Growing apartment culture coupled with lack of cold chain infrastructure is driving the global UHT milk market. The market is mainly driven by increasing consumption of UHT milk in China and Latin American countries such as Brazil whereas in Europe it is significantly impacted by the Euro-zone crisis, and is declining in some of the key markets.

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The new dietary trend of consuming milk outside home, i.e. in schools, on the sports field, and at the gymnasium is catching up. In many schools, milk is provided to children in order to make drinking milk a habit and here lies the opportunity for UHT milk. UHT milk accounts for a large portion of the total milk consumed in China and its share has been increasing. Growth in the urban population of China is the key reason for the growth of UHT milk in the country.

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The demand for UHT milk in Australia is also expected to increase in the forecasted period, whereas Indian market has a slow growth rate due to the preference for fresh milk. There are large number of unorganized small dairy farmers in India supplying raw cow and buffalo milk to households in these countries which is restricting the UHT milk market to flourish despite a vast opportunity lying for it in the form of large population and increasing per capita income.

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Some consumer perception such as loss of nutritional value in the UHT milk is one of the concerns for the industry. The perception that there occurs high degree of nutrient losses during processing and storage of UHT milk is emerging as a restraint in some of the countries.

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