Dairy markets in China still show potential

Published 20 April 16

Dairy showed one of the strongest growth results in China’s food and beverage market in 2015. The growth was driven mostly by an increased number of consumers and supplied primarily by imports. According to a recent report by Kantar Worldpanel China, the liquid milk market, which includes yoghurts, saw sales increase by 7.5% in 2015. This compares to an average growth rate of 2.1% for the whole food and beverage sector. Imports increased their share of the market from 10% to 16%, as prices were well below domestic levels.

Per capita consumption of dairy products has, however, remained relatively flat over the past five years, at around 60 litres/annum. Kantar’s research has shown that households with young or teenage children tend to have higher consumption than adult households. Per capita consumption for households with younger families was 62 litres/annum, roughly 4.5 litres more than the average for adult households.

Levels of per capita consumption remain low, at about 20% of the average in the EU, suggesting a great deal of growth potential still exists, especially for products geared towards younger consumers.