Published in Health and Wellness
Functional dairy products fortified with vitamins will thrive in APAC dairy & soy food sector

Owing to the growing health awareness levels across the Asia-Pacific (APAC) region, consumers are expected to switch to functional dairy products fortified with vitamins. Therefore, product specificity will emerge as the key driver and dairy & soy manufacturers should focus on offering bespoke products, says leading data and analytics company GlobalData.

The company’s report, ‘Opportunities in the Asia-Pacific Dairy & Soy Food Sector’, reveals that the dairy & 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.

Monika Bargla, Consumer Analyst at GlobalData, says: “Factors such as a steady population growth, acceptance of dairy products as a part of one’s daily diet and rising health awareness levels will boost the demand for dairy and soy food products across the APAC region. Simultaneously, the sector is also witnessing a growing demand for soy-based products such as soy milk, especially from vegan consumers seeking non-dairy high protein substitutes.”

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.

In terms of categories, milk accounted for the largest share with 55%, followed by drinkable yogurt (17.1%) in 2017. The top three companies in the APAC dairy & 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.

Bargla concludes: “With growing health concerns consumers are expected to switch to functional dairy products fortified with vitamin D, calcium, and omega 3 fatty acids among other essential micronutrients. In addition, with a substantial proportion of Asian consumers perceiving products with lactose-free claims to be healthier for them, the sector is expected to witness a rise in the number of lactose-free product launches in the coming years. Therefore, product specificity will emerge as the key driver where consumers’ focus will be on choosing the ‘right ingredients’, thus prompting manufacturers to offer more bespoke products.”

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