China Dairy Market Size

The China Dairy Market is projected to experience significant growth in its market size over the forecast period, driven by various distribution channels. Supermarkets and hypermarkets currently dominate the off-trade segment, benefiting from their strategic locations in urban areas, which influence consumer purchasing decisions. The online channel is emerging as the fastest-growing segment, driven by the convenience it offers to shoppers. On the other hand, the expanding street food culture is expected to boost on-trade consumption of dairy products. Milk and yogurt are the leading products in terms of market share within off-trade retail channels, reflecting strong consumer demand and integration into daily diets.

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Market Size of china dairy Industry

China Dairy Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 71.58 Billion
svg icon Market Size (2029) USD 87.1 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 4.00 %
svg icon Fastest Growing by Distribution Channel Off-Trade

Major Players

China Dairy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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China Dairy Market Analysis

The China Dairy Market size is estimated at 71.58 billion USD in 2024, and is expected to reach 87.1 billion USD by 2029, growing at a CAGR of 4.00% during the forecast period (2024-2029).

71.58 Billion

Market Size in 2024 (USD)

87.1 Billion

Market Size in 2029 (USD)

3.03 %

CAGR (2017-2023)

4.00 %

CAGR (2024-2029)

Largest Market by Category

50.55 %

value share, Milk, 2023

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The government's implementation of strict food safety regulations in the country has strengthened customer reliance on milk, supporting the expansion of consumption of milk.

Largest Market by Distribution Channel

91.44 %

value share, Off-Trade, 2023

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Consumer preference for these channels is driven by seasonal offers, discounts on bulk purchases, and access to diversified products through a dedicated section of dairy products.

Fastest-growing Market by Category

5.42 %

Projected CAGR, Cheese, 2024-2029

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Growing western culture in China with the growing apetite for snacking products which includes cheese as the main ingredient is influencing the segmental growth.

Fastest-growing Market by Distribution Channel

4.06 %

Projected CAGR, Off-Trade, 2024-2029

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The presence of market specified products with improved customised product offerings in off-trade retail channels like Specialist retailers is driving the market.

Leading Market Player

23.23 %

market share, Inner Mongolia Yili Industrial Group Co. Ltd, 2022

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The stringent food safety aspects followed by the manufacturer along with innovation in product categories largely drove Inner Mongolia Yili Industrial Group Co Ltd's dominance in the market.

Expanding street food culture and rising out-of-home consumption fuels the market growth

  • The off-trade channel plays a major role in the sales of dairy products in the region. Among the off-trade channels, supermarkets and hypermarkets are the largest distribution channels in the Chinese dairy market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage in influencing consumers' decisions to purchase among the large variety of products available in the market. In 2023, supermarkets and hypermarkets accounted for 64% of the value share.
  • The online channel is expected to be the fastest-growing distribution channel in the off-trade segment. It is projected to register a growth value of 22.4% Y-o-Y during the period 2023-2025. Convenience is the primary motivation for shoppers who have transitioned to shopping for groceries online.
  • The expanding street food culture across China is anticipated to drive the on-trade consumption of dairy products like cheese, butter, and dairy desserts during the forecast period. Fast food brands, including Subway, McDonald's, Burger King, and KFC, dominate the landscape for restaurant franchises in the country. The sales value of dairy products through the on-trade channel is anticipated to grow by 9.7% in 2025 from 2022.
  • Among all the dairy products, milk accounted for the majority of the share in overall off-trade retail channels. In 2022, milk accounted for 54.5% of the total category, and yogurt stood in second place with 38% of the value share. The strong consumption patterns of dairy products and their demand in a regular diet are anticipated to drive the consumption patterns of these products through both off-trade and on-trade modes. Dairy consumption through the off-trade channel is anticipated to grow by 29% during 2024-2027.
China Dairy Market

China Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • The off-trade channel plays a major role in the sales of dairy products in the region. Among the off-trade channels, supermarkets and hypermarkets are the largest distribution channels in the Chinese dairy market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage in influencing consumers' decisions to purchase among the large variety of products available in the market. In 2023, supermarkets and hypermarkets accounted for 64% of the value share.
  • The online channel is expected to be the fastest-growing distribution channel in the off-trade segment. It is projected to register a growth value of 22.4% Y-o-Y during the period 2023-2025. Convenience is the primary motivation for shoppers who have transitioned to shopping for groceries online.
  • The expanding street food culture across China is anticipated to drive the on-trade consumption of dairy products like cheese, butter, and dairy desserts during the forecast period. Fast food brands, including Subway, McDonald's, Burger King, and KFC, dominate the landscape for restaurant franchises in the country. The sales value of dairy products through the on-trade channel is anticipated to grow by 9.7% in 2025 from 2022.
  • Among all the dairy products, milk accounted for the majority of the share in overall off-trade retail channels. In 2022, milk accounted for 54.5% of the total category, and yogurt stood in second place with 38% of the value share. The strong consumption patterns of dairy products and their demand in a regular diet are anticipated to drive the consumption patterns of these products through both off-trade and on-trade modes. Dairy consumption through the off-trade channel is anticipated to grow by 29% during 2024-2027.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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China Dairy Market Size Summary

The China Dairy Market is poised for significant growth, driven by evolving consumer preferences and expanding distribution channels. The off-trade segment, particularly supermarkets and hypermarkets, dominates the market due to their strategic locations in urban areas, which facilitate easy access for consumers. The online shopping channel is emerging as the fastest-growing distribution method, appealing to consumers' desire for convenience. Meanwhile, the on-trade sector is benefiting from the burgeoning street food culture, with fast-food chains like McDonald's and KFC contributing to increased dairy consumption. Milk and yogurt are the leading products in the market, reflecting strong consumer demand and dietary trends that favor regular dairy intake.

The market landscape is moderately consolidated, with major players like Bright Food, China Mengniu Dairy, and Inner Mongolia Yili Industrial Group holding significant shares. These companies are actively expanding their product offerings and production capabilities to meet the rising demand for dairy products. Health consciousness and lifestyle changes post-COVID-19 have further fueled dairy consumption, with cheese and yogurt seeing increased popularity. The introduction of dairy products in school programs and the development of innovative yogurt variants cater to diverse consumer needs, supporting the market's growth trajectory.

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China Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Yogurt

        1. 1.1.6.1 By Product Type

          1. 1.1.6.1.1 Flavored Yogurt

          2. 1.1.6.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

China Dairy Market Size FAQs

The China Dairy Market size is expected to reach USD 71.58 billion in 2024 and grow at a CAGR of 4.00% to reach USD 87.10 billion by 2029.

In 2024, the China Dairy Market size is expected to reach USD 71.58 billion.

China Dairy Market Report Snapshots

China Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029