Pre COVID-19 2020 Growth Forecast
Post COVID-19 2020 Correction
Expected BPS Drop
Evaluating Situations – Learning from the Past
We know from previous experiences of crisis that coronavirus outbreak poses considerable threat to travel and hospitality industries. With curbs on travel and restaurants shuttered in response to government restrictions on movement, overall consumption of dairy and fortified dairy products is likely to decline. On the other hand, stay-at-home orders will compel people to cook at home, bolstering demand from the household sector. This will bring some respite for the fortified dairy food producers. SARS and MERS outbreak resulted in a similar trend, when per capita dairy consumption dipped considerably in affected countries. It is given that consumers are most likely to stay indoors during spread of any virus. Vulnerability of food service businesses to such drastic change in consumer behavior is undeniable. Our analysts are however hopeful that the demand for fortified dairy products will pick up once coronavirus passes. Favorable trends are likely by the last quarter of 2021.
FMI is revising its outlook on the global fortified dairy products market. Request a sample of the updated study to stay up-to-date with the evolving situation.
Succeeding Amidst & After the Crisis
Fortification of foods and dairy products to address nutritional demand of millions offers lucrative opportunities for organized dairy sector to globally expand their footprint. Organized dairy sector has an inherent advantage of being the only source of condensed milk and milk powder because processing both categories of product requires specialized equipment. The recent coronavirus outbreak has rendered consumers more health-conscious. People with high nutritional deficiency are often vulnerable to various infections and diseases. This can be prevented with the fortification of food with vitamins and essential nutrients. As consumption of functional food is deemed necessary, fortified dairy products incorporated with essential vitamins will gain immense popularity in the coming years. Furthermore, continued focus on research and development, keeping in mind the evolving consumer preferences will help the sector cater to the rising demand.
Sudip Saha, Research Director
"In order to be relevant, producers must focus on the development of products with longer shelf-life. For instance, production of specialized dairy based wellness products, probiotics, and nutraceutical products, catering to various classes of consumers from niche categories can be undertaken by market players to gain competitive advantage. "
Nandini Roy Choudhury, Practice Lead
"Once coronavirus is contained, value of dairy and fortified dairy products will rise significantly. Of these, cheese, yoghurt, milk powder and formula would be in high demand, representing both lucrative prospects and challenges for the fortified dairy products market. "