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Changing Demographics Key To Global Dairy Growth

28 September 2010

GENERAL - According to the latest biannual edition of the Tetra Pak Dairy index, changing global demographics will have an impact on dairy products consumed, which in turn should create opportunities for the global dairy industry.

The change in global demographics can be broken down into three separate drivers:

  1. Ageing Population
  2. Urbanisation
  3. Emerging Global Middle Class

Ageing Population

Tetra Pak identified the 60 plus age group as the fastest growing segment in every region of the world, due to lower birth rates and longer life expectancy. This age category is responsive to food safety issues, viewing food as a treat, anti ageing products and preventative health measures.

Urbanisation

By 2050, the number of people expected to dwell in urban regions is expected to grow by 85 per cent to six billion people, with regions like Asia and Africa driving this growth. This shift from rural to urban areas is expected to lead to increased consumption of liquid dairy products as city dwellers possess higher amounts of disposable income along with having greater brand awareness.

Emerging Middle Class

As developing regions throughout the world prosper, Tetra Pak estimate that the global middle class could grow by 167 per cent to 1.15 billion people by 2030, based on year 2000 figures. In particular countries like India, China and Brazil expect significant growth.


Significant opportunities are likely for the global dairy industry from these trends. Some dairy processors will look to the emerging middle class or different age categories for growth. On the other hand, dairy producers may tap into the lower segment of the “income population pyramid” provided the entry price to the market is right according to Tetra Pak. Global liquid dairy product consumption is set to increase by 2.4 per cent per annum from 2009 to 2012.

TheCattleSite News Desk



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