Innovation and flavour differentiation In India
With more and more innovative flavours, differentiated price points, and convenient packaging, the milk and flavoured milk industry in India is on a steep growth curve.
As the largest producer and consumer of milk and dairy products in the world, India has been a pioneering player in the evolution of the global dairy industry. India produced a staggering 191 million tonnes of milk in the financial year 2019-20, which rose to an impressive 209.96 million tons during 2020-21. Even though the dairy business has had difficulties lately, there is a vast market for dairy products, both in India and the world at large. Milk and dairy products are today becoming more and more popular due to a growing middle class with greater disposable income. As a result, there has been an increased demand for healthier and more experiential substitutes to fit in with an active lifestyle, with an emphasis on natural ingredients.
Modern India’s dairy consumption
Dairy is also one of the most consumed food products in the country, as a large part of the vegetarian population depends on products like paneer for their protein, as an alternative to meat. However, while earlier, consumers would prioritise freshness and homegrown offerings over packaged products, the Covid-19 pandemic has brought in a rapid rise in consumer awareness about food safety and sterility, extending to all kinds of foods and beverages. This has led to a marked shift in consumer patterns in the last few years, sped up by the pandemic, especially in urban communities. More and more consumers have been purchasing packaged and sealed products in aseptic cartons that they can store for longer, consume easily, on-the-go, and without fear of contamination.
Innovation-driven growth
As a result, India’s dairy sector has erupted with a wide range of new products driven by technology, innovation, differentiated products, and enhanced customer experiences. Due to its high nutritional value, enhanced taste, and variety of flavour options, flavoured milk has become extremely popular among both children and adults. States like Gujarat and Maharashtra, which possess massive milk production capacities, have especially seen a significant growth of the flavoured milk business. In fact, the flavoured milk market in India was worth INR 33.2 billion in 2021, and is expected to grow at a CAGR of 26.01% to reach INR 127.7 billion between 2022 and 2027.
Flexibility
The introduction of flexible portion packs and lower priced products has also been a major factor leading to the growth of India’s flavoured milk segment. Having conventionally seen products starting from a price range of INR 20, such as Amul Kool’s flavoured milk, going up to INR 35 in case of Hershey’s milkshake, the high starting prices have previously been an entry barrier. But the introduction of smaller sized packs priced at INR 10, such as Parle Agro’s Smoodh, has helped the flavoured milk segment flourish in urban as well as rural markets.
Utility and flavour differentiation
In addition to flexible price brackets and an enhanced taste range, rising awareness about health, storability, and convenience has also played a key role in the growth of the dairy segment in India. Buttermilk and lassi have conventionally occupied a large part of the traditional ethnic beverage market. Now, with the growing adoption of aseptic cartons, innovative filling technology, and a range of added flavours, has created a wide new range of products including flavoured lassi, milkshakes with fruits and nuts, and more, with the ingredients listed in detail on the packs. Consumers can buy multiple packs, store them for longer, and consume them easily, on-the-go, after a workout, or on the way to work, among others.
SIG’s offerings for the milk and flavoured milk segment
In light of this accelerated growth, the flavoured milk industry in India is perfect for SIG’s wide range of flexible aseptic cartons with easy spouts, screw-on caps, and pierceable closures for added convenience, while also being compatible with SIG’s drinkplus filling technology for beverages with particulates. The combiblocXSlim cartons come in 80, 90, 100, 110, 125, 150, 160, 180, and 200 ml variants, while the comes in 125, 150, 180, 200, and 250 ml variants. In addition to these, the combiblocSmall, combifitSmall, combiblocCompact, combismileSmall, and combismileBig cartons from SIG are also designed to offer a range of applications and convenience for manufacturers and consumers of dairy products alike.