New research from Tetra Pak, the world’s leading food processing and packaging company, forecasts flavoured milk consumption will grow at more than double the rate of white milk globally between 2012 and 2015.
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.
Flavoured milk, the second most widely consumed Liquid Dairy Product (LDP) after white milk, is forecast to increase by a compound annual rate (CAGR) of 4.1% between 2012 and 2015, rising from 17.0bn litres to 19.2bn litres.
Developing countries will drive demand amidst a growing number of new flavours and products focused on health. White milk is forecast to grow by 1.7% (CAGR) during the same period – from 208.5bn litres in 2012 to 219.5bn litres in 2015. Total LDP demand is set to grow by 2.4% from 280.3bn litres to 301.3bn litres during this period, according to Tetra Pak research.
“With white milk increasingly commoditized, 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. “With the right flavours, portion sizing and formulation, flavoured milk can meet a huge range of health, nutritional and lifestyle needs.”
Tetra Pak has identified four drivers fuelling the rise in flavoured milk consumption: first, the desire for nutritious and healthy food, which is prompting consumers, particularly in developing countries, to turn to nutrient-rich milk products. Second, 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. Third, consumers’ eagerness to try new food and drinks, with flavoured milk well-poised to meet that need. And fourth, 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, global portfolio marketing director.