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.
This is according to data and analytics company GlobalData. With this trend, product specificity will emerge as the key driver and dairy and soy manufacturers should focus on offering bespoke products. The company’s report, ‘Opportunities in the Asia-Pacific Dairy & Soy Food Sector’, reveals that the dairy and 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.
The major trends, driving demand for dairy and soy in the APAC region are:
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. But there is a shift seen in the share of milk when we look at 2022 (see graph). The top 3 companies in the APAC dairy and 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.