Next big thing: Dairy products with vitamins

This is according to data and analytics company GlobalData. With this trend, product specificity will emerge as the key driver and dairy and soy manufacturers should focus on offering bespoke products. The company’s report, ‘Opportunities in the Asia-Pacific Dairy & Soy Food Sector’, reveals that the dairy and soy food sector in APAC, which was valued at US$ 111.8bn in 2017, is expected to register the fastest growth among regions with a compound annual growth rate (CAGR) of 6.8% over the period 2017-2022.

Within APAC, China accounted for the largest value share at 34.1%, followed by India (16.8%), Japan (16.1%) and Australia (7.2%) in 2017. Photo: Shutterstock

4 major trends

The major trends, driving demand for dairy and soy in the APAC region are:

1. On-The-Go: Rising employment opportunities and the resultant increase in commute time of most working consumers is driving the demand for on-the-go packaging formats of dairy products.
2. Product Specifity: The shift towards more bespoke ‘made-for-me’ products from lactose intolerant consumers is leading to an increase in lactose-free dairy offerings.
3. Fresh, Natural and Pure: With consumers growing wary of artificial ingredients, there is a robust demand for dairy and soy products which include natural ingredients.
4. Novel and Experiential: With wider exposure to dishes and cuisines originating from other countries, a substantial proportion of experimental minded consumers are seeking new flavours in dairy.

China has largest value share

Within APAC, China accounted for the largest value share at 34.1%, followed by India (16.8%), Japan (16.1%) and Australia (7.2%) in 2017. The robust demand for milk can be attributed to the sizeable proportion of young consumers who drink milk on a regular basis. In addition, demand is driven by the high proportion of vegetarian populace in countries such as India, where consumers depend on dairy products to meet their daily calcium and protein requirements.

Lower share of milk in 2022

In terms of categories, milk accounted for the largest share with 55%, followed by drinkable yogurt (17.1%) in 2017. But there is a shift seen in the share of milk when we look at 2022 (see graph). The top 3 companies in the APAC dairy and soy food sector accounted for only 18.5% value sales in 2017. Inner Mongolia Mengniu Dairy Industry Co Ltd accounted for the highest value share with 6.8%, followed by Yili Group (6%) and Want Want China Holdings Limited (5.7%) during the same year.