Tetra Pak, the global food processing and packaging solutions company, released its fourth annual Dairy Index on 11 July. The report reflects a decade-long dairy boom and a surge in African consumption of almost 50 per cent, according to Dennis Jönsson, president and CEO of the Tetra Pak Group.
The Tetra Pak Dairy Index is an annual report designed to help dairy producers identify new opportunities for growth while offering information on the latest facts, figures and trends related to the global dairy industry.
The report found global demand for liquid dairy products set to surge by 30 per cent from 2010 to 2020. It also forecast that by 2014, packaged milk would outsell ‘loose’ milk in the developing world for the first time, as economic growth and city living continued to spur demand for healthy and convenient products.
‘There’s a new generation of educated, upwardly mobile consumers who are unlocking exciting possibilities for the dairy industry to provide distinctive, convenient and diversified new products,’ said Jönsson.
This shift is expected to mark a turning point in white milk consumption for millions of people around the world. Global demand for all forms of liquid dairy products – white milk, flavoured milk, drinking yoghurt, sweetened condensed milk, lactic acid drinks, and baby and toddler milk – will grow from some 270 billion litres in 2010 to 350 billion litres by 2020.
Emerging and developing markets are projected to account for more than 60 per cent of world output in 2020, compared to a 40 per cent contribution by advanced economies. Africa alone will see significant growth in liquid dairy products consumption, which will climb from around 15 billion litres in 2010 to almost 25 billion litres in 2020.
‘Africa’s emerging economies – and their growing and increasingly prosperous urban populations –consume an ever-increasing share of the world’s liquid dairy products,’ added Rae McGraw, Tetra Pak’s marketing director, southern Africa. ‘Dairy producers have a unique opportunity too, in that in developing countries up to 50 per cent of food spoils before it reaches the consumer.’
The latest report indicates the focus on food safety and long-term health is expected to sharpen, with educated consumers empowered by communications technology enabling them to research the origin and benefits of what they eat and drink.
The convenience foods trend will be paramount as more of the world’s population migrates to big cities. Mobility, both social and geographic, will shape the demands of consumers.
Sustainability will become a central issue as demand for resources puts pressure on the environment and increases the need for technological innovation.
The data contained in the report is collected from a variety of Tetra Pak and external sources and analysed by Tetra Pak’s dairy market experts. The Dairy Index also includes Tetra Pak’s analysis of the industry based on its day-to-day work with dairy customers, governments, non-governmental organisations and local communities around the world supporting every aspect of the dairy value chain. To read more go to www.tetrapak.com/about_tetra_pak/press_room/news/Pages/TetraPakDairyIndex_4.aspx
