Global dairy cream market is forecasted to register a CAGR of 3.8% during the forecast period (2020-2025).
- The high production costs and health consciousness leading to low-fat consumption are found to be obstacles for the industry. Innovative product development with low trans-fat and organic cream products are expected to be further growth opportunities in this industry.
- Since August 1, 2016, Canada has allowed temporary supplementary imports of cream apart from imports usually allowed under tariff-rate quotas in order to overcome supply shortages. U.S. exports of cream with more than 10-percent milk fat rose from 1.2 million gallons in October 2016 to 2.0 million gallons in November 2016 with about 90 percent of the exports to Canada. Thus Canada’s Cream shortage, an opportunity for USA.
Key Market Trends
Increasing Demand For Low Fat Cream
Factors, such as increasing government-run health and wellness campaigns, designed to combat obesity and related problems (diabetes, high blood pressure, heart disease, and high cholesterol), are encouraging consumers to purchase healthier products such as low-fat dairy ream. Owing to the consumers’ preference to functional /organic products, the companies entering this market are expected to witness a high potential. Moreover, there is a rise in demand for fortified yogurt. For instance, Schulz organic dairy offers pure dairy cream which is increasingly being appreciated by Australian Consumers.
GCC Countries to Witness A Steady Growth
The Kuwaiti dairy industry is witnessing an increasing prevalence of strategic partnerships and alliances between dairy companies, to alleviate the shortage of dairy products in the country. Companies, like Arla Foods, are also investing in production facilities and implementing expansion strategies to expand their dairy production facilities. Arla Foods is also developing its sales and distribution in Lebanon, Qatar, and Kuwait, to expand its dairy capacity in such countries. Such partnerships are playing a prominent role in dairy companies’ development, maintain their quality of performance, and competitiveness in the market. Thus, the increasing number of strategic initiatives, especially partnerships and alliances between companies, to revolutionize the dairy market in Kuwait, is, in turn, boosting the market growth in the country.
The global dairy cream market is a competitive market and comprises of regional and international competitors. The leading players in the market enjoy a dominant presence worldwide. These players focus to leverage opportunities posed by emerging markets to expand their product portfolio so that they can cater to the requirements for various product segments, especially sour cream, fresh cream, and whipping cream. Companies compete on different factors, including product offerings, quality, price, functionality, size, packaging, and marketing activities, in order to gain a competitive advantage in the market. Key players in this market are now focusing on social media platforms and online distribution channels for the online marketing and branding of their products to attract more customers.
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