INTERVIEW: Global Liquid Dairy Product Consumption Expected to Benefit from Changing Demographics.
Moving forward, Tetra Pak sees the momentum of LDP consumption growth continuing spurred mainly by increased demand in emerging economies. Ready-to-drink ambient LDP consumption, for instance, has benefitted from 8.7%, 7.1% and 6.9% compound annual growth rates in the Asia Pacific, Latin America and Africa respectively.
The Tetra Pak CEO also argued that urbanisation is a crucial factor in the demand for LDP. According to United Nations data, the number of people living in cities is expected to reach more than 6 billion by 2050. Jonsson adds that the urban population is better educated, more brand conscious and has a higher disposable income than its rural counterpart.
Jonsson added that China, which has significantly increased its milk and other dairy product consumption, will have for the first time in its history more people in cities than in rural areas by 2013. As a result, the potential for further per capita LDP consumption is huge.
At the same time, the global middle class is projected to grow from 430 million people in 2000 to 1.15 billion by 2030, highlighted the Tetra Pak CEO.
The Indian middle class could rise to 583 million people by 2025, 10 times the number of today. Besides, in China this same category is expected to increase from 43% of the total population to 76%, said Jonsson.
Jonsson went on to say that these consumers with increased purchasing power want and can afford other liquid dairy products, such as flavoured milk, to satisfy new food and drink preferences. In addition, dairy producers are introducing more and more value-added products such as enriched milk and drinking yoghurt for this growth category.
Jonsson commented: "The population in many countries will have more time, money and education than ever before. They'll also be more active and vibrant. As people live longer, they also plan their lives differently. Dairy producers who can meet the changing needs of this demographic segment will realise significant growth opportunities."
"It's a dynamic time in the dairy industry — with milk, as an affordable and nutritious staple, becoming part of the daily diet of more and more people around the world," added the CEO.
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|Date:||Jul 12, 2010|
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