UHT Milk Market Analysis

UHT Milk Industry Insights

Milk Type Insights

Whole milk accounts for the largest market share in 2024, of 60%. Due to the significant amounts of calcium, phosphorus, and vitamins A, B1, and D, whole milk is advantageous during the developing years. Also referred to as full-cream milk, is the most common variety of UHT milk, and it is typically offered with a fat level of 3.5% or more.

It is majorly consumed by children, teenagers, breastfeeding mothers, and bodybuilders due to its high nutrient value. When it comes to restaurants and cafés, where a significant demand for milk with a high whipping quality exists, whole milk is widely popular.

The lack of refrigerated space is a major factor that is driving the market. Food products with a higher propensity for bacterial development must be refrigerated. Until it is consumed, raw milk must be kept chilled. Customers are more likely to use foods that last a long time without refrigeration in developing nations, due to the expensive nature of refrigeration, the lack of refrigerated space, and the long length of power outages.

Toddlers less than 2 years of age are ideal consumers of whole milk, as it supplies them the essential nutrients during the crucial stages of development. Many market players are constantly investing in newer technologies, since ordinary milk is more prone to bacterial colonization and the UHT variant has garnered a growing interest for its non-requirement for refrigeration. Hence, the major characteristics driving the market are the longer shelf life and stability at room temperature of this product.

For Instance, Amcor PET Packaging Europe has launched the first range of monolayer plastic bottles for long shelf life of the milk.

Semi-skimmed UHT milk will be the fastest-growing category during the forecast period. Health-conscious consumers prefer a lower fat content in the diet; thus, with the use of semi-skimmed milk, the fat intake can be reduced from teas, coffees, and hot chocolate, without compromising on the flavor. This variant is preferred by consumers who like a creamy texture and a rich flavor of coffees, custards, and milk puddings.

The following milk types are covered in the report:

• Whole (Largest Category)
• Semi-Skimmed (Fastest-Growing Category)
• Skimmed

Distribution Channel Insights

The retail category is the larger, majorly be due to the growing sales of this product to big-box retailers, such as supermarkets and hypermarkets, which sell it under their own private-label brands. In addition, dairy farms sell their UHT milk through a variety of retail channels, such as supermarkets and hypermarkets and grocery and non-grocery stores.

The direct/institutional category will garner the higher CAGR, of 9%, during the forecast period. This is attributed to the growing sales by government institutions and food service chains. To meet the milk market demand, particularly for variants with a higher whipping capacity, restaurant chains are emerging as key customers. These establishments can reduce the cost of milk per unit item bought for mass consumers, as direct/institutional channels majorly sell it in bulk. Defense and security personnel are also driving forces for the demand for this milk, as they consume it regularly.

UHT treatment helps in the destruction of microorganisms in dairy products and dairy alternatives. This is a flexible and cost-efficient technology used by service outlets, such as Starbucks and McDonald’s, which require good-quality milk for meeting the high customer expectations, along with their own requirement for a longer shelf life.

The segment is bifurcated as below:

• Direct/ Institutional Sales (Faster-Growing Category)
• Retail (Larger Category)