Organic dairy anticipated to grow by more than 50%

Posted on 19 Mar 2019
Organic dairy anticipated to grow by more than 50%

The report states that new opportunities are being created not just in the UK, but globally, as the global liquid milk market currently makes up 24% of all organic dairy sales. Organic infant formula and organic cheese are both expected to grow at 12.1% and 14% compound annual growth rate (CAGR) respectively, over the next five to seven years too.

“Worldwide consumption, distribution and market reach of organic dairy is increasing, and now represents 20% of all organic food and drink sales globally,” said Richard Hampton, managing director of Organic Milk Suppliers Co-operative in the UK (Omsco). “While there remain good development opportunities in traditional categories and markets, the biggest winners will be those producers and regions that can produce a broad range of products and take advantage of global growth potential across a wide range of organic dairy applications.”

Mr Hampton added that the UK is a net exporter of organic dairy products, and with no clear Brexit outcome just yet, the extent to which the UK will grow is unclear, as a no-deal Brexit will potentially involve export bans for UK products heading to the EU.

Organic milk sales have been increasing each year by 1.8% in value terms, and though the rate of growth has slowed, the volume of growth remains ahead of standard milk.

“Organic dairy is a thriving part of the global organic food and drink market and the overall dairy sector, but innovation in market and product diversification will ultimately lead to the greatest opportunities globally,” Richard Hampton added. “For the UK, how Brexit unfolds over the coming months will ultimately determine the speed at which Omsco can continue to capitalise on these opportunities.”


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