Brazil boom predicted by Tetra Pak

Tetra Pak’s Dairy Index for 2011 shows global demand for dairy is not going to let up and will be booming through 2020, Tetra Pak CEO Dennis Jonsson says, in a recent telephone conference. He calls Brazil “one of the most impressive dairy developments in the world, where major investment is taking place. It is expanding across the entire country.”

In mature dairy regions, value-added segments are expected to have the most potential, Jonssen points out. However, liquid milk growth for Western Europe is expected to remain almost flat, about 0.3% compound annual growth rate. That being said, the average of western Europe and the US consumption will still be 80 litres per year by 2020.

The global rate of packaging milk will accelerate after 2014, Jonssen predicts. “We see big development in packaged dairy consumption in countries where there is little or no dairy consumption.” The arrival of a shopping culture in those countries will also have an effect. “Shopping has become a major activity for consumers. Indian and Brazilian consumers are the most brand conscious.”

China and India will continue to see improvements, and Africa will move to a larger share of packaged milk. In China, the industry’s dairy problems have been tackled by the government there, and Jonssen notes that the Chinese are still consuming more liquid milk today than they were before the crisis. “Consumption has grown over the last three years from 20 litres per capita per year to 26 litres, and there is a very bright future ahead for the dairy industry there,” he says.

Other trends include the environment, Jonssen notes. “The environment is one of the top two concerns in 25 countries.”