China sees rising demand for yoghurt

Publish time: 12th August, 2014      Source:
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August 12, 2014


China sees rising demand for yoghurt


With significant investments in China''s yoghurt market, the country''s demand for the fermented milk product has reportedly exceed that of flavoured milk as well as grain, nut, rice and seed milk alternative drinks.



In May 2013, Mengniu and Danone signed a framework agreement to establish a joint venture for the production and supply of chilled yoghurt products. At the same time Mengniu increased its stake in China Modern Dairy to 28%. Yili Group also formed an alliance with Italian dairy firm, Sterilgarda Alimenti, and signed a memorandum of understanding with the Dairy Farmers of America concerning strategic purchasing and farming service cooperation.



"With insufficient supply of raw milk and rising raw milk prices in 2013, Chinese dairy producers concentrated resources towards maintaining steady milk supplies by investing more in milk sources and cattle ranches. These investments are now bearing fruit, with the yoghurt category expected to experience steady growth well into 2019," said Michael Loubser, a beverage analyst with Canadean



Canadean say that rising disposable incomes, together with the marketed benefits of drinking yoghurt, have spearheaded the demand for the product.



Canadean adds that the ambient drinking yoghurt segment is performing particularly well with 110% growth in 2013. The market for the segment is expected to grow further in 2014, taking 70% of the yoghurt market.



"Consumption habits have shifted, and a significant portion of the market is now ''on the go'' which makes yoghurt drinks, especially ambient variants, very convenient for busy consumers," said Loubser.