Milk Catches on in Asia

Asians are consuming more milk and other dairy products than ever before, according to findings from Taylor Nelson Sofres' (TNS) Asiapanel - Asia's first pan regional continuous consumer panel, which reveals growth in the dairy sector is strongest in China and Taiwan.

The Asiapanel Annual Report findings also reveal an Asiawide trend in favour of liquid over powdered milk as the health benefits of drinking milk become increasingly acknowledged.

Leading Asia in their consumption of dairy products are Japan and Korea with nearly all households having bought dairy or milk products in a given quarter. In contrast, Malaysia continues to be amongst the lowest consumers of dairy produce in Asia with little more than half its households (58 percent) purchasing any and just 74 percent purchasing milk.

Although not a country traditionally associated with consumption of dairy produce, China's burgeoning dairy market has seen double digit year on year growth - particularly in sales of liquid milk. Standing at a penetration level of 90 percent, liquid milk outstripped all other beverage categories in terms of rate of growth across China's major cities in 2001 with double the growth of the next most fastest growing beverage category, bottled water.

Interestingly, the premium priced category of yoghurt and yoghurt drinks emerged as a prevailing force in Asia's dairy product market. The dominant sector within the Korean and Thai markets, yoghurt and yoghurt drinks were purchased by 85 percent and 75 percent of the population respectively in Q4 2001. In Taiwan where 72 percent of households purchase dairy products, yoghurt and yoghurt drinks not only account for nearly one quarter (24 percent) of the total market for dairy products but also showed amongst the highest year on year growth for any grocery category in 2001.

Ms Helen Passingham-Hughes, Managing Director of TNS Asiapanel network, said, 'The younger generation of Asians seems to recognise the health benefit of dairy products and are changing their eating habits. Furthermore, Asian mothers, in particular Chinese, appear to want their children to grow up to be big and strong.'

The research also revealed that the market for ready-to-drink tea in Asia has grown significantly in 2001 where for example in Thailand, it now makes up 40 percent of the total tea category and is driving total tea growth. In Korea, tea enjoyed one of the highest value growths - an increase of 25 percent, by attracting more buyers into the category. Similarly in Thailand, the fastest growing beverage categories by value are non-carbonated drinks and tea - up by 38 percent and 32 percent respectively.

Ms Passingham-Hughes commented, 'The popularity of ready-to-drink tea can be attributed to society's growing need for speed and convenience, coupled with increasing health consciousness in Asians. There appears to be strong growth potential in the next year for the ready-to-drink tea market in Asia.'

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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