Drinking Milk Products: Developing a Two-tier Growth Strategy for Success

Strongest global growth for drinking milk products in 2014

Global demand for drinking milk products (DMP) is expected to grow by 4% in 2014 which is almost double the CAGR for the review period. This booming demand is fuelled by a number of factors including population growth, urbanisation and rising prosperity. However, demand factors differ dramatically by region.

Increasing drinking milk products in low consumption markets

The shift from loose (unpackaged) milk to packaged fresh drinking milk products will drive growth for raw dairy consumers, already used to milk as part of their diet. Manufacturers are likely to run awareness campaigns to educate consumers about the health benefits associated with fresh packaged milk as opposed to unpackaged products.

Marketing campaigns and product development to drive DMP

Adjusting flavour varieties to suit the different taste palates will be key strategies for driving market growth in markets such as India and Pakistan.

In countries such as China or Vietnam, milk is not part of the consumer diet. Therefore marketing efforts in China are aimed at introducing milk to consumers’ diets and educating these “first generation consumers” on the health benefits of packaged milk products.

Educating children is key here, the aim will be too encourage them to continue to drink milk products throughout their adult lives.

Adding value in dairy mature regions

Emphasising or enhancing the nutritious value of DMP, as well as convenience and indulgence, will allow unit price increases and further value growth, to counteract declining consumption patterns in mature markets.

As consumers are changing traditional consumption patterns of milk in favour of milk alternatives and lifestyle products such as breakfast drinks, product offerings should be adjusted accordingly.