December 4, 2024 – In Asia Pacific, milk drinks are preferred for their versatility, offering nourishment, indulgence, and functional benefits in convenient options. Innova’s 360 research into milk industry highlights innovations, product launches, top brands, flavors, and what may develop in the future.
Milk Drinks Sales Trends
Asia Pacific leads the global milk drinks industry in sales value over the past year, driven by consumer demand for inclusivity and health-focused offerings. Nearly half of consumers in the region prioritize dietary inclusivity, seeking products that cater to diverse cultural and personal needs. Certifications like halal and clean label claims, such as no additives, organic, and allergen-free, appeal strongly, fueling new product development during the same period.
Almost 1 in 3 consumers in Asia Pacific consider bone health as their primary concern related to physical well-being. Addressing this preference, milk trends with bone health claims display 12% CAGR growth over the past four years. This aligns with Innova’s annual top trend of 2024, ‘Prioritizing Prevention,’ where companies proactively address potential health issues before they occur to maintain consumer interest. The development of milk trends enriched with calcium appeals to health-conscious consumers looking to sustain long-term wellness.
Milk Drinks Product Launch Trends
Milk drink launches rise significantly in 2023, reflecting evolving consumer values in the Asia Pacific region. Over half of consumers in the region associate animal protection with nature preservation, driving a 59% growth in milk industry featuring ethical claims related to animal welfare. Launches produced by well-bred, grass-fed cows and goats, raised sustainably and certified by NKV and FSC, highlight a commitment to quality and emphasize the importance of animal protection.
This aligns with Innova’s another Top Trend of 2024, ‘Nurturing Nature,’ where businesses go beyond sustainability to actively enhance animal welfare. By prioritizing ethical production, brands not only appeal to eco-conscious consumers but also demonstrate their role in fostering a healthier planet.
Milk Industry Leading Markets and Companies
China, India, Indonesia, South Korea, and Japan are the top 5 countries for milk drinks cluster launches in Asia Pacific over the past five years. Nestlé is the leading company for drink launches in the milk industry, driven by brands like Milo, Bear Brand, and Dancow. The company prioritizes innovation to enhance nutritional value, focusing on fortified products that address diverse health needs while promoting sustainability.
Nestlé’s N3 milk displays this approach by supporting children’s development with a nutrient-rich formulation. Enriched with omega-3 fatty acids and using proprietary technology to convert lactose into prebiotic fibers, it highlights Nestlé’s commitment to advancing consumer well-being and healthier lifestyles.
Mengniu Dairy, Fonterra, Binggrae, and Yili are other notable companies in the market. These top 5 companies in Asia Pacific account for 13% of new products launches within the milk industry over the past year.
Milk Industry Claims and Positionings Trends
The top 5 positionings in the milk industry are source of protein, halal, no additives or preservatives, low/no/reduced fat, and bone health. Source of protein claim is leading in China and Japan.
Apart from these top 5 positionings, organic, seasonal – other, and vitamin/mineral fortified are gaining popularity in China, while consumers in India lean towards traditional, brain health, and oral health. In Indonesia, for children (5-12 years), omega-3, and vitamin/mineral-fortified claims are on the rise. Indulgent & premium, high/source of fiber, and limited edition claims are growing in Japan. This displays that companies are launching and customizing their offerings to meet consumer desires.
Milk Industry Drinks Flavor Trends
Milk chocolate, strawberry, vanilla, banana, and almond are the top 5 flavors in the market. Nearly 1 in 4 consumers in Asia Pacific look for milk trends when they want to experiment with flavors. Recognizing this preference, a range of choices featuring brown flavors, fruit options like strawberry, banana, and mango, and nuts flavors remain attractive in Asia Pacific.
What’s Next in the Milk Industry Trends in Asia Pacific?
Unflavored milk leads the milk industry trends in Asia Pacific, with 18% of consumers favoring flavorless options. Supporting this preference, unflavored milk exhibits growth of 13% CAGR. Premium raw grade milk, INF ultra-instantaneous sterilization milk, and options ranging from skimmed to full cream milk, as well as rBST-free cow’s milk, have pushed the unflavored milk launches over the past year.
Additionally, 23% of consumers in the region prioritize low/no/reduced fat options, encouraging brands to highlight varying fat compositions (e.g., 2%, 3.6%) to assist health-conscious buyers, especially in China. Exploring cross-category flavors inspired by tea, such as matcha, black tea, or herbal tea, opens avenues for unique taste combinations. With rising health awareness, the unflavored milk industry are likely to expand further as consumers seek purity and transparency in their choices.
This article is based on Innova’s Overview of Milk Drinks in Asia Pacific. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
