The international goat milk market has been witnessing considerable momentum over the past few years as customers increasingly opt for healthier and more environmentally friendly alternatives to cow milk. With its high nutritional content, digestibility, and hypoallergenicity, it is no longer a niche offering but a mainstream dairy product, particularly in health-conscious and lactose intolerance-prone regions.

Market Growth and Dynamics

the market was at US$ 13,559.5 million in 2018 and is anticipated to expand with a CAGR of 3.0% during the forecast period of 2019-2027 to reach US$ 17,440.7 million by the year 2027.

Besides liquid milk, derivatives like cheese, yogurt, baby formula, and powdered milk are also gaining popularity. These foods are embraced across European countries, and rising economies are embracing them in their diets as a result of urbanization and globalization of food trends.

Key Growth Strategies

Product Innovation: Firms are spending on R&D to create flavored, lactose-free versions, and fortified products to suit various age groups and dietary requirements.

Expansion in New Markets: Brands are expanding into new geographies, particularly in Asia and the Middle East, through strategic alliances, e-commerce platforms, and retail channels.

Sustainability and Ethical Farming: With growing consumer choice for ethically produced and sustainable products, most producers are embracing organic farming methods and focusing on traceability.

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Emerging Trends and Opportunities

Infant Formula Boom: Infant formula based on becoming popular because it is similar to human milk and easier to digest. The segment is likely to be one of the fastest-growing.

Plant-Based Alternatives Pressure: Even though is animal-based, positioning it as more sustainable and less allergenic than cow milk enables it to compete relatively well with plant-based alternatives.

E-commerce Growth: Online distribution channels are largely responsible for growth in consumer access, particularly for niche items such as yogurt or specialty cheeses.

Key Segments

By Product: Liquid milk, cheese, yogurt, milk powder, infant formula

By Distribution Channel: Supermarkets/hypermarkets, convenience stores, online retail, specialty stores

Key Players with Recent Developments

Kavli (Norway / UK)

Primarily known as a Scandinavian cheese and spread brand, Kavli also has holdings

In 2013, Kavli (via its UK unit) acquired St Helen’s Farm, a UK producer, cheese, yogurt, butter and ice cream. This move significantly expanded Kavli’s presence in the UK goat dairy segment

Kavli’s profits are channeled to the Kavli Trust, which supports mental health, environmental and educational causes

Hay Dairies Pte Ltd. (Singapore)

The only commercial goat farm in Singapore, established in 1988 with approximately 800 goats

Hay Dairies supplies pasteurized fresh (plain and chocolate) via direct farm-sales, home delivery, and select outlets in Singapore

Operated to meet SFA food safety, animal welfare, and environmental standards, and audited by SGS 

Delamere Dairy (UK)

Delamere is a UK goat dairy specialist that distributes through supermarkets and export markets

In 2020, Delamere marked its 35th anniversary year with a campaign centered around sustainability that launched new milk cartons highlighting collaborations with Cabrito Goat Meat (moral goat meat supplier) and Billy Tannery (upcycling goat hide to leather) to ensure full-cycle use of resources and less waste

Conclusion

The market for goat milk is on the rise, driven by health trends, changing consumer behavior, and a move towards sustainable nutrition. Although difficulties like increased production expenses and restricted supply chains remain, the market offers great opportunities for development and innovation. Companies that are willing to change according to consumer demands, invest in moral means, and adopt digital channels will be in the best position to grow in the years ahead.

Frequently Asked Questions

What is causing the growth of the goat milk market?

The market is expanding as a result of greater demand for the health benefits, including greater ease of digestibility, reduced allergenicity over cow milk, and high levels of essential nutrients. Increasing lactose intolerance, clean-label and functional food demand, and growth in emerging markets also drive growth.

What are the top-selling products?

Liquid (fresh and UHT)

Goat cheese

Yogurt

Infant formula

Powdered milk

Is milk healthier than cow milk?

Smaller-sized fat globules and reduced lactose, easier to digest

Increased calcium, potassium, and vitamin A content

Is goat milk suitable for infants and children?

Only specially designed goat milk-based infant formulas are suitable for babies under 12 months. Whole does not contain enough folic acid and iron for babies.