Global dairy consumption growth to continue

Wednesday, 21 August 2019

By Felicity Rusk

Over the next decade (2019-2028), global consumption of fresh and processed dairy products is expected to increase by 2.1% and 1.5% a year respectively, according to the latest outlook from the OECD-FAO.

Rising consumption of dairy in developing countries is expected to drive the majority of global growth. Urbanisation and the growth of middle classes will drive this growth, as higher incomes enable consumers to spend more on food, while rising populations increase the number of consumers. On a per capita basis, consumption of fresh and processed dairy is estimated to see annual increases of 1.6% and 0.8% respectively.

In contrast, consumption growth in developed countries is comparatively more muted. Growth in the consumption of fresh dairy products is only forecast to rise by 0.3% per year over the next decade. However, on a per capita basis, consumption is expected to remain relative flat.

Meanwhile, consumption of processed dairy products is forecast to increase by 1.0% a year in developed countries over the period. This will mostly be due to rising cheese consumption, although the use of SMP and WMP in manufactured products looks set to increase as well.

Compared to the previous outlook, covering the period from 2018-2027, global consumption growth has been revised down 0.3 percentage points. Alongside this, there are also expectations of tighter global milk supplies, with global milk production also revised down 0.3 percentage points in the latest outlook

Source: OECD-FAO

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