Asia Pacific Dairy Based Beverages Market - Growth, Trends and Forecast (2020 - 2025)
The Asia-Pacific dairy-based beverage market is projected to register a CAGR of 5.1% during the forecast period, 2020-2025.
The market is mainly driven by the value of nutrition and functional properties of milk, along with the rising demand for probiotic drinks by health-conscious consumers. Furthermore, recent launches of formulated functional products with new flavors have further fueled the global market, such as fortification of drinks with omega 3, collagen, aloe vera, plant sterols, and soy isoflavones. For instance, Morinaga Nutritional Foods Inc. launched a low-fat Japanese-style yogurt drink under its Alove brand in three flavors- original aloe vera, strawberry banana, and coconut in March 2018. Also, in 2018, Yakult Danone launched a new version of its signature probiotic drink in India.
However, rising demand for non-dairy based drinks and carbonated drinks due to lactose intolerance and other allergies is one of the factors restraining the global market for dairy-based beverages.
Key Market Trends
Rising Demand for Probiotic Drinks in the Region
Dairy-based probiotics drinks majorly drive the demand for dairy-based beverages market, where, kefir and drinking yogurts are leading class of products that have witnessed enhanced sales in the past few years, boosting the overall market growth. Earlier, consumers associated probiotics with yogurt accounting for nearly 78% of probiotic sales as most of the probiotic strains were unable to survive in products outside the refrigerated dairy category. However, with technological advancements, companies, such as Ganedan have developed strains, like GanedenBC30 (Bacillus coagulans GBI-30, 6086). This has given the opportunity for manufacturers to come up with new probiotic product launches in categories, such as hot or cold beverages and other food products as well. Companies have been investing significantly in the probiotic drink market to differentiate their product portfolio in the market, particularly in terms of technological advancements. For instance, China-based company, Mengniu Group, has recently launched LC-37 utilizes powerful concentration technology, to substantially increase the number of probiotics- nearly 500 times more than the country standard.
China Market Holds the Major Share in the Asia-Pacific Region
Dairy-based beverages are on the verge of boosting in the country with high potential for new entrants, as the country has several local manufacturers of bacteria who are active in the local market, while other small players are working on maintaining standards to meet the global demand. The majority of dairy-based drinks, especially probiotics are consumed in the form of yogurts and fermented products (from soy to vegetables and even eggs). Consumers in the country are shifting their focus from the safety of food to the healthiness of food, implying a demand for added functional ingredients, such as probiotics. Thus, the dairy-based drinks market is further driven by increasing awareness and interest in new technology, media coverage, and consumer demand in the country.
The Asia Pacific dairy-based beverages market is fragmented in nature owing to the presence of a large number of regional and domestic players. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the country's market include GCMMF (Amul), Fonterra Co-operative Group, Bright Dairy & Food Co., Ltd., Yakult Honsha Co. Ltd, and Mother Dairy Fruit & Vegetable Pvt. Ltd., among others.
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