China's demand for dairy remains robust but is set for a transformation
Source: DairyNews.today
A recent trade mission led by Ireland’s Minister for Agriculture, Food and the Marine, Charlie McConalogue, and Minister of State for new market development, Martin Heydon, to China and South Korea has unveiled significant insights into the future of dairy demand from China. As the mission concluded, a key takeaway emerged: China's demand for dairy remains robust but is set for a transformation, driven by shifting consumer preferences.
Historically, China's dairy imports have been heavily driven by the demand for infant formula. However, with a declining birthrate, the focus is transitioning towards health and nutritional products. Minister Heydon, speaking in Shanghai, highlighted this changing dynamic, stating, “While infant formula remains an essential market for us, the significant drop in births – from 18 million annually a few years ago to 9 million today – means we must pivot to other growth sectors.”
With China’s ageing population on the rise, adult nutrition, particularly for senior citizens, is now a focal point. The growing interest in sports nutrition and functional foods also presents a lucrative opportunity for Irish dairy exporters. “These higher-value markets, especially in health and nutrition, are exactly what we are targeting,” Heydon added.
Bord Bia’s CEO, Jim O’Toole, echoed these sentiments, emphasizing the demographic shift as a key driver. “China’s population is ageing rapidly, and with it comes the need for specialized nutrition tailored to older adults,” he noted. This demand shift towards adult and clinical nutrition represents a major opportunity for Irish dairy products, which must now demonstrate their functionality and value in the health sector.
Whey protein, in particular, is expected to play a central role in this evolving market. Conor O'Sullivan, Bord Bia's China manager, pointed out that while China needs whey, it lacks the cost-effective production capabilities that countries like Ireland possess. “China doesn’t have the balance of cheese and whey production that we do, which gives us a unique advantage as an exporter,” O’Sullivan explained.
During the trade mission, dairy market analyst Song Liang provided further insight into these trends. He pointed out that while cheese consumption in China remains low, the demand for high-quality whey protein is set to grow due to rising public health concerns and increased health awareness. Post-COVID, more than half of the Chinese population reported heightened interest in nutritional supplements, particularly among the 36-40 age group.
In conclusion, as China's dairy import landscape evolves, Irish exporters are positioned to meet the demand for high-value, health-focused products, including whey and other nutritional ingredients. This shift presents a significant growth opportunity, with Ireland poised to play a pivotal role in China’s expanding dairy sector.
With China’s ageing population on the rise, adult nutrition, particularly for senior citizens, is now a focal point. The growing interest in sports nutrition and functional foods also presents a lucrative opportunity for Irish dairy exporters. “These higher-value markets, especially in health and nutrition, are exactly what we are targeting,” Heydon added.
Bord Bia’s CEO, Jim O’Toole, echoed these sentiments, emphasizing the demographic shift as a key driver. “China’s population is ageing rapidly, and with it comes the need for specialized nutrition tailored to older adults,” he noted. This demand shift towards adult and clinical nutrition represents a major opportunity for Irish dairy products, which must now demonstrate their functionality and value in the health sector.
Whey protein, in particular, is expected to play a central role in this evolving market. Conor O'Sullivan, Bord Bia's China manager, pointed out that while China needs whey, it lacks the cost-effective production capabilities that countries like Ireland possess. “China doesn’t have the balance of cheese and whey production that we do, which gives us a unique advantage as an exporter,” O’Sullivan explained.
During the trade mission, dairy market analyst Song Liang provided further insight into these trends. He pointed out that while cheese consumption in China remains low, the demand for high-quality whey protein is set to grow due to rising public health concerns and increased health awareness. Post-COVID, more than half of the Chinese population reported heightened interest in nutritional supplements, particularly among the 36-40 age group.
In conclusion, as China's dairy import landscape evolves, Irish exporters are positioned to meet the demand for high-value, health-focused products, including whey and other nutritional ingredients. This shift presents a significant growth opportunity, with Ireland poised to play a pivotal role in China’s expanding dairy sector.
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