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India’s new taste for dairy products

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June, 16, 2014 -- India’s rising urban population has created a new demand for convenience in food and packaging. According to a new report from Canadean, India will be the world’s second fastest growing market for dairy products in 2018.
 
Dairy products in convenient packaging are getting more popular among India’s rising urban population. In 2013 there were 378 million living in India's big cities such as Mumbai, Delhi, Bangalore and Hyderabad, and this number is growing in thousands every single day. The cities offer higher salaries, but also very long working hours. This has meant significant growth for packaged food that is convenient to use by busy consumers. Dairy products in particular, have seen a big jump in popularity: According to Canadean, the Indian dairy food market is forecast to witness strong sales growth over the next five years to reach a value of INR743 billion in 2018. This will make India the second fastest growing dairy market in the world in terms of volume consumption, just after Brazil.
 
There will also be an increased demand for snack products, particularly cheese and yogurt, as consumers’ busy lives cause them to skip meals. According to Catherine O’Connor, senior analyst at Canadean: “Dairy snacks that offer an energy boost, such as yogurt enriched with extra calcium and protein, will be particularly in demand as tired, overworked consumers look for reviving options.”
 
Flavoured milk and milkshakes are also set to become more popular, presenting an everyday treat option with no extra hassles, such as the need to add powder or concentrates to create a tasty drink. Increased availability of re-sealable plastic bottles and lightweight cartons will help to meet the demand for milk products that can be consumed outside of the home and on-the-go.
 
According to Catherine O’Connor: “The growth of service sector companies in India’s cities will continue to drive consumers to migrate from villages, towns, and smaller cities in search of jobs. Moreover, infrastructure development in urban areas will help the distribution of dairy products, leading to a diversification of packaged dairy options available.”
 
Packaged in a lightweight tetra pak carton with a straw, Badam Milk from Aavin allows for consumption on-the-go, direct from the pack. The 200 ml pack size makes for a convenient one-use serving.
 
NOTES
 
These findings are based on the new Canadean report: Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Indian Dairy Market.
 
This report is based on Canadean’s consumer data, developed from consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in consumer markets. This provides data on consumer trends, consumer groups and market sizes.
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