The popularity of flavored milk has risen sharply in India in the past six months. In the first half of 2017, 39% of new dairy products consisted of flavored milk. Research agency Mintel announced this.
According to the same research agency, more than 43% of the new dairy drinks in 2016 consisted of flavored milk. That is an increase of more than 20% compared to 2012.
More interest in dairy products
Mintel's research also shows that sales of flavored milk in India have increased significantly since 2012. In 2012, about 55 million liters of the product were sold. However, in 2015 that number had already risen to 72 million litres, an increase of approximately 31%. Due to the popularity of the product, its value increased by more than 40% in the same period, from Rs 570 crore ($75 million) to Rs 800 crore ($105 million).
According to food and beverage analyst Ranjana Sundaresan, the popularity of flavored milk has also contributed to other innovations in India. "Almost all dairy manufacturers in India have at least 1 type of the product in their range. In addition, they are all trying to develop new flavors."
Health matters
Mintel's research shows that 64% of the Indian population believe that pre-packaged ready-to-drink (RTD) products are healthy. In addition, another 48% indicate that they get energy from dairy products. Hygiene also appears to be important, as 46% of the population indicate that they experience pre-packaged drinks as hygienic.
Sundaresan notices that the Indian population is increasingly open to dairy products. "Especially families with children eventually realize that milk has added value for health. The latter is a reason for parents to buy the product anyway."
Convenience also plays a part
More than half, approximately 54%, of the population indicates that it is mainly easy. Also, 32% of consumers with children between the ages of 13 and 17 see it as a good treat or reward.
The pre-packaged dairy products turn out to be an invention for breakfast. "The research shows that breakfast is an opportunity for many dairies. Unfortunately, the manufacturers are not yet exploiting that opportunity well enough," said Sundaresan. "Consumers don't have time for an extensive breakfast. They want to eat their products quickly and easily." According to Sundaresan, much more should be invested in on-the-go dairy innovations in the future.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.