The global UHT milk industry is projected to grow significantly in the coming years, reaching a substantial 124.77 million tons in 2024 as compared to 95.73 million tons generated in 2018, registering a CAGR of 4.57% from 2019 to 2024. Stakeholders across the UHT milk industry are expected to highly invest and adopt UHT milk for lucrative business prospects. The rising concerns over global food security and sustainability have led to extensive government initiatives for milk production across the world. Further, the evolving dietary patterns and increasing urbanization have led to a considerable demand for healthy and fresh milk.

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Most of the leading manufacturers are actively involved in the production of UHT skimmed milk, which is the most premium category of UHT milk. Due to the various health and dietary benefits it offers to a large section of the population such as enhanced amounts of vitamin D and calcium, this category is becoming increasingly popular in terms of consumption amongst the UHT milk consumers. Consumers such as young women, health-conscious individuals, and the elderly are increasingly preferring UHT skimmed milk as compared to UHT whole milk in order to fulfil their dietary requirements through adequate milk consumption. UHT milk producers are actively focusing on promotional and marketing activities to attract new customers.

During the forecast period, the semi-skimmed milk for the UHT milk industry is expected to display the highest growth rate of 5.42%. The application of this milk type has a proliferated usage in fulfilling the majority of the nutritional requirements of the population, with a balance of fat content, proteins, and vitamins obtained in semi-skimmed milk. This milk type also helps curbing the risk of diabetes and cancer. The demand of the skimmed milk is also expected to witness a healthy growth in the upcoming years owing to the increased adoption by a growing working women population.

UHT milk is largely sold through two major distribution channels which are direct/institutional channel and retail channel. As of 2018, the retail channel for selling UHT milk contributed the largest volume of sales for this industry. With its increasing use in the food service industry, defense, and various workspaces, the sale of UHT milk through direct/institutional channel is expected to increase in the forecast period.

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During the forecast period, the direct/institutional sale of UHT milk is expected to grow at the fastest rate, registering a growth rate of 5.13%. Various routes under the retail distribution channel are expected to increase the overall sales of UHT milk through retail channel, with an expected volume of 83.8 million tons in 2024.

Different regions have gradually increased adoption of UHT milk products with varying degrees, mainly due to the government influence across countries. The incentives, promotional activities, and product packaging by UHT milk producers directly impact the level of uptake of UHT milk in each region.

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