In 2023, the global milk tank cooling systems market is set to reach a value of USD 678.0 million. Between 2023 and 2033, a slow 3.4% CAGR is likely to fuel market acceleration. This should result in a USD 947.1 million in 2033.
Milk tank cooling systems form a vital part of dairy farming equipment. A milk tank cooling system is a key component of the milk transfer chain. In order to preserve the shelf life of milk, maintaining its homogeneity and pasteurization is only possible via a milk tank cooling system.
The raw milk produced needs to be cooled before and after processing. It is of utmost importance to prevent the milk from contamination, as milk is highly perishable by nature. Milk forms the basic raw material for the dairy business.
Milk coolers are predominantly feature stainless steel constructions. While several dairy farmers opt to purchase milk coolers, others have to option of renting them from dairy plants. The capacities of open tanks range from 150 to 3000 liters, while closed variants offer between 1000 and 10000 liters.
The tanks consist of inner and outer tanks. Polyurethane foam is used to isolate the space between the two tanks. This is done to prevent milk spoilage arising from power failures. The tanks also feature agitators, which are responsible for stirring milk and ensuring homogeneity and consistent temperature.
Operators also need to pay close attention to maintenance and take the following steps to ensure the cleanliness of a milk cooler
Growing production and consumption of milk worldwide drives the dairy co-operative business in remote as well as urban areas of the globe. The role of a milk tank cooling system becomes inevitable when it comes to the successful delivery of high-quality milk, along with value-added products and dairy commodities.
According to Future Market Insights (FMI), the milk cooler industry is likely to generate an absolute dollar opportunity amounting to USD 269.2 million. On the basis of application, the milk farm segment is set to dominate milk tank cooling system demand with a 4/5th share in the market.
| Attributes | Key Insights |
|---|---|
| Estimated Milk Tank Cooling System Market Value (2023) | USD 678.0 million |
| Projected Market Value (2033) | USD 947.1 million |
| Value-based CAGR (2023 to 2033) | 3.4% |
| Top Players Share in 2022 | 45% to 50% |
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Food safety standards governing the refrigerator use for milk storage and transportation prompt producers to seek effective and regulation-compliant solutions. With the phase-out of HFC-based refrigerants, leading players in the milk tank cooling system market are progressively shifting towards refrigerants with low carbon footprints.
Between 2018 and 2022, FMI observed an extremely sluggish 1.1% CAGR driving milk cooler sales. This sluggishness was primarily due to the effects of the COVID-19 pandemic along with geopolitical conflicts that brought economic uncertainties.
Every day, a massive volume of milk is delivered and kept in milk coolers all over the world. The milk volume consumed worldwide is expected to increase as the world's population grows. Milk tank cooling system manufacturers are attempting to design cooling systems that are responsive to the temperature environment in the sites where they will be used.
Compared to the rate of acceleration recorded between 2018 and 2022, the 3.4% CAGR anticipated from 2023 to 2033 reflects more optimism for market players. FMI believes there are plenty of opportunities to emerge in the global market in the years ahead.
Maintaining Quality and Preventing Spoilage during Transportation to Drive Milk Tank Cooling System Demand
Demand for pure milk is growing with time, as people are becoming more conscious regarding their health. Consumers prefer pure milk instead of any mixture resulting from added preservatives. Milk handling activities related to preservation determine the hygienic value of fresh milk.
Better hygiene assures dairy and milk products of better quality, which contributes to reducing milk losses and waste due to spoilage. For cases wherein fresh milk cannot be supplied within three to four hours, such as when collected at night, methods need to be taken to preserve the milk in order to minimize microbial growth and avoid spoilage.
Maintaining the hygiene of milk is important for the manufacturer of high-quality dairy products, leading to taste and flavor retention and long-term quality. It is not possible to produce good-quality dairy products from raw milk of poor quality. This is why becomes essential to install milk tank cooling systems for the preservation of milk.
Milk tank cooling systems also play an important role when it comes to the transportation of milk over a long distance. This system prevents milk spoilage for a certain period until the transportation is complete. Connecting raw milk producers to the markets is vital, dictated by the highly perishable nature of milk, which, in turn, calls for a streamlined collection and transportation system.
Principal Consultant
| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2021 (A) | 2.80% |
| Jul to Dec (H2), 2021 (A) | 3.40% |
| Jan to Jun (H1),2022 Projected (P) | 3.80% |
| Jan to Jun (H1),2022 Outlook (O) | 3.50% |
| Jul to Dec (H2), 2022 Outlook (O) | 3.80% |
| Jul to Dec (H2), 2022 Projected (P) | 3.00% |
| Jan to Jun (H1), 2023 Projected (P) | 3.20% |
| BPS Change : H1,2022 (O) - H1,2022 (P) | (-) 30 |
| BPS Change : H1,2022 (O) - H1,2021 (A) | (+) 70 ↑ |
| BPS Change: H2, 2022 (O) - H2, 2022 (P) | (-) 80 |
| BPS Change: H2, 2022 (O) - H2, 2021 (A) | (+) 40 ↑ |
The half-yearly market change in terms of basis points can be a critical indicator for investors to gauge the performance of different markets. The market is impacted by many factors, including COVID and the Russia-Ukraine war, due to which the global supply network was disrupted. Apart from that, the stringent government norms during the pandemic period also impacted the milk tank cooling system market.
Limited Adoption of Milk Tank Cooling Systems across Rural Regions to Affect Sales Negatively
As compared to urban areas, the population belonging to certain underdeveloped regions still prefers milk directly from the source of milk production. This eliminates intermediate participants from the supply chain between producers and consumers. This arrangement does not require the milk to be stored and processed, a factor that is preventing the milk tank cooling system market from reaching its full potential.
The revenue acceleration of small and medium-scale industries, mostly in rural areas, faces hindrances. This is due to the growing number of large-scale processing plants engaging in mergers and acquisitions. A surge in the price of raw materials (milk) also poses a threat to such small establishments.
Commercial industries purchase large amounts of milk at lower prices as compared to local manufacturers. This results in losses for small firms as the finished product is sold at the same rate. This ultimately hampers the expansion of the market for milk tank cooling systems.
The average lifespan of a milk tank cooling system is around 5 to 8 years. There is no frequent changing requirements for a milk tank cooling system when viewed from an operational perspective. This factor might pose a challenge for the progress of the market due to the lack of installation of these systems across milk processing plants and dairies.
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The 1000 to 5000 Liters Segment is Likely to Propel Milk Cooler Sales on the Basis of Capacity
1000 to 5000 Litre milk-cooling tanks are in high demand compared to other categories, and will continue to account for one-third of total income. The global dairy industry is separated between commercial and private operations. Participants in the market for milk tank cooling systems are concentrating on boosting production of smaller than 1000-liter milk cooling tanks for the benefit of small-scale businesses.
Manufacturers are investing in product development in response to the rising reliance on large corporations marketed for milk chilling in tanks paired with current technologies. From 2023 to 2033, the 1000 to 5000 liters segment is likely to provide an absolute dollar opportunity of USD 78.3 million.
Milk Farm Segment to Spur Bulk Tank Demand Based on Application
The market is segmented into milk farms and milk processing facilities based on application type. The milk farm segment is expected to stay important between 2023 and 2033, owing to rising consumer demand for milk and its value-added products, as well as dairy commodities.
Milk consumption rises when the population grows rapidly. Deployment of milk tank chilling systems in milk farms or raw milk collecting stations should continue at a rapid rate, accounting for about 88.2% of total market value in 2033.
| Country | USA |
|---|---|
| Market Share (2023) | 14.30% |
| Market Share (2033) | 12.85% |
| BPS Analysis | -145 |
| Country | China |
|---|---|
| Market Share (2023) | 9.53% |
| Market Share (2033) | 11.22% |
| BPS Analysis | 170 |
| Country | India |
|---|---|
| Market Share (2023) | 10.19% |
| Market Share (2033) | 12.82% |
| BPS Analysis | 260 |
| Country | Germany |
|---|---|
| Market Share (2023) | 8.24% |
| Market Share (2033) | 8.40% |
| BPS Analysis | 15 |
| Country | United kingdom |
|---|---|
| Market Share (2023) | 4.68% |
| Market Share (2033) | 4.17% |
| BPS Analysis | -50 |
The United States Market to Provide Prominent Opportunities for Milk Cooler Manufacturers
Between 2023 and 2033, the United States market is likely to register a slow 2.3% CAGR. Over the past 20 years, there has been increasing milk production in the country. The prominent trends in the country’s milk production include
Due to climate considerations, farm milk output fluctuates frequently. Similarly, liquid milk sales vary greatly by day and month due to varied purchasing habits. These patterns are impossible to foresee.
As a result, maintenance of milk coolers is imperative for providing milk to locations with substantial demand, which is why the need for milk tank cooling systems in the United States is expanding. It is estimated that the United States can create an absolute dollar opportunity of USD 24.7 million between 2023 and 2033.
India’s Position as a Leading Milk Production Hub to Translate to Soaring Demand for Bulk Tanks
From 2023 to 2033, the market for milk tank cooling systems in India is estimated to grow at a steady 5.8% CAGR. For decades, India has cemented itself as a global leader in the production and consumption of milk products. India secured an export valuation of around USD 16 million for dairy goods for the fiscal year 2020-2021, with the UAE generating substantial demand.
According to India’s National Dairy Development Board (NDDB), demand for around 266.5 million metric tons of dairy products is likely in 2030. This should drive milk tank cooling system demand in the country. FMI expects the India market to attain a valuation of USD 121.4 million in 2033.
Fragmentation is a key characteristic of the worldwide milk tank cooling system industry. The global market consists not only of leading players, but also of emerging names. FMI expects fragmentation to rise in the coming years as more players emerge to compete with established companies. Product launches, mergers, and acquisitions are also likely based on developments from the recent past.
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| Attributes | Details |
|---|---|
| Estimated Market Size (2023) | USD 678.0 million |
| Projected Market Size (2033) | USD 947.1 million |
| Anticipated Growth Rate (2023 to 2033) | 3.4% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; East Asia; South Asia and Pacific; Western Europe; Eastern Europe; Central Asia; Russia and Belarus; Balkan and Baltic Countries; Middle East and Africa |
| Key Countries Covered | The United States, Canada, Mexico, Brazil, Argentina, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, Germany, France, Italy, Spain, BENELUX, NORDICS, The United Kingdom, Poland, Hungary, Romania, Czech Republic, KSA, UAE, Türkiye, Northern Africa, South Africa, Israel |
| Key Segments Covered | Capacity, Configuration, Application, and Regiononfiguration |
| Key Companies Profiled | Danfoss; Delaval; GEA Group AG; Packo Cooling; Dairymaster; Fabdec Ltd; Serap Group; Boumatic; Wedholms AB; Daviesway Pty Ltd.; RØ-KA Indutries A/S; Fic S.p.A; Milkplan; Marcold Ltd |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities, and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The milk tank cooling system market CAGR for 2033 is 3.4%.
The market is estimated to reach USD 941.1 million by 2033.
Danfoss, Paul Mueller Company, and Delaval are key market players.
The market is estimated to secure a valuation of USD 678.0 million in 2023.
Asia Pacific holds a significant share of the market.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market - Pricing Analysis 7. Global Market Demand (in Value or Size in USD million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Capacity 9.1. Less Than 1000 Liters 9.2. 1000 L to 5000 Liters 9.3. 5000 L to 10000 Liters 9.4. Above 10000 Liters 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Configuration 10.1. Closed End 10.1.1. Horizontal 10.1.2. Vertical 10.2. Open End 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 11.1. Milk Farm 11.2. Milk Processing Unit 12. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 12.1. North America 12.2. Latin America 12.3. East Asia 12.4. South Asia and the Pacific 12.5. Western Europe 12.6. Eastern Europe 12.7. Central Asia 12.8. Russia and Belarus 12.9. Balkan and Baltics Countries 12.10. Middle East and Africa 13. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. Central Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. Russia and Belarus Market Analysis 2018 to 2022 and Forecast 2023 to 2033 21. Balkan and Baltics Countries Market Analysis 2018 to 2022 and Forecast 2023 to 2033 22. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 23. Country wise Market Analysis 24. Market Structure Analysis 25. Competition Analysis 25.1. Danfoss 25.2. Paul Mueller Company 25.3. Delaval 25.4. GEA Group AG 25.5. Packo Cooling 25.6. Dairymaster 25.7. Fabdec Ltd 25.8. Serap Group 25.9. Boumatic 25.10. Wedholms AB 25.11. Daviesway Pty Ltd. 25.12. RØ-KA Indutries A/S 25.13. Fic S.p.A 25.14. Milkplan 25.15. Marcold Ltd 26. Assumptions and Acronyms Used 27. Research Methodology
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Milk Tank Cooling System Market
