UHT Milk - A Lowdown on Future Demand and Growth:Transparency Market Research

Ultra-high temperature (UHT) processing is a technique utilized to improve the longevity of milk. Using the UHT technique, fresh milk is heated to extremely high temperatures in order to sterilize it. Milk subjected to such a technique is also known widely referred to as UHT milk. Such milk is pasteurized briefly before being packaged in containers that are also pre-sterilized. This makes them the milk last longer without any additives being added to the milk.

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UHT milk can easily be stored outside a refrigerator until its package is opened. However, the taste of UHT milk is usually slightly different from that of fresh milk.

There are currently several factors that have been driving the market for UHT milk. These include reasons such as a rapid growth in population and poor infrastructure for cold chain transportation and storage in the developed regions of the world. These factors have been largely giving an impetus to the UHT milk market.

Hitherto, European countries have held a dominant position in the UHT milk market largely owing to infrequent shopping habits that prevail here. Purchasing UHT milk helps them store milk for longer periods.

At the same time, there is a growing demand for this type of milk in rapidly developing economies of Asia. In China, for instance, growing urbanization has led to more and more people becoming aware of UHT milk and purchasing it more frequently. It also supplements the supply of regular fresh milk in a country that boasts the largest population in the world.

Growth prospects - looking forward

A number of private UHT milk labels that currently operate in Europe have been encouraging growth in an environment that’s financially weak. At the same time, there are certain restraints that have hindered the growth of this market to some extent. In Europe, for instance, an existing milk quota prevents producers to cross a stipulated milk production level. Similarly, the price of milk has emerged as another concern that has dented the profitability of milk producers and shrunk their profit margins.

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Though the UHT milk market in Europe hasn’t witnessed a dip in demand, the growth continues to take place at a slower pace. In China as well, the cold chain infrastructure remains poor and this creates an immense opportunity for producers of UHT milk. The consumption of UHT milk in China is a whopping 70% of the total milk consumption.

At the same time, countries such as Australia have also shown a growing inclination towards the consumption of UHT milk. In addition, new dietary trends are providing new market dimensions for the growth of the UHT milk market. Furthermore, a number of schools globally are running the school milk program that presents ample opportunities for the producers of UHT milk that has a longer shelf life than fresh milk. Sports activities are yet another area that is widely targeted by producers of UHT milk-a number of athletes and sportspersons consume this type of milk on the field. Another category of consumers is that of office-goers or those on the move-such people need to consume milk on the go and thus choose UHT milk.

Segmenting the market based on products

The UHT milk market can be divided into several different categories based on the product segment. The largest category within this market in 2012 was that of semi-skimmed milk that was closely followed by whole UHT milk.

The market shares of these two milk types (semi skimmed as well as whole) are projected to show further growth by the end of 2019. As skimmed milk powder gains prominence globally, the demand for skimmed milk will see a dip.

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