June 2, 2009

Tetra Pak sees global growth in dairy consumption

Global consumption of milk and other liquid dairy products is expected to increase by a compound annual growth rate (CAGR) of 2.2 percent over the next three years, according to a report by Tetra Pak, a leading Swedish food processing and packaging company.

Milk is a basic food staple and global consumption will continue to be driven by continued growth in emerging markets and a shift toward consuming more packaged milk, said Dennis Jönsson, President and CEO of the Tetra Pak Group.

Emerging markets, such as China, India, Pakistan and the Middle East, account for nearly 96 percent of global consumption growth, the report said.

These markets are experiencing rapid growth in milk consumption due to growing population, rising incomes, new dietary trends and increasing awareness and availability of dairy products.

More than 31 percent of consumers are concerned over their financial status, according to recent research from GfK Roper consulting. This is prompting consumers to increasingly buy budget or private label brands when available, for example, sales of private label products in Western Europe represent nearly 36 percent of total white milk sales.

In view of the current economic climate, many consumers may substitute white milk for higher-priced dairy products or buy budget brands rather than premium brand, said Jonsson.

Even so, Tetra Pak expects the global dairy market to experience steady growth for the foreseeable future, he added.