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Tetra pak identifies low-income consumers in developing countriesas big opportunity for australian by grehh hernjer





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Tetra pak identifies low-income consumers in developing countriesas big opportunity for australian by
Article Posted: 04/11/2013
Article Views: 63
Articles Written: 1951
Word Count: 367
Article Votes: 0
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Tetra pak identifies low-income consumers in developing countriesas big opportunity for australian


 
Business,Business News,Business Opportunities
An expected rise in prosperity, purchasing power and desire forpackaged liquid dairy products among low-income consumers indeveloping countries is the Australian dairy industry s next biggrowth opportunity, according to new research from food processingand packaging company Tetra Pak. According to Tetra Pak's latest Dairy Index study,consumption by low-income consumers in developing markets isforecast to increase from about 70 billion litres in 2011 to almost80 billion litres in 2014. Many of these consumers are expected to switch in coming years fromdrinking loose milk to packaged milk. Tetra Pak's President and CEO, Dennis J nsson said theseconsumers make up almost 40 per cent of the world s population,live in economies driving the dairy industry s growth and aregrowing more affluent. According to the research, these low-income consumers live onAU$2-AU$8 a day and are virtually untapped by today s dairyprocessors.

Half of these consumers live in India and China. The Tetra Pak research focused on six countries which account formore than 76 per cent of liquid dairy product consumption bylow-income consumers in developing countries: India, China,Indonesia, Brazil, Pakistan and Kenya. Mr J nsson said that by using alternatives to whole milk suchas whey or lactic acid it is possible to produce nutritious andhealthy dairy products at lower cost. Another way is to reducepackage sizes or opt for more basic packaging. Around 70 per cent of low-income purchases are in the so-called‘traditional trade', small-family run shops rather thanmodern supermarkets or convenience stores.

Companies are coming upwith innovative ways to reach these consumers, Mr J nssonsaid. Companies need to generate significant sales to achieve theeconomies of scale required to provide value for money and qualitynutrition to low-income consumers, according to Tetra Pak. Liquid drink product growth to speed up in 2011-2014 Separately, Tetra Pak announced that liquid drink product demand isset to accelerate in 2011-2014, led by Asia, Africa and LatinAmerica. Lactic acid drinks, baby and toddler milk, and flavoured milk areforecast to record the fastest growth rates in 2011-2014, TetraPak's analysis shows.

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