Flavoured Milk
Inside
Letter from the CEO
Driving Growth and Value:
Flavoured Milk
Market Spotlights:
USA
Indonesia
China
Letter from
the CEO
Dear Readers,
Prosperity, urbanisation and the mobile telecommunications
revolution have empowered consumers to make increasingly
informed choices about what they eat and drink. The sixth
Tetra Pak Dairy Index focuses on flavoured milk, which is
poised to become one of the growth engines of our industry
by the middle of the decade. For consumers unwilling to
compromise on taste, health or convenience, flavoured milk is
proving an ever more popular alternative to other beverages.
Although consumption of flavoured milk globally remains
low relative to white milk, carbonated soft drinks and fruitflavoured still drinks, demand for flavoured milk has truly
taken off. Flavoured milk - the second most widely consumed
liquid dairy product (LDP) after white milk - is expected to
enjoy compound annual growth rates of at least double those
of white milk and more than triple those of carbonated soft
drinks between 2012 and 2015.
Growing demand for flavoured milk reflects shifting consumer
preferences in a dynamic and globalized world. While
flavoured milk has traditionally been consumed by kids who
enjoy its taste, Tetra Pak has identified opportunities to
significantly broaden and deepen its appeal.
That means going beyond kids to teens and adults, and
beyond taste to hit the sweet spot where taste and health
meet. Flavoured milk is an excellent vehicle to drive liquid
dairy consumption across the generations and at different
consumption occasions.
Whether they live in Seattle or Shanghai, Milan or Mumbai,
consumers are seeking flavoured milk products which make
their lives easier and better as their lifestyles change. Given
its convenience, taste and nutritional profile, flavoured milk is
emerging as a beverage to be enjoyed by everyone, anytime,
anywhere.
Whether its as a breakfast-replacement, a post-workout drink
or for a spot of indulgence, flavoured milk is enhancing the
consumer experience of liquid dairy products. It is offering
variety, versatility and adding value.
Flavoured
Milk
3
Window of opportunity
Today, white milk accounts for roughly 70% of LDP
consumption. Tetra Pak research shows that white milk is
heavily consumed by children aged 3-12, after which milk
consumption starts decreasing with age. Moreover, a majority
of milk consumption happens during breakfast and then
tapers off as the day progresses.
In this context, flavoured milk can be an excellent vehicle to
drive consumption from an early age through adolescence
and into adulthood, according to Tetra Pak. It can help
expand consumption occasions beyond breakfast, serving as
a snack, energiser or meal accompaniment. And it can help
dairy companies find the sweet spot encompassing both
health and taste.
Consumption of flavoured milk globally remains low relative
to white milk, carbonated soft drinks and fruit-flavoured still
drinks, further highlighting its growth potential, according
to Tetra Pak. In 2012, the average person globally consumed
32.7 litres of white milk, compared to 2.7 litres of flavoured
milk, Tetra Pak figures show. Average per capita consumption
of carbonated soft drinks was 32.7 litres, 12.4 litres for fruitflavoured still drinks and 6.3 litres for tea-based drinks.
We see a real opportunity to widen and deepen the appeal
of flavoured milk across consumer segments, to increase
consumption occasions and to leverage the healthy profile of
flavoured milk, said Dennis Jnsson, President and CEO of
Tetra Pak Group. Flavoured milk is enormously versatile and
adaptable to different palates, cultures and generations.
With plain white milk increasingly commoditized, flavoured
milk offers dairies an opportunity to provide value not only to
consumers but also to their bottom line, said Jnsson.
208.5
White Milk
17.0
Flavoured Milk
9.5
7.7
Drinking Yoghurt
3.8
Liquid Cream
2.3
2.1
Buttermilk
1.6
Evaporated Milk
1,7%
4,1%
2,8%
4,5%
1,7%
2,6%
4,3%
1,2%
0%
1%
2%
3%
4%
5%
6%
Consumption of flavoured milk globally remains low relative to other impulse beverages
140
Per Capita Consumption, 2012
Litres per annum by Geographies
120
CSD
FM
100
80
White Milk
60
40
20
Eastern Europe
Western Europe
North America
Latin America
Asia - Pacific
Africa
7.4%
15.2%
Eastern
Europe
0.3 Bio L
Western
Europe
63.6%
1.3 Bio L
North
America
2.6 Bio L
3.1%
8.8%
Latin
America
Africa
0.5 Bio L
Asia
Pacific
10.8 Bio L
1.5 Bio L
Facing challenges
While growing demand for flavoured milk is creating
opportunities for dairies, it is also presenting some challenges.
Health-conscious consumers
5.3%
Flavoured
Milk
4.1%
Protein as
1 1/2 medium eggs
Potassium as
one small banana
2012 - 2015
2009 - 2012
Vitamin A as
3/4 cup of broccoli
Riboflavin as
1/3 cup of
whole almonds
An 8-ounce
serving of
milk, flavored
or not, gives
kids as much..
Vitamin D as
3/4 ounce of
cooked salmon
1.3%
Niacin as
10 cherry tomatoes
1.3%
Vitamin B-12 as
3 ounces of turkey
Calcium as
10 cups of raw spinach
Phosphorus as
1 cup of canned kidney beans
-5%
Milks nine essential nutrients can help kids and teens grow healthy and strong.
Calcium
Protein 8 g, 16% DV
Phosphorus
0%
5%
10%
15%
USDA National Nutrient Database for Standard Reference, Release 23, 24.
Percent Daily Values reflect current nutrition recommendations for a 2,000 calorie per day diet.
**As niacin equivalents.
2012 Americas Milk Processors.
got milk? is a registered trademark of the California Milk Processor Board.
MilkPEP_Rethink+NineEssential Handout.indd 2
Carbonated
Soft
Drinks
2/24/12 9:52 AM
0.5
Brazil
4.2
China
0.9
Indonesia
1.2
India
0.6
Thailand
0.3
Philippines
0.6
Malaysia
0.4
Germany
2.3
USA
0.8
Japan
14,5%
9,9%
8,9%
5,6%
5,4%
3,7%
3,1%
1,7%
1,0%
0,3%
0%
5%
10%
15%
10
11
12
13
14
15
Country
Spotlight
16
USA
17
Country
Spotlight
18
almost quadruple that rate for ambient RTD liquid dairy, with
growth of 10% in the same period, Tetra Pak research shows.
Indonesia
19
Country
Spotlight
20
Other
countries
25%
30%
Philippines
Germany
2%
2%
3%
CHINA
14%
USA
4%
Brazil
4%
Thailand
5%
5%
Malaysia
Japan
7%
India
Indonesia
China
21