U.S. is now a net exporter with exports as a percentage of production reaching an all-time high.
According to the report, U.S. dairy exports to China grew from $22 million in 2000 to an impressive $327 million in just the first half of 2014.
“China’s economy is continuing to show strong growth, contributing to robust demand for dairy imports,” said Mr. Bender. “Since Chinese cows can’t supply all the milk they need, they import it. The U.S. has taken advantage of this situation by exporting more milk and milk products to China over the last 15 years.” The U.S. produces two and a half times as much milk as China despite the fact the U.S. has only 6% more cows, he added, noting that cows in the U.S. tend to be more productive.
Ongoing struggles with food contamination have also contributed to demand for U.S. dairy products in China. “While China’s government has taken steps to reduce food contamination, it continues to be a problem,” Mr. Bender said. “A repeat of a massive scandal—similar to the melamine contamination of dairy products in 2008 that killed six infants and sickened up to 300,000 people—would reduce the demand for domestically produced dairy products and increase China’s dairy imports.”
Opportunities Ahead
Mr. Bender predicted the Chinese Infant Milk Formula (IMF) market may be an area of particular promise and growth, and anticipated an approximate annual growth of 15% looking ahead to 2017.
Major non-Chinese companies serving the Chinese IMF market include Danone, Nestlé and Mead Johnson, while the biggest Chinese producer is Mengniu.
According to Mr. Bender, the IMF market in China is expected to remain strong as a result of several motivating factors. “In China 16 million babies are born every year (four times more than in Europe) with the potential for an acceleration that adds risk to the upside,” he explained. Additionally, children of Baby Boomers starting families, as well as the possible relaxation of the one child policy are potential market motivators.
In addition, Mr. Bender cited the increase indisposable incomes driven by higher urbanization rates, low per capita consumption (even within Asian countries) and low breastfeeding levels among women rejoining the workforce as potential contributing factors to the continued growth of the Chinese IMF market.
For more information on the report, contact Amadee+Company: 305-450-1875; amadeeandcompany@gmail.com.
According to the Report “Dairy: The Future Of Protein - Global Markets, Competitors And Opportunities - 2014-2019 Analysis And Forecasts,” global animal protein production is a $1.35 trillion business in 2014, with the market for dairy standing out as the leading source of animal-based protein. Production of dairy-based products is expected to reach upward of $354 billion in 2014.
“Most people assume the dairy market is small, mature and boring. The reality is far different,” said Amadee Bender, president, Amadee+Company Inc.
Protein Trends
Rising interest in protein generally is propelling dairy sales. “Further, milk (whey protein) is the highest quality protein in terms of biological value,” said Mr. Bender (See Figure 1).
Biological Value of Protein Sources
He added that animal protein in general dominates the protein market with 49% of the share, while dairy represents 26%, beef 25%, pig 23%, poultry 12%, eggs 9% and sheep 5%.
Dairy Market Insights
The report also found that nearly 41% of U.S. milk sales are private label, and 75% of all U.S. milk sales are through supermarkets and hypermarkets.
The top U.S. yogurt brands include General Mills, Danone and Chobani. However, the companies have shown no growth to negative growth within the last year, Mr. Bender noted.
China Fuels the Dairy Market
The U.S. is the largest dairy producer in the world, with the country’s export to China playing a major part in the market’s overall growth. Having once been a net importer of dairy products, the U.S. is now a net exporter with exports as a percentage of production reaching an all-time high.
According to the report, U.S. dairy exports to China grew from $22 million in 2000 to an impressive $327 million in just the first half of 2014.
“China’s economy is continuing to show strong growth, contributing to robust demand for dairy imports,” said Mr. Bender. “Since Chinese cows can’t supply all the milk they need, they import it. The U.S. has taken advantage of this situation by exporting more milk and milk products to China over the last 15 years.” The U.S. produces two and a half times as much milk as China despite the fact the U.S. has only 6% more cows, he added, noting that cows in the U.S. tend to be more productive.
Ongoing struggles with food contamination have also contributed to demand for U.S. dairy products in China. “While China’s government has taken steps to reduce food contamination, it continues to be a problem,” Mr. Bender said. “A repeat of a massive scandal—similar to the melamine contamination of dairy products in 2008 that killed six infants and sickened up to 300,000 people—would reduce the demand for domestically produced dairy products and increase China’s dairy imports.”
Opportunities Ahead
Mr. Bender predicted the Chinese Infant Milk Formula (IMF) market may be an area of particular promise and growth, and anticipated an approximate annual growth of 15% looking ahead to 2017.
Major non-Chinese companies serving the Chinese IMF market include Danone, Nestlé and Mead Johnson, while the biggest Chinese producer is Mengniu.
According to Mr. Bender, the IMF market in China is expected to remain strong as a result of several motivating factors. “In China 16 million babies are born every year (four times more than in Europe) with the potential for an acceleration that adds risk to the upside,” he explained. Additionally, children of Baby Boomers starting families, as well as the possible relaxation of the one child policy are potential market motivators.
In addition, Mr. Bender cited the increase indisposable incomes driven by higher urbanization rates, low per capita consumption (even within Asian countries) and low breastfeeding levels among women rejoining the workforce as potential contributing factors to the continued growth of the Chinese IMF market.
For more information on the report, contact Amadee+Company: 305-450-1875; amadeeandcompany@gmail.com.
