income consumers in developing countries are the dairy industry's next big growth opportunity due to an expected rise in prosperity, purchasing power and desire for packaged liquid dairy products (LDP), Tetra Pak said in its new study. Consumption by low-income consumers in developing markets is forecast to increase from about 70 billion liters in 2011 to almost 80 billion liters in 2014, according to the Dairy Index, which tracks worldwide facts, figures and trends in the global dairy industry. Many of these consumers are expected to switch in coming years from drinking loose milk to packaged milk. "Low-income consumers represent one of the biggest growth opportunities for the dairy industry. The key to tomorrow's success is reaching these consumers today," said Tetra Pak President and CEO Dennis J?nsson. "They make up almost 40 percent of the world's population and live in economies driving our industry's growth and they are growing more affluent." These low-income consumers live on $2-$8 a day and are virtually untapped by today's dairy processors. Called Deeper in the Pyramid (DiP) consumers by Tetra Pak, they make up about 50 percent of developing countries' population and consume 38 percent of LDP in developing countries. Half of these DiP consumers live in India and China. The Tetra Pak research focused on six countries which account for more than 76 percent of LDP consumption by DiP consumers in developing countries: India, China, Indonesia, Brazil, Pakistan and Kenya. Many DiP consumers are expected to grow in affluence, shifting from low to middle incomes by the end of the decade, boosting their purchasing power and the range of products they buy. As they gain The increase in spending power along with greater awareness of food safety and a need for convenient, ready-to- drink solutions is expected to increase the demand for packaged products. The global DiP population is forecast to fall by a compound annual growth rate (CAGR) of 3 percent a year from 2009-2020. The population living on more than $8 a day is set to rise by 4 percent (CAGR) annually, according to Boston Consulting Group, which helped Tetra Pak to develop the DiP classification.
