Got flavoured milk?

THE CONSUMPTION of flavoured milk worldwide looks set to grow by more than twice the rate of white milk. The latest report from food processing and packaging company, Tetra Pak, reveals a surge in demand for the ready-to-drink type. A major contributor is Asia, which accounts for nearly half of global consumption.

The 6th Tetra Pak Dairy Index, which covers up to 2015, attributes the growth mainly to consumers’ switching to healthier and conveniently packaged flavoured milk as an alternative to other beverages. Needless to say, this trend opens more opportunities for dairy companies to improve profits.

Flavoured milk is the second most widely consumed Liquid Dairy Product (LDP). It is forecast to increase globally by a compound annual rate (CAGR) of 4.1% between 2012 and 2015, rising from 17.0 billion litres to 19.2 billion litres.

Demand will come from developing countries, which will increase as more new flavours and products focus on health. White milk, which is the mostly widely consumed LDP, is expected to grow by 1.7% (CAGR) 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% from 280.3 billion litres to 301.3 billion litres during this period.

“With  white  milk  increasingly commoditised, flavoured milk offers dairies the opportunity to provide value not only to consumers but to their bottom line.”  

—Dennis J?nsson, president and CEO of Tetra Pak Group.

“With  white  milk  increasingly commoditised, flavoured milk offers dairies the opportunity to provide value not only to consumers but to their bottom line,” says Dennis J?nsson, 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.”

When compared to other beverages, such as carbonated soft drinks, worldwide consumption of flavoured milk is still low, but 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 in 2012-2015. During that period carbonated soft drinks are forecast to grow by 1.3% (CAGR) compared with an estimated of 4.1% (CAGR) for flavoured milk.

The lure of flavour

Commenting on the expected growth in flavoured milk consumption, Mr J?nsson says, “For consumers unwilling to compromise on taste, health or convenience, flavoured milk is proving an increasingly popular alternative to other beverages.”

Tetra Pak has identified the top main reasons driving consumption of flavoured milk:

? The trend toward healthy eating means consumers, especially in developing countries, are choosing nutrient-rich milk products to stay fit

? Urbanisation, rising prosperity and the pace of modern life have increased ‘on-the-go’ consumption of ready-to-drink (RTD) flavoured milk in convenient portion packs

? Consumers’ eagerness to try new food and drinks, includes flavoured milk

? Consumers seek ‘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,” explains Libby Costin, Global Portfolio marketing director. 

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