Going sour: Many people are changing their dairy consumption habits for health reasons

Operators in the Milk and Cream Production industry manufacture fresh, pasteurised, sterilised and homogenised milk and cream. Strong revenue growth over much of the past five-year period can be attributed to stable demand for industry products and growing export revenue. However, rising health consciousness among consumers has led to traditional milk and cream products falling out of favour, with many consumers changing their dairy consumption habits. Profitability among industry operators has been constrained as a result of pricing pressures from both ends of the supply chain, which has resulted in a large degree of consolidation over the period...read more.

Industry Statistics & Market Size
Revenue
£7.3bn
Annual Growth 15-20
2.5%
Forecast Growth 20-25
Profit
Employment
12,292
Businesses
92

Industry Threats & Opportunities

  • Profitability among industry operators has been constrained by pricing pressures
  • Whole milk has fallen out of favour due to its relatively high fat content
  • The inability of producers to pass on price increases could constrain profitability
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is currently in the mature stage of its life cycle, typified by a saturated market and a number of well-established products and producers. During the 10 years through 2024-25, the industry's contribution to the overall economy is forecast to grow at a compound annual rate of 1.1%, while GDP is anticipated to expand at a compound annual rate of 1.5% over the same period. The industry is growing almost in line with the wider economy, suggesting it is in the mature stage of its life cycle.While the industry's major players have extensive global operations and fiercely fight for market share, no single producer has overriding control over the fortunes of the industry. Furthermore, industry revenue has displayed significant volatility over the past five years. Thi...purchase to read more.

    Additional Insights for the Milk & Cream Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Milk & Cream Production Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Guaranteed supply of key inputs
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Liquid milk consumption per capita in the Milk & Cream Production industry impact industry performance..

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    What's in this report

    What is the Milk & Cream Production Industry?

    Operators in this industry produce fresh liquid milk, pasteurised, sterilised, homogenised and ultra-heat-treated milk. It also includes the production of cream from fresh, pasteurised, sterilised or homogenised milk.

    Industry Products
  • Semi-skimmed milk
  • Whole milk
  • Flavoured milk
  • Condensed milk
  • Cream
  • Skimmed milk
  • Other milk products
  • Industry Activities
  • Fresh liquid milk production
  • Pasteurised milk production
  • Sterilised milk production
  • Homogenised milk production
  • Ultra-heat-treated milk production
  • Cream production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Liquid milk consumption per capita
  • Domestic price of milk
  • Health consciousness
  • Real household disposable income

  • Current Performance
  • Pricing pressure
  • Health trends
  • Consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Milk prices
  • Growth areas
  • An uncertain future
  • Table: Milk & Cream Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Milk & Cream Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Supermarkets
  • Off-Licences
  • Food-Service Contractors

  • Key Selling Industries
  • Dairy Cattle Raising

  • Products & Services
  • Semi-skimmed milk
  • Whole milk
  • Cream
  • Flavoured milk
  • Skimmed milk
  • Condensed milk
  • Other milk products
  • Chart: Milk & Cream Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Food-service operators
  • Food processors
  • Households
  • Chart: Major Market Segmentation for the Milk & Cream Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Milk & Cream Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Milk & Cream Production Industry

  • Industry Globalization
    Muller UK & Ireland Group LLP, Arla Foods Ltd,
  • Table: Muller UK & Ireland Group LLP - financial performance
  • Table: Arla Foods Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Milk & Cream Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Milk & Cream Production Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Farm-Gate Price
  • The price received by farmers at the point of production, i.e. the value of the product when it leaves the farm.
  • Homogenisation
  • Any of several processes used to make a chemical mixture the same throughout.
  • Pasteurisation
  • A process that slows microbial growth in food.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Milk & Cream Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Milk & Cream Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Milk & Cream Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Milk & Cream Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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