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Dairy products industry analysis

Dairy Products Industry Analysis

Dairy products which contain high protein and nutrition are becoming important daily consumption products. Chinese dairy market started late and it began to develop fast since the opening-up reform. But due to the large population and the immature dairy industry, the Chinese dairy market is promising and has huge potential.

The volume of global import of dairy products hit the bottom in 2015 and it was witnessed by a rising trend in 2016. Along with the recovery of global GDP, the volume of global import will be increased in the future.

China ranks the second in global dairy import markets, following Russia, at 14% market share.

However, the Chinese average consumption is only 31kg, much lower than the average amount in developed countries, which indicates the huge potential of the Chinese market.

The sales of domestic dairy have been rising to 330 billion in 2015, since 2004.

The volume of imported dairy products increased gradually in the past 10 years and the volume from January to November in 2017 reached 2 million tons, among which fresh milk, milk power and whey occupied the most part. Especially, the import volume of fresh milk has rocketed in recent years and that of cream and cheese has risen as well.

The labels are translated as follows:

Fresh milk; Milk powder; Yogurt; Whey; Cream; Cheese.

From the graph of Chinese full cream milk powder ending inventory, it is obvious to note the amount reached 350 thousand tons but declined to 50 thousand tons from 2016 to 2017, which shows that economic recovery has boosted the sales of milk power and dairy products and the promising dairy market.

As the most popular dairy product, the import of cheese has increased fast to 100,000 tons in 2016.

Among all cheese importing nations, New Zealand occupies the majority of importing market at 53.6%, followed by Australia at 20.55%.

In 2017, the volume of imported cream was 91,600 tons, increasing 11.9% compared to the previous year, and the amount of value was 500 million USD dollars, rising 65% compared to the previous amount.

Consumers are aged between 20 to 40 years old, taking up to 74.6% of the total, among which the majority of customers are 25-29 years old, occupying 24.9%.

From the below graph, the consumption of dairy products increased with rising income.

The chart below shows the percentage of dairy consumers in population in regions. Percentages of Eastern, Northern, Northwestern and Southern parts are higher while that of Middle, Northeastern and Southwestern are lower.

The graph below depicts the frequency of customers eating dairy products. Most of customers have dairy products once to twice a week and more than 95% have the habit of eating dairy products.

Chinese economy is rocketing and people are pursuing higher-calibre life quality. The dairy market is developing and perfecting. Although the average consumption in China is lower compared to that in developed countries, the demand for dairy products will increase gradually due to two children policy, which implies that the demand for dairy products will rise exponentially.