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This presentations sheds light on the current product trends in regards to both Juice and Dairy products and as a combination. It also gives an overview into global and european dairy trends and a further insight into juice and dairy products by country.
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Hamish Renton | Managing Director
9th September 2014
When Juice Meets Dairy
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• 750bn litres of milk per year are produced globally.
• Milk production volumes are increasing 2% per annum and this is expected to continue over the next ten years.
• Powders e.g. skimmed milk powder expected to see the most growth.
World Dairy - Overview
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World Dairy Production
World Dairy Production For Top 5 Producing Regions (m litres)
Source: USDA
2012 2013 2014f % change 2013- 14
European Union 143,750 143,850 144,750 +1
India 129,000 134,500 141,125 +5
United States 90,824 91,444 93,123 +2
China 33,960 35,950 38,550 +7
Brazil 31,490 32,380 33,375 +3
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Global demand is growing by around 2.4% per year and is expected to reach 515bn litres by 2024. This increase in demand due to several factors:
1. Growing world population
World Dairy Demand
1950 1975 2000 2030 20500
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4
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World Population Growth
Year
Billi
on P
eopl
e
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2. Increased Global Proportion of Middle Class
2009
2020
2030
1.8 billion 3.2
billion
4.9 billion
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3. Increasing Reputation of Dairy as Healthy and Nutritious
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China
• 2nd largest dairy market after the USA with a market value of £29bn.
• World’s largest dairy importer. Partly due to distrust in local producers due to issues such as the Melamine scandal.
• Consumption expected to increase by 38% by 2022.
• IFCN suggests that it will soon be responsible for buying 60% of worlds traded dairy products.
• Powders are particularly significant market with the infant formula market 4x the size of the US one.
The Rise of the Dairy Dragon
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Global Dairy Trade Flows
64m tonnes traded globally per annum and this is expected to increase to reach 90bn litres by 2024.
Europe
• The EU is an significant exporter with Germany in particular exporting around 50% of its produce.
• Russia imports substantial volumes from the EU with Algeria, USA, China and Japan also among key importers.
• Russian EU cheese imports = Chinese NZ whole milk powder imports.
USA
• USA is also an important exporter, exporting around 13.2% of milk produced.
• Mexico is its number one market with Southeast Asia, Canada, China, MENA and South America also purchasing substantial volumes.
New Zealand
• Milk production in NZ has been growing 8% per annum over past 20 years.
• It exports 95% of the 19m tonnes of milk it produces with China being a key purchaser.
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• Europe is the number one cows milk producing region in the world.
• In 2011 produced 21% of world milk supply.
• Germany, France, The Netherlands, Italy and the UK are important dairy producers.
• Post quota abolition in 2015, EU exports will double.
EU Dairy Overview
Germany25%
France20%
UK11%
Italy9%
Netherlands10%
Spain5%
Ireland5%
Denmark4%
Belgium3%
Other9%
Milk Volume Deliveries for EU-15 Countries (2013)
Source: CLAL
• The UK is the ninth largest dairy producer in the world.
• Produced 14m tonnes of milk in 2012.
• Highly domestic profile with around 52% of UK milk going into internal liquid milk market.
• Pasteurised milk accounts for 83% of liquid milk volume sales.
• Flavoured milk is a growing market and volume sales have risen by 10.9% over the past two years.
UK Dairy Overview
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Low fat
Health
Reduced Sugar
High protein
Fortified products
Product Trends
Milk: Low % fat & skimmed.Cheese: Cottage & soft.Yogurt: Greek & frozen.
Yogurt: Milder strains make less acidic so less sugar required
High protein offers benefits of satiation and muscle maintenance
which is of appeal to ageing population and active audience
Health benefits such as added
vitamin D3,Omega 3 and
B vitamins becoming increasingly important
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Innovation Trends
Product Innovation
The healthy eating trend has led to a number of flavour innovations which have seen success due to their health benefits and sometimes unconventional flavours.
• Almond Milk – Due to investment and marketing seeing success in USA and UK in particular.
• Coconut Milk – Fewer calories than dairy, 50% more calcium, rich in vitamin E and medium chain fatty acids.
• Vegetable Yogurt – Gaining popularity in USA with flavours such as sweet potato and beetroot partly due to reduced sugar levels.
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Dairy & Juice Hybrids
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Dairy
• Products come in variety of flavours i.e. various fruits as well as indulgent flavours
such chocolate.
• Often products contain lower levels of sugar than juice.
Source of:
• Calcium• Protein• Potassium
• Vitamins D, A, B1, B6, B2 & B12• Essential fatty acids
Dairy vs. Juice
Juice
• Lower levels of saturated fat than dairy.
• Good source of nutrients for those lactose intolerant.
Source of:
• Vitamins C & A• Fibre• Potassium• Antioxidants• Iron
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• Dairy and juice blends are becoming increasingly popular in the global dairy market.
• The health benefits from both complement each other to produce products rich in vitamins and calcium.
• The blended fruit flavours also add another dimension to the taste profile of dairy products.
Dairy & Juice Hybrids
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Juice Trend - The War on Sugar
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Juice Trend - Fortified Products
CALCIUMFIBRE ANTIOXIDANTS
OMEGA 3 PROTEIN
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Can take several product forms depending on:
Dairy & Juice Hybrids
1. Type of dairy product used i.e. yogurt, milk or whey.
2. Ratio of dairy product to juice.
3. Dilution with other ingredients.
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Dairy & Juice Hybrids
YOGURT
WHEY
MILK
Fruit Flavoured
Yogurt
Fruit Flavoured
Yogurt drink
Fruit Flavoured
Protein Drink
Fruit Smoothi
e / Milkshak
e
JUICE
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NP Juice & Dairy NPD - Malaysia
Nestle Bliss
• Blend of low fat milk, real fruit juice and ABT live cultures.
• Number one yogurt drink brand in Malaysia.
• Produce 10 flavours including mango, blackcurrant, apple kiwi and guava.
• Available in 200g and 700g pack sizes.
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NP Juice & Dairy NPD – South Africa
Clover Danao Smooth
• A fusion of yogurt and fruit juice. Boasts that it is a source of Calcium and Vitamins A, B2, B12 and C.
• Produce several flavours including tropical, mango orange, peach apricot and breakfast sensation.
• Offer 330ml pack aimed at children and a 1 litre pack for families.
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NP Juice & Dairy NPD - USA
Frush Yogurt
• An on-the-go yogurt drink with fresh fruit and creamy yogurt.
• Contains HOWARU Bifido probiotics, TruCal calcium and 7g of protein per bottle.
• Boasts health benefits of immune support, muscle and bone health.
• 7 flavours including pina colada and orange mandarin.
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NP Juice & Dairy NPD - USA
Naked Protein Zone
• Brand recently launched Naked Protein Zone drinks containing 220 calories, 16g of protein and 150% of Vitamin C RDA in a 450ml bottle.
• Flavours include double berry, mango and banana chocolate.
• Made with whey and soy protein.
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NP Juice & Dairy NPD - Spain
Minute Maid Duofrutas
• Blend of fruit juice, skimmed milk and vitamin E.
• 10% fruit juice and 10% skimmed milk.
• Mediterranero and tropical flavours.
• 1 litre and 275ml PET bottles as well as 200ml glass bottles.
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NP Juice & Dairy NPD - UK
Volac Upbeat
• Recently launched a new low-fat, high protein dairy drink. Made from fresh liquid whey protein concentrate and real fruit juice.
• Half the sugar of leading smoothies and fruit juices.
• Three flavours available: strawberry, mango & passionfruit and blueberry & raspberry.
• Marketed at health conscious consumers, post pregnancy mothers, vegetarians and performance sports audience.
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NP The Future
1. NPD will continue with more flavour
blends being developed, particularly with
coconut and perhaps with more vegetables
being used as ingredients.
2. NPD will likely target an older audience
due to the ageing population. Improved
bone and muscle health claims will be
increasingly important.
3. Sugar reduction will continue with more
natural sweeteners being used. Increased
research into yogurt bacteria strains will
help allow sugar levels to be reduced.
4. Products with high levels of protein
will become more common as
consumers strive to feel fuller for longer.
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Thank YouH A M I S H R E N T O N A S S O C I A T E S
Rockwood House, Park Hill Road, Torquay, TQ1 2DU
01803 [email protected]
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Want to Know More?H A M I S H R E N T O N A S S O C I A T E S
Guide to the European Dairy Industry for Juice Companies
An fully updated overview of the European dairy industry with a particular emphasis on the flavoured milk and yogurt markets, covering market size,
innovation, future trends, key players and competitors. €499.
Special 25% Discount for World Juice Conference attendees. Just quote “Barca” and email [email protected]
FULLY UPDATED FOR SUMMER 2014
