The global food processing and packaging company said producers in both developed and emerging dairy markets need to address the careful balancing act required to ensure sustainable business success.
Tetra Pak's Dairy Index reveals that global demand for milk is set to surge by 36% in the next decade, largely due to population growth, rising prosperity and urbanisation in Africa, Asia and Latin America – also creating opportunities and challenges for the packaging sector.
The report found that despite increased pressures across Europe, for those operating in the UK, liquid dairy product consumption is actually growing, as consumer habits towards milk are evolving.
This has led to a high level of new dairy product launches such as snacks, breakfast drinks, caffè lattes, yoghurt drinks and indulgent milks.
Dennis Jonsson, president and chief executive of Tetra Pak Group, said the predicted surge in global demand offers an opportunity for dairy companies in developed markets to export powder and ambient liquid dairy products to growing economies.
"However, to ensure long-term success, these producers need to balance the 'quick wins' of export against the requirement to continue to grow their domestic markets.
"Meanwhile, dairy companies in import markets must overcome the challenge of securing a sustainable, high quality milk supply while keeping pace with growing demand.
He added that markets such as China and Saudi Arabia are doing so in multiple ways: increasing investment in domestic dairy farming, partnering with well-established foreign companies, and diversifying their offer with value-added products. "Fundamentally, these are measures that will help to achieve the vital balancing act of shoring up the future of a sustainable dairy industry."
Andrew Smith, Tetra Pak marketing manager for dairy in the UK, said: "We are starting to see the first signs of milk processors in UK really looking to capitalise on export opportunities for liquid milk. At the same time there is a continued need for the industry to make the most of changing consumer habits and a desire for value-added milk products.
