Packaging Sizes - Animal-Based Dairy Milk

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Single-Serve Packaging - Dairy


While there is no publicly available information to fully answer address the frequency of use of single-serve packaging trends in the dairy industry, available data does highlight that single-serve packages for sour cream are a growing trend. Below is an outline of the research strategies used to better understand why the information requested is publicly unavailable, as well as a deep dive into the findings.

Frequency of Use (2010-2013)

  • Single-serve sales of milk across all channels grew by 4% in 2012 according to MilkPEP’s All Channel Tracking study. With schools excluded as a channel, the growth was much higher at 10.6%, driven mainly by restaurants, grocery and mass stores.
  • The dollar sales of Horizon Organic milk in aseptic (single-serve) packaging increased by nearly 26% to $66 million from 2010 to 2011.
  • Flavored milk, particularly chocolate, was recognized as the clear industry leader when it came to single-serve milk, according to Vivien Godfrey, CEO for the Milk Processor Education Program.
  • Although the company Marva's overall sales of single-serve milk were flat in 2013, the company witnessed steady growth with its single-serve whole chocolate milk, according to Fred Calvert, COO of Fluid Operations at Maryland & Virginia Milk Producers.
  • As opined by an executive at Shamrock Farms, a dairy farm located in Arizona, calcium-fortified fat-free white milk continued to be a popular single-serve milk option in their sales.
  • In terms of end-users in 2013, in a sample of athletes (marathon runners and Ironman triathletes) nearly half of the users indicated that they typically consumed chocolate milk in single-serve packages.

Single-Serve Packaging for Milk (2016-2025)

  • In continuation of the growth registered in single-serve packaging for milk, demand for single-serve milk packaging was expected to grow between 2016 and 2024.
  • One of the major drivers behind this growth was the increasing number of small households—due to which consumers preferred single-serve packs of consumer goods.
  • Overall, the dairy packaging market size was estimated at $62.56 billion in 2018 and was expected to expand at a CAGR of 4.19% during the forecast period of 2019-2025.

Diverse Dairy Product Growth Trends (Single-Serve Packaging)

  • As reported in 2017, some of the newest drinkable dairy product trends, such as for yogurts and smoothies, include being available in sleek, single-serve PET bottles which are lightweight and shatterproof allowing dairy products to be easily carried around.
  • The frequency of the usage of single-serve packaging is also expected to grow as consumers are becoming more and more weight-conscious, and portable single portions of items like yogurt or cheese fit into their healthier lifestyles.
  • In 2018, it was found that dairy products in single-serve packaged formats saw a growing market; these snack foods included items such as single-serve packages of cottage cheese, snack-size packages of cheese cubes, protein packs (featuring an assortment of cheese, meat, and nuts), and sour cream in squeezable flexible pouches with flip-top caps.
  • Single-serve pouches for use on-the-go were found to be growing in popularity for sour cream.
  • Companies such as Dean Foods were found to be tapping into the portability factor in selling cottage cheese in single-serving containers because these containers are deemed convenient for use at or away from home.
  • This fact was also confirmed from a Mintel report which showed that packaging that offered single-serve and on-the-go use could help spur growth in sales of cheese.

Research Strategy:

Although the research team could find out insights relating to usage patterns, trends and drivers of single-serve packaging as it changed over the past five years in the dairy industry, we could not find out category-wise quantitative data for any of the mentioned segments such as milk, plant-based milk, cottage cheese, and sour cream. In order to shed light on why these details are not available, we've presented our strategies in this section to provide a transparent blueprint of our research.

To identify how the frequency of use of single-serve packaging has changed over the past five years for the dairy industry including its mentioned constituents, we started by looking into sources that provide market research focused on growth or decline of a market in terms of its value or volume sales increasing or decreasing. These sources included market research and industry research publications such as GM Insights, Technavio, Markets and Markets, Market Research, Mordor Intelligence, etc. We also looked into sources that publish reports on new research material, publishing on any market such as GlobeNewswire, PRNewswire, Business Wire, etc. We aimed to find out retrospective data providing growth or decline in the market of single-serving packaging meant for the dairy industry. However, the accessible parts of these otherwise paid reports either only provided insights on overall dairy packaging or overall single-serve packaging keeping the combination of these two beyond the paywall.

The team then looked into the information provided by the dairy market's suppliers (e.g., dairy packaging manufacturers like Berry Global Group, Bemis Company, Amcor Limited, Ball Corporation, Tetra Pak International, Sealed Air Corporation, WestRock Company, Mondi Group, and Nampak). We looked into their annual reports, public filings, investor presentations, technology and manufacturing updates, and other press and media releases with the aim to find out their take on increasing or decreasing dominance of single-serve packaging. However, the information on these sites was not related to the individual modes of packaging and was focused more on packaging as per items contained. Therefore, the required information focusing on single-serve packaging could not be found.

We then looked into sources which included information on dairy and packaging. These were sites that covered updated and specific domains of either dairy or packaging. The dairy sites included sources such as DairyBbusiness, Milk Business, The Dairy Site, Progressive Dairy, E-DairyNews, etc. The packaging sites included sites such as PackWorld, Packaging Digest, Plastic Packaging Facts, etc. We aimed to identify articles on either type of site that were about a combination of single-serve packaging as used in the dairy industry or products such as milk, cheese, sour cream, etc. However, sources covered single-serve packaging as an overall phenomenon not making granular distinctions along the lines of dairy products. Therefore, the information could not be used to answer the exact query posed.

Finally, we looked into reports published by dairy associations such as the National Dairy Council, International Dairy Foods Association, American Dairy Association, US Dairy Export Council, The Dairy Alliance, ADPI (American Dairy Products Institute), etc. We aimed to find out information or reports on the changing trends of dairy packaging. Although these sites contained similar information, the details were more focused on the benefits or drawbacks of single-serving packaging rather than detailing the changes noted in its usage.
Sources
Sources

Quotes
  • "In the beverage industry, portability is king,” said Vivien Godfrey, CEO for the Milk Processor Education Program. “Single-serve milks allow consumers to consume milk both in-home or on the go, without having to worry about refrigeration,” she said. Single-serve sales across all channels grew 4% last year according to MilkPEP’s All Channel Tracking study. The growth in the category when schools were excluded showed a 10.6% increase, driven mainly by restaurants, grocery and mass stores."
  • "According to Mintel, the dollar sales of Horizon Organic milk in aseptic (single-serve) packaging increased by nearly 26% to $66 million from 2010 to 2011. Single-serve aseptic packaging offers on-the-go convenience and expands milk-drinking occasions because consumers are not tethered to a refrigerated gallon jug of milk. So in addition to milk at breakfast or lunch, there are more opportunities to drink milk."
  • "Flavored milk, particularly chocolate, is the clear industry leader when it comes to single-serve milk, according to Godfrey. “An extensive and growing body of research supports the many recovery benefits of low-fat chocolate milk and I believe as consumers begin to learn more about the exercise-related benefits of chocolate milk, they are more inclined to consume it after a strenuous workout,” she said."
  • "Godfrey added that recent research indicates that in a sample of athletes (marathon runners and ironman triathletes) nearly half of current users indicated that they typically consume chocolate milk in single-serve packages."
  • "Though Marva’s overall sales of single serve have since leveled out, the company is seeing steady growth with its single-serve whole chocolate milk, according to Fred Calvert, COO of Fluid Operations at Maryland & Virginia Milk Producers."
  • "Ingredient trends are going beyond just flavor as well. “More than flavor, we’re seeing trends for added-value options like protein-fortified for muscle recovery and building,” said Shamrock’s Kelly. “Also, our calcium-fortified fat-free white milk continues to be a popular single-serve milk option."
Quotes
  • "Growing demand for single serve milk packaging is expected to provide remarkable opportunities for milk manufacturers to gain huge consumer attraction."
Quotes
  • "Increasing demand for single serve packs of milk products is expected to significantly fuel growth of the global milk packaging market over the forecast period. "
  • "Growth of the global milk packaging market is driven by factors such as increasing number of small households – due to which consumers prefer single serve packs of consumer goods – particularly for milk and other dairy products."
Quotes
  • "The global single-serve packaging market is forecast to reach a CAGR of around 5 percent during the period 2018-2022, reports Technavio "
  • "A key driver for the global single-serve packaging market is the cost efficiency. Single-serve packaging solutions cost less when compared with other forms of packaging such as multi-serve packaging solutions. A limited number of raw materials are required for the production of single-serve packaging solutions and it involves low manufacturing overhead costs. The cost of shipping single-serve packaging solutions is also lesser when compared with rigid packaging solutions. "
  • "The flexible plastics segment held the largest single-serve packaging market share in 2017, accounting for nearly 37 percent of the market. Flexible packaging is expected to dominate the global market through the forecast period. "
Quotes
  • "The global dairy packaging market size was estimated at USD 62.56 billion in 2018 and is expected to expand at a CAGR of 4.19% during the forecast period. Increasing consumption of dairy products owing to the rising awareness regarding healthy lifestyle is driving the product sales. Rising preference for environmentally friendly and sustainable products is anticipated to positively influence the product demand."
  • "North America held the largest market share of 33.79% in 2018. The region is anticipated to witness increased consumption of dairy products such as flavored milk and flavored low fat yogurt."
Quotes
  • "Some of the newest milk and drinkable dairy products, such as some yogurts and smoothies, are available in sleek, single-serve PET bottles. Lightweight, shatterproof PET bottles allow diary products to be easily carried around."
  • "As more people around the world live in congested urban centers, package size is an important consideration. An increasing number of households consist now of only one or two people. These consumers are looking for smaller, single containers. Multipacks enable smaller families to enjoy a single serving without having to open larger containers and worry about products becoming stale."
  • "Another consideration for consumers is portion control. As consumers are more and more weight-conscious, portable single portions of items like yogurt or cheese fit into a healthier lifestyle."
Quotes
  • "Accounting for a share estimated at 41.4% translating into US$12.8 billion in 2018, Milk is the largest application of Dairy Products Packaging globally, which is projected to reach US$17 billion by 2024"
Quotes
  • "Packaging Strategies reports that snacking is a booming $87 billion business. According to a survey they conducted, readers felt, by the largest margin, that single-serve snacking was a trend that is here to stay. The proof is on store shelves: Single-serve packaging formats now complement traditional package sizes."
  • "With NEWLY RELEASED NUTRITION GUIDELINES that no longer vilify fat and the increased popularity of ketogenic and low-carbohydrate lifestyles, dairy is no longer considered just a mix-in, addition to a meal, or topping. Dairy products in single-serve package formats are now seeing a growing market as snack foods. Convenient dairy innovations seen on store shelves now include: Single-serve packages of cottage cheese Snack-size packages of cheese cubes Protein packs featuring an assortment of cheese, meat, and nuts Sour cream in a squeezable flexible pouch with a flip-top cap"
Quotes
  • "Pouches are rapidly growing in popularity and use around the world. This highly-convenient and portable packaging allows you to offer single-serve pouches for use on-the-go, trial-size pouches to encourage sampling, and even larger, resealable family-size pouches."
Quotes
  • "In an effort to help cottage cheese gain back some market share, Dean Foods has tapped into the portability and flavor range that draws many shoppers to the yogurt aisle with its DairyPure Mix-ins line of cottage cheese. Single-serving containers are convenient for eating at or away from home, and a range of four fruit and nut toppings delivers on the variety shoppers want."
Quotes
  • "Consumers with busy lifestyles crave easy, on-the-go options. And because more consumers are snacking all throughout the day, Mintel reports that snacking may represent the most substantial opportunity to increase cheese consumption with consumers, especially young adults. Packaging that offers single-serve and on-the-go use could help spur growth in sales."
  • "For single-serve snacks like string cheese, cheese snack packs, and drinkable yogurts, ease of carrying is key for snacking on dairy on the go."
Quotes
  • "With families getting smaller and consumers always on the go, clever dairy brands are offering their milk in smaller volumes to appeal to a broader target audience. Single-serve packaging in particular, which can easily be tucked into a bag or lunch box, is becoming a more and more popular format."