Changing Demographics to Provide Growth Opportunities for Dairy Industry – says latest Dairy Index

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Karachi, July 27, 2010: The latest issue of Dairy Index, a bi-annual newsletter which tracks facts, figures and trends in the global dairy industry has forecast that changing demographics are driving demand of liquid dairy products (LDP) in Pakistan. These demographics include an increasing urban population, more educated and sophisticated consumers, an emerging middle class and a larger group of younger consumers. Consumption of packaged LDP has grown by 19% per annum from 1999 to 2009. In 2009, LDP consumption reached 18.9 billion litres, keeping Pakistan firmly in position as the fourth largest LDP consumer in the world after India, China and the United States. 

First brought out in June 2009 by Tetra Pak, the Dairy Index is based on the company’s vast database (Compass) and unrivalled experience in tracking and analysing category consumption patterns and trends in more than 150 markets around the world. This information on world dairy, juice, nectars, still drinks and other categories is currently used primarily to present to industry stakeholders and policy planners. 

Mr. Azhar Ali Syed, Managing Director, Tetra Pak Pakistan adds, “With Pakistan’s population growing by 1.6% annually and total LDP consumption forecasted to grow even higher over the years, dairy industry in Pakistan is expected to remain strong. Milk has always played a central role in the Pakistani diet but with demographic changes driving new preferences, the era of nothing but plain, white, unpackaged milk is rapidly changing. Our dairy industry needs to understand these changes and leverage them as productive opportunities.” 

Dairy Index reports that over the last 10 years, the ratio of urban population in Pakistan has grown by 3 percentage points and as people move further away from dairy farms, availability and access to fresh, unpackaged milk is significantly impacted. Urbanisation has also created a more educated and sophisticated segment of consumers, which values the safety, hygiene and convenience of processed, packaged milk. From 2006 to 2009 alone, consumption of packaged LDP grew by 8.4%, per annum compared with unpackaged products which only grew by 2.1% per annum. 

Rising population of Pakistan is also increasing the number of people falling in the middle class category. These people can now afford more premium-priced products such as skimmed milk and ready-to-drink flavoured milk. Currently, 30% of Pakistan’s population is under 9 years of age and 53% is under 19 years. To appeal to these younger consumers, dairy producers in Pakistan have the opportunity to promote ready-to-drink flavoured milk products. According to Tetra Pak, flavoured milk represents only 2.5% of the LDP market in Pakistan. However, it grew by 79% per annum from 2007 to 2009 and is forecasted to grow by an additional 23.1% per annum from 2009 to 2012. 

About the Tetra Pak Dairy Index : The Tetra Pak Dairy Index is a biannual report which is designed to help dairy producers identify new opportunities for growth, while offering all industry watchers information on the latest facts, figures, and trends related to the global dairy industry. The data contained in this report is collected from a variety of Tetra Pak and external sources and analysed by Tetra Pak’s dairy market experts. The Tetra Pak Dairy Index also includes Tetra Pak’s analysis of the industry based on its day-to-day work with dairy customers, governments, non-governmental organisations and local communities around the world to support every aspect of the dairy value chain. 

NOTE TO EDITORS : To download the Tetra Pak Dairy Index please go to: http://www.tetrapak.com/dairyindex. Additional material, such as a CEO vodcast, graphs and photos are also available on this link from 12 July 2010. 

ABOUT TETRA PAK : Tetra Pak is the world's leading food processing and packaging solutions company. Working closely with our customers and suppliers, we provide safe, innovative and environmentally sound products that each day meet the needs of hundreds of millions of people in more than 170 countries around the world. With almost 22,000 employees based in over 85 countries, we believe in responsible industry leadership and a sustainable approach to business. Our motto, “PROTECTS WHAT’S GOOD™," reflects our vision to make food safe and available, everywhere. More information about Tetra Pak is available at www.tetrapak.com