The rising demand for flavoured milk, the second most consumed liquid dairy product after white milk, would spur growth for dairy companies in countries such as India and China, according to a study by Tetra Pak, the food processing and packaging solutions firm.
The study reveals that developing countries including China, India, Indonesia and Brazil will drive the demand for flavoured milk globally over the next three years. The consumption of flavoured milk globally will grow at more than double the rate of white milk by 2015.
The flavoured milk is expected to grow by 4.1 per cent at a compounded annual growth rate (CAGR) between 2012 and 2015, outpacing the forecasted growth of 1.7 per cent for white milk and 2.4 per cent for liquid dairy products as a whole during the same period, Tetra Pak said. Consumers are increasingly turning to tasty, nutritious and conveniently packaged flavoured milk as an alternative to other beverages, creating opportunities for dairies to improve profitability, Tetra Pak said.
“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 Jönsson, President and CEO of Tetra Pak Group, in a statement. “With the right flavours, portion sizing and formulation, flavoured milk can meet a huge range of health, nutritional and lifestyle needs.”
In India, the increase in flavoured milk consumption will be spurred by economic growth, urbanisation and rising prosperity, said Kandarp Singh, Managing Director of Tetra Pak South Asia Markets.
“On-the-go lifestyles in India’s thriving cities have triggered increased consumption of ready-to-drink ambient milk, including flavoured milk. Children and teenagers consume the majority of packed flavoured milk in India, at home or in school, with parents opting to buy flavoured milk because they value its nutritional benefits and its taste appeal to young consumers.
While consumption of white milk is prevalent in almost 100 per cent of the households across India, consumption of flavoured milk still has plenty of room to grow.”