The global organic food and beverage market is expected to grow at a CAGR of 14.25% from 2016 to 2022 to reach $36,729 million by 2022, according to a report published by Allied Market Research, Portland, Ore.

The study, “Organic Dairy Food and Drinks Market by Product Type (Organic Milk, Yogurt, Cheese, and Others) - Global Opportunity Analysis and Industry Forecast, 2014-2022,” shows a rise in awareness of health concerns, emergence of environment protection, technological advancements and government initiatives in organic farming as being major factors that drive the market.

Organic dairy products are blended with natural antioxidants, thus surging its market demand. Nutritional benefits, better taste and freshness are also factors that boost the organic market as an alternative to chemically blended non-organic products. Moreover, production of organic dairy products naturally increases the emission of the methane gas, which can lessen the effects of global warming by decreasing emission of nitrous oxide and carbon dioxide.

Recently, innovative products such as flavored milk, organic spoonable yogurt with granola, yogurt, sour creams, buttermilk, cottage cheese and fruit toppings are added to boost the market growth. Furthermore, government has promoted organic farmers by assisting with low interest rate, loan facilities and financial incentives to transition to organic methods.

“Robotic milking systems are innovative solutions to improve milking frequency compared to conventional parlor systems," says Eswara Prasad, team lead, chemicals and materials.

Based on type, organic milk dominated the market in 2015 with more than half of the total share by volume. Increase in health awareness coupled with nutritional benefits helps the market to generate considerable pace, and the dominating type is projected to make headway by projecting a CAGR of 14.10% in the near future.

Highlights from the report include:

  • Asia-Pacific is expected to be the fastest growing market in organic milk with a CAGR of 14.82% during the forecast period.
  • Organic yogurt is expected to grow at a CAGR of 14.72% during the forecast period.
  • In 2015, organic milk dominated the organic dairy food and drinks market with more than half of the total share by volume.
  • In North America, the organic dairy food and drinks market is projected to expand at a CAGR of 14.26%.
  • India is the fastest growing market for organic dairy food and drinks by registering a CAGR of 16.19%.

Globally, Asia-Pacific and Europe together occupy more than two-fifth of the total share. Increase in disposable income coupled with rise in health awareness fuels the organic dairy food and drinks market in these regions.