Oct 21, 2020
As people try to reduce the number of visits to milk parlors by stocking milk with longer shelf life during the Covid pandemic and thus it has boosted demand for ultra-high temperature (UHT) treated milk. While dairies that have been present in this segment experienced a jump in demand, Maharashtra-based Gokul dairy, with an annual turnover of Rs. 2500 crore, has entered this segment to cater to the pandemic-induced demand.
The buying behavior is shifting towards Tetra Pack milk due to its higher shelf life and ease of use. It gives the customer the opportunity to stock the product for a monthly supply. This pattern has seen a huge jump during Covid and lockdown times while following social distancing norms
The big dairies that have been already selling UHT milk experienced increased demand during the lockdown. The tetra pack milk category in the initial days of the lockdown had seen immense demand due to panic buying among consumers, and the demand stabilized in the later days.
Looking at this behavioral change of the consumer, Kolhapur-based Gokul has decided to enter this category with a launch of UHT treated milk with six months of shelf life.
R.S. Sodhi, the chairman, Amul, stated that dairies have already experienced a shift of consumers from loose milk and smaller brands to packaged milk from the bigger brands. The preference for fresh milk is also because of its affordability.
Sodhi added that out of the 5.25 crore litre of packaged milk sold daily in the country, around 5% is UTH milk, which has a shelf life of 3 to 6 months. The demand is more in the traditional milk deficit states. However, during the pandemic, the demand for UHT milk has increased by about 15%,” Sodhi said.
Gokul aims to gain 20 percent market share in a couple of years of the current 5 lakh litre of overall Tetra Pack milk market size in Mumbai and plans to take its UHT milk to Delhi, Himachal Pradesh, the northeastern states, and Goa, where the availability of fresh milk is restricted. It has plans to set up a separate facility in Mumbai that will also have a Tetra packaging facility.