Karachi, May 07, 2012: New research from Tetra Pak, the world’s
leading food processing and packaging company, has identified 2.7 billion low-income
consumers in developing countries as the global dairy industry’s next big growth
opportunity due to an expected rise in prosperity, purchasing power and desire
for packaged liquid dairy products (LDP).
Consumption by low-income consumers in
developing markets is forecast to increase from about 70 billion litres in 2011
to almost 80 billion litres in 2014, according to the Dairy Index, which tracks
worldwide facts, figures and trends in the global dairy industry. Many of these
consumers are expected to switch in coming years from drinking loose milk to
packaged milk.
“Low-income consumers represent one of the
biggest growth opportunities for the dairy industry. The key to tomorrow’s
success is reaching these consumers today,” said Tetra Pak President and CEO
Dennis Jönsson. “They make up almost 40% of the world’s population and live in
economies driving our industry’s growth and they are growing more affluent.”
These low-income consumers live on PKR 180 - 750
a day and are virtually untapped by today’s dairy processors. Called Deeper in
the Pyramid (DiP) consumers by Tetra Pak, they make up about 50% of developing
countries’ population and consume 38% of LDP in developing countries. The Tetra
Pak research focused on Pakistan, India, Indonesia, Brazil and Kenya which
together account for more than 76% of LDP consumption by DiP consumers in
developing countries.
Many DiP consumers are expected to grow in
affluence, shifting from low to middle incomes by the end of the decade,
boosting their purchasing power and the range of products they buy. As they gain the increase in spending power
along with greater awareness of food safety and a need for convenient,
ready-to- drink solutions is expected to increase the demand for packaged
products.
“Today’s low-income consumers are tomorrow’s middle
class,” said Azhar Ali Syed,
Managing Director Tetra Pak Pakistan, noting “this is a golden opportunity for
dairy processors to cultivate consumer loyalty among a new generation of dairy
consumers in developing countries such as Pakistan.”
Tapping into this market is not without its
challenges, according to the report. Tetra Pak has identified three key
challenges for dairy processors seeking to reach consumers in this growth
market. They need to make products which are affordable, available and
attractive to consumers on limited incomes. That means dairy processors must produce
healthy, safe and nutritious packaged dairy products without adding
unsustainable costs. They must also make them available in small traditional
stores in remote rural areas or congested cities where low income consumers
shop.
The fifth Tetra Pak Dairy
Index can be viewed in full at: www.tetrapk.com/dairyindex
(END)
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
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