Ethiopia: Milk and Cream Market and the Impact of COVID-19 on It in the Medium Term

Ethiopia: Milk and Cream Market and the Impact of COVID-19 on It in the Medium Term
The milk and cream market in Ethiopia was equal to 893.00 million USD (calculated in retail prices) in 2015. Until 2025, the milk and cream market in Ethiopia is forecast to reach 5.13 billion USD (in retail prices), thus increasing at a CAGR of 16.72% per annum for the period 2020-2024. This is a decrease, compared to the growth of about 21.56% per year, registered in 2015-2019.
The average consumption per capita in value terms reached 9.17 USD per capita (in retail prices) in 2015. In the next five years, it grew at a CAGR of 18.58% per annum. In the medium term (by 2025), the indicator is forecast to slow down its growth and increase at a CAGR of 14.06% per annum.
One of the most important trends on the milk and milk and cream market is closely linked with the surging demand for healthy and sustainable products. Consumers are increasingly interested in aspects such as ethics and environment when it comes to milk and cream production. Most of them are interested in products in a package made of recycled materials, as well as in products with a guarantee of sustainable farming. Furthermore, in line with the plant-based revolution, there is an increasing number of people opting for plant-based milk alternatives. In particular, growth of milk alternatives has been prompted by the following segments: oat, coconut and almond.
As a matter of fact, the overall consumption of fluid milk has been decreasing in the past few years. However, ultra-filtered milk (milk, that can be low in lactose or high in protein after a process of filtration) is another emerging category, which is expected to increase demand for fluid milk. In addition, there are a large number of cow’s milk alternatives, the most exotic of which – camel milk. It is gaining popularity, due to the many nutritional benefits, including high protein content, as well as low fat and cholesterol content.