Flavoured milk dominates the beverage segment in Indian markets

Jaipur, 4th   April 2019:While value added products are promising a healthy growth of 15% to 20% with expected growth of around 30% by 2020, flavoured market among the value added segment has picked up delightful growth patterns.  According to a research by Mintel, a Global research and intelligence agency, in the first half of 2017, flavoured milk accounted for about 39% of total dairy drinking products launched in India and that is the reason it has been a key growth driver in coming season as well.  The reason behind this growth is the changing trends towards health and hygiene factors.  The urban population is now opting for flavoured milk instead of carbonated drinks and juices.

As of 2018, India accounts for about 19% of global dairy market share.  According to an IMARC report, flavoured milk sales figures exhibit an expected average CAGR of 25% between 2010 and 2020.

Mr. Anuj Modi, Director, Lotus Dairy Products Ltd. says, “The flavoured milk segment has seen an impressive CAGR of approximately 23 percent over the last few years. We expect this growth to remain steady in the foreseeable future as consumers continue to move away from carbonated drinks, juices, etc. to flavoured milk because of the inherent health benefits of milk. Recognizing this need for nutrition and convenience, Lotus Dairy has recently launched a premium range of all-natural flavoured milk in an effort to provide a healthier alternative to consumers of ready-to-drink beverages. The market response has been so encouraging that we are already planning to introduce additional innovative flavours this year in order to keep our customers excited, happy, and healthy.

According to one survey conducted by Mintel among 1243 consumers of pre-packed ready-to-drink dairy products aged between 18-64, 64% of consumers think that this is a healthy option whereas 48% said that they feel energized after drinking dairy drinks, 54% of consumers think that these drinks are convenient choices with 46% agreeing that these are hygienic.

According to Euromonitor International, a market research provider, consumers are migrating from non-branded options to branded ones is the key driver for the growth in dairy segment where demand for packaged products grew from 1.2 trillion in 2017 to 1.39 trillion in 2018 registering 15.6% growth.