Goat Milk Powder Market

Market Overview

The Total Addressable Market (TAM) for goat milk powder was valued at USD 3.84 billion in 2022. It is estimated to reach USD 8.11 billion by 2031, growing at a CAGR of 8.65% during the forecast period (2023–2031).

Goat milk is turned into powder and evaporated until it is entirely dry. It is mainly done to preserve it because dried milk powder has a longer shelf life than liquid or raw milk and does not need refrigeration. The goat milk powder uses all of goat milk's nutritional benefits. There are two types of goat milk powder: full cream and skimmed milk powder. Drying full-cream goat milk yields full-cream goat milk powder, whereas drying skimmed goat milk yields skimmed goat milk powder. Goat milk powder can be added to many foods, like yogurt, cheese, chocolates, ice cream, soap, dietary supplements for adults, baby formula, and other dairy products. The goat milk powder for skin health is also proven beneficial as it contains triglycerides and fatty acids.

Market Dynamics

Global Goat Milk Powder Market Drivers

• High Demand for Goat Milk Infant Formulas

As breast milk replacements have grown in popularity, nursing rates have fallen in most affluent countries. Low breastfeeding rates have resulted in a significant demand for infant milk substitutes, particularly in wealthy countries. Although goat milk is not a perfect substitute for human breast milk, the protein contained in goat milk is the most similar to that in human breast milk. Therefore, when choosing between goat and cow milk, goat milk is better for the infant. Cow milk includes A1 casein, which can induce diarrhea and abdominal pain in newborns due to inflammatory or allergic reactions. On the other hand, goat milk contains A2 casein, which is likewise found in human breast milk and is easily digestible by newborns. As a result, goat milk powder is commonly found in infant formulae worldwide.

Although goat milk formulae make up a small portion of the overall infant formula market, their popularity is growing as more people learn about the benefits of goat milk. A baby formula containing goat milk powder is in great demand and expanding due to a large number of infants in Asia-Pacific. Infant formula demand is higher in high-income countries such as the US, France, Germany, and the UK than in low-income countries, driving the market’s growth.

• High Prevalence of Lactose Intolerance

Lactose intolerance is when the body cannot break down lactose, a sugar in dairy products. Lactose-intolerant people may have diarrhea, stomach pain, gas, and bloating after eating dairy products. Lactose malabsorption affected around 68% of the world's population in 2017. Despite the presence of lactose similar to that found in cow or human milk, goat milk is more easily digestible due to its reduced lactose content. It has no unpleasant side effects in newborns or adults with sensitive stomachs. Raw and unfortified goat milk naturally contains less lactose than cow milk, which usually has a lactose level of 2%, according to Woolwich Dairy, a Canadian goat milk provider that sources goat milk from more than 200 farms.

In some situations, individuals allergic to the alpha S1 casein protein found in cow milk are not lactose intolerant. Irritable bowel syndrome, leaky gut, and colitis are all gastrointestinal disorders that can be caused by A1 casein. However, goat milk does not contain this protein. Goat milk contains the highest A2 casein, making it the closest substitute for human milk. Goat milk has a pH level that is similar to that of human milk.

Global Goat Milk Powder Market Restraint

• High Cost of Goat Milk Powder

Goat milk powder is a specialty product prepared from the milk of goats and is about twice as expensive as cow milk on average. Due to the difficulty of large-scale manufacturing, goat milk output is smaller than other dairy milk forms. The higher pricing is due to the extra production costs of goat milk. Even though dairy goats are easier to feed and more profitable than dairy cows, fewer farmers produce goat milk than cow milk.

In addition, goat milk production in India is the greatest in the world. Goat milk production accounts for only 4% of the total milk output in the country. The country's lower productivity primarily results from the high labor costs required. Compared to cows, which can produce up to 30 liters of milk per day, the most excellent Indian goat breed, Jamunapuri, can have half to one liter of milk per day. As a result, mass production of goat milk would necessitate a considerable number of dairy goats, raising goat farming's labor costs. The most significant hurdles for goat milk production are the costs of collecting small volumes of milk and undertaking quality assurance testing, hampering the market growth.

Global Goat Milk Powder Market Opportunities

• Growing Number of Health-Conscious People

The present age is increasingly concerned about leading a healthy lifestyle. In addition, consumers are gradually adopting healthier eating practices. As a result, among the health-conscious population, there is a growing demand for goat milk and products that are very nutritious and easily digested. Consumption of goat milk products is expected to rise due to increased health awareness and rising per capita income in both developed and developing countries. Furthermore, manufacturers would likely strive to ramp up activities like in-store promotions and digital media communication to connect with customers more personally.

Milk protein is gaining popularity among consumers due to its numerous health benefits, which range from muscle building and workout recovery to weight loss, satiety, and healthy aging. Dairy firms are capitalizing on this trend, with several boosting protein levels in their products. Goat milk products are also well-preferred by lactose-intolerant people due to their high protein content and ease of digestion. During the forecast period, these factors will contribute to the growth and demand for goat milk products, thereby creating opportunities for the market to grow.

Regional Analysis

By region, the global goat milk powder market is divided into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global goat milk powder market and is anticipated to grow at a CAGR of 10.16% during the forecast period. The goat milk powder market is driven by the growing need for infant formulas, which accounts for more than half of the market demand in the Asia-Pacific region. On the other side, China is the primary source of market growth. Indonesia, Malaysia, Singapore, Thailand, Vietnam, India, and South Korea are other potential markets in the Asia-Pacific region that will evolve over the forecast period and enhance demand for goat milk products. Rising levels of education and understanding about child nutrition and increased disposable income are driving demand for goat milk-based infant formula in the region.

Furthermore, the region's expanding retail infrastructure facilitates product positioning and customer availability, increasing product reach. Major goat milk-producing countries in Asia-Pacific, such as India, Pakistan, and Bangladesh, accounting for 55–65% of global output. Millions of households in Pakistan, Bangladesh, China, Indonesia, Thailand, Vietnam, Malaysia, the Philippines, Sri Lanka, New Zealand, Australia, and India rely on goat milk and its derivatives for their livelihood.

Europe is expected to grow at a CAGR of 6.46% over the forecast period. The goat milk market in Europe, notably France, is the best-organized world. Although it supports traditional on-farm farming, the European goat business concentrates on milk production, primarily for industrial cheesemaking. The government has a vital role in assuring safety and quality in various sectors, including sanitary regulation, research, extension, and aid to local producer groups and markets. However, producers are still subject to market fluctuations. Although legislation, management, and market mix differ considerably by country, the dairy goat industry thrives when farmers have access to markets and the skills and experience to appropriately manage their animals and natural resources. The most successful strategies to achieve these aims are strong and inclusive producer organizations, access to technical services, and regulations that allow the poor and excluded to profit from rising demand.

North America is predicted to be the world's third-largest market for goat milk products in 2022. The key drivers of goat milk consumption growth include fast-changing consumer tastes for healthier alternatives, federal education campaigns, a rising number of lactose-intolerant people, and a well-developed retail environment that encourages new product introductions. Furthermore, the presence of multinational food and beverage firms that have recognized the market's potential and invested extensively in it is expected to increase product availability and reach over the forecast period. Dairy farming is one of the most critical industries in the region, creating money, employment, and food. Due to their nutritional benefits, the dairy industry's youthful and millennial population is in great demand for goat and sheep milk. North America has one of the world's most advanced economies, with retail expenditure accounting for most of its growth. Additionally, North America is home to the world's largest retailers, including Walmart, Kroger, Costco, and Amazon, allowing goat milk goods to reach other regions globally.

Brazil, Mexico, and Argentina are three of Latin America's major dairy markets, which have experienced rapid expansion in the last five years. Dairy products are a staple diet item throughout LAMEA, albeit their consumption varies by region. Local shoppers spend less than half of what their North American and European counterparts do, with unpackaged handcrafted products accounting for most of their purchases.

Segmental Analysis

The global goat milk powder market is segmented into product type, application, end-products, and distribution channel.

By product type, the global goat milk powder market is divided into skimmed goat milk powder and full cream goat milk powder.

The skimmed goat milk powder segment owns the market share and is anticipated to grow at a CAGR of 8.15% over the forecast period. Skimmed goat milk powder is made by spray-drying the skimmed goat milk left over after the fat has been separated from the whole goat milk. Skim milk powder is readily available, costs less than full-fat dairy products, and improves the flavor of the end product, in addition to its many nutritional advantages. Skim milk powder is the most famous goat milk powder globally. AVH Dairy, Goat Partners International, CBM, and Hewitt's Dairy are some of the leading skimmed goat milk powder brands.

Full cream goat milk powder is a soluble powder formed by spray-drying fresh whole milk, and there is no other drying component that comes close to the composition of fresh milk. Full cream goat milk powder is used to make infant and follow-on formulae, dietary supplements, and a range of other foods, including ice cream and cheese, as well as cosmetics like soap. The increased demand for goat milk infant formula primarily drives the need for full cream goat milk powder. Dry whole milk powder is a convenient type of nutritious milk readily altered. Dry whole milk powder, rather than fluid milk, save money on transportation and storage. Dry full milk powder shipping and warehousing costs are reduced due to reduced storage space and nonrefrigerated shipping and warehousing.

By application, the global goat milk powder market is divided into infants, teenagers, adults, and elders.

The adult segment is the highest contributor to the market and is expected to grow at a CAGR of 8.71% during the forecast period. Goat milk is a widely eaten dairy product. Goat milk accounts for 65% to 72% of all dairy consumed worldwide, owing to the ease with which goats may be kept in underdeveloped nations, compared to cows, where goat milk provides a valuable source of calories, protein, and lipids. Many people in numerous countries prefer goat milk to cow milk. Compared to cow or plant milk, goat milk is creamier and thicker, and it also has a higher concentration of nutrients that may be good for consumers' health. Goat milk is also a good source of vitamin A, and getting enough vitamin A can help lower the risk of cataracts and some types of cancer in adults.

Goat milk powder benefits the digestion of infants as it is high in fatty acids and calcium. It also has a low cholesterol content. Gastrointestinal issues, vomiting, colic, diarrhea, constipation, and respiratory abnormalities are all eliminated when goat milk powder is given to babies. Infants readily tolerate pasteurized goat milk with gastrointestinal or respiratory complaints. Fermented milk, as compared to cow's milk, creates a soft curd that aids digestion and absorption. Regular consumption of goat milk promotes body weight gain, skeleton mineralization, and blood serum vitamin, mineral, and hemoglobin levels. In addition, whole cow milk powder may not be the best choice because it has more protein and fewer micronutrients (like iron and vitamin D) that young children may need during their rapid growth and development. As a result, fortified milk drinks have been made to supplement children’s diets over 12 months.

By end-products, the global goat milk powder market is divided into infant and follow-on formula, cheese, dietary supplements, yogurt, chocolate, and others.

The infant and follow-on formula segment owns the highest market share and is expected to grow at a CAGR of 9.07% during the forecast period. Although breastfeeding is the ideal method of baby nutrition, some moms cannot do so for various reasons. Cow milk infant formula has long been the norm in the UK, despite the fact that goat milk formula has been widely used for many years in other countries. The milk powder and follow-on formula regulations in England were changed in 2013 to enable goat milk as a protein source in formula milk beginning in March 2014. Compared to cow's milk, goat's milk is more like human milk. Furthermore, goat milk formula offers certain digestion advantages to cow milk formula because goat milk creates softer, looser casein curds in the newborn stomach.

Goat milk yogurt is famous not only because it satisfies the demands of customers with particular dietary requirements but also because of its distinct taste and flavor. The consistency, viscosity, and flavor of goat milk yogurt with skimmed milk powder are improved by the higher levels of solid non-fats and crude protein. As a result, it has a more appealing texture than non-fat yogurt. In addition, goat milk is strong in probiotics and other essential minerals and vitamins in its natural condition. In some instances, goat milk's probiotic and nutritional content exceeds that of cow milk by 300 times. Goat milk yogurt can help to boost immunity and maintain a healthy digestive system.

By distribution channel, the global goat milk powder market is divided into hypermarkets and supermarkets, convenience stores, specialty stores, medical & pharmacy stores, online, and others.

The hypermarkets and supermarkets segment is the highest contributor and is expected to grow at a CAGR of 8.79% during the forecast period. Supermarkets are sizeable self-service grocery stores that provide a wide range of products for consumers to use daily. Hypermarkets have ample retail space, a combination of supermarkets and departmental stores. These stores offer excellent opportunities for vendors for product profiling and highlighting, thereby helping brands in marketing. These stores address a more significant customer segment. Supermarkets and hypermarkets provide more shelf space to promote and sell their products than small retail stores. Various brands must maintain a positive relationship with the stores through multiple offers, promotions, and discounts to keep the store engaged with customers.

A specialty store focuses on a small number of product categories instead of a retailer that sells an extensive range of consumer goods. Specialty retailers may have a large number of SKUs in their stores, necessitating the need for a robust retail system to manage them. All of their SKUs, however, will fall into one of two product classes. It is reasonable to assume that when a consumer enters a specialty retail store, they look for anything in that store's category. This merchant is referred to as a product expert because they have chosen to focus on one or two industries.

Recent Developments

• November 2022- Following two years of planning and more than 1.5 years of building, AVH dairy trade B.V. began producing goat milk powder at their new production facility in Etten-Leur, the Netherlands.