Dairy Products China Monthly Report

Welcome to the November issue of Dairy Products China News.

In recent years, China's consumer market has experienced notable transformations, which have significantly impacted the dairy industry. Over the past 2 years, there has been a pronounced trend of consumption downgrading among households and younger buyers, leading to periodic market saturation in dairy products, especially in first- and second-tier cities. Consumers have increasingly shown a preference for healthful drinks and functional beverages, consequently reducing their dairy intake. Despite this, smaller cities still demonstrate considerable growth potential. If dairy consumption frequency in these regions can be enhanced, the industry retains broad development prospects.

While companies are busy chasing after households and young consumers, they often neglect the elderly. Although China's elderly might not spend as much, they have specific product preferences and constitute a vast market potential. However, the supply of functional health and nutrition products in China's market remains relatively scarce.

Consumer habits are evolving in China, and this is boosting the popularity of freshly-made products over the old favorites. Thanks to better mobile internet and delivery, these items are now a hot growth area. The freshly-made tea drink market, for example, was worth around USD35.1 billion (RMB250.0 billion) by 2023, growing at 25.2% a year. Many of these drinks are made with pure milk, showing that people are looking for healthier options.

To wrap up, China's dairy industry is facing changes in what consumers want and how they shop. Companies need to keep up with these trends and create new products to meet different needs. As people care more about health, there's a big chance for the dairy industry to grow.