BIZMOLOGY — Chocolate milk is nothing new, but it’s surging in the ranks of popular beverages, as is vanilla milk, strawberry, banana, and other flavors. Flavored milk is the latest trend to drive growth in the dairy and drink industry. Ready-to-drink (RTD) flavored milk consumption is growing faster than traditional milk both in the US and abroad.
For both US and non-US consumers, the RTD convenience and value-add of flavored milk is driving sales. Market share of flavored milk in the global drink market is still relatively small, but growth is expected to exceed that of soft drinks between 2012 and 2015. Flavored milk appeals both as an indulgence and a nutrient-rich healthy food.
Globally, total liquid dairy product sales will rise 2.4 percent annually between 2012 and 2015. Chocolate, strawberry, and other flavored milks will drive sales growth, expanding at twice the rate of traditional white milk. RTD flavored milk sales will increase an average of 4.1 percent each year between 2012 and 2015 compared to 1.7 percent yearly growth for white milk, according to Tetra Pak. In the US, flavored milk consumption may increase 9.5 percent between 2011 and 2015; white milk consumption will decrease 6.5 percent during the same period.
Developing countries currently account for about two-thirds of flavored milk consumption. Market share among developing nations, such as China, India, Indonesia, and Malaysia, will increase from 66 percent in 2012 to 69 percent by 2015. Dairy manufacturers like Dean Foods and Nestlé may target consumers in emerging Asian and Latin American markets to take advantage of the growth momentum in the segment, according to the Tetra Pak Dairy Index.