Milk industry analysis

Milk Industry Analysis

With the development of economy, the demand for milk is increasing gradually. Also, the popularization and development of information technology enable people switch the way of shopping from offline to online, and Tianmao and Jingdong etc. have become one of main channels for milk.

Liquid milk occupies 86.5% among domestic dairy consumption.

Recently (afterwards 2014), the consumption of liquid milk has kept a high level stably, slightly fluctuating about 24 million tons.

The average consumption for liquid milk in China is only 18kg/person, far lower than that in developed countries, which indicates that Chinese liquid milk market has the potential growth.

In recent years, the import volume of liquid milk has risen continuously while that of full cream milk power and skim milk power has decreased.

The European Union has the largest percentage of 67.6% among liquid milk importing nations, followed by New Zealand and Australia with 18.4% and 11.4% respectively.

Recently, the proportion of online channels has increased among all purchasing channels.

The percentage of chilled products is 70%, while normal temperature products take up to 30% among liquid milk products. Chilled milk has larger potential and the competition is comparatively moderate. Fresh milk and yoghurt occupy equally.  

Imported milk took up to one third online market share at 35.5%, increasing at 8.2% compared to the previous year.

Tianmao and Jingdong are two of the biggest e-commerce channels, with 47.4% and 43.9% market share respectively.

Infant formula milk powder is the most popular products with 96.4% among all online milk products.

Price of liquid milk focuses on 50-100 yuan, and more than 80% is priced at below 200yuan.

Consumption of liquid milk keeps a high level and the demand of imported milk has increased rapidly. China is the second economic entity but there is a big gap existed in average consumption compared with developed nations, which shows that Chinese milk consumption has potential. Imported milk which is popular will have a bigger market with the improvement of the quality of life and economy.