Asia-Pacific UHT Milk Market Outlook, 2028

UHT milk's ultra-high temperature processing kills bacteria and extends its shelf life, providing consumers with a safe and hygienic dairy product. This aspect has been particularly important in regions where access to fresh, safe milk is limited. UHT milk's longer shelf life, typically ranging from 6 to 9 months, is a key factor driving its popularity in Asia-Pacific. Consumers appreciate the convenience of being able to store milk without refrigeration, reducing the need for frequent grocery shopping and addressing challenges related to limited refrigeration space in urban areas. The emergence of UHT milk in Asia-Pacific can be attributed to changing consumer lifestyles and preferences. Rapid urbanization, busy schedules, and the adoption of Western dietary habits have led to an increased demand for convenient and long-lasting dairy products like UHT milk. The rising middle class in many countries across Asia-Pacific, coupled with increasing disposable incomes, has contributed to the growth of the UHT milk market. As consumers have more spending power, they are able to afford and embrace the convenience and benefits offered by UHT milk. As Asia-Pacific countries undergo dietary transitions, with a greater emphasis on convenience and packaged foods, UHT milk has found a place in the evolving dietary patterns. It serves as a versatile dairy product that can be consumed as a standalone beverage, used in cooking, or added to tea and coffee. Asia-Pacific countries such as China, India, Japan, South Korea, and Australia have witnessed substantial growth in the UHT milk market, with increasing consumption and a growing number of market players. The combination of shifting consumer preferences, convenience-driven lifestyles, and the advantages of UHT milk has fuelled its emergence and expansion in the Asia-Pacific region. International dairy companies, as well as local players, have recognized the potential of the UHT milk market in Asia-Pacific and have made investments to expand their operations and distribution networks. This has resulted in increased availability and accessibility of UHT milk products in the region.

According to the research report, Asia-Pacific UHT (Ultra-high Temperature) Milk Market Outlook, 2028, the market is expected to grow with more than 9% CAGR by 2023-28. The region's growth is primarily attributable to the region's expanding population and gradual transition to a working lifestyle. Furthermore, strong consumer spending in emerging economies will support the product demand. The Asia-Pacific region's population is gradually embracing western culture and is willing to spend more on high-end goods. Urban population growth is creating attractive market opportunities, especially in China and India, for the UHT milk sector. The estimated market potential for the regions during the forecast period is shown in the info-graph below. The distribution of the UHT milk market is changing as a result of China's first-tier cities, which have dense populations and 90% internet coverage. These cities have a high propensity for online purchasing, which offers manufacturers lots of room for expansion. The APAC area is positioned to dominate the UHT milk market in the following five years in comparison to the developed countries. The growth of the UHT milk business is being supported by numerous initiatives from public and private organisations. The announcement made by the Kerala Co-operative Milk Marketing Federation (Milma) serves as a prime example. The company said that it is opening a new factory to produce UHT milk. The Asia Pacific market is being driven by this action. In China, where urbanisation is on the rise, UHT milk is preferred by more than 60% of the nation's milk consumers. The market for UHT milk will likewise grow to be very successful in Australia. India is predicted to grow more slowly, which is due to the country's well-established fresh milk sector. The rising consumption of dairy products in nations like China, India, Japan, South Korea, and Australia is responsible for the expansion of this region. Furthermore, this region now has more production facilities thanks to increased packaged food demand and rising living standards, which results in high product availability at affordable rates.

The history of UHT (Ultra-High Temperature) milk in the Asia-Pacific region dates back several decades. The technology for UHT milk processing was first developed in the 1960s. It involved heating milk to ultra-high temperatures, typically above 135 degrees Celsius, for a short duration (2-5 seconds) to kill bacteria and microorganisms, ensuring a longer shelf life for the product. Australia and New Zealand were among the early adopters of UHT milk in the Asia-Pacific region. In the 1970s, UHT milk was introduced in these countries as a convenient and safe alternative to fresh milk, particularly for consumers in rural areas with limited access to refrigeration and regular milk deliveries. During the 1980s and 1990s, UHT milk gained popularity in Southeast Asian countries such as Malaysia, Singapore, and Thailand. Urbanization, changing lifestyles, and increased disposable income contributed to the growing demand for UHT milk as a convenient and long-lasting dairy product. In the late 1990s and early 2000s, the UHT milk market experienced significant growth in China and India, two of the largest markets in the region. Over the past two decades, UHT milk has expanded its presence in various other Asian countries, including Japan, South Korea, Taiwan, and Indonesia. Increasing consumer awareness about UHT milk's benefits, the convenience it offers, and the development of a wide range of flavours and variants have contributed to its market growth in these regions. Both local and international dairy companies have played a crucial role in the development of the UHT milk market in Asia-Pacific. Local players have capitalized on regional preferences and tastes, while international companies have brought technological expertise and global brands to cater to the diverse consumer base. The UHT milk market in Asia-Pacific has witnessed continuous product innovation to meet evolving consumer demands. This includes the introduction of flavoured UHT milk, lactose-free options, fortified UHT milk, and plant-based UHT milk alternatives. Increasing market competition has led to a wide variety of UHT milk products available to consumers. Today, UHT milk is a widely accepted and popular dairy product in the Asia-Pacific region. It has become a key component of the dairy industry, addressing the need for convenient, safe, and longer-lasting milk options in various countries across the region.

The Asia-Pacific UHT milk market is analysed based on different fat content variations, including whole, skimmed, partly skimmed, and fat-filled milk. Among them, whole and skimmed segments together occupy over 75% market share in 2022. Whole UHT milk refers to milk with its natural fat content, typically around 3.5% to 4% fat. Whole UHT milk is popular among consumers who prefer the natural taste and richness of full-fat milk. It is commonly used for direct consumption, in coffee and tea, and as an ingredient in various culinary applications. The demand for whole UHT milk is driven by factors such as taste preferences, nutritional considerations, and the perception of whole milk as a wholesome and satiating dairy product. On the other hand, skimmed UHT milk is produced by removing the milk fat, resulting in a fat content of less than 0.5%. Skimmed UHT milk is popular among health-conscious consumers and those seeking lower-fat dairy options. It is often consumed by individuals on a calorie-controlled diet or those with dietary restrictions on fat intake. The demand for skimmed UHT milk has grown as consumers become more health-conscious and seek lower-fat alternatives. Skimmed UHT milk is used in various applications such as cooking, baking, and as a base for protein shakes and smoothies. However, fat-filled UHT milk refers to milk that has been enriched with vegetable fats or oils to increase the fat content and mimic the creaminess of full-fat milk. Fat-filled UHT milk is often chosen as a cost-effective alternative to whole milk, as it offers a similar taste and texture but at a lower price point. It is commonly used in applications where a creamier texture is desired, such as in coffee and tea or for making desserts. The demand for fat-filled UHT milk has grown due to its affordability and the ability to provide a similar sensory experience to whole milk. It is particularly popular in countries where whole milk may be comparatively more expensive.

Nestlé has introduced a+ full cream UHT milk in Sri Lanka. The company stated the product assists local farmers by boosting demand for local milk, which helps to improve their livelihoods. The milk is sourced from about 20,000 Sri Lankan farmers. According to Nestlé, Sri Lanka's dairy sector is still in its infancy and has a limited supply of milk. Although it has been working with local dairy farmers for more than 30 years, the business has developed in order to supply enough milk for Nestlé's dairy-based goods. These include Nestlé a+full creamUHT milk as well as Nestlé Fortigrow full cream milk powder, Milo RTD (Ready-to-Drink), Milkmaid, Nespray Nutri-Up, Nespray Coco-Up, and Nespray Fortigrow Milky Biscuit. While animal-based UHT milk remains the dominant choice, plant-based alternatives are gaining popularity. Animal-based UHT milk refers to UHT milk derived from animal sources, primarily cows, but also goats and other mammals. Animal-based UHT milk is the dominant type in the Asia-Pacific region and is widely consumed by consumers who prefer the taste, texture, and nutritional profile of dairy milk. The demand for animal-based UHT milk is driven by factors such as the popularity of dairy products, cultural preferences, and the perception of animal-based milk as a rich source of essential nutrients like calcium and protein. On the other hand, plant-based UHT milk refers to UHT milk made from plant sources, such as soy, almonds, oats, rice, or coconut. Plant-based UHT milk has witnessed significant growth in recent years due to the increasing popularity of plant-based diets, lactose intolerance, and environmental concerns. The demand for plant-based UHT milk is driven by the growing number of consumers seeking dairy alternatives, ethical considerations, and the availability of a variety of plant-based milk options. Soy milk, almond milk, and oat milk are some of the popular plant-based UHT milk varieties in the Asia-Pacific market.

Based on the form, liquid UHT milk is widely consumed for its convenience, while powdered UHT milk offers extended shelf life and suitability for specific applications. Liquid UHT milk is the most common form of UHT milk consumed in the Asia-Pacific region. It is used for direct consumption, in cooking, baking, and as an ingredient in various dairy-based products. The demand for liquid UHT milk is driven by its convenience, longer shelf life, and versatility in usage. Consumers appreciate the ability to store and use UHT milk without refrigeration until opened. However, powdered UHT milk refers to UHT milk that has been evaporated to remove water content, resulting in a powdered form that can be reconstituted with water. The demand for powdered UHT milk is driven by factors such as longer shelf life, portability, and the ability to be stored without refrigeration. It is particularly sought after in regions with limited access to fresh milk or unreliable cold chain logistics. Retail and convenience stores play a vital role in the distribution and sale of UHT milk in the Asia-Pacific market. UHT milk is widely available in retail and convenience stores, catering to the needs of consumers seeking a convenient and longer-lasting milk option. It is sold in various pack sizes, including individual servings and family-sized cartons. The demand for UHT milk in retail and convenience stores is driven by factors such as consumer preference for packaged and easily accessible dairy products, the need for non-perishable options, and the convenience of purchasing UHT milk along with other grocery items. On the other hand, the food service and hospitality industry, including restaurants, cafes, hotels, and catering services, is a significant end user of UHT milk in the Asia-Pacific region. UHT milk is used by the food service and hospitality sector as a key ingredient in various food and beverage preparations, such as coffee, tea, smoothies, milkshakes, desserts, and baked goods. The demand for UHT milk in the food service and hospitality industry is driven by factors such as the need for a longer shelf life, ease of storage, consistent quality, and the ability to cater to a large number of customers.

The Asia-Pacific UHT milk market also caters to the export market, where UHT milk is shipped to international markets outside the region. UHT milk from Asia-Pacific countries is exported to various regions globally, meeting the demand for long-lasting dairy products in international markets. The demand for Asia-Pacific UHT milk in the export market is driven by factors such as the reputation of the region's dairy industry, product quality, cost competitiveness, and the ability to meet specific market requirements. Household consumers form a significant segment of the Asia-Pacific UHT milk market. This includes individuals and families who purchase UHT milk for direct consumption at home. UHT milk is popular among household consumers due to its longer shelf life, convenience, and ease of storage without refrigeration. It is commonly used for breakfast, in tea or coffee, as a standalone beverage, or in cooking and baking. The demand for UHT milk among household consumers is driven by factors such as changing lifestyles, busier schedules, the need for extended milk freshness, and the desire for convenience in urban settings.

Based on the B2C distribution channel, supermarkets and hypermarkets are major distribution channels for UHT milk in the Asia-Pacific region. These large-scale retail stores offer a wide range of UHT milk brands and variants to cater to diverse consumer preferences. Supermarkets and hypermarkets have a significant market share due to their wide reach, convenient shopping experience, and ability to provide a variety of UHT milk options under one roof. The demand for UHT milk in supermarkets and hypermarkets is influenced by factors such as consumer convenience, product visibility, promotional activities, and competitive pricing. Convenience stores, including small neighborhood shops and chain convenience store brands, are an important distribution channel for UHT milk in the Asia-Pacific market. The demand for UHT milk in convenience stores is driven by factors such as the need for on-the-go purchases, extended operating hours, proximity to residential areas, and the availability of smaller pack sizes suitable for single-use or smaller households. On the other hand, online retail, including e-commerce platforms and grocery delivery services, has gained significant traction in the Asia-Pacific UHT milk market. Online retail offers convenience, wider product choices, and home delivery options, making it an attractive channel for UHT milk purchases. Consumers can compare prices, read reviews, and conveniently order UHT milk online. Based on the B2B factor, the food service and hospitality industry, including restaurants, cafes, hotels, and catering services, is a significant distribution channel for UHT milk in the Asia-Pacific region. UHT milk is procured by the food service sector in bulk quantities for use as an ingredient in various food and beverage preparations. The demand for UHT milk in the food service and hospitality industry is driven by factors such as the need for consistent product supply, long shelf life, and reliable distribution networks to cater to the requirements of commercial food establishments.

Major Companies present in the market:

Danone S.A., Nestlé S.A., Arla Foods amba, Fonterra Co-operative Group Limited, Royal FrieslandCampina N.V., Saputo Inc., The Coca-Cola Company, Meggle Group, Emmi AG, China Mengniu Dairy Company Limited, Gujarat Cooperative Milk Marketing Federation Ltd. (Amul), Mother Dairy.

Considered in this report

• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Asia-Pacific UHT Milk market with its value and forecast along with its segments
• Country-wise Artificial Turf market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• China
• Japan
• India
• Australia
• South Korea

By Product

• Whole
• Skimmed
• Partly Skimmed
• Fat Filled

By Source

• Animal
• Plant

By Form

• Liquid
• Solid

By End Use Application

• Retail Sales
• Dairy Product (Butter, Cheese, Yogurt, Milk Powder, Ice Cream, Others)
• Bakery & Confectionery
• Milk & Milk based Beverages
• Infant Formula

By Distribution Channel

• B2C (Specialty Store, Modern trade, Convenience Stores, Grocery Stores, Specialty Food Stores, Online Retailers, Other Distribution Channel)
• B2B (HORECA)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.