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    China Dairy Market

    ID: MRFR/F-B & N/44945-HCR
    200 Pages
    Harshita Gorade
    September 2025

    China Dairy Market Research Report By Product Type (Milk, Cheese, Butter, Yogurt, Dairy Cream, Ice Cream, Others), By Category (Organic, Conventional), By Distribution Channel (Store-Based, Non-Store-Based) and By Store-Based (Supermarkets Hypermarkets, Convenience Stores, Others) - Forecast to 2035

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    China Dairy Market Infographic
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    China Dairy Market Summary

    The China Dairy market is projected to grow from 80.9 USD Billion in 2024 to 116.2 USD Billion by 2035.

    Key Market Trends & Highlights

    China Dairy Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 3.35 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 116.2 USD Billion, indicating robust growth potential.
    • In 2024, the China Dairy market is valued at 80.9 USD Billion, reflecting its current economic significance.
    • Growing adoption of innovative dairy processing technologies due to increasing consumer demand for high-quality products is a major market driver.

    Market Size & Forecast

    2024 Market Size 80.9 (USD Billion)
    2035 Market Size 116.2 (USD Billion)
    CAGR (2025-2035) 3.35%

    Major Players

    Yili Group, Wahaha, Mengniu Dairy, Heineken, Bright Dairy, FrieslandCampina, Danone, Suntory, Fonterra, Tsingtao Brewery, Arla Foods, Nestle, Lactalis, China Modern Dairy

    China Dairy Market Trends

    This trend is further enhanced by the growing supply of organic and natural dairy products as people become more discerning about the quality of food that they purchase.

    There is a growing trend of using plant-based milk alternatives due to increasing health awareness and lactose intolerance amongst people. This trend is favorable for dairy companies as it encourages them to innovate and diversify their products. Moreover, the rapid e-commerce growth in China is giving added access to customers and making things more convenient for them, allowing for a rise in online dairy sales. Companies are now also focusing on improving product safety and quality due to public concern from past safety scandals.

    Consumers are demanding greater transparency from producers, and enhanced traceability in supply chains is becoming the new standard.

    In addition, the new initiatives aimed at growing domestic production and improving technology cements the fact that the Chinese government is supportive to the dairy industry, implying a good regulatory environment for growth. In general, a combination of health concern, premiumization, digital marketing, and quality focus will determine the direction of the market for dairy products in China.

    Market Segment Insights

    China Dairy Market Segment Insights

    China Dairy Market Segment Insights

    Dairy Market Product Type Insights

    Dairy Market Product Type Insights

    The China Dairy Market has established itself as a crucial component of the country's food and beverage industry, reflecting significant growth in various product types. The market consists of a diverse range of offerings, including Milk, Cheese, Butter, Yogurt, Dairy Cream, Ice Cream, and a category termed Others, each playing a vital role in the overall consumption patterns of dairy products across the population. As consumers increasingly embrace dairy as part of their daily nutrition, milk continues to serve as a principal product type, owing to its rich nutritional profile and foundational role in the Chinese diet.

    Yogurt is experiencing a notable surge in popularity, particularly due to a growing awareness of its health benefits, including probiotics that support digestive health. Meanwhile, cheese is gradually gaining traction, especially among younger consumers and urban populations, who are more exposed to western cuisines and dietary preferences. Ice Cream, often enjoyed as a treat, has witnessed rising demand, driven largely by increasing disposable incomes and a shift toward indulgent dessert experiences. Dairy Cream also garners attention, as its applications in culinary practices broaden among home cooks and professional chefs alike.

    However, challenges such as fluctuating raw material prices and evolving consumer preferences emphasize the need for innovation within the sector. As a result, opportunities abound in the production of value-added dairy products which can offer unique flavors and healthier options. Overall, the segmentation within the China Dairy Market underscores the growing diversity in consumer tastes and preferences, highlighting the dynamic nature of this industry in catering to an evolving market landscape.

    Dairy Market Category Insights

    Dairy Market Category Insights

    The China Dairy Market is a vital component of the country's food industry, reflecting significant growth and various consumer preferences. Within this market, the Category segment comprises both Organic and Conventional dairy products, addressing diverse consumer demands. Organic dairy products are gaining popularity among health-conscious consumers, driven by a growing awareness of nutrition and food safety, while Conventional options remain prevalent due to their affordability and widespread availability. China’s increasing urbanization and disposable income have led to a surge in demand for higher-quality dairy products, with Organic offerings appealing to consumers seeking natural and chemical-free alternatives.

    Despite the significant growth of Organic dairy, Conventional dairy dominates due to its established supply chain and lower production costs. The China Dairy Market data shows that these trends are influenced by government initiatives promoting healthy eating and food safety standards. The evolving consumer landscape presents opportunities for both segments, highlighting the need for continuous product innovation. Additionally, challenges such as fluctuating pricing and supply chain dynamics necessitate adaptability in the market to meet ever-changing consumer preferences. Overall, the Category segment plays a crucial role in shaping the consumer dairy landscape in China.

    Dairy Market Distribution Channel Insights

    Dairy Market Distribution Channel Insights

    The China Dairy Market has shown significant activity in the Distribution Channel segment, which plays a crucial role in ensuring product availability to consumers. The market is divided into two main categories: Store-Based and Non-Store-Based channels. Store-Based channels, such as supermarkets and convenience stores, serve as the primary point of purchase for dairy products, leveraging their extensive reach and consumer trust. These outlets often dominate sales due to their established infrastructure and ability to provide a wide array of dairy items under one roof, catering to the preferences of the growing urban population in China.

    Meanwhile, Non-Store-Based channels, including online platforms and home delivery services, have gained traction owing to the rise in e-commerce and changing shopping habits. This shift is fueled by the convenience and flexibility that online shopping offers to modern consumers, especially in major cities. Increased internet penetration in China has bolstered the growth of the Non-Store-Based segment, providing opportunities for dairy brands to engage directly with consumers and expand their market reach. Overall, the dynamic interplay of these distribution channels reflects evolving consumer behavior and the increasing demand for dairy products in China, contributing to enhanced customer experiences and market growth.

    Dairy Market Store-Based Insights

    Dairy Market Store-Based Insights

    The Store-Based segment of the China Dairy Market consists of various retail formats catering to consumers' diverse shopping preferences. Supermarkets and Hypermarkets are crucial players in this segment, providing a wide range of dairy products from local and international brands, which contributes to their popularity. These retail formats often offer competitive pricing and promotional activities, enhancing customer loyalty. Convenience Stores also play an essential role, appealing to urban consumers who prioritize accessibility and quick shopping experiences. As dairy consumption increases among the Chinese populace, Convenience Stores have adapted to include a variety of ready-to-eat and smaller dairy product offerings.

    Other retail avenues, such as local markets and specialty shops, cater to niche markets, emphasizing organic and premium dairy items. Overall, the dynamics within the Store-Based segment demonstrate a shift towards convenience and variety, driven by changing consumer lifestyles, which in turn influences the China Dairy Market segmentation and growth potential. The segment reflects the evolving retail landscape in China, where consumer preferences are shaping industry trends and driving innovation in the dairy sector.

    Get more detailed insights about China Dairy Market Research Report- Forecast to 2035

    Key Players and Competitive Insights

    The China Dairy Market is characterized by its rapid growth and increasing consumption patterns, leading to heightened competition among various players in the industry. As consumer demand for dairy products continues to evolve, companies are adopting innovative strategies to capture market share. The market is marked by a mix of both traditional dairy producers and newer entrants, each leveraging unique strengths and capabilities to navigate the complexities of consumer preferences, regulatory environments, and market dynamics. This competitive landscape is influenced by factors such as brand loyalty, product diversification, distribution networks, and the ability to meet health and safety standards.

    Yili Group stands out as a leading player in the China Dairy Market, owing to its extensive product range and robust market presence. Known for its commitment to quality and innovation, Yili Group has successfully established itself as a household name across the nation. The company has invested heavily in research and development, which has allowed it to introduce new products tailored to consumer demands. A key strength of Yili Group lies in its efficient supply chain management, ensuring a consistent and reliable product supply.

    The company's focus on sustainability and health-oriented dairy products also resonates with the growing trend of health consciousness among Chinese consumers. Overall, Yili Group's strategic initiatives and strong branding efforts solidify its market leadership position within the competitive landscape of China's dairy sector. Wahaha is another prominent figure in the China Dairy Market, recognized for its diverse portfolio that includes a range of dairy products such as yogurt, milk, and other value-added offerings. The company's substantial market presence is bolstered by its widespread distribution channels and strong brand recognition across various regions in China.

    Wahaha's strengths lie in its ability to cater to different consumer segments with products that emphasize affordability and quality. The company has pursued strategic mergers and acquisitions to enhance its market capabilities, expand its product lines, and solidify its competitive stance. By leveraging its established production facilities and adapting to evolving consumer preferences, Wahaha continues to thrive in the competitive dairy landscape of China, focusing on providing accessible and nutritious dairy options to its customers.

    Key Companies in the China Dairy Market market include

    Industry Developments

    The China Dairy Market has seen notable recent developments and transformations. As of October 2023, leading players such as Yili Group and Mengniu Dairy are focusing on diversifying their product offerings to accommodate shifting consumer preferences toward health and nutrition, which has resulted in significant growth in their market valuations. Heineken has been exploring partnerships with local dairy companies to integrate dairy beverages into its portfolio, indicating a cross-industry collaboration trend. 

    Notable mergers and acquisitions have been less frequent, but there have been discussions regarding potential strategic alliances among organizations like Bright Dairy and Fonterra aimed at enhancing their supply chains in response to post-pandemic challenges. In August 2023, there was an announcement regarding a collaborative venture between Danone and China Modern Dairy, focusing on sustainable dairy farming practices, reflecting the growing emphasis on sustainability in the sector. 

    Over the past 2 to 3 years, the market has increasingly emphasized innovation in product development and consumer engagement, guided by insights from industry associations which highlight the necessity of adapting to market dynamics, consumer health consciousness, and environmental considerations in dairy production.

    Market Segmentation

    Dairy Market Category Outlook

    • Organic
    • Conventional

    Dairy Market Store-Based Outlook

    • Supermarkets Hypermarkets
    • Convenience Stores
    • Others

    Dairy Market Product Type Outlook

    • Milk
    • Cheese
    • Butter
    • Yogurt
    • Dairy Cream
    • Ice Cream
    • Others

    Dairy Market Distribution Channel Outlook

    • Store-Based
    • Non-Store-Based

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 78.21(USD Billion)
    Market Size 2024 80.93(USD Billion)
    Market Size 2035 116.25(USD Billion)
    Compound Annual Growth Rate (CAGR) 3.347% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled Yili Group, Wahaha, Mengniu Dairy, Heineken, Bright Dairy, FrieslandCampina, Danone, Suntory, Fonterra, Tsingtao Brewery, Arla Foods, Nestle, Lactalis, China Modern Dairy
    Segments Covered Product Type, Category, Distribution Channel, Store-Based
    Key Market Opportunities Growing demand for high-quality dairy, Increasing health-conscious consumer base, Expansion of online dairy sales, Rising popularity of plant-based alternatives, Enhanced dairy product innovation
    Key Market Dynamics Changing consumer preferences, Growing health consciousness, Government regulations and policies, Increasing dairy imports, Rising e-commerce influence
    Countries Covered China

    FAQs

    What was the market size of the China Dairy Market in 2024?

    The China Dairy Market was valued at 80.93 USD Billion in 2024.

    What will the market size of the China Dairy Market be in 2035?

    By 2035, the China Dairy Market is expected to reach a value of 116.25 USD Billion.

    What is the expected compound annual growth rate (CAGR) for the China Dairy Market from 2025 to 2035?

    The expected CAGR for the China Dairy Market from 2025 to 2035 is 3.347%.

    Which product type have the largest share in the China Dairy Market in 2024?

    In 2024, Milk have the largest share, valued at 32.0 USD Billion.

    What is the projected value of the Cheese segment in the China Dairy Market by 2035?

    The Cheese segment is expected to be valued at 31.0 USD Billion by 2035.

    Who are the major players in the China Dairy Market?

    Key players include Yili Group, Mengniu Dairy, Bright Dairy, Danone, and Nestle.

    What was the value of the Yogurt segment in 2024?

    In 2024, the Yogurt segment was valued at 12.0 USD Billion.

    How much is the Dairy Cream segment expected to grow by 2035?

    The Dairy Cream segment is expected to grow to a value of 14.75 USD Billion by 2035.

    What trends are driving growth in the China Dairy Market?

    Increasing consumer demand for dairy products and health consciousness are key growth drivers.

    How is the competition shaping the China Dairy Market?

    Intense competition among major players is fostering innovation and product diversification in the market.

    China Dairy Market Research Report- Forecast to 2035 Infographic
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