Flavoured milk to spur dairy industry growth
New 
research from Tetra Pak forecasts that flavoured milk consumption will grow at more than double the rate of white milk globally between 2012 and 2015. The second most widely consumed Liquid Dairy Product (LDP) after white milk, flavoured milk is forecast to increase by a compound annual rate (CAGR) of 4.1% between the three years, rising from 17.0 billion litres to 19.2 billion litres. Developing countries will drive demand amidst a growing number of new flavours and products focused on health, whilst white milk is also forecast to grow by 1.7% (CAGR) during the same period – from 208.5 billion litres in 2012 to 219.5 billion litres in 2015. According to Tetra Pak research, Total LDP demand is set to grow by 2.4% from 280.3 billion litres to 301.3 billion litres during the same period.
“With white milk increasingly commoditised, flavoured milk offers dairies the opportunity to provide value not only to consumers but to their bottom line,” comments 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: firstly, the desire for nutritious and healthy food, which is prompting consumers – particularly those in developing countries – to turn to nutrient-rich milk products; secondly, 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; thirdly, consumers’ eagerness to try new food and drinks, with flavoured milk well-poised to meet that need; and finally, consumers are seeking ‘indulgent’ eating and drinking experiences as a way of escaping the daily grind during times of economic uncertainty.
Though flavoured milk consumption is still low compared to other beverages, such as carbonated soft drinks, positive consumer perceptions about the health benefits of milk are creating opportunities to significantly increase flavoured milk consumption, according to Tetra Pak. 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.
