The Calf Milk Replacers Market is expected to register a CAGR of 7.5% during the forecast period and is expected to reach a market share of US$7.25 billion in 2032 compared to US$2.45 billion in 2021 due to the increased emphasis on nutrient production. rich formula with health-promoting benefits Calf milk replacers have been garnering significant traction as they are cheaper and easier alternatives to whole cow’s milk and better for preventing the spread of disease through milk.
Demand for calf milk replacers has been bolstered by recent research demonstrating that nutrient intake from these products increases pre-weaning average daily gain and future milk supply. Manufacturers are focusing on innovative formulation alternatives that help calves get all the nutrients they need, and the calf milk replacer industry is expected to grow gradually in the foreseeable future.
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Key Factors Shaping Calf Milk Replacers Market
- Exponential Increase in Demand for Dairy Products
Over the years, the demand for dairy products, ranging from milk and butter to protein-enriched drinks, has been moving on an upward spiral, on account of several factors such as significant improvements in domestic and international economic conditions and widespread awareness of nutritional values of these products. This, in turn, continues to augment the demand for calf milk replacers which provide digestible protein, fortified vitamins, and essential trace minerals for optimal absorption and utilization.
In the future, population growth, continued urbanization, and climate change are expected to place added pressure on global food production systems. Dairy farms will need to be profitable yet sustainable, thereby compelling key players in the calf milk replacers market to redefine their product innovation and development strategies.
- Focus on Producing Nutrient-enriched Formula with Health-supporting Benefits
As demand for dairy products is on a significant rise, farmers are continually adopting technologies and practices that provide improved cow health, longevity, and profitable dairy farms. Whole milk contains a range of bioactive components such as growth enzymes and hormones, and has higher energy content as compared to calf milk replacers.
To compensate the differences in energy supply, manufacturers are focusing on introducing nutrient-rich ingredients that help improve digestion, strengthen immunity, optimize gut pH, and maintain gut integrity of calves. In addition, several strategies, such as higher feeding rates and modifying calf milk replacer composition to increase nutrient intake, have been used to accelerate the growth rate of calves during the milk phase.
- Rise of Organic Dairy Farming and Vegan Culture to Impede Market Growth
While the world is facing a challenge in feeding its expanding population, emergence of organic and vegan trend has brought a radical upheaval in the dairy industry. In organic dairy farming, both farmers and consumers are increasingly asking for more natural calf rearing method over bucket-feeding, which is expected to create a hindrance in sales of calf milk replacers. With rise in popularity of organic milk, consumers’ interest in organic cheese and organic ice creams is increasing, thereby negatively impacting the market growth. Additionally, growing animal welfare concerns has influenced consumers to shift away from animal-based products to plant-based products. An increase in adoption of vegan diet is expected to challenge the future sales of dairy products, and subsequently demand for calf milk replacers.
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Calf Milk Replacers Market Players – Notable Developments
Some of the key players operating in the calf milk replacers market include Land O’Lakes, Inc., SHV Holdings N.V., Calva Products Co., Inc., Groupe Lactalis S.A., Glanbia plc, Cargill, Incorporated, Liprovit BV, PBI/Gordon Corporation, CHS Inc., Royal FrieslandCampina N.V., and Archer-Daniels-Midland Company.
- In October 2019, Royal Friesland Campina N.V. announced that it has entered into an agreement with Royal A-ware to expand its production and supply of mozzarella cheese. In addition to supplying milk, knowledge, and recipes, the former company will be responsible for sale of mozzarella cheese. Whereas, the latter is set to monitor the processing of milk and production of mozzarella cheese.
- In September 2019, Cargill Inc. announced reorganization of its animal nutrition business, as a response to growing concerns about animal health and wellness. The company added a new unit, ‘Cargill Health Technologies’ to its animal nutrition and health group consisting of Cargill Animal Nutrition and Cargill Aqua Nutrition.
- In June 2019, Land O’Lakes, Inc. partnered with Netherlands-based Royal Agrifirm Group to set up a dairy animal feed joint venture – Agrilakes – in China. The new company is aimed at leveraging existing market knowledge, technologies and research capabilities from both the companies to provide world-class service to feed customers and dairy farmers in China.
The report covers exhaustive analysis on:
- Calf Milk Replacers Market Segments
- Market Dynamics
- Calf Milk Replacers Market Size
- Supply and Demand
- Current Trends/Issues/Challenges pertaining to Calf Milk Replacers Market
- Competition Landscape and Emerging Market Participants in Calf Milk Replacers Market
- Technology related to Production/Processing of Calf Milk Replacers
- Value Chain Analysis of the Calf Milk Replacers Market
The regional analysis includes:
- North America (U.S., Canada)
- Latin America (Mexico, Brazil)
- Europe (Germany, U.K., France, Italy, Spain, Poland, Russia)
- East Asia (China, Japan, South Korea)
- South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
- Oceania (Australia, New Zealand)
- Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)
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