Trends and Drivers of Consumer Behavior in the Chinese Dairy Food Market |
Posted: May 8, 2014 |
Mumbai, India – May 05, 2014 - China has one of the lowest levels of per capita milk consumption in the world, averaging at a mere 5.6 kilograms (kg) per year in 2003. Chinese dairy market reports indicate that consumption varies greatly by region, income level, and household location (rural or urban). Throughout the mid-1980s and early 1990s, milk consumption in urban China did not grow. However the milk consumption trends took off in /the late 1990s during which time the rural per capita consumption of dairy products grew weakly while the urban consumption grew for fresh dairy products. Household purchases of fluid milk, yogurt, milk powder, and ice cream are growing rapidly, and away-from-home consumption of cheese has risen with the investment by western-style restaurant chains. The remarkable expansion of China's urban market for dairy products has been driven by a combination of technology adoption, changes in retail supply chains, changing consumer trends, income growth, and reformed government policies. Changing consumer trends in the China dairy market Significant changes have been witnessed in the consumption patterns of milk and milk products among the Chinese consumers, and has led to several developments within the overall dairy market. Two main factors influencing the growth trends are higher disposable incomes in Chinese households and emulation of western diets as well as an increased health consciousness. This suggests that as the per capita income continues to increase, the demand for dairy products, especially yogurt and fluid milk, is expected to grow at a significant rate. Simultaneously, the demand for non-conventional dairy products like soy milk and almond milk are also on the rise. Market research indicates that Chinese consumers these days are also ready to pay premiums prices for reliable American food items -- more so when it comes to milk-formula products that could jeopardize children's health. Since consumers do not fully trust the domestic companies to produce safe hazard-free milk Chinese consumers are increasingly becoming dependent on internationally certified dairy products. Expansion of dairy market in China Recent innovations in retail marketing channels have also facilitated the rapid expansion of dairy markets in China. Until recently, retail markets for dairy products were localized. Home delivery networks organized by the local dairy processors dominated milk distribution and barred outside companies from significant access to consumers. However, the rapid development of regional and national supermarket chains in the 1990s alongwith the advent of inter-regional shipments of dairy products have eroded the power of locally dominant firms and greatly increased competition. Moreover, the trend among Chinese supermarket chains toward centralized distribution and procurement will allow dairy processors to have access to consumers throughout China as individual chains expand operations. Future opportunities for the dairy market in China Dairy consumption in China is likely to continue well into the future, as household incomes rise. China's rapidly evolving domestic dairy product industry will expand to meet the bulk of those demands with the help of substantial domestic and international investment. China's imports of cheese and milk proteins are expected to increase in the coming years, but the greatest impacts on international dairy markets in the near term will be through the growing connections created by foreign direct investment in dairy product processing, distribution, and retailing. Dairy firms in Australia and New Zealand are likely to reap the greatest direct benefits because of their proximity to the Chinese market. Nevertheless, European and North American retailers and dairy multinationals are also gaining a foothold in this market and hoping to capitalize on its tremendous growth potential. For further insights, click here About Research on Global Markets Research on Global Markets is a leading source for market research on various sectors globally, offering premium research content from worldwide publishers of market research reports. Our database hosts premium market research content developed by global publishers. It offers premium industry research reports, company profiles and country briefs. We have a dedicated team of research professionals who can facilitate, in an unbiased manner, the process of identifying appropriate market research reports that are targeted to fulfill all your information-related requirements. For more details on the content of each report and ordering information please contact: Phone: +91 22 4098 7600 E-Mail: [email protected]
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