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Tetra Pak Dairy Index 4

Tetra Pak Dairy Index predicts 10-year African dairy boom

Tetra Pak, the global food processing and packaging giant, has released the fourth annual Dairy Index that this year indicates a decade-long dairy boom and a surge in African consumption of almost 50%.

Emerging and developing markets are projected to account for more than 60% of world output in 2020, compared to a 40% contribution by advanced economies. Africa alone will see significant growth in liquid dairy products consumption, which will climb from around 15 billion litres in 2010 to almost 25 billion litres in 2020.

“There’s a new generation of educated, upwardly mobile consumers who are unlocking exciting possibilities for the dairy industry to provide distinctive, convenient and diversified new products,” says Dennis Jönsson, president and CEO of Tetra Pak Group.

“Africa’s emerging economies – and their growing and increasingly prosperous urban populations – consume an ever-increasing share of the world’s liquid dairy products,” says Rae McGraw, Tetra Pak’s marketing director, Southern Africa. Dairy producers have a unique opportunity too in that in developing countries up to 50% of food spoils before it reaches the consumer, according to the report.”

The Tetra Pak Dairy Index is an annual report designed to help dairy producers identify new opportunities for growth while offering all industry watchers information on the latest facts, figures and trends related to the global dairy industry.

The latest report also indicates that the focus on food safety and long-term health is expected to sharpen, with educated consumers empowered by communications technology to research the origin and benefits of what they eat and drink. Convenience will be paramount as more of the world’s population migrates to big, bustling cities. Mobility, both social and geographic, will shape the demands of consumers.

The report found that global demand for liquid dairy products set to surge by 30% from 2010 to 2020. It also forecasts that by 2014, packaged milk will outsell “loose” milk in the developing world for the first time, as economic growth and city living spur demand for healthy and convenient products. Sustainability will become a central issue as demand for resources puts pressure on the environment and increases the need for technological innovation.

This shift is expected to mark a turning point in white milk consumption for millions of people around the world. Global demand for all forms of liquid dairy products – white milk, flavoured milk, drinking yoghurt, sweetened condensed milk, lactic acid drinks, and baby and toddler milk – will grow from some 270 billion litres in 2010 to 350 billion litres by 2020.

The data contained in the report are collected from a variety of Tetra Pak and external sources and analysed by Tetra Pak’s dairy market experts. The Dairy Index also includes Tetra Pak’s analysis of the industry based on its day-to-day work with dairy customers, governments, NGOs and local communities around the world supporting every aspect of the dairy value chain.

Download the fourth Tetra Pak Dairy Index