Milking it: Revenue will grow as customers increasingly purchases premium high-margin products

This industry experiences little volatility as milk production at upstream dairy farms is strictly regulated in terms of production and price. As a result, industry inputs are stable and downstream markets consider industry products to be grocery essentials, resulting in steady demand with little regard to prevailing economic conditions. While the industry is insulated against severe price shocks or supply imbalances, this also prevents it from realizing significant growth, and industry performance is closely tied to consumer trends related to dairy products. Over the five years to 2018, IBISWorld estimates that industry revenue has declined slightly. Over the next five years, producers will seek growth by continuing to focus on high-margin products such as cheese and more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Operators have attempted to grow revenue by way of mergers and acquisitions
  • The supply management system is designed to operate domestically
  • Rising consumption of cheese has been helpful to industry revenue
  • Industry Report - Industry Locations Chapter

    The spread of dairy product production establishments falls roughly in line with the overall domestic population and the domestic location of upstream dairy farms. As a result, Quebec, which holds a significant share of the Canadian population and the largest share of dairy farms, accounts for the largest share of industry activity, totalling 34.8%. Additionally, Ontario, which is home to the largest share of the domestic population, accounts for the second-largest share of industry establishments, totalling 32.4%. Together these two provinces account for over 60.0% of the Canadian population and 67.2% of industry establishments in 2018.The only other regions with a significant share of industry establishments are British Columbia, with 12.1%, and Alberta, with 7.7%. Bri...purchase to read more.

    Additional Insights for the Dairy Product Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Product Production Industry are

  • Guaranteed supply of key inputs
  • Marketing of differentiated products
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from wholesale trade, nondurable goods in the Dairy Product Production industry impact industry performance..

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    What's in this report

    What is the Dairy Product Production Industry?

    This industry mainly manufactures dairy products, such as cream, butter, yogourt and cheese, as well as pasteurized, dry, condensed and evaporated milk. The industry also manufactures substitute dairy products made from soybeans and other nondairy ingredients. Frozen dairy products such as ice cream and frozen yogourt are excluded from this industry.

    Industry Products
  • Milk
  • Cheese
  • Yogourt
  • Butter
  • Cream
  • Milk powders
  • Industry Activities
  • Producing fluid milk products
  • Producing cheese
  • Producing dry, condensed and evaporated milk
  • Producing butter
  • Producing yogourt
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Demand from wholesale trade, nondurable goods
  • Canadian effective exchange rate index
  • Demand from food services and drinking places

  • Current Performance
  • Consumer demand
  • Supply management
  • Burgeoning trade and government support
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption habits
  • Globalization threats and opportunities
  • Industry structure and profit
  • Table: Dairy Product Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Product Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Dairy Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Accommodation and Food Services In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing in Canada
  • Coated & Laminated Paper Manufacturing in Canada
  • Dairy Farms in Canada
  • Plastic Bottle Manufacturing in Canada
  • Plastic Film, Sheet & Bag Manufacturing in Canada

  • Products & Services
  • Milk
  • Cheese
  • Yogourt
  • Cream
  • Milk powders
  • Butter
  • Chart: Dairy Product Production Industry Products and Services Segmentation

  • Demand Determinants
  • Health trends
  • Price
  • Demographics
  • Competition

  • Major Markets
  • Retail markets
  • Wholesalers
  • Food service establishments
  • Other
  • Manufacturing
  • Exports
  • Chart: Major Market Segmentation for the Dairy Product Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Product Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Product Production Industry

  • Industry Globalization
    Saputo Inc., Agropur Cooperative, Parmalat SpA,
  • Table: Saputo Inc. - financial performance
  • Table: Agropur Cooperative - financial performance
  • Table: Parmalat SpA - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Product Production 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 Dairy Product Production Industry
  • 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)
  • Per Capita Consumption of Milk (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cooperative (Co-Op)
  • A jointly owned, vertically integrated organization that collectively markets the products of all members.
  • Milk Powder
  • A manufactured dairy product made by evaporating water from milk to remove all liquid.
  • Supply Management
  • A federal program that sets milk production quotas and sets prices paid by processors; the program is designed to match available supply with domestic demand and ensure fair prices for farmers.
  • Whey
  • A byproduct of cheese production, the protein-high liquid remaining after milk has been curdled and strained.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Dairy Product Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Dairy Product Production:
    • 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 Dairy Product Production 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 Dairy Product Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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