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Emerging trends in dairy beverages
► 19th February, 2015
Yet highly under-developed in dairy beverages
India the largest milk consumer
Other markets
33%
33 55
28
46
2014 per capita consumption
(ltrs per person p.a.)
2014 World dairy
market share by
/ 2
India
21%
China
12%
USA
9%
12 15
28
11.0 3.80
White Milk OLDP
Plain milkPlain milkPlain milkPlain milk Dairy beverages *Dairy beverages *Dairy beverages *Dairy beverages *
market share by
country
290 Bio lit
WORLDWORLDWORLDWORLD
DEVELOPINGDEVELOPINGDEVELOPINGDEVELOPING
IndiaIndiaIndiaIndiaDEVELOPEDDEVELOPEDDEVELOPEDDEVELOPEDWORLDWORLDWORLDWORLD
DEVELOPINGDEVELOPINGDEVELOPINGDEVELOPING
IndiaIndiaIndiaIndiaDEVELOPEDDEVELOPEDDEVELOPEDDEVELOPED
Includes flav.milk, Lassi, Buttermilk, SCM, Drinking yoghurts and
value added milk
Multiple drivers support the case for dairy beverages
Is plain milk enough for India ?
FragmentedFragmentedFragmentedFragmented
consumersconsumersconsumersconsumers
77%77%77%77% Indians look for
Varied occasions &Varied occasions &Varied occasions &Varied occasions &
needneedneedneed----statesstatesstatesstates
Health & wellnessHealth & wellnessHealth & wellnessHealth & wellness
/ 3
77%77%77%77% Indians look for
healthier products
40crore kids
Taking milk
beyond breakfast
82 crore consumers
Bottom of PyramidBottom of PyramidBottom of PyramidBottom of Pyramid Demographic dividendDemographic dividendDemographic dividendDemographic dividend
Wikipedia, GFK roper report 2014
Applying global trends & concepts to the
Indian context
/ 4
Fast growing segment globally. Relevant but unexplored in India
Milk ‘plus’ and Milk ‘ minus’
Indians deficient in
Vitamin D70%
22%22%22%22%
increase in New
product launches
with fortification
(2009-2013)
MilkPlus
Vitamin D
Calcium
Added Fibre
/ 5
Indian society for bone and mineral research, Arthritis foundation of India
Milkminus
Reduced Fat
Lactose free
33%33%33%33%
Increase in new product
launch with Lactose free
claim
(2009-2013)
Journal of Gastroenterology and Hematology
Indians predicted to be
lactose intolerance
(but not aware)
<50%
Mintel GNPD
Addressing the ‘time-poor’
Liquid breakfast on-the-go
Not Enough
time/Long travel time
Not Hungry1 in 31 in 31 in 31 in 3
25% of working
Australians & British skip
breakfast
/ 6
Stressed out
1 in 31 in 31 in 31 in 3
Urban
Indians skip
breakfast
Liquid breakfast, targeting working people
“Made from REAL MILK & oats” …
Now an established category in Australia
Ref: Kellogs along with Nirmala niketan college, 3600 respondents in 5 metros
Taste innovations to capture new occasions & consumers
Carve out a bigger share of the ‘impulse’ segment
Milk + CerealsMilk + Juice
ConvergentConvergentConvergentConvergent
categoriescategoriescategoriescategories
Limited flavors in flavored milk
4 variants holding 70 %
/ 7
DrinkingDrinkingDrinkingDrinking
yoghurtyoghurtyoghurtyoghurt
EmergingEmergingEmergingEmerging
FlavoursFlavoursFlavoursFlavours
Peach
Passion fruit
Grape
Apple, Honey
Coffee
China CAGR ’10-13
407%
Drinking yoghurt currently niche,
Limited flavor options in Lassi
Single flavor in butter milk
Compass 2014 Nielsen Q4 2014
Tapping the kids’ potential
With a sharper marketing mix
Female
18%
40404040crorecrorecrorecrore kids population,kids population,kids population,kids population,
Worlds largestWorlds largestWorlds largestWorlds largest
FM consumption by
kids limited to
/ 8
Children
73%
Flavoured milk globalFlavoured milk globalFlavoured milk globalFlavoured milk global
launches demographic claimlaunches demographic claimlaunches demographic claimlaunches demographic claim
2014201420142014
Lunch Box conceptsLunch Box conceptsLunch Box conceptsLunch Box concepts Ready to Drink MFDReady to Drink MFDReady to Drink MFDReady to Drink MFD
kids limited to
powdered MFD
Targeting the bottom of the pyramid
Not just smaller portion packs, but customized formulations
PopulardairybeverageswithBoP
consumers
82 crore82 crore82 crore82 crore
Bottom of pyramid consumersBottom of pyramid consumersBottom of pyramid consumersBottom of pyramid consumers
44% children under age of 5 years
are underweight (anemic )
Lactic acidLactic acidLactic acidLactic acid
drinkdrinkdrinkdrink in china
/ 9
PopulardairybeverageswithBoP
consumers
are underweight (anemic )
100ml/200ml milk ……
Optimizing cost of formulation
-Eg : Low cost Butter milk with
whey !
Tea creamerTea creamerTea creamerTea creamer
in Pakistan
Whey basedWhey basedWhey basedWhey based
drinksdrinksdrinksdrinks in Russia
This area is intended for 'Source' or 'Reference' information.

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Emerging trends in dairy beverages

  • 1. Emerging trends in dairy beverages ► 19th February, 2015
  • 2. Yet highly under-developed in dairy beverages India the largest milk consumer Other markets 33% 33 55 28 46 2014 per capita consumption (ltrs per person p.a.) 2014 World dairy market share by / 2 India 21% China 12% USA 9% 12 15 28 11.0 3.80 White Milk OLDP Plain milkPlain milkPlain milkPlain milk Dairy beverages *Dairy beverages *Dairy beverages *Dairy beverages * market share by country 290 Bio lit WORLDWORLDWORLDWORLD DEVELOPINGDEVELOPINGDEVELOPINGDEVELOPING IndiaIndiaIndiaIndiaDEVELOPEDDEVELOPEDDEVELOPEDDEVELOPEDWORLDWORLDWORLDWORLD DEVELOPINGDEVELOPINGDEVELOPINGDEVELOPING IndiaIndiaIndiaIndiaDEVELOPEDDEVELOPEDDEVELOPEDDEVELOPED Includes flav.milk, Lassi, Buttermilk, SCM, Drinking yoghurts and value added milk
  • 3. Multiple drivers support the case for dairy beverages Is plain milk enough for India ? FragmentedFragmentedFragmentedFragmented consumersconsumersconsumersconsumers 77%77%77%77% Indians look for Varied occasions &Varied occasions &Varied occasions &Varied occasions & needneedneedneed----statesstatesstatesstates Health & wellnessHealth & wellnessHealth & wellnessHealth & wellness / 3 77%77%77%77% Indians look for healthier products 40crore kids Taking milk beyond breakfast 82 crore consumers Bottom of PyramidBottom of PyramidBottom of PyramidBottom of Pyramid Demographic dividendDemographic dividendDemographic dividendDemographic dividend Wikipedia, GFK roper report 2014
  • 4. Applying global trends & concepts to the Indian context / 4
  • 5. Fast growing segment globally. Relevant but unexplored in India Milk ‘plus’ and Milk ‘ minus’ Indians deficient in Vitamin D70% 22%22%22%22% increase in New product launches with fortification (2009-2013) MilkPlus Vitamin D Calcium Added Fibre / 5 Indian society for bone and mineral research, Arthritis foundation of India Milkminus Reduced Fat Lactose free 33%33%33%33% Increase in new product launch with Lactose free claim (2009-2013) Journal of Gastroenterology and Hematology Indians predicted to be lactose intolerance (but not aware) <50% Mintel GNPD
  • 6. Addressing the ‘time-poor’ Liquid breakfast on-the-go Not Enough time/Long travel time Not Hungry1 in 31 in 31 in 31 in 3 25% of working Australians & British skip breakfast / 6 Stressed out 1 in 31 in 31 in 31 in 3 Urban Indians skip breakfast Liquid breakfast, targeting working people “Made from REAL MILK & oats” … Now an established category in Australia Ref: Kellogs along with Nirmala niketan college, 3600 respondents in 5 metros
  • 7. Taste innovations to capture new occasions & consumers Carve out a bigger share of the ‘impulse’ segment Milk + CerealsMilk + Juice ConvergentConvergentConvergentConvergent categoriescategoriescategoriescategories Limited flavors in flavored milk 4 variants holding 70 % / 7 DrinkingDrinkingDrinkingDrinking yoghurtyoghurtyoghurtyoghurt EmergingEmergingEmergingEmerging FlavoursFlavoursFlavoursFlavours Peach Passion fruit Grape Apple, Honey Coffee China CAGR ’10-13 407% Drinking yoghurt currently niche, Limited flavor options in Lassi Single flavor in butter milk Compass 2014 Nielsen Q4 2014
  • 8. Tapping the kids’ potential With a sharper marketing mix Female 18% 40404040crorecrorecrorecrore kids population,kids population,kids population,kids population, Worlds largestWorlds largestWorlds largestWorlds largest FM consumption by kids limited to / 8 Children 73% Flavoured milk globalFlavoured milk globalFlavoured milk globalFlavoured milk global launches demographic claimlaunches demographic claimlaunches demographic claimlaunches demographic claim 2014201420142014 Lunch Box conceptsLunch Box conceptsLunch Box conceptsLunch Box concepts Ready to Drink MFDReady to Drink MFDReady to Drink MFDReady to Drink MFD kids limited to powdered MFD
  • 9. Targeting the bottom of the pyramid Not just smaller portion packs, but customized formulations PopulardairybeverageswithBoP consumers 82 crore82 crore82 crore82 crore Bottom of pyramid consumersBottom of pyramid consumersBottom of pyramid consumersBottom of pyramid consumers 44% children under age of 5 years are underweight (anemic ) Lactic acidLactic acidLactic acidLactic acid drinkdrinkdrinkdrink in china / 9 PopulardairybeverageswithBoP consumers are underweight (anemic ) 100ml/200ml milk …… Optimizing cost of formulation -Eg : Low cost Butter milk with whey ! Tea creamerTea creamerTea creamerTea creamer in Pakistan Whey basedWhey basedWhey basedWhey based drinksdrinksdrinksdrinks in Russia This area is intended for 'Source' or 'Reference' information.