UHT Processing Market size is valued at $3.32Bn in 2019 and is anticipated to grow at a CAGR of 12.29% during the forecast period 2020-2025. The UHT Processing Market growth rate is attributed to the use of sterilization, ultra-pasteurization for heating of food of products to kill germs and spores present in it. The process also helps in preservation of essential nutrients and vitamins, thereby making it essential for human consumption. From improvements made to enhance shelf-life to the rise in number of product innovations and the impact of e-commerce channels, social media, etc. is anticipated to propel the UHT Processing Market during the forecast period 2020-2025.
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Mode of Operation - Segment Analysis
Direct UHT segment held the largest share in the market owing to its cost and energy-efficient system over indirect UHT Operation mode as heating from the pre-heat temperature to sterilization temperatures and initial cooling of the sterilized milk is much slower in the indirect system than in direct system. Also, for milk produced in an indirect plant is subjected generally to a greater heat load than in direct plant with better bacterial effectiveness. Furthermore, it takes less than 1 sec for heat transfer operation in direct UHT compared to greater than 10 secs with indirect methods.
Application Type- Segment Analysis
Based on Application type, milk segment held the major share of the market in terms of revenue and is estimated to grow with a CAGR of 5.78%. The reason is set to attribute the most potent form of sterilization processed in milk, by raising its shelf life capability to 6 months approximately. UHT Processing of milk is believed to rise effectively as demands from regions that lack proper infrastructures for refrigeration and impact from tropical weathers are anticipated to further expand the consumption rate over the projection period of 2020-2025.
By Geography - Segment Analysis
North America dominated the UHT Processing Market with a share of 37% in 2019. The application of UHT Processing has grown rapidly over the last few years. North America remains the largest consumer of UHT Processing owing to the growing awareness among consumers, huge preference for UHT processed milk amongst the mass and increasing investments made on UHT treatment for other products continues to expand its market. High initial capital investment on infrastructure, increasing production capacities of UHT treatment plants and requirement for very high-quality milk for UHT treatment are cater to the UHT Processing Market in the forecast period of 2020-2025.
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Drivers – UHT Processing Market
Rising Demand For Beverage Products With Extended Shelf Life
With the rise in demand of various products with extended shelf-life; along with the ability of UHT processed products to be stored at room temperature for a longer time, without the need for refrigeration enables the manufacturers to keep the products for a longer duration, thus reducing the logistic and storage cost, as these products don’t require low-temperature warehouses to be stored which can be considered as a UHT Processing key driver of the market during the forecast period 2020-2025.
Challenges – UHT Processing Market
High Initial Capital and Maintenance Cost
The major challenge for the market is the high initial capital investment structure and the requirement for very high-quality milk for UHT treatment and compliance of these UHT Processing in a vast and heterogeneous market. The stringent rules and regulations regarding the processing and preservation prior to distribution and sales is the major problem for some of the regions in Asia-Pacific.
Acquisitions/Product Launches
In May 30, 2016 Alfa Laval introduced gasketed plate heat exchangers with higher efficiency, versatility and hygienic which minimizes total cost and maximize profitability.
In September 18, 2017 Tetra Laval Group Board decided to donate, in collaboration with Gossner Foods and Diversified Foods, nearly 150 million Tetra Pak cartons of shelf-safe UHT milk to storm-ravaged areas in Florida and Georgia.
Key Takeaways
North America dominated the UHT Processing Market with a share of 37% in the year 2019.
The factors such as increasing investments made on UHT treatment for other products, increasing production capacities of UHT treatment plants are amongst the major factor projected to impel growth of UHT Processing Market.
Increase in demand for food & beverage products with an extended shelf life, marginal nutritional changes in products such as milk, and reduction in logistics and storage cost are the key factors owing to the growth in the segment during forecast period 2020-2025.
UHT Processing Industry Outlook
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the UHT Processing Market. In 2019, UHT Processing Market share is fragmented by the top ten players present in the market. UHT Processing Market top 10 companies are Tetra Laval International S.A, GEA Group, Alfa Laval, SPX Flow, Elecster Oyj, Micro Thermics, Reda S.P.A, Shanghai Jimei Food Machinery, Tessa I.E.C Group Ltd, Stephan Machinery GmbH and others.
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