Milk and Flavoured Milk - China - April 2016
"Given the large base of lactose intolerants in China, the lactose-free milk segment is worth investing in. The market will, however, require laborious education programmes due to poor consumer understanding of lactose intolerance. Plant protein drinks are also threatening the milk category, suggesting that milk producers should reinforce their health benefits to proactively prepare for increased competition. Low-fat milk will remain niche, while manufacturers should look into the ‘good-fat’ trend emerging globally.”
- Karen Liu, Senior Research Analyst
This report discusses the following key topics:
- The prospects for lactose-free milk
- PPDs grab market share from milk
- Paradigm shift to ‘good fat’
Lactose-free milk represents a significant growth opportunity due to China’s large population of lactose intolerants. Manufacturers will, however, need to invest in laborious education programmes due to poor understanding of the necessity of drinking lactose-free milk in the country.
The steady growth of plant protein drinks in China is threatening the milk market. The drinks are targeting the RTD market, suggesting that milk products should reinforce their health benefits to prepare for increased competition, or consider adding plant protein ingredients to milk.
Low-fat milk is expected to remain niche, while manufacturers should look into the ‘good-fat’ trend emerging globally.
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