Emerging demographic changes to impact global dairy industry: Tetra Pak

There are several major demographic drivers that will influence consumers’ everyday lives worldwide.

These will affect consumer behaviour and lifestyle and the food choices consumers make.

In its latest Tetra Pak Dairy Index, Tetra Pak focuses on three of those demographic drivers and how they will shape the dairy industry globally.

Those three drivers are an ageing population, urbanization and an emerging global middle class.

An ageing population
What Tetra Pak has found is that the importance of vitamins and minerals increases as consumers age.

For dairy producers, the opportunities include creating products that are fortified and products that can be positioned as occasional indulgences.

In some countries dairy producers are targeting consumers who are 35+ with products designed to help adults maintain optimal bone density.

In other countries, products are geared to the 40+ crowd and offer omega-3s and antioxidants to help avoid premature aging.

In other countries dairy producers are gearing products to young people. And in others the younger generations are an untapped market.

Tetra Pak has found that generally, consumers 50+ don’t want to be seen as aging, seniors or elderly.

“The 60+ population in many countries will have more time, more money and more education than ever before. They’ll also be fitter, more active and more vibrant,” says Tetra Pak
Global Marketing Director Chris Kenneally.

“Marketers who will do well will be those who can talk to this growing population group about lifestyles — not ailments.”

Urbanization

Cities drive economic growth and so city dwellers in most countries have greater brand awareness and higher disposable incomes than their rural counterparts.

This means they both want and can afford packed milk as well as value-added liquid dairy products, such as milk fortified with vitamins and minerals, flavoured milk and drinking yoghurt.

Urban trendsetters demand new types of liquid dairy products, from packaged milk to on-the-go products that offer more convenience for their increasingly busy, mobile lifestyles.

Emerging middle class

All around the world, the percentage of people who fall into the global middle class is increasing.

The definition of middle class differs from country to country although it is always based on socioeconomic data such as income, material wealth and educational achievement.

But everywhere this segment is enjoying increased purchasing power.

“The consumer base for liquid dairy products is growing and in many countries, consumers now have more money in their pockets,” says Michael Zacka, vice-president Marketing and Product Development, Tetra Pak.

“However, you can’t just market across the board to the emerging middle-class. There will still be consumer preferences based on where people live, their food preferences, climate and other factors.

“Affordability will remain the common levelling factor, and dairy producers will need to choose the right price point to reach the middle class successfully.”