Market Trends of china animal protein Industry
Animal protein consumption growth fuels opportunities for key players in the ingredients sector
- The graph given depicts the per capita consumption of animal protein in China. In the past, adults across China mainly ignored milk and dairy products (including milk protein) because they were seen as food for children or the elderly. However, this trend has changed in recent years. The nation of nearly 1,400 million people is now the second-largest consumer of dairy products in the world. China imports products from various other countries, ranging from New Zealand-based dairies to German industries. The Chinese animal protein market has witnessed a huge demand for high-quality protein ingredients from health-conscious people. The per capita consumption increased from 40 grams in 2016 to 45.1 grams in 2021.
- Organic milk protein is most widely consumed in China. The organic sector witnesses a dynamic demand, with around 57% of mothers considering organic products. Arla Foods introduced two innovative 'organic kiddies snack' concepts by using its Nutrilac range of functional protein ingredients in 2021. Fonterra launched SureProteinTM SoftBar 1000, a milk protein bar that is exceptionally soft with a relatively short chew time.
- The Chinese market is witnessing rapid growth in the demand for collagen protein in food applications. This product is already well-established and marketed in western countries. Its demand in China is being fueled by the rising awareness of the impact of beauty-oriented nutritional products. This trend is known as "oral beauty" or "beautiful eating" in China. China is the largest market for whey protein in the Asia-Pacific region. The Chinese personal care market witnessed an increase in the demand for whey protein as it is widely used in the production of various weight management and beauty products.
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China's domestic meat production increased due to the outbreak of African Swine Fever
- Meat from cattle, chicken and pig with bone, raw milk from cattle and goats, skim milk of cows, and dry whey powder make up the production of animal protein and the same data is given in the graph. The Dietary Guidance for Chinese Residents recommends a daily intake of 300 grams of dairy products. The United States exports skimmed milk powder, cheese, and whey powder, following the implementation of the Section 301 tariff exclusion. The Chinese government promotes processed dairy products, including cheese, whey, and butter, as good sources of protein.
- In 2020, milk production in China witnessed moderate growth due to the COVID-19 pandemic. This was majorly due to transport restrictions and reduced dairy processing activities. The fall in production was mainly observed in small farms. Large farms were less affected due to contract farming with major dairy manufacturers. The production of most dairy products, including fluid milk, dropped by 5%-11% in 2020. China's import of fluid milk increased to 980,000 MT in 2021, as per the USDA. The European Union is the major supplier of fluid milk to China, followed by New Zealand.
- China's domestic beef production increased due to the outbreak of African Swine Fever. Beef was promoted in China as a healthy protein option in salads or processed ready-to-eat meal packs. In December 2022, China's National Conference of Agricultural and Rural Affairs decided to set an annual pork production target of 55 million metric ton for the country's five-year plan, which is approximately 35% above the current production rate. Cattle and pigs across the country account for large-scale breeding and production purposes, thereby providing sufficient raw material for collagen production.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising infant population and lowering breast feeding is highly driving the segment
- Healthy, functional drinks is driving the segmental growth
- The combination of distinct growth strategies is driving the industry
- Plant-based milk is highly driving the segment
- China’s high meat consumption volume is driving the sector
- Savory snacks are a current market trend
- Innovative techniques and expertise are pushing the industry
- Cake sub-sector is booming
- Breakfast cereals can target the on-the-go processed food sector
- Intensive economy is boosting the sales of premium chocolate
- Aging population to support market growth
- Multinational companies have a lot of room to grow
- Rising involvement in sports activity propelling the growth
- Cosmetics segment impacting the market growth
