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Flavoured milk spurs growth

Research from Tetra Pak shows flavoured milk consumption growing globally at more than double the rate of white milk. Consumers are increasingly turning to flavoured milk as an alternative to other beverages, creating opportunities for dairies to improve profitability.  

According to Tetra Pak’s sixth Dairy Index, 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-billion litres to 19,2-billion litres.  

White milk is forecast to grow by 1,7% (CAGR) during this period, from 208,5-billion litres in 2012 to 219,5-billion litres in 2015, while total LDP demand is set to grow by 2,4% from 280,3-billion litres to 301,3-billion litres.  

‘With white milk increasingly commoditised, flavoured milk offers dairies an opportunity to provide value to consumers and to their bottom lines,’ points out Dennis Jönsson, Tetra Pak’s president and CEO. ‘With the right flavours, portion sizing and formulation, flavoured milk meets many health, nutritional and lifestyle needs.’  

Four drivers fuelling the rise in flavoured milk consumption include the desire for nutritious and healthy food that’s prompting consumers, particularly in developing countries, to turn to nutrient-rich milk products; urbanisation, rising prosperity and the pace of modern life that 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, with flavoured milk well-poised to meet this need; and consumers’ seeking indulgent eating and drinking experiences as a way of escaping the daily grind during times of economic uncertainty.  

‘Flavoured milk consumption is low compared with  other beverages, such as carbonated soft drinks, yet positive perceptions about milk’s health benefits are creating opportunities for significant growth,’ adds Uros Kepic, Tetra Pak South Africa’s MD and cluster VP sub-Sahara Africa. The growth rate for flavoured milk consumption (4,1%) is expected to be more than triple that of carbonated soft drinks (1,3%) from 2012 to 2015.

According to Tetra Pak, cartons have become the established packaging format for flavoured milk, accounting for 62% of RTD flavoured milk packaging in 2012. This is up from 57% in 2009 and expected to rise to 64% in 2015. Portion packs are expected to reach 81% of RTD flavoured milk consumption.

The sixth Tetra Pak Dairy Index is available at www.tetrapak.com.

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