Somalia Milk Powder Market Outlook to 2025

The report titled “Somalia Milk Powder Market Outlook to 2025 –Increasing Demand-Supply Gap for fresh milk due to Seasonal Fluctuations and Higher Shelf Life for Milk Powder to Drive Market Growth” provides a comprehensive analysis of the milk powder industry of Somalia. The report covers various aspects including the current milk production and livestock statistics in Somalia and concentrated milk scenario in value and volume, its segmentations viz, Type of milk powder (Whole Milk Powder and Skimmed Milk Powder), Application (Nutritional Foods, Infant Formula, Confectionaries and Others including Ice Creams, Chocolates, and Bakeries), Distribution Channels (Supermarket & Hypermarkets, Mom & Pop stores and Online), Market Type (Organized and Unorganized), Import and export scenario, major trends and development, issues and challenges, government regulations and competitive benchmarking. The report concludes with market projections for the future of the industry including forecasted industry size by revenue and volume.

Overview for Somalia Milk Powder Market

The milk processing industry in Somalia was small compared to the huge amount of milk produced every year as liquid milk was preferred by the households. However, the country’s milk industry collapsed in the year 2017 when a devastating drought killed an estimated 6.4 million cows, camels and goats. In pastoral areas, the impact of the drought on livestock has led to a lack of access to milk thereby increasing the consumption of milk powder. Most of the demand-supply gaps of liquid milk requirements for urban consumers were met by importing dry milk powders from countries such as Middle East and Europe. The market showcased a volatile growth trajectory. Milk Powder revenue attained a year on year growth during 2014-2019 along with double digit CAGR of 12.5% in terms of Sales Value. The presence of numerous small and large manufacturers who compete in terms of prices and quality are driving the growth. Furthermore, initiatives by the government regarding the quality standard is increasing the sales.

Somalia Milk Powder Market Segmentation

ByType of Milk Powder: The whole milk powder segment dominated the market due to it being perceived to be the most natural form of processed milk by a large number of consumers. However, due to it being popular for having less fat content and less overall calories, the skimmed milk powder segment is expected to witness the highest CAGR over the forecast period.

By Application: Due to the demand-supply gap of fresh liquid milk, the majority of the milk powder is reconstituted into liquid milk and is widely used in Somalia because of reduced transport and storage costs. Infant formulas present an appealing alternative to working mothers for their babies as per the convenience and need.

By Distribution Channel: Supermarkets & Hypermarkets dominated the market with the highest revenue share in 2019. Majority of the milk powder companies from neighboring countries such as Kenya and Uganda operates through their own distribution channels in Somalia. However, imported milk powder from Middle east and Europe are sold through distributors.

By Type of Market: Even though co-operatives provide a remunerative price to the producer, the unorganized sector plays a major role in milk powder marketing because of three factors-  Pricing Policy, Type of Milk Animals and Payment Policy. Unorganized sector including local milk vendors, wholesalers, retailers, and producers themselves dominate the market as most of the traders opt for tax saving methods by illegally importing the milk powder from various  countries.

Comparative Landscape in Somalia Milk Powder Market

Competition was observed to be moderately fragmented with presence of major international brands dominating the market. Shifting to latest technologies to manufacture the best quality of milk powders has been on high priority for many companies. Introducing and innovating new products along with health benefits to ensure customer focus provides lucrative oppurtunities. The companies were observed to compete on the basis of product pricing, quality/certification, sourcing/ storage/distribution channel, serving size/packaging and  health benefits

Somalia Milk Powder Market Future Outlook and Projections

The milk powder market in Somalia is expected to experience a medium level of growth owing to population growth along with rising incomes, health consciousness, and the thriving food and beverage industry. The market expected to gain momentum with the exponential growth in infrastructure and technological advancements in transportation. A comprehensive strategy for producing quality and safe milk powder products formulated with the suitable legal backup will structure the market workings. New products such as flavored milk powder or lactose-free milk powder are expected to boost market growth in the coming years.

Key Topics Covered in the Report

• Need and Opportunity Landscape in Somalia
• Somalia Milk Powder Market Introduction and Overview
• Demand & Supply Side Ecosystem for Somalia Milk Powder Market
•  SWOT Analysis in  Somalia Milk Powder Market
• Trade Scenario in  Somalia Milk Powder Market
• Industry Analysis (Porter’s Five Forces Analysis)
• Cost of Setting up a Milk Powder Production Plant in Somalia
• Cost of Setting up Repackaging Plant in Somalia
• Comparative Landscape – Somalia Milk Powder Market
• Recommendations / Success Factors
• Research Methodology
• Appendix