Market Size of china dairy alternatives Industry
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 5.18 Billion |
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Market Size (2029) | USD 8 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 9.09 % |
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Fastest Growing by Distribution Channel | Off-Trade |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
China Dairy Alternatives Market Analysis
The China Dairy Alternatives Market size is estimated at 5.18 billion USD in 2024, and is expected to reach 8 billion USD by 2029, growing at a CAGR of 9.09% during the forecast period (2024-2029).
5.18 Billion
Market Size in 2024 (USD)
8 Billion
Market Size in 2029 (USD)
4.99 %
CAGR (2017-2023)
9.09 %
CAGR (2024-2029)
Largest Market by Category
96.77 %
value share, Non-Dairy Milk, 2023
Rise in vegan population along with increasing popularity of organic foods and Increasing prevalence of lactose intolerance is bolstering the demand for non-dairy milk in China.
Largest Market by Distribution Channel
89.87 %
value share, Off-Trade, 2023
The wider availability of various brands, ease of reading product labels and convenience in comparing different products make it the preffered type among the dairy consumers.
Fastest-growing Market by Category
9.27 %
Projected CAGR, Non-Dairy Milk, 2024-2029
Considering different factors such as weight concerns, changing lifestyles, and new preferences, non-dairy milk is anticipated to be the fastest growing in the market.
Fastest-growing Market by Distribution Channel
9.29 %
Projected CAGR, Off-Trade, 2024-2029
The increased adoption of e-commerce platform among the consumers and growing presence of online retailers in China is anticipated to drive the off-trade segment.
Leading Market Player
22.03 %
market share, Hebei Yangyuan Zhihui Beverage Co. Ltd, 2022
The development of a multi-brand strategy along with its expansion in almost all the provinces in the country is making Hebei Yangyuan Zhihui Beverage Co. Ltd one of the leading players in the market.
Market is driven by sustainable growth in sales of plant-based milk led by off-trade retail channels
- The off-trade channel accounts for the majority of sales of dairy alternative products in the country. Among off-trade channels, supermarkets and hypermarkets are the largest distribution channels in the Chinese dairy alternatives market. The proximity of these channels, especially in large and developed cities, gives them the added advantage of influencing the consumer’s decision to purchase from among the large variety of products available in the market. In 2023, supermarkets and hypermarkets accounted for 71% of the value share.
- The online channel is expected to be the fastest-growing channel in the off-trade segment. It is projected to register a Y-o-Y growth value of 18% during 2023-2025. Convenience is the primary motivation for shoppers who have transitioned to shopping for more dairy alternative groceries online.
- Expanding street food culture across China is anticipated to drive the on-trade consumption of dairy alternative products like cheese, milk, and desserts during the forecast period. Fast-food brands and several cafes, including vegan cafes, dominate the landscape for food and beverage franchises in the country. The sales value of dairy alternative products through the on-trade channel is anticipated to grow by 20% in 2025 from 2022.
- Among all dairy alternative products, plant-based milk accounted for the majority share of sales through off-trade and on-trade retail channels in 2022, with a 97% share. The growing consumption of dairy alternative products in diets is anticipated to drive consumption of these products through both off-trade and on-trade modes. The consumption of dairy alternatives through off-trade channels is anticipated to grow by 28.9% during 2024-2027.
China Dairy Alternatives Industry Segmentation
Non-Dairy Butter, Non-Dairy Milk are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.
- The off-trade channel accounts for the majority of sales of dairy alternative products in the country. Among off-trade channels, supermarkets and hypermarkets are the largest distribution channels in the Chinese dairy alternatives market. The proximity of these channels, especially in large and developed cities, gives them the added advantage of influencing the consumer’s decision to purchase from among the large variety of products available in the market. In 2023, supermarkets and hypermarkets accounted for 71% of the value share.
- The online channel is expected to be the fastest-growing channel in the off-trade segment. It is projected to register a Y-o-Y growth value of 18% during 2023-2025. Convenience is the primary motivation for shoppers who have transitioned to shopping for more dairy alternative groceries online.
- Expanding street food culture across China is anticipated to drive the on-trade consumption of dairy alternative products like cheese, milk, and desserts during the forecast period. Fast-food brands and several cafes, including vegan cafes, dominate the landscape for food and beverage franchises in the country. The sales value of dairy alternative products through the on-trade channel is anticipated to grow by 20% in 2025 from 2022.
- Among all dairy alternative products, plant-based milk accounted for the majority share of sales through off-trade and on-trade retail channels in 2022, with a 97% share. The growing consumption of dairy alternative products in diets is anticipated to drive consumption of these products through both off-trade and on-trade modes. The consumption of dairy alternatives through off-trade channels is anticipated to grow by 28.9% during 2024-2027.
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| Non-Dairy Butter | ||||||||
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| Distribution Channel | |||||||
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| On-Trade |
China Dairy Alternatives Market Size Summary
The China Dairy Alternatives Market is experiencing significant growth, driven by changing consumer preferences and the increasing adoption of vegan and vegetarian lifestyles. The market is characterized by a strong presence of off-trade channels, with supermarkets and hypermarkets leading in distribution due to their strategic locations in urban areas. The online shopping channel is rapidly gaining traction, offering convenience to consumers and contributing to the market's expansion. On-trade consumption is also on the rise, fueled by the burgeoning street food culture and the popularity of fast-food and vegan cafes. Plant-based milk, particularly soy, almond, and oat milk, dominates the market, reflecting the country's long-standing tradition of soy consumption and the growing availability of vegan products in major cities.
The market's growth is further supported by a shift in dietary habits and increased awareness of animal welfare and sustainability. The demand for free-from dairy products is strong, with a significant portion of the population experiencing lactose intolerance. This has led to a rise in the consumption of plant-based yogurt and nut-based products, which are seen as healthier alternatives. The market is moderately consolidated, with major players like Coconut Palm Group, Dali Foods Group, Danone SA, Hebei Yangyuan Zhihui Beverage Co. Ltd, and Vitasoy International Holdings Ltd leading the charge. These companies are actively expanding their product lines and enhancing their market presence through strategic acquisitions and new product introductions, further propelling the growth of dairy alternatives in China.
China Dairy Alternatives Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Category
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1.1.1 Non-Dairy Butter
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1.1.2 Non-Dairy Milk
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1.1.2.1 By Product Type
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1.1.2.1.1 Almond Milk
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1.1.2.1.2 Coconut Milk
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1.1.2.1.3 Oat Milk
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1.1.2.1.4 Soy Milk
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1.2 Distribution Channel
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1.2.1 Off-Trade
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1.2.1.1 Convenience Stores
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1.2.1.2 Online Retail
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1.2.1.3 Specialist Retailers
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1.2.1.4 Supermarkets and Hypermarkets
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1.2.1.5 Others (Warehouse clubs, gas stations, etc.)
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1.2.2 On-Trade
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China Dairy Alternatives Market Size FAQs
How big is the China Dairy Alternatives Market?
The China Dairy Alternatives Market size is expected to reach USD 5.18 billion in 2024 and grow at a CAGR of 9.09% to reach USD 8.00 billion by 2029.
What is the current China Dairy Alternatives Market size?
In 2024, the China Dairy Alternatives Market size is expected to reach USD 5.18 billion.
