Ageing populations, urbanisation and an emerging global middle class are driving demand for new types of liquid dairy products (LDP) in developed and developing countries, reports the Tetra Pak newsletter, which tracks worldwide facts, figures and trends in the global dairy industry. Among the trends the report details are:
The 60+ population is the fastest growing segment in every region of the world due to lower birth rates and higher life expectancy. Dairy producers in countries from Mexico to Greece to Indonesia are offering these consumers products such as milk fortified with calcium, vitamins and minerals that can help reduce cholesterol and protect against osteoporosis, all helping to maintain active lifestyles.
The number of people living in cities is expected to reach more than six billion by 2050 and they’re better educated, more brand-conscious and have higher disposable incomes than their rural counterparts, according to the United Nations.
Dairy producers are starting to cater their products to this group with value-added products such as enriched milk and drinking yogurt. Urbanisation is also changing distribution models. In Saudi Arabia, for example, dairy producers are now delivering LDP from the countryside to growing urban populations.
The global middle class is projected to grow from 430m people in 2000 to 1.15bn by 2030. These consumers want and can afford other liquid dairy products, such as flavoured milk, to satisfy new food and drink preferences. In China, for example, marketers exclusively target the country’s middle class with premium white milk products such as Milk Deluxe from MengNiu.
Tetra Pak president and CEO Dennis Jönsson said: “The population in many countries will have more time, money and education than ever before. They’ll also be more active and vibrant. As people live longer, they also plan their lives differently. Dairy producers who can meet the changing needs of this demographic segment will realise significant growth opportunities.”
Worldwide consumption of milk and other LDP is expected to grow at a compound annual growth rate (CAGR) of 2.4% from 2009 to 2012, reaching 283bn litres. This is up 0.2 percentage points compared to the previous forecast of 2.2% CAGR. Worldwide LDP consumption increased year-on-year by 1.8% to 264bn litres and demand has continued to be strong through the first half of 2010.
Driven primarily by ready to drink (RTD) ambient (or long-life) LDP – with a forecasted CAGR of 5.4% from 2009 to 2012 – global LDP consumption is expected to reach 283bn litres by 2012. The strongest growth in the RTD ambient LDP category is expected to come from Asia Pacific (8.7% CAGR), Latin America (7.1% CAGR) and Africa (6.9% CAGR).
Stronger-than-expected global consumption of ambient white milk – up 1.3% to 201bn litres year-on-year – contributed to the improved outlook for LDP consumption overall. Eastern Europe and Africa led the increase in the white milk category, with year-on-year growth of 6.6% and 6.0% respectively.
“It’s a dynamic time in the dairy industry, with milk as an affordable and nutritious staple becoming part of the daily diet of more and more people around the world,” said Dennis Jönsson.
© FoodBev Media Ltd 2020