Milk Tank Cooling System Market Size, Share, and Industry Analysis, By Cooling Type (Direct Expansion, Ice Bank System, and Others (Plate Coolers)); By Deployment (In Farm, In Plants, and Others); By Tank Type (Silo, Open Tank, Fully Enclosed, and Others), By End-user (Dairy Farms, Milk Collection Centers, and Milk Product Manufacturers), and Regional Forecast, 2024-2032

Milk tank cooling systems are critical dairy storage equipment that maintain milk temperature in a controlled environment by effectively exchanging heat from the milk. The milk cooling systems work on the basic principle of heat exchanger from the liquid through a heat exchanging medium or a plate. The cooling systems are primary storage equipment for dairy farms, processing plants, and other milk-related industries. Tanks in the cooling system industry are of various categories such as silos, open tanks, fully enclosed, and other tanks.

The global demand for dairy consumer products such as butter, cheese, ice creams, and others has increased the demand for milk tank cooling systems across the FMCG industry. These tanks maintain the temperature of milk below the outside temperature to prevent pasteurization. Furthermore, these tanks level down the temperature of milk from the initial temperature, retaining the thickness and quality of the milk.

The COVID-19 pandemic significantly impacted the global tank cooling system market. The sales of cooling plants were negatively affected. Supply chain constraints and stringent last-mile delivery regulations made things more challenging. Dairy farmers strategically decided to recover from the pandemic by promoting farm-fresh milk ATMs and contactless delivery.

Milk cooling tanks are the key equipment for keeping the temperature low and maintaining quality. Players across the industry focus on research and development activities for the introduction of modern technological advancements to lower and maintain the temperature. These strategic decisions raised the potential for investments in the dairy processing industry.

• For instance, in March 2024, HP Hood, a U.S. dairy processing giant, announced the expansion of its facility in a business park in New York. The upgrades include the new batching and processing plant, which accommodates an automatic storage and retrieval system (ASRS) to increase capacity and begin a new production line.

Impact of Supply Chain on the Milk Tank Cooling System Market

Globally, the milk supply chain is a complex task for the processing industry as most factors, such as temperature, vessel, bacteria spread, and spoilage, impact milk quality. Many collection centers and dairy units struggle with the initial pre-processing of milk to lower the temperature due to a lack of infrastructure in rural areas. Hence, to counter the milk chilling issues, many players are establishing milk chillers that run on renewable energy sources that are easy to install and provide needed infrastructure to maintain lower temperatures and the quality of the milk. This investment helps smoothen the dairy technology supply chain by initially cooling milk at the source.

• For instance, in August 2023, Prompt Group, an equipment and software services provider, launched renewable solar milk chillers (Milkochill) for the Sihori district of Rajasthan. The prompt group installed ten solar milk chillers with the World Wide Fund (WWF) to chill milk at the collection center.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on the Global Milk Tank Cooling SystemMarket


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis By Tank Type

In 2023, fully enclosed segment held the largest milk cooling tank system market share due to higher temperature bearing with the double jacketed shell in the dairy supply chain industry. The enclosed tanks provide better milk quality, protecting it from external contaminants and preventing spoilage, bacterization, and bitterness.

Furthermore, the silo segment is set to gain a fair momentum in the market owing to its prominent use in the dairy processing technology in bulk quantity.

Additionally, the open tanks segment records steady growth due to their increasing use in milk products and the ice cream industry.

• For instance, in February 2022, Swedish dairy Norrmejerier announced an investment for a sustainable milk cooling solution with the Wedholms CO2 series of milk cooling tanks. The initial order was for a 10,000-liter CO2 tank that cools the tank with recycled CO2.

Regional Analysis

The global milk tank cooling system market has been studied across five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

In 2023, the largest share was held by Asia Pacific due to rising rapid urbanization and growing disposable incomes of people, leading to a surge in dairy consumption. This fuels the demand for consistent milk tank cooling systems to preserve freshness and safety values from farm to consumer. The Asia Pacific region will experience the highest growth rate over the forecast period. The growth is primarily due to the increasing demand for fresh and hygienic milk from the last mile in South Korea, China, India, and Singapore.

North America has a mature dairy industry where the penetration of cooling technology has a strong presence with a robust emphasis on innovation. Advancements in milk tank cooling systems driven by AI are gaining massive traction in the region. These advancements drive the need for sustainable practices and operational efficiency across countries such as the U.S., Canada, and Mexico.

The European region is expected to show stagnant growth due to stringent regulations on dairy product quality and environmental sustainability. Moreover, supportive government initiatives and the promotion of energy-efficient dairy farming practices across the U.K., France, and Europe support the growing adoption of advanced cooling technologies in dairy technology.

The South America market is growing steadily due to the high adoption of advanced cooling technologies in dairy processing and milk product manufacturing. Additionally, the Middle East & Africa is stagnant due to less milk and footfall of the dairy processing industry.

Distribution of the Global Milk Tank Cooling System, By Region of Origin:

• North America – 23%


• South America – 13%


• Europe – 26%


• Middle East & Africa – 11%


• Asia Pacific – 27%

Key Players Covered

The key players in this market include SERAP Group, Paul Mueller Company, Danfoss, DeLaval, GEA Group, Wedholms, Bcast, Roka, Boumatic, Fabdec, STK Makina, Packo Cooling, Wenzhou Lihong Machinery Technology Co., Ltd., ETSCHIED GmBH, Drake Refrigeration Inc., and GPI Tanks.

Key Industry Developments

• April 2024: DeLaval, a prominent processing technology leader, announced a strategic partnership with SERAP Group, a globally recognized leader in manufacturing cooling tanks. The SERAP Group would fully own the product development, manufacturing, quality checks, and testing on a global scale. SERAP has manufacturing facilities in India, France, Brazil, and Mexico.


• April 2024: Wedholms, a prominent cooling technology group, introduced the first milk cooling tank in the European market, using CO2 as a refrigerant in a standard cooling solution through direct expansion. The tank is also compatible with revised F-gas regulations and is compliant with European regulations that would be in force from January 2025.