PETALING JAYA: An emerging middle class, mainly in developing countries in Asia, Africa and Latin America, is set to fuel demand for consumption of milk and other liquid dairy products (LDP) by 30% to 350 billion litres by 2020 from 270 billion litres last year.
Demand for LDP would rise in every region of the world during the decade, with the exception of Western Europe, which already had the world highest per capita consumption of milk, it was revealed in the Tetra Pak Dairy Index.
Tetra Pak is the world’s leading food processing and packaging solutions company.
“The liquid dairy class boom reflects a growing shift in economic power from west to east.
“An emerging middle class is set to fuel demand for healthy, packaged products in supermarkets and convenience stores from Shanghai to Mumbai,” Tetra Pak (Malaysia) Sdn Bhd’s marketing and product management director, John Jose, told a press conference here yesterday.
Specifically, he said continuing population growth in India, the world’s largest consumer of milk, and an increasing popularity of milk and other liquid dairy products in China meant that by the end of the decade, both countries were expected to account for more than a third of the world’s total LDP consumption, with the Asia-Pacific region consuming more than the rest of the world.
The Asia Pacific LDP consumption will climb by almost 45% from slightly below 140 billion litres in 2010 to almost 200 billion litres by 2020. — Bernama
In addition, the Asia Pacific’s total global market share would grow by at least five percentage points between 2010 and 2020 to above 55 per cent, Jose said.
Tetra Pak (Malaysia) marketing manager, Noer Wellington said LDP consumption has been consistent in Malaysia, with a compounded annual growth rate (CAGR) of three per cent from 2008 to 2010. “The leading factors for the growth of LDP consumption in Malaysia mirror global trends. “Tetra Pak is looking at similar growth of two to three per cent till 2014 in Malaysia,” he added.
He said with increased urbanisation and rise of the middle class, convenience has become a main factor for consumers to shift towards ready to drink (RTD) liquid dairy products.
Wellington said the RTD liquid dairy products marketed in Malaysia recorded a CAGR of seven per cent from 2008 to 2010. “For the Malaysian market, Tetra Pak produces about 400 million packages of all sizes annually and this is expected to grow by 10 per cent,” he added. — Bernama