Blog: Emerging markets offer potential for dairy, soy makers
Katy Askew | 11 July 2016
Growing demand in emerging markets are set to drive 4.6% growth in the global dairy and soy food market by 2020, according to new research.
The global dairy and soy food market will rise from US$617.9bn in 2015 to $773.4bn by 2020, representing a compound annual growth rate of 4.6%, according to consumer insight firm Canadean.
The company’s latest report states that this cautious growth will be driven primarily by emerging and developing markets in Asia-Pacific, Middle East and Africa and East European regions, in contrast to West Europe and North America, whose “economic fragility” has resulted in risks of weaker market growth.
According to Kiran Akkineni, analyst for Canadean: “Changing consumer preferences and purchase patterns due to socio-economic and demographic changes have created new market dynamics. While the key markets of Western Europe and North America have witnessed stagnancy in liquid milk consumption paired with fast growth in processed and soy products, developing countries have recorded steep growth in demand for dairy products owing to their fairly low per capita consumption.”
Interestingly, the potential of emerging markets for dairy alternatives is also a long-term opportunity that is increasingly on the industry radar.
Detailing Danone's proposed acquisition of WhiteWave Foods last week, Danone CEO Emmanuel Faber said in the near term brands like Alpro are likely to receive a boost in the "big European markets" where Danone has a strong share of the dairy counter. However, he continued, the "much bigger opportunity for the long term is about emerging countries".
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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