Tetra Pak Dairy Index 2015: The report and background
The Tetra Pak Index is an annual report, identifying consumer trends driving new growth opportunities for our customers around the world. It also offers industry watchers with information on the latest facts, figures and trends related to the global dairy and juice industries.
The data is collected from a variety of Tetra Pak and external sources and analysed by Tetra Pak market experts for the report.
Market Overview 2016
According to the Dairy Price Index of the Food and Agriculture Organisation (FAO) of the United Nations, prices rose for all dairy commodities that compose the Index, and in particular for cheese, whole milk powder and butter.
China continues to have the highest average milk price, at €50 per 100kg, closely followed by Canada. Argentina has seen the highest growth in milk price, with a 46% rise between August 2015 – August 2016, New Zealand is the next highest with a 22% rise.
Forecasts and Growth Drivers
- The total dairy category is forecast to grow by 2.3% CAGR in 2015 – 2018, compared to 1.7% between 2012 – 2015
- World per capita consumption for liquid dairy products (LDP) has grown marginally between 2012 and 2015 from 43.9 litres to 44.44 litres.
- Drinking yoghurt (5.7% CAGR) and baby & toddler milk (5.0%) represents the biggest growth drivers for 2015 – 2018, both being driven by the Asia Pacific market.
- Buttermilk (5.0% CAGR) and sweetened condensed milk (3.2% CAGR) are also forecast to grow between 2015 – 2018.
- Consumer interest in value added milk and pure milk continues. For example, lactose free white milk saw a 16% growth in Western Europe between 2012 – 2015, while there was a 30% growth in organic milk sales in Asia Pacific.
- The retail selling price of functional/fortified white milk versus standard white milk in Western Europe has seen growth of 52% in 2015
Consumer Trends
- Consumer demand for on the go products continues to grow and take hold. Snacking is a huge opportunity, especially in China where 74% of consumers are attracted to liquid snacking between meals – the highest proportion in the world.
- Breakfast is the most skipped meal of the day, with busy lifestyles and longer commutes 36% of adults (aged 20-34) regularly eat it on the go
- The popularity of ready to drink (RTD) sports nutrition products (such as those with added protein) achieved more than €1billion revenue in 2012 – 2015 and 13% CAGR
- In the ready to drink liquid dairy product (LDP) segment there was a total growth of 1.8% CAGR for 2012 – 2015 (180bio litres), with developing markets seeing a 4% increase (102.8bio litres) against a 0.9% reduction in developed markets (78bio litres)
