- Year In Review
- Growth Stories
represent a huge opportunity for growth
€ 598 m
+ 18.0 %
Millions of new consumers create multiple growth opportunities
The Asia Pacific region covers diversified markets with a multitude of opportunities. Most countries continue to show positive macro trends, with economic growth bringing higher living standards. Across South East Asia and India, millions of people are only now starting to consume packaged food and beverages. This rise of these new consumers, driven by increasing income, changing lifestyles and new consumption habits, represents a huge opportunity for our industry.
At the same time, young and growing populations are adopting modern lifestyles in urban areas, with more on-the-go consumption. Consumers are also increasingly aware of health and wellness issues and are looking for higher-quality products, with millennials in particular willing to pay a premium for healthy and nutritional food and beverages.
In China, the liquid dairy market showed robust growth in 2018, with ambient high-viscous drinking yogurt the fastestgrowing product category. There is a continuing trend towards premiumisation and product upgrades.
Outside China, the liquid dairy market also continues to grow, with further momentum coming from flavoured milk for children and from plant-based milks for consumers seeking lactose-free protein. Premiumisation is further reflected in the demand for products with particulates and high nutritional value.
Premiumisation and dairy drive growth
2018 was a year of outstanding growth in the Asia-Pacific region, with our portfolio well placed to capitalise on the favourable market trends.
In China, the launch of combismile has enabled SIG to enter into the premium market and to win new business. The launch took place in partnership with Yili and Mengniu, the two largest Chinese dairies. Yili has chosen the combismile package to upgrade their premium Shuahua Functional Milk, which is lactose-free and high in protein, in order to maintain their leading position in this category. Mengniu has taken advantage of SIG’s drinksplus technology combined with combismile to launch ambient yogurt with fruit particulates.
Orders for combismile filling lines have been progressing rapidly and combismile has met with a very positive response among consumers.
drinksplus has been adopted by Bright Dairy to successfully upgrade their ambient yogurt product, which had been in the market for seven years, to a new premium version with fruit particulates.
We saw strong volume growth in a number of markets outside China as we continued to expand in the mainstream milk market, while working with our customers to introduce high nutrition products including drinksplus in Thailand and South Korea. We also seized growth opportunities with the success of our innovative Heat&Go, the first microwaveable carton which enables South Korean consumers to enjoy hot beverages in a convenient package.
We continued our strategic partnerships with leading dairy and soy milk customers in key markets, working with them to increase the productivity of installed machines. Through system performance, flexibility and innovation we are able to increase our share of wallet, broadening our footprint with customers such as as DPO (Dairy Farming Promotion Organisation of Thailand). We are also gaining new customers – our relationships with Indolakto in Indonesia and Etika in Malaysia have made a successful start.
Expansion into new geographies
India is the world’s fastest-growing market for aseptic carton packaging. Demand is driven by the non-carbonated soft drinks category, the shift from unpackaged to packaged milk and the lack of a stable end-to-end cold chain infrastructure. In 2018, we placed our first two filling machines in India.
Japan is a large and attractive market where we aim to become the clear number two in aseptic carton packaging by 2022. Our innovative formats and particulates capability are well suited to offer differentiation to local companies wishing to revitalise their product portfolio while continuing to ensure the highest quality. To accelerate market penetration, we have established a joint venture with Dai Nippon Printing.
Opening of China Tech Centre
In October 2018, we were proud to open a new Tech Centre in Suzhou. The Tech Centre has advanced R&D capabilities which will speed the rate at which innovation reaches the APAC region. In addition, it provides customers with test filling equipment for products with different particulates and has a world-class facility for machine assembly and training services.
Customers across the region have shown great interest in the services provided by the new Tech Centre, which a number of them have already visited.
Mengniu seeking product differentiation, catering to consumer needs of healthy, nutritious and convenient on-thego products; launched popular yoghurt drink product with retail price RMB 2.00/pack (250ml)
Creating a new product category leveraging SIG’s particulate filling technology drinksplus, allowing Mengniu to fill demand with new consumer groups in a new premium category; package with retail price increased to RMB 3.50/pack (250ml)
Launching the next phase in ambient yoghurt with first to have blueberry particulates in SIG’s new on-the-go package, combismile with drinksplus capability; and grow in both traditional and online channel with retail price of RMB 7.20/pack (200ml)
Long-term partnership in building a category and brand with an industry leader
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