Healthy growth in dairy revenue

Business analysts at IBISWorld say milk and milk alternatives will post healthy annual revenue growth over the next five years to reach $4.2 billion by 2020.

In 2014-15, IBISWorld predicts that the average Australian will consume 106.8 litres of cow’s milk, and a growing volume of alternatives, such as soy and rice milk.

South Australia leads the nation in milk consumption with 135.3 litres of milk consumed per person each year. New South Wales came in bottom place at 99.1 litres per person each year.

The growing diversity of products, including milk alternatives like soy and grain milk, and promotion of the health benefits of milk, would help contribute to the revenue growth, according to IBISWorld.

“Increasing consumer health consciousness, the continuing promotion of the benefits of milk and dairy, and the diversification of tastes as new milk alternatives emerge are all driving a gradual increase in milk consumption and revenue for the industry,” IBISWorld Australia general manager, Daniel Ruthven, said.