Central Asia’s Dairy Industry at a Peak of Growth Driven by Localization and Consumer Trends – Alexey Ashrafzyanov, Tetra Pak
Source: DairyNews.today
The second Central Asian Dairy Congress, AqAltyn, is being held on November 26-27, 2024, in Turkestan, Kazakhstan. On the opening day, Alexey Ashrafzyanov, Director of Tetra Pak's Central Asia and Caucasus office, delivered a presentation on innovations in the dairy category and brand development amid key market-shaping trends.
The global dairy beverages segment accounts for just 16% of the overall beverage market and is projected to grow at a compound annual growth rate (CAGR) of +2.1% from 2023 to 2026.
“We observe consumers frequently shifting between milk and other beverages,” commented Ashrafzyanov. “Globally, white milk represents 69% of the dairy market. Drinkable yogurts are the second-largest category, followed by plant-based beverages.”
“Demand for industrial dairy products will be driven by population growth and rising incomes among Central Asian consumers. The region gains nearly 1 million new consumers every year, a significant factor shaping the industry’s trajectory for decades. This is why we’re here,” emphasized Ashrafzyanov.
Key Consumer Trends in Central Asia’s Dairy Industry
Rising Prices and Thoughtful Purchases
Consumers are making more deliberate purchasing decisions in response to rising product prices, creating opportunities for producers to offer economical packaging formats. Both manufacturers and retailers are responding with promotional deals, larger packaging sizes, private label products, and budget-friendly options.
Health Focus
Regional consumers increasingly seek products with functional benefits, such as immunity support, improved digestion, and vitamin D enrichment.
Localization of Production
A majority of consumers (65%) in the region prefer local brands, associating them with naturalness and high quality. Additionally, 42% of consumers are paying more attention to the country of origin.
Product Variety
Expanding flavors and formats are piquing consumer interest, with growing demand for fortified dairy drinks.
Kazakhstan: A Regional Leader
According to Tetra Pak, Kazakhstan remains the largest dairy market in Central Asia, exhibiting steady growth and high localization of production. In 2024, Kazakhstan accounted for 43.7% of all dairy beverages in the region.
Central Asia is a key area for business development, focusing on building strong partnerships, adopting new technologies, and implementing eco-friendly solutions. “Central Asia offers excellent growth potential due to its young population, rapid urbanization, and forecasted income growth,” Ashrafzyanov noted.
The expert also highlighted the lack of specialized dairy products for children in the region.
Growth Drivers for Central Asia’s Dairy Category
Expanding the Consumer Base
Effective and persuasive communication of verified product benefits can attract new consumers.
Broader Product Offerings
Introducing new categories, flavors, and formats stimulates consumer interest.
Creating New Consumption Habits
Encouraging regular consumption and integrating dairy into various contexts, such as cooking, baking, breakfasts, and on-the-go options, fosters deeper consumer engagement.
General Sponsor: Borte Engineering
“We observe consumers frequently shifting between milk and other beverages,” commented Ashrafzyanov. “Globally, white milk represents 69% of the dairy market. Drinkable yogurts are the second-largest category, followed by plant-based beverages.”
“Demand for industrial dairy products will be driven by population growth and rising incomes among Central Asian consumers. The region gains nearly 1 million new consumers every year, a significant factor shaping the industry’s trajectory for decades. This is why we’re here,” emphasized Ashrafzyanov.
Key Consumer Trends in Central Asia’s Dairy Industry
Rising Prices and Thoughtful Purchases
Consumers are making more deliberate purchasing decisions in response to rising product prices, creating opportunities for producers to offer economical packaging formats. Both manufacturers and retailers are responding with promotional deals, larger packaging sizes, private label products, and budget-friendly options.
Health Focus
Regional consumers increasingly seek products with functional benefits, such as immunity support, improved digestion, and vitamin D enrichment.
Localization of Production
A majority of consumers (65%) in the region prefer local brands, associating them with naturalness and high quality. Additionally, 42% of consumers are paying more attention to the country of origin.
Product Variety
Expanding flavors and formats are piquing consumer interest, with growing demand for fortified dairy drinks.
Kazakhstan: A Regional Leader
According to Tetra Pak, Kazakhstan remains the largest dairy market in Central Asia, exhibiting steady growth and high localization of production. In 2024, Kazakhstan accounted for 43.7% of all dairy beverages in the region.
Central Asia is a key area for business development, focusing on building strong partnerships, adopting new technologies, and implementing eco-friendly solutions. “Central Asia offers excellent growth potential due to its young population, rapid urbanization, and forecasted income growth,” Ashrafzyanov noted.
The expert also highlighted the lack of specialized dairy products for children in the region.
Growth Drivers for Central Asia’s Dairy Category
Expanding the Consumer Base
Effective and persuasive communication of verified product benefits can attract new consumers.
Broader Product Offerings
Introducing new categories, flavors, and formats stimulates consumer interest.
Creating New Consumption Habits
Encouraging regular consumption and integrating dairy into various contexts, such as cooking, baking, breakfasts, and on-the-go options, fosters deeper consumer engagement.
General Sponsor: Borte Engineering
Altyn Sponsor: Clever Machines
Technological Partner: Kieselmann
Kүmis Sponsor: dsm-firmenich
Qola Sponsors:
Partners:
- Kazakhstan Dairy Union
- QazaqSut,
- Atameken NPP
- Borte Milka
- Otyrar Agro
Media Partners: France Group, IFCM
