Tetra Pak predicts 36% growth for dairy
Packaging giant Tetra Pak is predicting a 36% increase in dairy consumption over the next decade, with demand being driven by emerging markets, according to its Dairy Index, now in its seventh year. India alone should see a 120.3% increase in liquid milk equivalent through 2024, with other countries such as Saudi Arabia showing a 52.2% jump and China increasing by a massive 78%. As a result, prices will continue to be driven up, and it notes that the price drop seen this year “is not sustainable.”
That being said, developed dairy markets will continue to see its white milk consumption rate stagnate or drop. In western Europe, white milk consumption dipped by 0.8% from 2010 to 2013, and in the US, sales of milk are at their lowest level since 1984.
However, the international trade in milk and milk powder is roaring ahead. China and Russia are two of the top importers of milk and milk powder, while New Zealand and the US are strong exporters.
Tetra Pak notes that there are huge opportunities for milk surplus countries, seeing it as “an opportunity for developed dairy markets to export higher-value branded UHT.” EU countries are expected to increase their raw milk production by 11% through 2023, for example. There are also opportunities in added-value, where countries such as the US are boosting drinking yogurt consumption by 5.4% by 2016, Tetra Pak predicts.
“The dairy industry is facing a new world order in which it must tackle the challenges and opportunities posed by globalisation… The reaction of dairy companies over the next few years will have a significant and long-term impact on the future of the global dairy market,” the report concludes.
