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Tetra Pak is predicting 36 per cent growth for dairy consumption, but volatility will continue to be an issue for the world
Packaging giant Tetra Pak is predict- ing a 36 per cent increase in dairy consumption over the next decade, with demand being driven by emerging markets, according to its Dairy Index, now in its seventh year. This will amount to in excess of 710 million tonnes of liq- uid milk equivalent by 2024.
Population growth will be the prima- ry cause, with rising prosperity in and urbanization in places such as Africa, Asia and Latin America will cause demand to outstrip supply.
India alone should see a 120.3 per cent increase in liquid milk equivalent through 2024, with other countries such as Saudi Arabia showing a 52.2 per cent jump (see panel) and China increasing by a massive 78 per cent. As a result, prices will con- tinue to be driven up, and the report notes that the price drop seen this year "is not sustainable."
"Our industry is in the throes of tran- sition, with dairy companies increasing- ly looking beyond their own domestic markets to the wider global landscape, be it to source or to sell. It is a new, interconnected world, which we believe will present opportunity and challenge in equal measure," the report notes.
Developed markets
Developed dairy markets will continue to see their white milk consumption rate stagnate or drop. In Western Europe, white milk consumption dipped by 0.8 per cent from 2010 to 2013, and in the US, sales of milk are at their lowest level since 1984. Less than 50 per cent of adults now drink milk there and whole milk consumption has fallen by half over the last 30 years. An increasingly speedy lifestyle has also meant a decline in milk consumed with cereals.
In Australia,...