Tetra Pak offers new packaging options

01 Sep 2011

Tetra Pak of Switzerland, which is involved in the packaging and processing of liquid products, is targeting a 10% to 12% growth annually from this year to 2014 in Malaysia and Singapore by introducing differentiated products for emerging markets.

Tetra Pak Malaysia, Singapore & Philippines marketing and product management director John Jose said: "In Malaysia and Singapore, we sold 1.2 billion packages last year and we saw a 16% growth in 2010 on the back of strong economic rebound."

He said the growth was driven by consumer confidence, various promotions and new products which came on the back of demand for convenience due to urbanisation.

According to Jose, South and Southeast Asia is the fifth-largest market for Tetra Pak and the fastest-growing cluster, recording double-digit growth in 2010 with 16 billion packages sold. Globally, it sold 158 billion packages last year, a 9% increase from the previous year.

Currently, Tetra Pak has a strong 70-80% market share in the carton packaging segment for dairy-based products, juices and nectars in South and Southeast Asia, while in Malaysia, it dominates the white milk packaging segment with a 95% market share.

"Carton is very well established in Malaysia but only in TBA (Tetra Brik Aseptic, a rectangular or square shaped packaging) format and mostly in 250ml and 1000ml sizes," Jose said.

He said there is potential to grow the market for smaller-sized packaging, namely 125ml and 200ml, in Malaysia and Singapore as Tetra Pak customers have begun offering products targeted at young consumers such as the Dutch Lady milk for children.

These smaller packs help parents ensure their children consume the right amount of nutrition and offer convenience to children who bring them to school.

According to Jose, Tetra Pak is also introducing a new packaging to the local market called Tetra Prisma Aseptic, which is octagon-shaped and offers excellent grip and pouring performance to attract the emerging market of teens and affluent young adults who seek convenience and trendy packaging.

Already available in Saudi Arabia, he said research shows that the Tetra Prisma Aseptic packaging is perceived by consumers as a premium product.

Coupled with DreamCap, an ergonomically designed closure specially for on-the-go consumption, Tetra Prisma Aseptic could help Tetra Pak gain market share in the ready-to-drink flavoured fruit drinks segment which is currently dominated by polyethylene terephthalate (PET) packaging.

To expand the business, Jose said Tetra Pak needs differentiation and segmentation with new packaging formats, such as the Tetra Prisma Aseptic, which make a good differentiated solution to PET bottles and are also more environment friendly.

"We will also introduce a new portfolio (of packaging options) to our customers and push for more innovative designs," he said.

He added that the company also aims to engage its customers to realise the benefits of a good product mix through differentiation, segmentation and increasing product image and value which lead to sustainable profit growth in the long-term.

Source: Tetra Pak