TRENDS IN THE PACKAGED MILK POWDER MARKET: STATISTICS, TECHNOLOGY, DESIGN, MARKETING

Milk powder is produced by drying normalized pasteurized milk. There are three production methods: spray, conveyor and vacuum. The most efficient is the first method, it allows to minimize energy costs and get the highest quality milk powder. Dry milk retains the beneficial properties of pasteurized milk, but has a longer shelf life.

Milk powder is of two types: whole (SCM) and skimmed (SOM). Skimmed milk powder is characterized by a longer shelf life because the fats are subject to rancidity. Whole milk powder is more commonly used for food consumption. Skim milk powder is widely used in the bakery, confectionery and livestock industries. It is also used as a milk replacer for coffee machines.

Global milk powder market: trends

The demand for milk powder in the global market has been growing in recent years. This is due to the growth of milk consumption in the East, especially in China. Demand for this commodity in the Middle Kingdom is steadily growing, as well as in its developing neighboring countries. Another interesting market is Africa. Analysts observe an increase in demand for milk and dairy products and forecast market growth. Along with demand, milk powder production is also growing. Between 2010 and 2015 , it increased steadily by 5% per year. Top 5 global producers of skimmed milk powder:

• EU (34%);
• THE UNITED STATES (23%);
• New Zealand (12%);
• Australia (5%);
• India (5%).

Ukraine is among the top 10 producers of skimmed milk powder, according to OECD-FAO Agricultural Outlook 2016-2025 estimates, it ranks 8th among the largest producers.

The world production of whole milk powder in 2015 amounted to 4 million tons. The leaders are:

• New Zealand (34%);
• EU (19%);
• Brazil (14%);
• Mexico (7%);
• Argentina (7%).

Ukraine, according to OECD-FAO Agricultural Outlook 2016-2025 is in 17th place with a share of 0.3%.

Dairy market experts forecast further growth in the milk powder niche. The growth rate should remain at 5% per year.

To learn more about the market situation, contact KOLORO. We will conduct a detailed research and provide a report with statistical data. You can also read our overviews on similar topics: cheese market overview and dairy market analysis,

Packaging requirements for milk powder

Milk powder packaging must have high barrier properties, sufficient density and protect the product from moisture and oxygen ingress. Sealed polymer packages are best suited for this purpose. These can be four- or five-layer packages with polyethylene liner bags or packs with an inner sealed package made of aluminum foil. Also, metal or combined cans are used for packing milk powder. They perfectly protect the contents from the negative effects of sunlight. Other packages are considered less suitable for storing milk powder. Such unsuitable packages include plastic food buckets. They are roomy and easy to transport, but are not hermetically sealed.

If milk powder is not vacuum packed, inert gases are used to extend the shelf life of milk powder. Labeling for milk powder is standard: it is required to indicate the date of manufacture, expiration date, weight, existing certificates, data on nutritional (fat, protein, lactose, vitamins A, B) and energy value per 100 grams of product. Provided that milk powder is stored at a temperature of 1 to 10 degrees Celsius and air humidity not exceeding 85%, it can be stored up to 8 months from the date of production.

There is a tendency to increase the shelf life of milk powder. Some foreign producers increase the shelf life of their products to 2 or 3 years. For example, Kalinkovichi Dairy Plant (Belarus) produces milk powder with a shelf life of 24 months. At the same time, the storage conditions for it are similar.

In addition to bag and pillow packs, the doy-pack has become popular in recent years. It is convenient because it can be equipped with a zip-lock. This means that it provides greater product sealing after the first opening. This is a good solution for manufacturers who create a product for the retail market.

Milk powder packaging manufacturers

1. Immer Ukrplastic (ex OJSC Ukrplastic). The corporation produces packaging for all types of dairy products, including milk powder. In addition to standard characteristics (protection from external factors, high strength, resistance to fats), the packaging of this company is recyclable and resistant to microcracks. The corporation also offers optimal customized solutions, which means you can choose the material and the optimal printing technology for it.
2. “Aventine is a company that produces flexible packaging materials. For dairy products, the company has five packaging options. Among them there are film and polymer packs, which are suitable for packing milk powder.
3. Tetra Laval Group, a global corporation headquartered in Sweden, is known for the high quality of its products. Among the various types of packaging, it also provides solutions for milk powder producers. The packaging is also suitable for recycling.
4. ITAK LLC is another Ukrainian company. It has been producing flexible polymer packaging for 25 years. The company produces packaging for food products, as well as labels for PET containers.

Trends in packaging design

For industrial purposes, milk powder is packed in large 25 kilogram bags. These are usually large multilayer bags with a sealed polyethylene liner. For retail sales of milk powder, small packs of 200 grams to 1 kilogram are made. When creating the design of the packaging, companies are guided by the needs of the people who buy it. You can often see baked goods on the packages. This demonstrates one of the purposes of the products.

Another common option is milk elements. They should emphasize the naturalness of the product and convey to the consumer that milk powder has all the necessary elements and vitamins. For this purpose, milk splashes, images of cows, green meadows and the like are used.

Belgomilk, a European dairy company from Belgium, produces milk powder under the Incolac brand. Their products are packaged in metal cans or flexible cushion packaging. The product design has not changed for a long time and is a typical representative of bygone trends. In the center there is a large and bright logo, 2 dairy elements are used (a cow and a splash of milk from a glass), and a green meadow is painted on the background. However, it is worth noting an interesting detail. The cow on the package is painted in the colors of the Belgian flag, which is an additional sign of quality for the product.

The design of foreign companies’ products can also be less straightforward. For example, the packaging of Nestle milk powder leaves a feeling of naturalness, while appealing only to light blue shades and a small amount of green elements at the bottom. At the same time, the leaves are not a pitch, but only give a sense of freshness and naturalness.

The Danish brand Dutch Lady, FrieslandCampina Corporation, has taken a creative approach to milk packaging design. They have several lines of milk powder, which is packaged both in flexible packaging and in metal cans. The classic line is decorated with the image of the brand character – a woman in traditional costume.

There are also lines of milk powder for children. They are differentiated by age:

• one to two years;
• 2 to 4 years old;
• 4 to 6 years old;
• 6 and up.

Each is decorated with a photo of a child of the appropriate age exploring the world (looking at the camera, drawing or playing with a magnifying glass). In addition, the center of the packaging is not a logo, but an appeal: “be curious”, “explore”, “create” or “learn”. These motivational messages are aimed at parents who not only want to give their child the best, but also want to raise them better. In addition to the motivation, the formulae of the micronutrients with which the milk is enriched are shown on the packaging. The logo is placed in the upper part of the package. It does not draw attention to itself, but does not get lost against the background of other elements. The design of the children’s series of Dutch Lady powdered milk is a dynamic package that speaks to the consumer and motivates to buy. It is charged with positivity and awakens positive emotions.

Nestle, Dutch Lady and Incolac milk powder packaging design (left to right)

Packaged milk powder market: conclusions

1. The milk powder market has been growing for the last 7 years. Experts forecast its continued growth and increased consumption of the product due to Africa and China. Packaged milk powder is most often used in home baking and is also bought for children. To be successful in its production and sales you need to choose the right packaging. Polymer multilayer films (at least four-layer films) or metal cans are best. Such cans are the most successful option for protection from external factors and are also associated with quality products.
2. In the marketing strategy of product promotion and package design, it is worth moving away from classic dairy symbols (example – Nestle) and focusing on emotions (example – Dutch Lady). It is important to focus on the desires of the target audience in the advertising presentation of the product. Differentiation of products can bring more profit to manufacturers. For this purpose it is possible to create several product lines. For example, for adults, for children, for baking and for adding to coffee.
3. It is worth keeping packaging design concise, as the trend in recent years has been to simplify the appearance of goods. It is important to use light colors for dairy products, and a significant part of the packaging should be white. It is not necessary to dwell on classic dairy symbols, because freshness and naturalness can be shown not only through green meadows and cow herds.

To create a successful milk powder brand, contact KOLORO branding agency. We will conduct market research and on its basis develop brand identity, positioning and packaging design.