October 2, 2014

Dairy consumption seen to rise by 36% in 2024

In ten years' time world consumption of dairy products is forecast to rise by 36%, and demand will outstrip supply, the latest Tetra Pak Dairy Index says.

Tetra Pak says this significant increase will be due to population growth, rising prosperity and urbanization in Asia, Latin America and Africa.

It says the rising demand in emerging dairy markets may not be fulfilled by locally produced raw milk.

The developed dairy markets with milk surplus will face the challenges of competing for export and responding to falling consumption in their own territories, the Dairy Index says.

Dennis Jönsson, president and CEO of Tetra Pak Group, says that while the increased global demand offers a huge export opportunity for dairy companies in developed markets, they need to "balance the 'quick wins' of export against the requirement to continue to grow their domestic markets".

They also need to overcome the challenge of ensuring sustainable, high-quality milk supplies despite growing demand, he adds.

Already, he says, China and Saudi Arabia are taking this step by increasing investments in domestic dairy farming, partnering with reputable foreign companies, and adding value to their products. "Fundamentally, these are measures that will help to achieve the vital balancing act of shoring up the future of a sustainable dairy industry."