Sour circumstances: Fluctuating global milk powder prices have led to industry volatility

The Milk Powder Manufacturing industry has faced challenging conditions over the past five years. Volatile commodity prices have driven strong revenue expansions and contractions over the period. As a significant portion of the industry’s revenue is derived from exports, its performance is susceptible to changes in the global price of milk powder. Global milk powder prices rose prior to the current five-year period and stayed high until their peak in 2013-14. Prices collapsed in 2014-15 amid concerns about excessive increases in milk powder supplies, contributing to plummeting industry revenue that year. Industry revenue is expected to decline at an annualised 7.0% over the five years through 2017-18, to total $890.8 million...read more.

Industry Statistics & Market Size
Revenue
$891m
Annual Growth 13-18
-7.0%
Forecast Growth 18-23
Profit
Employment
1,394
Businesses
34

Industry Threats & Opportunities

  • Volatile commodity prices have driven strong expansions and contractions in industry revenue
  • Domestic milk powder production volumes have fallen over the five-year period
  • Milk powder exports are forecast to increase over the next five years, lifting industry revenue
  • Industry Report - Industry SWOT Analysis Chapter

    The Milk Powder Manufacturing industry is expected to be in a mature phase of its economic life cycle. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is projected to fall at an annualised 2.0% over the 10 years through 2022-23. This is a significant underperformance relative to the economy, with GDP projected to grow at an annualised 2.5% over the same period. Typically, an underperformance this substantial is indicative of a declining industry, which is shrinking as a share of the economy. However, IVA is determined by wages, depreciation and profit. Given the industry's immense volatility, profit margins tend to fluctuate substantially. This creates volatility in the industry's IVA figure. Con...purchase to read more.

    Additional Insights for the Milk Powder Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Milk Powder Manufacturing Industry are

  • Guaranteed supply of key inputs
  • Economies of scale
  • Output is sold under contract - incorporating long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Domestic price of milk in the Milk Powder Manufacturing industry impact industry performance..

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    What's in this report

    What is the Milk Powder Manufacturing Industry?

    Industry operators manufacture milk powder, powdered milk-based beverages and baby foods in powder form.

    Industry Products
  • Whole milk powder
  • Skim milk powder
  • Buttermilk powder
  • Industry Activities
  • Milk powder
  • Milk-based baby food powder
  • Health beverage powder
  • Malted milk powder
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Domestic price of milk
  • Milk consumption
  • Milk production

  • Current Performance
  • International influences
  • Domestic market
  • Profitability and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Domestic consumption
  • Profitability
  • Table: Milk Powder Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Milk Powder Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread Production
  • Cake and Pastry Manufacturing
  • Biscuit Manufacturing
  • Chocolate and Confectionery Manufacturing
  • Dairy Produce Wholesaling
  • Catering Services
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Dairy Cattle Farming

  • Products & Services
  • Skim milk powder
  • Whole milk powder
  • Buttermilk powder
  • Other
  • Chart: Milk Powder Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other Asian export markets
  • China
  • Other export markets
  • Other domestic markets
  • Supermarkets
  • Chart: Major Market Segmentation for the Milk Powder Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Milk Powder Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Milk Powder Manufacturing Industry

  • Industry Globalization
    Murray Goulburn Co-operative Co Limited, Fonterra Co-operative Group Limited, Warrnambool Cheese and Butter Factory Company Holdings Limited,
  • Table: Murray Goulburn Co-operative Co Limited - financial performance
  • Table: Fonterra Co-operative Group Limited - financial performance
  • Table: Warrnambool Cheese and Butter Factory Company Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Milk Powder Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Milk Powder Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Global Dairy Trade
  • A global body that aims to facilitate trade of dairy products through its auction platform.
  • Skim Milk Powder
  • Milk powder with a low fat content, produced by removing cream from raw milk, then evaporating and drying the skim milk.
  • Whole Milk Powder
  • Milk powder produced by drying raw milk, including the cream. Whole milk powder has a higher fat content than skim milk powder.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Milk Powder Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Milk Powder Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Milk Powder Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Milk Powder Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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