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APAC dairy packaging growth 7% CAGR

Tetra Pak boosts dairy carton growth

By Rachel Arthur+

03-Mar-2014
Last updated on 03-Mar-2014 at 12:43 GMT

Tetra Pak boosts dairy carton growth

Dairy containers are leading a global increase in food packaging, with growth in the sector driven by Asia and Latin America as milk-based products become more popular in these regions.  

Euromonitor International predicts dairy will see a ‘rapid increase’ in liquid carton and rigid packaging by 2017. Plastic containers are used for yoghurt, and brick liquid cartons are more in demand for flavoured milk drinks.

Milk in schools

Dairy was the largest unit volume growth category for packaging in 2013, with a sales volume of 465bn units.

Karine Dussimon, senior packaging analyst, Euromonitor, told DairyReporter.com the total dairy packaging in Asia Pacific has gone up by 7% CAGR [compound annual growth rate] in 2008-2013. It is predicted to further increase by CAGR 6% over 2013-2018, compared to 1% CAGR in north America.

There are several reasons behind this increase in demand for dairy and its packaging in Asia,” she said. “Governmental programs in China aiming to introduce milk into schools as a product with a healthy perception for children consumption."

This has benefited liquid cartons, with Tetra Pak taking part in the implementation of these programs and we expect liquid carton demand in China in the dairy category to grow by 7% CAGR 2013-2018.

Accelerated growth

Another example is dairies in remote areas of India are being organized into larger cooperatives. Rather than distributing loose milk in pails, packaged milk comes from a local store, Dussimon said.

Yoghurt categories have also benefited from this image of dairy products being largely healthy in this region, propelling thin wall plastic containers for spoonable varieties and HDPE bottles for drinking yoghurt,” she added.

Globally, food packaging volumes have continued to grow, reaching 1.8 trillion units in 2012, with a predicted 62bn unit increase for 2013, Euromonitor said. GDP growth is forecast to ‘accelerate’ again over 2013-2017.

Flexible packaging is the core of food packaging demand, accounting for 45% of total unit volumes in 2012. “Over the period to 2017, flexible packaging will see the largest volume growth, with a total of 192m extra units,” the report said.