Flavoured milk healthy growth rate
Flavoured milk consumption is predicted to grow at more than double the rate of white milk globally between 2012 and 2015, according to new research from food processing and packaging company Tetra Pak.
Tetra Pak said that flavoured milk, which is currently the second most widely consumed Liquid Dairy Product (LDP) after white milk, is forecast to increase by a compound annual rate of 4.1 per cent between 2012 and 2013, rising from 17 billion litres to 19.2 billion litres. Developing countries will drive demand, according to the findings, with a growing number of new flavours and products focused on health.
Meanwhile, white milk is forecast to grow by just 1.7 per cent during the same period, from 208.5 billion litres in 2012 to 219.5 billion litres in 2015. Total LDP demand is set to grow by 2.4 per cent from 280.3 billion litres to 301.3 billion litres during this period, according to Tetra Pak research.
“With white milk increasingly commoditised, flavoured milk offers dairies the opportunity to provide value not only to consumers but to their bottom line,” said Dennis Jonsson, President and CEO of Tetra Pak Group. “With the right flavours, portion sizing and formulation, flavoured milk can meet a huge range of health, nutritional and lifestyle needs,” he said.
Reasons for flavoured milk growth
Tetra Pak said it had identified four drivers behind the rise in flavoured milk consumption.
- The desire for “nutritious and healthy food”, which is prompting consumers, particularly in developing countries, to turn to nutrient-rich milk products
- Urbanisation, rising prosperity and the “pace of modern life”, which has increased “on-the-go” consumption of ready-to-drink (RTD) flavoured milk in convenient portion packs
- Consumers’ eagerness to try new food and drinks
- Consumers seeking “indulgent” eating and drinking experiences as a way of “escaping the daily grind” during times of economic uncertainty
“People don’t mind spending a bit more for small indulgences when times are tough and they are making bigger sacrifices,” said Libby Costin, Tetra Pak Global Portfolio Marketing Director.
Flavoured milk will grow more than soft drinks
Though flavoured milk consumption is still lower compared to other beverages such as carbonated soft drinks, Tetra Pak said positive consumer perceptions about the health benefits of milk are creating opportunities to significantly increase flavoured milk consumption. The growth rate for flavoured milk consumption is expected to be more than triple that of carbonated soft drinks between 2012 and 2015.
During that period, carbonated soft drinks are forecast to grow by 1.3 per cent, compared with an estimated 4.1 per cent for flavoured milk.
Opportunity to appeal to adults too
Traditionally consumed by children who enjoy its taste, Tetra Pak said it sees scope for flavoured milk consumption to grow beyond children to teens and adults, and “beyond taste to reach the ‘sweet spot’ where taste and health meet”.
“For consumers unwilling to compromise on taste, health or convenience, flavoured milk is providing an increasingly popular alternative to other beverages,” said Mr Jonsson.
Growth by country
While demand for flavoured milk is forecast to rise globally, Tetra Pak said demand in developing countries – particularly across Asia and Latin America – is set to outpace that of developed countries in North America and Europ.
According to Tetra Pak’s findings, seven of the world’s top 10 flavoured milk markets are developing countries. China is the world’s largest flavoured milk market, followed by the US and India.
But increased demand for flavoured milk from 2009 to 2012 was mainly driven by four emerging countries: Brazil, China, India and Indonesia. This trend is set to continue from 2012 to 2015. Tetra Pak said that while developing countries accounted for 66 per cent of flavoured milk consumption in 2012, this is forecast to rise to 69 per cent by 2015.
China, India, Indonesia, Malaysia, the Philippines and Thailand currently account for 47 per cent of global flavoured milk consumption, according to Tetra Pak.
Cartons have become the established packaging format for flavoured milk, according to the findings. They accounted for 62 per cent of RTD flavoured milk packaging in 2012, up from 57 per cent in 2009, and are expected to rise above 64 per cent in 2015. Portion packs are expected to account for 81 per cent of RTD flavoured milk consumption by 2015.
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This article was originally written by Adian Fortune, GlobalMeatNews.com editor, on 25th June 2019....