Report: Dairy product demand sees global increase

Global demand for dairy products has risen by 15% from 40.9 million tons in 2003 to an estimated 47.0 million tons in 2008, according to a new report from Zenith International.

“Spoonable yogurt has seen the greatest growth over the past five years at 23%. Ice cream volume has also advanced swiftly by 18%, with the majority of additional sales coming from Asia/Australasia and the Middle East,” says Zenith Dairy Market Intelligence Manager Esther Renfrew.

Cheese accounts for the largest segment of the dairy sector analysed by Zenith, with 18.2 million tons consumed in 2008, equivalent to 39% of the total.

This is followed by ice cream at 14.3 million tons and a 30% share, then spoonable yogurt on 9.9 million tons and 21% of volume.

Forecasts to 2012 indicate a further increase of 10% to 51.8 million tons, with spoonable yogurt gaining as much as 16%.

The report identifies a number of economic and market factors influencing consumption patterns such as:

• Growing populations and prosperity leading to greater demand rising costs and climate change causing supply instability,

• Consumers placing more emphasis on functionality in dairy products, along with convenience and healthy indulgence,

• Government policies and industry marketing improving the perception of dairy products and their environmental impact.