Asia Pacific to lead global demand for dairy products

KUALA LUMPUR: A growing middle class population in Asia, Africa and Latin America is driving demand for dairy products globally and consumption is seen growing 30 per cent over the 10 years to 2020.

The main driver will be the Asia Pacific region, expected to grow 45 per cent to almost 200 billion litres in 2020, said food processing and packaging company Tetra Pak in its fourth Dairy Index.

Global demand for white milk and other liquid dairy products (OLDP) which include flavoured milk, drinking yoghurt, sweetened condensed milk, lactic acid drinks and infant milk is due to grow to 350 billion liters in 2020 from 270 billion liters in 2010.

"The liquid dairy boom reflects a growing shift in economic power. An emerging middle class is set to fuel demand for healthy, packaged products in supermarket and convenience stores from Shanghai to Mumbai," marketing and product management director John Jose.

"This growth means new innovative product packaging coming from Tetra Pak. It gives us more option to work with as dairy product producer will definitely launch a more dedicated, specialised and functional products in the market to meet demand," he said during a media briefing yesterday.

In Malaysia, dairy commands a quarter of total beverage consumed in 2010 while liquid dairy products consumption has been consistent with a compounded annual growth rate (CAGR) of 3 per cent between 2008 and 2010.

But the growth lies in the ready-to-drink (RTD) liquid dairy segment that grew at a CAGR of 7 per cent over the same period.

The RTD carton packaging is also the most preferred packaging type for consumers with more than two thirds market share.

Another growing market is the smaller packs known as portion packs, a hit with children. This includes products like Dutch Lady Kids 125 ml, Dutch Lady School 200ml and Milo 125 ml.