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Market Focus: Trends and Developments in the Dairy Food Sector in China

China Dairy Food Market: New market data released

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2014-04-01 12:25:02 - Market Focus: Trends and Developments in the Dairy Food Sector in China - a new market research report on

Product This report provides a concise overview of the Dairy Food market in China. After reading this report, you will understand the size of the market, the economic, demographic, and behavioral trends that will drive its evolution and the leading players within the market, allowing you to plan effectively for the future.

Introduction and Landscape
Why was the report written?
This overview of the consumer and market dynamics of the Chinese Dairy Food sector allows new entrants and established players to gain rapid and comprehensive insight into the current state of the market and identify the key trends that will drive growth in the coming years.

What is the current market landscape and what is changing?
Growing disposable income and the development of new products



such as probiotic yogurts has driven the Dairy sector´s growth in China. In local currency terms, the Dairy Food market in China grew steadily at a CAGR of 8.8% during 2007-2012.

What are the key drivers behind recent market changes?
Life stage needs and Age related products driving Dairy Food consumption in China. Chinese Dairy Consumers are Cost Conscious yet they seek products that help them relax and enjoy

What makes this report unique and essential to read?
This report brings together consumer insight and market data to provide a comprehensive brief of the Chinese Dairy Food sector. This allows for the rapid identification of key growth opportunities across major Dairy Food categories and their packaging.

Key Features and Benefits
Analysis of consumer behavior, economic conditions, and demography reveals emerging opportunities in the Dairy Food sector.

Key growth categories are highlighted by analyzing the market dynamics of major Dairy Food categories.

Market shares are provided for the leading brands and private label across Dairy Food categories.

An overview of packaging trends in the Chinese Dairy Food sector is provided, including primary packaging material and type, packaging closures, and outer packaging.

Key Market Issues
Dairy products distribution in China follows a similar pattern with a differing proportion of market share. Hypermarkets & Supermarkets is the most important channel in Dairy Food distribution, with a 52% share of retail sales in China in 2012.

Rising disposable incomes, along with an expanding middle-class, allows scope for Dairy Food manufacturers to target consumers with more premium products.

Changing Lifestages is by far the most important motivation in the Chinese Dairy market, which shows the need for manufacturers to produce products that meet specific requirements they see as being caused by their life stage, such as single consumers and young couples looking for smaller pack sizes.

The Chinese are traditionally very cost-conscious and this characteristic is driving them towards value priced products. Chinese consumers tend to adhere to a strict shopping list and are mindful of not going over budget.

In US dollar terms, the Chinese Dairy market registered higher growth, at a CAGR of 12.9% during 2007-2012. This was due to the weakening of the Chinese Yuan against the US dollar.

Key Highlights
The Dairy market has clear winners and losers among its categories during 2007-2017. This analysis focuses on market shares of individual categories. The higher growth of Yogurt and Cheese means these categories will gain market share from the Milk category.

The Yogurt market in China is expected to register strong growth as result of growing consumption of these products by young and older Chinese consumers, and is expected to register a CAGR of 12.5% in US dollar terms during 2012-2017.

The major reason for the low penetration of Private Labels in China´s Dairy market is food safety reasons. These concerns are holding consumers back from supporting Private Labels, as they are becoming very particular about the quality of ingredients used

The Milk and Yogurt categories together accounted for 92% of the total number of packs used in China´s Dairy Food sector in 2012, driving the significant demand for Paper & Board cartons and Rigid Plastic Tubs.

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