THE WHITE STUFF

With consumers’ demands constantly changing, producers of milk, its alternatives and milk-based products are finding that diversification is the key to staying ahead

According to a report by Tata Consultancy Services, titled ‘Propelling Growth in the Dairy Industry A Perspective’, the global dairy industry was expected to reach USD 505 billion by 2017 at a compound annual growth rate (CAGR) of 5 percent. Milk volumes in the period were forecast to increase at approximately the same rate, the report concluded.

Separate data published by the International Dairy Federation estimated global milk production in 2015 at 818 million tons, up 2 percent on volumes the previous year. While imbalances in supply and demand have produced challenges for the industry by pushing down prices, milk and milk-based products continue to fly off the shelves, especially in the Middle East and Africa, a report published by Euromonitor International showed.

“At over 3 percent CAGR, the Middle East and Africa is the third fastest growing region for dairy and has overtaken Eastern Europe to be the fifth largest region as of 2016,” the firm noted in its analysis, titled ‘Dairy in the Middle East and Africa’, published at the beginning of 2017. However, shifts in customers’ demands have seen producers and importers required to adapt to a changing market. A sharper focus on health and wellness, alongside a push for greater choice and an increase in our understanding about allergies, has led to the dairy industry evolving beyond recognition in recent years, resulting in an even-more diversified product range.

Demand for healthier alternatives has been a key gamechanger for manufacturers of milk and milk-based products. While full-fat milk was once the norm, producers are today offering semi-skim and skim varieties for consumers who are keen to control or reduce their fat intake. As a general rule, whole or full-fat milk contains approximately 3.5 percent fat and around 370 calories per pint, compared with semi-skim (1 or 2 percent fat and around 255 calories) and skim (0 – 0.5 percent fat and around 195 calories).

The world’s biggest brands have long been offering lower-fat options in both milk and other products, such as yogurts and spreads. In Lebanon, Liban Lait, manufacturers and traders of milk and dairy products, offers customers Candia Viva Semi-skimmed Sterilized Cow’s Milk, fortified with 11 vitamins, among others. The milk, which is produced at the firm’s plant in the Bekaa under a franchise agreement with Candia, is available in one-liter and 125-ml sizes and has broad appeal, according to Rabih El Helou, brand manager for Candia at Liban Lait.

“It has a shelf life of six months because it has been UHT treated. It’s also healthy and beneficial for kids and perfect for a well-balanced lifestyle,” he explained.

While increasing numbers of consumers have turned to low-fat and light alternatives in segments such as yogurts and desserts, demand for sophisticated and adventurous flavors remains high, with those of us who enjoyed the choice available in full-fat lines seemingly unwilling to compromise on taste.

Innovation remains key to keeping consumers satisfied and prevent them from straying elsewhere, the big brands appear to have concluded. Described

as “All the smooth yogurt creaminess of original but with only 90 calories”, the light range of yogurts from FrenchUS giant Yoplait includes options with mouthwatering names, ranging from Red Velvet Cupcake to Boston Cream Pie, alongside the more traditional blackberry and strawberry options.

Acknowledging local tastes is another strategy adopted by producers, including the Activia brand, owned by Danone Group. “Although plain and strawberry are the most popular flavors globally, each nation has a different palate and we make sure our range reflects this,” it has said. Among its targeted options, the brand produces Activia Kefir and Activia Laban for the Saudi Arabian market, since, it said, people like traditional dairy drinks there.

Activia yogurts are known for containing the brand’s exclusive strain of Bifidus Actiregularis which is designed to improve digestive health.

Digestive issues have also prompted the rise in popularity of lactose-free dairy products, buoyed by increased understanding of lactose intolerance. Research has indicated that the inability to digest lactose, a type of sugar mainly found in milk and dairy products, is a comparatively common problem.

El Helou confirmed that in line with global trends, demand for lactose-free products locally has been growing. He added that Liban Lait has decided to include Candia Lactose Free UHT Milk in its product range and make it available on the local market, following its successful launch by Candia franchises in other countries.

“This rising demand has been channeled to us through our field staff, distribution channel and customers calls,” he said. “As the demand grows and gains momentum, we can predict the future need for a whole range of lactose-free products, such as cheese, labneh, yogurt and ice cream.”

Going forward, competition is expected to rise from the non-dairy segment, as customers continue to explore plantbased alternatives in increasing numbers. Plant-based foods tend to contain unsaturated (good) fats and are generally low in saturated (bad) ones. wthey are also high in fiber and contain high amounts of vitamins and minerals.

Ahmad Morad, brand manager at Kuwait Proteins Co, whose portfolio includes Belgian manufacturer Alpro, believes interest in plant-based products is rising on the back of government campaigns addressing so-called ‘lifestyle diseases’, such as diabetes and obesity, and a consumer base that likes to keep up with new trends.

“We are working to raise awareness among consumers about the health benefits of soya milk, especially for children with health problems and people with lifestyle diseases,” he said.

Kuwait Proteins Co. began importing Alpro’s alternatives to milk in 2014 and supplies both the hospitality sector and retail outlets in Kuwait. While soya milk is the best-known variety, other options are also proving popular on the international market, including Alpro’s coconut milk, which Morad said has just been launched locally.

In a key development, Kuwait Proteins Co. recently began supplying Starbucks outlets with Alpro’s soya milk. The move is proving to be highly successful. “Our customer base is definitely growing,” Morad said. “We are tackling the preconceptions and our efforts are producing results. There is plenty of room to grow. But growth will come from education and awareness.”