Are you ready for some good news regarding dairy’s outlook? Here you go. Changing demographics will have an impact on the types of dairy products people consume and how they consume them, providing new growth opportunities for the dairy industry, according to the latest edition of the Tetra Pak Dairy Index.
Aging populations, urbanization and an emerging global middle class are driving demand for new types of liquid dairy products in both developed and developing countries, reports the Tetra Pak newsletter, which tracks worldwide facts, figures and trends in the global dairy industry.
Among the trends the report details are:
- An aging population drives demand for healthy products. The 60-years-plus population is the fastest growing segment in every region of the world due to lower birth rates and higher life expectancy.
- Urbanization changes consumer preferences and impacts distribution of liquid dairy products. The number of people living in cities is expected to reach more than 6 billion by 2050 and they are better educated, more brand conscious and have higher disposable incomes than their rural counterparts, according to the United Nations.
- Emerging middle class enjoys new purchasing power. The global middle class is projected to grow from 430 million people in 2000 to 1.15 billion by 2030. These consumers want and can afford other liquid dairy products, such as flavored milk, to satisfy new food and drink preferences.
Meanwhile, worldwide consumption of milk and other liquid dairy products is expected to grow at a compound annual growth rate (CAGR) of 2.4 percent from 2009 to 2012, reaching 283 billion liters. This is up 0.2 percentage points compared to the previous forecast of 2.2 percent CAGR.
Source: Tetra Pak