The global organic dairy market is predicted to grow by more than 50% to hit £21.3 billion by 2023, according to the Global Organic Dairy Market Report 2019, published by Omsco, Organic Valley and Eko Holland.
“Worldwide consumption, distribution and market reach of organic dairy is increasing, and now represents 20% of all organic food and drink sales globally,” explains Richard Hampton, managing director of Omsco. “The organic dairy market in the UK specifically has also grown 3.1% year-on-year, and we’ve seen a 10% increase in the number of households who purchased organic milk since 2017.”
Although the milk market is performing well – representing 24% of all organic dairy sales – the report cites that new markets and emerging product categories, such as cheese and specialist organic dairy ingredients, are key to overall growth.
“Historically, traditional dairy products such as liquid milk and yoghurt in Western markets have dominated sales,” says Hampton. “However, although market penetration levels remain relatively low, growth has slowed as these markets have matured, while growth in added value categories such as cheese, infant formula and sports nutrition products has accelerated, particularly in emerging markets.”
A no-deal Brexit will deliver what amounts to an export ban for organic products to the EU, as UK organic standards will no longer be recognized
Organic infant formula and organic cheese are both anticipated to grow markedly over the next five to seven years, at 12.1% and 14% compound annual growth rate (CAGR) respectively.
“The UK is already a net exporter of organic dairy products, in stark contrast to the overall UK dairy sector, which is the third largest net importer in the world,” Hampton says. “With no clear outcome in place for Brexit, the extent to which the UK can participate in this growth potential is unclear, and a no-deal Brexit will deliver what amounts to an export ban for organic products to the EU, as UK organic standards will no longer be recognized.”
Importantly, Hampton adds that recent conversion of new producers into the organic sector means that the UK has enough milk to sustain forecasted growth in the next few years.
You can download a copy of the full Global Organic Dairy Market Report 2019 here.