Globe Gets Thirsty for Milk Drinks

GLOBE - Global consumption of milk drinks has risen by 13% from 214 billion litres in 2002 to 242 billion litres in 2007, according to a new report from leading food and drink consultancy Zenith International.
calendar icon 16 September 2008
clock icon 2 minute read

“Asia has seen the most consistent growth, mainly due to booming demand in China,” commented Zenith Dairy Market Intelligence Manager Esther Renfrew. “Consumption in Asia/Australasia has increased from 18.3 litres per person in 2002 to 22.9 litres in 2007.” Milk sales have also advanced, but at a slower rate, in more developed markets.

Flavoured milk accounted for 4.7% of global milk drink volume in 2007, growing fastest is the Middle East, where it has a share of 8.5%. In the past five years, flavoured milk volumes have grown by 2% in West Europe and by more than 10% in Latin America.

The Zenith report identifies a number of economic factors influencing the global milk drinks market, including:

  • demand and supply instability creating uncertainty over prices
  • industry consolidation, leading to the emergence of stronger international leaders and
  • free trade impediments from subsidies, quotas, price fixing and tariffs, such that only 7% of world milk production is traded internationally.

In order to meet growing competition from other drinks, particularly in developed countries, producers have increasingly focused on adding functionality - in one year, over 2,300 new functional dairy drinks were launched. Although functional milk drinks are still a niche segment, volumes are growing fast.

Zenith’s 2008 Global Milk Drinks report also finds that:

  • Asia/Australasia was responsible for 35% of global milk drinks consumption in 2007, followed by West Europe on 16.5% and Latin America with 13%.
  • India topped the national leaderboard at 37,000 million litres in 2007.
  • The United States was the leading market for flavoured milk at 1,600 million litres.
  • Global milk drinks volumes are forecast to rise by 19% in the five years to 2012.

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