DENTON, Texas (PRNewswire) — Tetra Pak®, the world leader in food processing and packaging solutions, today releases its 7th Dairy Index. The report highlights the opportunities and challenges posed by rising global dairy demand, which is set to overtake the available supply over the next decade.
"The predicted surge in global demand offers a huge opportunity for dairy companies in developed markets like the U.S. to export powder and ambient liquid dairy products to growing economies," said Dennis Jönsson, president and CEO of Tetra Pak Group. "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."
Tetra Pak's Dairy Index reveals global demand for milk is set to surge by 36 percent in the next decade, largely due to population growth, rising prosperity and urbanization in Africa, Asia and Latin America. However, milk supply and demand is imbalanced across the world – rising demand in emerging dairy markets is unlikely to be fulfilled by locally produced raw milk, while developed dairy markets producing a milk surplus, such as the U.S., face the challenges of competing for the export and responding to falling domestic consumption.
Less than 50% of American adults now drink milk, driving 2013 U.S. milk sales to their lowest point since 1984. This decline in consumption presents additional export opportunities, with most growth expected to derive from growing markets such as Mexico and China. However, although there are significant opportunities to export, producers must not lose focus on the domestic market. Product diversification, innovation and brand differentiation will be crucial in the face of changing consumer demographics, behaviors and lifestyles.
Find more about the Tetra Pak Dairy Index, including previous editions, at: www.tetrapak.com/dairyindex
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 more than 23,000 employees based in over 80 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.