Organic dairy products are obtained from livestock which are raised through organic farming methods without the use of artificial chemicals such as pesticides, fertilizers, growth regulators and livestock feed additives. As compared to conventional dairy products, they are richer in vitamins, conjugated linoleic acid (CLA), antioxidants and omega-3 fatty acids. Apart from this, these products offer numerous health benefits as their consumption boosts metabolism, strengthens the immune system, lowers the risk of heart diseases, and reduces muscle and joint pain. According to IMARC Group, the global organic dairy market reached a value of US$ 19.4 Billion in 2018, expanding at a CAGR of 7.8% during 2011-2018.

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The growing health consciousness among consumers regarding the nutritional benefits offered by organic dairy is influencing the growth of the market globally. Furthermore, awareness about the excessive use of pesticides, fertilizers and synthetic ingredients in the production of non-organic dairy products has led consumers to make a shift towards organic variants. Apart from this, various governments are taking initiatives to promote organic farming by providing financial incentives and loans with low-interest rates. Additionally, manufacturers are constantly expanding their portfolios by introducing variants of organic milk, yogurt, flavored milk and ice cream. As a result of this, the global organic dairy market is projected to reach a value of US$ 28.7 Billion by 2024.

Organic cheese is the fastest growing product type
Organic fluid milk is the most popular product type as it is a rich source of proteins, carbohydrates, calories and fats. Organic fluid milk is followed by organic yogurt, organic cheese, organic butter, organic cream and others. Presently, organic cheese is the fastest growing segment which can be accredited to its high demand from markets such as Europe and North America.

Pouch represents the most popular packaging type
Pouch packaging dominates the market, accounting for the majority of the organic dairy market share. As pouches are flexible, versatile, inexpensive and light in weight, they are constantly gaining popularity, particularly across the emerging nations. On the other hand, tetra packs are the fastest growing segment since they are sustainable in nature and help in preserving the nutritional value of the contents for a comparatively longer duration. Other major packaging types are bottles and cans.

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Supermarkets are the most popular distribution channel
Supermarkets attract more buyers when compared to other retail channels as they offer a wide variety of products on large-shelf displays. Other major distribution channels include hypermarkets, convenience and grocery stores, organic specialty stores, discount stores, online/e-retailing, direct sales and others. Amongst these, online/e-retailing has emerged as one of the fastest growing retail channels on account of convenient purchasing procedures and easy return policies.

Organic movement in Europe driving the demand for organic dairy products
Europe enjoys the leading position, accounting for more than a half of the total market share. The constant rise in demand for organic dairy products in Europe is being bolstered by the organic movement in the region. Other major regions include Asia Pacific, Latin America, North America and Middle East.

The global organic dairy industry is fragmented with the presence of a large number of global and regional players. Some of the key players operating in the market include Horizon Organic, Organic Valley, Whole Foods, Kroger and Aurora Organic Dairy.