China's Dairy Consumption Surges, Positions as Global Market Leader
Source: The DairyNews
China's rapidly growing dairy consumption is positioning the country as a key player in the global market, driven by significant growth potential and rising demand. With dietary guidelines recommending 300 grams of liquid milk per day, China’s per capita dairy consumption still has substantial room for growth, presenting vast opportunities for the industry, according to Li Na, Deputy Director of the Department of Foreign Trade at the Ministry of Commerce. Her remarks were made during the 2024 China International Dairy Industry Conference.
China's dairy sector has evolved into a major force in production, consumption, and trade, leveraging years of development to establish a competitive edge. Chinese dairy companies are increasingly integrated into the global market.
Production and Quality Enhancement:
The China Dairy Association reports that the total market size of the dairy industry reached 500 billion yuan in 2023, with milk production increasing by 6.7% year-on-year to 41.97 million tons, making China the fourth-largest producer globally. Investment in technology and innovation is a priority for Chinese dairy companies, with advancements in smart manufacturing, industrial chain integration, and green development. Quality and safety standards for fresh milk have improved, and a diverse range of products such as skim, low-sugar, high-calcium, high-protein, and low-temperature milk cater to consumer demand for high-quality dairy products.
Accelerated Consumption Growth:
In 2023, China's per capita annual dairy consumption, equivalent to fresh milk, was 41.3 kilograms—only one-third of the global average. However, this represents a 33% increase since 2012. With rising living standards, dairy products have become integral to the Chinese diet, evolving from simple breakfast milk to diverse dairy foods like cheese and milk tea, reflecting a broader consumption structure.
Expanding Trade Scale:
The Chinese government is actively expanding imports of high-quality dairy products, with imports valued at $12.1 billion in 2023 from 56 countries and regions. Leading global dairy brands are exploring the Chinese market and partnering with local companies to meet consumer demand. Concurrently, Chinese dairy companies are accelerating their global footprint. Companies like Yili have established innovation centers worldwide and developed global food safety digital systems across nearly 80 countries.
Li Na highlighted that the global dairy industry faces both challenges and opportunities. Short-term issues include volatile raw material prices, high inventory levels, and insufficient demand. However, long-term prospects are positive, driven by advancements in production technology, rising consumer incomes, changing consumption habits, and increasing health awareness. Market research projects the global dairy market will exceed $1 trillion by 2026.
Looking ahead, the Ministry of Commerce will continue promoting high-level openness and high-quality development of dairy trade. Efforts will focus on enhancing the supply of high-quality products and leveraging platforms like the China International Import Expo to facilitate trade and investment cooperation between domestic and international dairy companies.
Production and Quality Enhancement:
The China Dairy Association reports that the total market size of the dairy industry reached 500 billion yuan in 2023, with milk production increasing by 6.7% year-on-year to 41.97 million tons, making China the fourth-largest producer globally. Investment in technology and innovation is a priority for Chinese dairy companies, with advancements in smart manufacturing, industrial chain integration, and green development. Quality and safety standards for fresh milk have improved, and a diverse range of products such as skim, low-sugar, high-calcium, high-protein, and low-temperature milk cater to consumer demand for high-quality dairy products.
Accelerated Consumption Growth:
In 2023, China's per capita annual dairy consumption, equivalent to fresh milk, was 41.3 kilograms—only one-third of the global average. However, this represents a 33% increase since 2012. With rising living standards, dairy products have become integral to the Chinese diet, evolving from simple breakfast milk to diverse dairy foods like cheese and milk tea, reflecting a broader consumption structure.
Expanding Trade Scale:
The Chinese government is actively expanding imports of high-quality dairy products, with imports valued at $12.1 billion in 2023 from 56 countries and regions. Leading global dairy brands are exploring the Chinese market and partnering with local companies to meet consumer demand. Concurrently, Chinese dairy companies are accelerating their global footprint. Companies like Yili have established innovation centers worldwide and developed global food safety digital systems across nearly 80 countries.
Li Na highlighted that the global dairy industry faces both challenges and opportunities. Short-term issues include volatile raw material prices, high inventory levels, and insufficient demand. However, long-term prospects are positive, driven by advancements in production technology, rising consumer incomes, changing consumption habits, and increasing health awareness. Market research projects the global dairy market will exceed $1 trillion by 2026.
Looking ahead, the Ministry of Commerce will continue promoting high-level openness and high-quality development of dairy trade. Efforts will focus on enhancing the supply of high-quality products and leveraging platforms like the China International Import Expo to facilitate trade and investment cooperation between domestic and international dairy companies.
