India's rising urban population has created a new demand for convenience in food and packaging. According to a new report from Canadean, India will be the world's second fastest growing market for dairy products in 2018.
Dairy products in convenient packaging are getting more popular among India's rising urban population. In 2013 there were 378 million living in India's big cities such as Mumbai, Delhi, Bangalore and Hyderabad, and this number is growing in thousands every single day. The cities offer higher salaries, but also very long working hours. This has meant significant growth for packaged food that is convenient to use by busy consumers. Dairy products in particular, have seen a big jump in popularity: According to Canadean, the Indian dairy food market is forecast to witness strong sales growth over the next five years to reach a value of INR743 billion in 2018. This will make India the second fastest growing dairy market in the world in terms of volume consumption, just after Brazil.
There will also be an increased demand for snack products, particularly cheese and yogurt, as consumers' busy lives cause them to skip meals. According to Catherine O'Connor, senior analyst at Canadean: "Dairy snacks that offer an energy boost, such as yogurt enriched with extra calcium and protein, will be particularly in demand as tired, overworked consumers look for reviving options."
Flavoured milk and milkshakes are also set to become more popular, presenting an everyday treat option with no extra hassles, such as the need to add powder or concentrates to create a tasty drink. Increased availability of re-sealable plastic bottles and lightweight cartons will help to meet the demand for milk products that can be consumed outside of the home and on-the-go.
According to Catherine O'Connor: "The growth of service sector companies in India's cities will continue to drive consumers to migrate from villages, towns, and smaller cities in search of jobs. Moreover, infrastructure development in urban areas will help the distribution of dairy products, leading to a diversification of packaged dairy options available."
www.canadean.com
