Demand for dairy products in China is witnessing stability, sustained by outpacing volume growth, while the country depicts surging interest in dairy products, according to an analytical research report, titled “Dairy Consumption Trends-China– March 2018”, added by Market Research Hub (MRH) to its repository. The report is a comprehensive source of information and guidance that offers readers in-depth insights on the key trends shaping the dairy landscape in China.

In 2016, the Chinese Nutrition Society updated the dietary guidelines for consumers in the country, recommending each individual to consume nearly 300 grams of dairy products every day. Significant opportunities exist in growth of China’s dairy consumption, particularly from lower-tier markets, underpinned by increasing consumer awareness on nutrition intake, along with rising GHDI and rapid urbanization. According to an analysis conducted by HSBC Bank in 2015, Millennials in China are wealthier than Baby Boomers, and are largely influenced by Western culture. Majority of young urbanites in the country include dairy products, perceived as “healthy food”, in their diet, with the major factor influencing the purchase being growing health-consciousness.

Consumer Interest led by Cheese, Yogurt & Protein-fortified Dairy Products

The report projects that protein-fortified dairy products, yogurt, and cheese will continue to be large influential trends in this subcontinent of 1.4 Bn population, which in turn will pave export opportunities for international markets. According to the US Dairy Export Council (USDEC), the US cheese exported to China in the year 2016-17 illustrated a volume rise of 44%. In addition, with cheese consumption in China being low, it could be a potential dairy sub-category to witness popularity in the upcoming years. Brands are making cheese to be more snack-like for encouraging its consumption. With growing consumer belief in nutritional benefits of cheese, awareness of requirement for cheese consumption by children & toddlers has been gaining momentum lately.

The report further foresees consumption of yogurt to be on an upward trend since the recent past, especially the drinkable and Greek varieties, such as “yoGreek” that was recently launched by Bright Dairy. The Inner Mongolia Yili has been expanding its operations on ambient drinking yogurt for providing an impetus to its “Ambrosial” brand’s growth. Dairy manufacturers in China are leveraging the increasing consumer demand for high-protein content products to boost their development and sales. Both yogurt and white milk categories are concentrating on increasing levels of protein content, as protein has become key feature of premium dairy products.

Imported Dairy Products Gaining Larger Preference in China

The report also states that imported dairy products are in high demand in China, on account of food safety concerns regarding the country’s domestic dairy products, which in turn has led consumers to perceive international dairy products to be of higher quality. Dairy products producing companies in China have therefore commenced including source of their milk in product labelling, in a bid to prove their product’s integrity and gain consumer loyalty.

The Chinese Food and Drug Administration has recently conducted inspection of dairy products, wherein 99.5% samples passed screening test, according to Hong Kong data & business intelligence firm – CCM. This will further help alleviate the negative perception of Chinese consumers with regard to domestic dairy products.

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