Demand for liquid dairy products is expected to grow by 30%

GLOBAL demand for liquid dairy products (LDP) will grow by 30% from now to 2020, according to the latest market report by Tetra Pak.

The food packaging specialist expects global LDP sales to soar to 350 billion litres by 2020, with consumption increasing in every region of the world apart from Western Europe.

It says the most pronounced growth will occur in Asia, principally in China and India where LDP consumption is expected to account for more than 30% of global consumption by 2020.

The Conference Board, an independent global research group, expects China and India to account for more than 30% of global output by 2020.

Irish analysts are encouraged by the predicted growth in demand, but surprised by some aspects of the geographical spread of demand in some of the latest global reports on milk demand.

Peter Duggan of Bord Bia’s Strategic Information Services said: “It may come as a surprise that China and India could account for more than 30% of global output by 2020.

“While most of this growth hasn’t been realised yet, the urbanisation forecasts for both countries reflect the reality that consumers with greater spending power will be more willing to consume healthier, safer and more convenient foods.

“In the case of India, the distribution channel is changing from ‘loose milk’ (unpasteurised milk in large metal cans) to packaged white milk cartons. At the moment around half of India’s LDP sales are in the form of loose milk.

“This is projected to fall to 30% by 2020 as India becomes more urbanised, coupled with the fact that 41%, or 583 million of the population, will fall under the middle class bracket by 2025.”

In China, growth in LDP consumption is unsurprising given that urbanisation is set to grow two-thirds to one billion people by 2030, relative to 2008.