Dairy Product Growth of 2.2% Projected through 2012

Dairy product consumption, including ambient milk and other ambient liquid dairy products (LDP), across developed markets worldwide, is projected to grow by 0.6% from 2008 to 2009. The latest edition of the Tetra Pak Dairy Index (Lausanne, Switzerland), which tracks worldwide facts, figures, and trends in the dairy industry, notes that this growth comes during a period of worldwide economic recession, with total LDP consumption (ambient and chilled) in developed markets expected to dip by 1.2% from 2008 to 2009.

"Although the recession has affected many sectors, it has not affected milk and liquid dairy consumption in the same way," said Dennis Jönsson, president and CEO, Tetra Pak Group. "Milk is a healthy, nutritious and affordable food staple, which 44% of the world's population drinks every day. While we have seen some consumers 'trade down' to less expensive products in the category, the market remains stable."

According to the Tetra Pak Dairy Index released this past week, total global consumption of milk and other LDP is expected to grow by 1.3% from 2008 to 2009. By the end of 2009, worldwide consumption of LDP is expected to reach 263 billion liters, up from 259 billion liters in 2008. This figure increases to 284 billion liters when soy milk and other dairy alternatives such as rice, nut, and seed-based milks are included.

Tetra Pak is forecasting that total global LDP consumption will grow at a compound annual growth rate (CAGR) of 2.2% from 2009 to 2012, in line with its projection earlier this year. Much of this growth will be led by developing markets, which have driven 95.8% of global LDP consumption growth from 2005 to 2008 due to factors such as population growth, rising incomes, and the relative novelty of liquid dairy products. The Tetra Pak Dairy Index can be downloaded on Tetra Pak's web site.