Global milk drinks continue to rise

Global consumption of milk drinks has risen by 13% from 214 billion litres in 2002 to 242 billion litres in 2007, according to a new report from leading food and drink consultancy Zenith International.

"Asia has seen the most consistent growth, mainly due to booming demand in China," commented Zenith Dairy Market Intelligence Manager Esther Renfrew. "Consumption in Asia/Australasia has increased from 18.3 litres per person in 2002 to 22.9 litres in 2007." Milk sales have also advanced, but at a slower rate, in more developed markets.

Flavoured milk accounted for 4.7% of global milk drink volume in 2007, growing fastest is the Middle East, where it has a share of 8.5%. In the past five years, flavoured milk volumes have grown by 2% in West Europe and by more than 10% in Latin America.

The Zenith report identifies a number of economic factors influencing the global milk drinks market, including:

• demand and supply instability creating uncertainty over prices
• industry consolidation, leading to the emergence of stronger international leaders and
• free trade impediments from subsidies, quotas, price fixing and tariffs, such that only 7% of world milk production is traded internationally.

In order to meet growing competition from other drinks, particularly in developed countries, producers have increasingly focused on adding functionality - in one year, over 2,300 new functional dairy drinks were launched. Although functional milk drinks are still a niche segment, volumes are growing fast.

Zenith's 2008 Global Milk Drinks report also finds that:

• Asia/Australasia was responsible for 35% of global milk drinks consumption in 2007, followed by West Europe on 16.5% and Latin America with 13%.
• India topped the national leaderboard at 37,000 million litres in 2007.
• The United States was the leading market for flavoured milk at 1,600 million litres.
• Global milk drinks volumes are forecast to rise by 19% in the five years to 2012.

The 2008 Zenith Report on Global Milk Drinks contains 178 pages including 66 tables and charts, brand and company profiles, regional overviews and full analysis of market trends. The report includes a 12 month subscription to milk drinks market information at www.globaldrinks.com. Contact Zenith International on tel +44 (0)1225 327900 or e-mail info@zenithinternational.com.

For further information, please contact:

Gary Roethenbaugh or Esther Renfrew, Zenith International Ltd
7 Kingsmead Square w Bath BA1 2AB w United Kingdom
t +44 (0)1225 327900 w f +44 (0)1225 327901
zenithinternational.com