China’s Consumer Dairy Product Market is Growing

In China, the market demand for milk, traditionally seen as the source of a great variety of nutrients, has always been steady. In recent years, a wide range of dairy products, with varying nutritional content, has been launched onto the mainland market. Respondents to a recent HKTDC Research survey on the mainland packaged food market [1] had bought an average of 3.37 types of dairy products in the three months preceding the survey. That’s a notable increase on the figure of 2.39 recorded in a similar 2013 survey.

The market for ultra-high temperature processing (UHT) yoghurt, ranking as the second most frequently bought dairy product, has been expanding rapidly, while the purchase frequency of cheese / butter has also seen a marked growth. Apart from brand and word-of-mouth, manufacturing date and expiry date and nutrition are also consumers’ primary considerations when buying dairy products.

UHT Milk Most Popular

The market demand for milk, traditionally seen as the source of a great variety of nutrients, has always been steady. In recent years, a wide range of dairy products, with varying nutritional content, has been developed on the mainland, which has, in turn, nurtured greater demand for such products. The survey found that the purchase frequency of dairy products has been on the rise, with 83% of respondents having bought such products more often than two to three years ago. Respondents bought an average of 3.37 types of dairy products in the three months preceding the survey, more than the 2.39 types reported in a similar 2013 survey. Among the different types of dairy products, UHT milk is the most popular item, with 76% of respondents having purchased it in the preceding three months.

In focus group discussions, it was discovered that the rise in popularity of UHT yoghurt is the biggest change in people’s consumption of dairy products. Following the launch of UHT yoghurt and the huge investment in advertising and promotion by leading dairy product brands in China, the UHT yoghurt market has been growing rapidly. Respondents pointed out that yoghurt is not only available in a wide range of new flavours and novel packaging, but also provides more nutrients for children. Hence, it has won the hearts of children and attracted more purchasers. Overall, 74% of respondents have purchased UHT yoghurt / probiotic drinks, with yoghurt products scoring the highest growth in purchase frequency among the different types of dairy products.