Europe UHT Milk Market Outlook, 2028

Europe leads the UHT milk market because it has one of the world's largest dairy markets and a growing UHT milk consumer base. Due to its early adoption of UHT milk and its high level of market penetration, Europe today dominates the global market. The market is expanding as a result of the expanding dairy industries in Italy, Germany, Belgium, and Spain as well as the rising per capita milk consumption. Additionally, the regional market is supported by recent improvements in the marketing and distribution of UHT milk in comparison to other types. More milk is being consumed by consumers in Western Europe than ever before, with UHT milk accounting for significant portion of all milk sales in this region. Over conventional milk and other dairy products, sales of organic UHT milk increased in the European region. Modern lifestyles often involve hectic schedules, and UHT milk offers a convenient option for those who may not have time to shop frequently or worry about milk spoiling quickly. It can be stored in the pantry and used when needed, reducing the need for frequent grocery trips. UHT milk does not require constant refrigeration during transportation and storage, making it easier and more cost-effective to distribute across larger distances. This has allowed UHT milk to reach more rural or remote areas where the availability of fresh milk may be limited. Over the years, UHT milk production techniques have improved, resulting in a better taste and quality of the final product. The cooked flavour traditionally associated with UHT milk has been minimized, making it more palatable for consumers. Increased consumer awareness and demand for UHT milk have led to greater availability in stores across Europe. As more consumers choose UHT milk, retailers are responding by expanding their product offerings to meet this demand. UHT milk can also contribute to reducing food waste because it has a longer shelf life and reduces the likelihood of milk being thrown away due to spoilage. Additionally, UHT milk packaging has become more environmentally friendly, with options for recyclable or renewable materials.

According to the research report, Europe UHT (Ultra-high Temperature) Milk Market Outlook, 2028, the market is anticipated to add over USD 14 Billion in 2022. Europe has seen a rise in the consumption of plant-based milk alternatives, such as soy milk, almond milk, and oat milk. UHT milk offers a longer shelf life and convenience similar to these alternatives, making it an attractive option for consumers seeking a dairy product with an extended expiration date. Also, Europe is a significant exporter of dairy products. UHT milk's longer shelf life makes it a viable option for export to regions with less-developed cold chain infrastructure or areas where fresh milk availability is limited. This has contributed to the increased production and promotion of UHT milk by European dairy producers. Some consumers are shifting towards a more flexitarian or plant-based diet, reducing their consumption of animal products. UHT milk provides a dairy option that can be stored for a longer period, allowing consumers to have a dairy product on hand without worrying about quick expiration. UHT milk also offers a solution for emergency situations or during times of limited food availability. It can be stockpiled for longer periods, making it a valuable option in times of crisis or when fresh milk supplies may be disrupted. During the projected period, rising demand for aseptic dairy foods and UHT processed and packaged dairy products is anticipated to propel market expansion in the area. UHT dairy products make up a sizable portion of the markets in France, Spain, Germany, and Italy in terms of revenue. Other important aspects supporting the use of UHT milk for the manufacturing of cheese, butter, and yoghurt are the simplicity of production and distribution associated with UHT milk and the reduced need for refrigeration. Major regional businesses are also investing in the creation of fresh flavoured and unflavoured UHT milk products, which is anticipated to accelerate regional market expansion.

More food will be needed because of the expanding population, which will also increase the need for food with a longer shelf life. Some of the factors anticipated to propel the Europe ultra-high temperature processing market during the forecast period include growing demand for reduced storage and shipping costs, little changes in the nutritional value of products, dairy products, and changes in customer preferences. Western European consumers, according to a recent study commissioned by Arla Foods, are consuming more milk than ever. Significant growth in UHT sales was also seen in nations with significant dairy cultures, such as Holland, Germany, and Belgium. Denmark is seeing a trend in the opposite direction, with the survey revealing that more than half of Danish consumers stop using shops that regularly fail to supply fresh milk. In Europe, UHT milk is commonly available in a variety of packaging options. Apart from the typical cartons, it can be found in smaller portion-sized packages like single-serving tetra packs or convenient resealable bottles. This allows consumers to choose the packaging that best suits their needs, whether it's for on-the-go consumption or family-sized portions. Europe has also seen the rise of UHT milk alternatives alongside traditional dairy UHT milk. Plant-based milk alternatives like soy milk, almond milk, oat milk, and rice milk are available in UHT format, providing options for consumers with dietary preferences or restrictions. UHT milk has gained widespread acceptance in European cultures, where it is commonly consumed and integrated into daily life. It is often used for coffee, tea, cooking, baking, and consumed as a standalone beverage. Europe has a strong coffee culture, and UHT milk plays a significant role in this context. The long shelf life and convenience of UHT milk make it a popular choice for coffee shops, cafes, and households, as it can be easily stored and used for coffee preparation without concerns about spoilage. European countries, being major producers of UHT milk, often contribute to international aid efforts by supplying UHT milk to regions in need during emergencies or humanitarian crises. The extended shelf life and ease of transport make UHT milk a valuable resource in such situations.

Based on the product types, skimmed milk is more popular among consumers in these areas than other varieties. Since a few years ago, there has been an increase in demand for flavour-infused UHT milk, which can be attributed to more tourists coming to this area. Another element propelling the market's expansion is the significant number of businesses that sell UHT milk and their status as the leading milk producer. Customers prefer to purchase UHT milk at supermarkets and hypermarkets. Between 2018 and 2021 the per capita consumption of milk products in the European Union (EU-27) fluctuated. In 2018, the value was approximately 53.25 kilograms per capita and in 2022 the value was about 53.4. The EU-27 per capita consumption of milk still remains one of the highest rates in the world. Sales of UHT milk have increased significantly in countries with strong dairy cultures, such as Holland, Germany, and Belgium. In Germany, two out of every three litres are now long-life, and UHT milk dominates the market in Belgium, in large part because it is simpler to produce and distribute UHT milk than normal milk. Based on the countries, Germany is dominating the market with prominent market share whereas France and Italy, together contributes for more than 18% market share in 2022. German consumers appreciate the ability to store milk without refrigeration, allowing them to stock up and reduce the frequency of grocery shopping. The market offers a wide range of UHT milk options, including organic and lactose-free variants. Germany is also known for its strong coffee culture, where UHT milk is commonly used for coffee preparations.

UHT milk is widely consumed in France, with a strong presence in supermarkets and hypermarkets. French consumers value the convenience and extended shelf life of UHT milk, especially in regions with limited access to fresh milk or during holiday periods when regular shopping may be less frequent. UHT milk is also commonly used in French culinary applications such as cooking, baking, and sauces. The French market offers a variety of UHT milk products, including flavoured options and milk alternatives. UHT milk has gained popularity in Italy, particularly due to its longer shelf life and suitability for regions with high temperatures. Italians appreciate the convenience and versatility of UHT milk, using it for coffee, cooking, and baking. The market offers a wide range of UHT milk products, including traditional cow's milk and plant-based alternatives like soy and rice milk. In addition to that, the UHT milk market in the Netherlands is well-established. UHT milk is widely available in supermarkets and used by Dutch consumers for various purposes, including coffee, tea, and cooking. Convenience and longer shelf life are key drivers of UHT milk consumption in the country. The market offers a range of UHT milk options, including different fat percentages, organic options, and milk alternatives. Also, the market in the United Kingdom has been growing steadily in recent years. The convenience and longer shelf life of UHT milk have appealed to UK consumers, particularly in urban areas where people have limited refrigeration space. UHT milk is commonly used in tea, coffee, and as a standalone beverage. The market offers a range of UHT milk options, including whole, semi-skimmed, and skimmed milk, as well as milk alternatives like soy and almond milk in UHT format.

Liquid UHT milk in packaged form holds a larger market share in Europe compared to powdered UHT milk. The demand for packaged liquid UHT milk has been steadily growing in Europe due to its longer shelf life, convenience, and changing consumer lifestyles. Flavoured UHT milk variants, lactose-free options, and plant-based milk alternatives have gained popularity in recent years. Packaged liquid UHT milk holds a dominant position in the European market. It is widely consumed and available in various packaging formats. Packaged UHT milk in liquid form is primarily used for direct consumption, including drinking, tea, coffee, and as a standalone beverage. It is also used in culinary applications, such as cooking, baking, and sauces. Consumption patterns vary across different European countries. For example, in countries with strong coffee cultures like Italy and France, UHT milk is commonly used for coffee preparations. In regions with limited access to fresh milk or in urban areas where refrigeration space is limited, the demand for UHT milk tends to be higher. On the other hand, powdered UHT milk holds a smaller market share compared to liquid UHT milk in Europe. However, it is still relevant in certain segments and applications. Powdered UHT milk is commonly used in baking, confectionery, and food processing industries. It is also popular among consumers who prefer the convenience of long shelf life and easy storage. While the demand for powdered UHT milk has remained relatively stable, there has been a growing interest in plant-based powdered milk alternatives, catering to the increasing consumer demand for dairy-free and vegan options. Powdered UHT milk consumption varies across Europe. Countries like Germany, France, and the Netherlands have a relatively higher consumption of powdered UHT milk due to their strong industrial food processing sectors.

Based on the end users, Dairy Product segment is growing at a prominent CAGR by the end of the forecast period. UHT milk is commonly used in the production of UHT yogurt. The milk is heated to ultra-high temperatures, which kill bacteria and extend the shelf life of the yogurt. UHT milk-based yogurts have gained popularity due to their longer shelf life and the convenience they offer to consumers. UHT milk can be used as a source of milk for the production of milk powder. The UHT milk is evaporated to remove the water content, resulting in milk powder that has a longer shelf life and is suitable for storage and transportation. UHT milk is used in the production of UHT ice cream, which offers the advantage of extended shelf life without the need for constant refrigeration. UHT milk-based ice creams are popular due to their convenience and availability in pre-packaged formats. Household consumers form a significant segment of the UHT milk market in Europe. They purchase UHT milk for direct consumption and use it in various applications, including drinking, cereal, and coffee, tea, cooking, and baking. On the other hand, the food service industry, including cafes, restaurants, hotels, and catering services, constitutes a significant end-user segment for UHT milk in Europe. UHT milk is widely used in the food service sector for coffee, tea, and various culinary preparations. It is an essential ingredient in beverages, desserts, sauces, and baked goods. Additionally, UHT milk finds application in the industrial sector, particularly in the food processing, confectionery, bakery, and dairy industries. UHT milk is used as an ingredient in the production of various processed foods, dairy-based products, and confectionery items. It provides convenience, stability, and consistency in industrial processes. The industrial sector relies on UHT milk for its longer shelf life, extended storage capabilities, and ease of transportation. Powdered UHT milk, in particular, is utilized in industrial food processing applications, such as bakery mixes, powdered beverages, and confectionery products.

Based on the B2B segment, food service suppliers play a crucial role in supplying UHT milk to the food service industry, including cafes, restaurants, hotels, and catering businesses. Examples of food service suppliers in Europe include Arla Foods, FrieslandCampina, Nestlé, and Danone. These suppliers typically distribute UHT milk in larger packaging formats, such as bulk cartons or bags, to meet the volume requirements of food service establishments. UHT milk is used as an ingredient in the production of various processed foods, confectionery items, and dairy-based products. Industrial ingredient suppliers provide UHT milk to the food processing, confectionery, bakery, and dairy industries. Industrial ingredient suppliers in Europe include companies like FrieslandCampina, Arla Foods, Nestlé, and Danone. These suppliers often provide UHT milk in bulk packaging formats, such as large bags or containers, to fulfil the production needs of the industrial sector. On the other hand based on the B2C Segment, supermarkets and hypermarkets serve as key retail channels for UHT milk, catering to the needs of household consumers. Prominent supermarket chains operating in Europe include Tesco, Carrefour, Aldi, Lidl, and Sainsbury's. UHT milk is distributed in consumer-friendly packaging formats, such as cartons, tetra packs, and resealable bottles, for easy access and storage. Online retailers have gained prominence in the UHT milk market, offering convenience and doorstep delivery to consumers. Online retail platforms such as Amazon, Ocado, and major supermarket chains' online platforms facilitate the sale and delivery of UHT milk to consumers. Additionally, specialty stores and convenience stores provide additional retail options for UHT milk, targeting specific consumer segments and locations. These stores can include regional or local chains, as well as independent outlets, which cater to the specific needs of their customer base.

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 , Hochwald Milch eG cooperative, Savencia Fromage & Dairy, Solarec Sa, DaDMK Group.

Considered in this report

• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Europe 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:

• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia
• Switzerland
• Denmark
• Netherlands

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.