The organic milk market encompasses all milk and milk products derived from animals that are fed organic feed that is devoid of any animal by-products, have access to fresh pastures, and are not treated with any synthetic hormones or antibiotics. The term organic only refers to the process in which the milk is prepared and has no relation to the end-product nutrient profile. The market for organic milk is expected to grow at a rapid pace with the mainstreaming of natural and organic foods.Similar to all organic foods, the demand for organic milk is closely tied to the increasing consumer preference for naturally and organically grown products. This positive view of organics is due to several factors such as the perception of anything organic as healthy and pure, increasing care for environment and concern for farm animals. All these factors are crucial for the acceptance of organic milk products, thereby leading to the popularity of labels such as ‘grass-fed’ and ‘pasture-raised’.
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Price is an important constraining factor for organic milk market as organic milk is almost thrice as costly as regular milk. This high difference limits the scope of the market only to urban and high-aware consumers.
The organic milk market is segmented on the basis of application, packaging type, distribution channel, and geography.
Some of the key players in the organic milk market include Danone (WhiteWave Foods Company), Fonterra Co-operative Group Limited, Organic Valley, OMSCo (Organic Milk Suppliers Cooperative), Dairy Farmers of America Inc., Agropur Dairy Cooperative, Arla Foods Amba, Donegal Investment Group plc. , etc. among the others.
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