North America Milk Market expected to reach USD 35.8 billion in 2019

Regular consumption of milk is important among all the age groups due to its health benefits. Product innovations such as introduction of varied flavors in milk attract the consumers. Varied food preferences among consumers have influenced the manufacturers to produce milk in different flavors. Moreover, manufacturers are investing more on research and development to add nutritional value to the milk to gain maximum market share. Decreasing intensity of market restrains such as threat of substitutes and the shorter shelf life of the milk and milk products has increased the consumption of the milk. The consumption of milk is expected to remain positive throughout the forecast period. In addition, the growing immigrant population in the U.S. and Canada has significant impact on milk demand.

As per porter five forces, bargaining power of buyers and bargaining of suppliers are expected to remain moderate to low in the forecast period. North America milk market is highly fragmented in nature and more number of markets players and producers are expected to enter this market, thus increasing the competition in the industry. Moreover, the emergence of private labels is further set to intensify the competition. Distribution channels such as Supermarkets/ Hypermarkets and departmental stores are increasing in number making it available in the nearest store.

North America milk market was valued at USD 27.81 billion in 2012 and reached USD 29.1 billion in 2013; growing at a of 3.5% from 2013 to 2019. This market is further expected to reach USD 35.8 billion in 2019. The consumption of milk in terms of volume is expected to reach 21.05 billion Kg in 2019 from 17.96 billion kg in 2013; growing at a CAGR of 2.13% during the forecast period.

In the U.S., the demand for milk is mainly driven by growing health concerns and need for food with high nutritional value. In addition, the U.S. is the largest producer of milk and dairy products with large number of population as compared to North American countries.

Among the four types of Milk, i.e., butter milk, concentrated milk, liquid milk and powder milk, the market of liquid milk and concentrated milk is expected to grow at a high growth rate as compared to other two types of milk. The growth is primarily attributed to growing health awareness and daily nutrient requirements of body to avoid deficiency. In the U.S., Dairy Farmers of America had the maximum market share compared to private label in 2013, Dairy land, Neilson and Parmalat was leading in Canada and had the maximum market share in 2013. In Mexico the GrupoLala has the maximum market share among others in 2013.