Consumers around the world are increasingly turning to flavoured milk as an alternative to other beverages, such as carbonated soft drinks, according to Tetra Pal's sixth annual Dairy Index report.
According to Tetra Pak, flavoured milk consumption is still low compared to other beverages. Positive consumer perceptions about the health benefits of milk have, however, led to a significant increase in flavoured milk consumption, the company added.
Speaking earlier today, Tetra Pak president and CEO, Dennis Jönsson, claimed that flavoured milk presents dairy processors with a real opportunity to “provide not only value to consumers but to their bottom line.”
He pinpointed RTD flavoured milk as “one of the growth engines to spur the dairy industry.”
“We see a bright future for flavoured milk,” said Jönsson. “It is a strong vehicle to help dairies move away from commodisation to added value and profitability.”
“Blend of health, taste, convenience and indulgence”
According to Tetra Pak, around 17bn litres of flavoured milk were consumed globally in 2012 – making it the second most widely consumed liquid dairy product (LDP) after white milk.
Global consumption of flavoured milk is forecast to increase by 4.1% to 19.2bn litres between 2012 and 2015.
In its Dairy Index report, which is designed to identify challenges and opportunities in the dairy sector, Tetra Pak identified four key drivers of this growth – desire for nutritious and healthy products, increasing prosperity in developing nations, consumer curiosity, and indulgence.
“It provides consumers with an excellent blend of health, taste, convenience and indulgence,” said Jönsson.
"It has the opportunity to expand its appeal beyond kids to teens and young adults.”
Emerging markets “growth engines” of the dairy industry
While demand for flavoured milk is forecast to increase globally, growth in emerging economies is "set to outpace" any increase in consumption in North American and Europe.
China currently leads the world in terms of flavoured milk consumption, followed closely by the US and India. Tetra Pak added that increased demand for flavoured milk from 2009 to 2012 was mainly driven by four emerging nations - Brazil, China, India and Indonesia.
This trend is expected to continue from 2012 to 2015 - a forecast that has led Tetra Pak to brand these emerging nations "the growth engines of the dairy industry."