Middle class drives consumption of flavoured milk

Milk on display at a supermarket. The total milk consumption for 2012 stood at approximately 1.8 billion litres. FILE  NATION MEDIA GROUP

By CHARLES MWANIKI

Consumption of flavoured milk is projected to grow five-fold in Kenya by 2015, making the product a key driver of growth in the dairy sector.

Research by Tetra Pak International shows that flavoured milk consumed in Kenya increased 61 per cent from 2.1 million litres in 2011 to 3.4 million litres in 2012.

Tetra Pak Eastern Africa managing director Hellen Too said in an interview that the consumption of flavoured milk is mainly driven by young people aged between nine and 15 years.

“In 2013 we have already seen a 59 per cent increase over the 2012 numbers. The 3.4 million litres of flavoured milk is still on the lower side when compared to the total milk consumed in the country, but driven by a strong middle class, the consumption should rise fivefold by 2015,” said Ms Too.

The total milk consumption for 2012 stood at approximately 1.8 billion litres.

According to Tetra Pak research, flavoured milk consumption is forecast to grow at more than double the rate of white milk globally between 2012 and 2015.

The packaging firm forecasts that flavoured milk consumption will increase at 4.1 per cent compounded annual growth rate compared to 1.7 per cent for white milk, as consumers increasingly accept the milk as an alternative to other beverages.

China is the world’s largest consumer of flavoured milk, followed by the US and India.

Increased global demand for flavoured milk from 2009 to 2012 was mainly driven by four emerging countries — Brazil, China, India and Indonesia. Africa, however, consumes only four per cent of the total flavoured milk produced in the world per year.

Higher price

 However, the price of flavoured milk continues to be higher than that of white milk given that the variety attracts a 16 per cent value added tax unlike white milk.

According to Tetra Pak, this has been the biggest challenge to milk producers seeking to grow their sales, although the competitive market has helped keep prices stable.


Ms Too added that there has been an increase in enquiries for packaging by milk processors who want to go into the segment.

In 2012, New Kenya Co-operative Creameries (New KCC) initiated plans to set up a new processing plant seeking to increase its production of flavoured long-life milk with an eye on eliminating milk wastage common whenever there is increased supply, especially during long rains.

The cost of value addition through flavouring of milk products is lower for processors who have installed UHT production facilities as the same facilities are used, said Ms Too