2021
0
China Milk and Dairy Beverages Market Report 2021
2021-05-09T04:53:16+01:00
OX1047409
3695
137940
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Report
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“Consumers’ increasing needs and expansion in consumption occasions give milk and dairy beverages market growth potential both within the market and from bigger casual drinks market. Chilled milk will benefit…

China Milk and Dairy Beverages Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“Consumers’ increasing needs and expansion in consumption occasions give milk and dairy beverages market growth potential both within the market and from bigger casual drinks market. Chilled milk will benefit from highlighting its nutrition advantages over ambient milk and ambient yogurt. While health halo of dairy and wider awareness of star gut health ingredients (such as lactobacillus) will send players quick pass when joining in bigger beverages market.”

– Pepper Peng, Research Analyst

Key issues covered in this Report

  • Market factors from both consumer and market side
  • The value of market segments in 2020
  • Competitive strategies in mergers and acquisitions, product portfolio and channels
  • Global and China launch activity and product innovation
  • Consumers’ perception about lactose-free, pasteurized milk, UHT milk, etc
  • Market growth opportunities through emerging consumption occasions, function aspects and in the bigger beverages market

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Covered in this Report
          • Excluded
            • Definitions
            • Executive Summary

                • The market
                  • Figure 1: Retail market value of milk and dairy beverages (including lactobacillus drinks), China, 2015-25
                • Companies and brands
                  • Figure 2: Leading companies’ value share of milk and flavoured milk segment, China, 2019-20
                  • Figure 3: Leading companies’ value share of the lactobacillus drinks segment, China, 2019-20
                • The consumer
                  • Opportunities and challenges coexist for chilled plain milk
                    • Figure 4: Consumption frequency, January 2021
                  • Occasion marketing can help unlock new growth potential
                    • Figure 5: Consumption occasions, January 2021
                  • Nutrition and milk source quality are unchanged key premium points
                    • Figure 6: Premium product features, January 2021
                  • Only one in four know if they are lactose intolerant or not
                    • Figure 7: Perception of lactose, January 2021
                  • Consumers buying into TCM have higher expectations of healthy milk
                    • Figure 8: Percentage points difference of functions, by preference of different ingredients type, January 2021
                  • Still a long way to go before the majority perceive chilled milk as a superior choice
                    • Figure 9: Attitudes towards nutritional value of different processing milk, January 2021
                  • What we think
                  • Issues and Insights

                    • Consumers knowledge of chilled milk is at early stage
                      • The facts
                        • The implications
                          • Figure 10: Zhi Chun five-hour chilled milk from Wei Gang, China, 2021
                        • Tap into the bigger beverage market by leveraging dairy’s health halo
                          • The facts
                            • The implications
                              • Bedtime, dessert time
                                • The facts
                                  • The implications
                                    • Figure 11: Pasteurised malt flavour bedtime milk from Dairy Home, Thailand, 2020
                                    • Figure 12: Examples from ice cream brands to target hometainment occasion, 2020
                                  • Strengthen the connection of gut health and mental health
                                    • The facts
                                      • The implications
                                        • Figure 13: Glow Bar’s Naked unflavoured moon shake adaptogenic protein powder, UK, 2020
                                    • The Market – What You Need to Know

                                      • The milk market is overall stabilised
                                        • Consumer demand and policies drive future growth
                                          • Chilled plain milk enjoys the highest growth rate
                                          • Market Size and Forecast

                                            • Growth of the milk market is more contributed by volume
                                              • Figure 14: Retail market of milk and dairy beverages (include lactobacillus drinks), China, 2016-20
                                              • Figure 15: Retail market of milk and dairy beverages (exclude lactobacillus drinks), China, 2016-20
                                            • Still strong growth potential compared to other countries
                                              • Figure 16: Milk volume consumption per capita, China, Japan, US and UK, 2015-19
                                            • Stable growth for the following five years
                                              • Figure 17: Retail market value of milk and dairy beverages (including lactobacillus drinks), China, 2015-25
                                          • Market Factors

                                            • Consumption trade up to yogurt poses a threat
                                              • Figure 18: Changes to consumption after COVID-19 – % bought more, 26 April-2 May
                                              • Figure 19: Changes in food and drink spending after COVID-19, % spent more, 27 May-3 June
                                            • Plant-based drinks lurk as well
                                              • Private label milk products from fresh food ecommerce
                                                • CPI of dairy stays stable compared to that of food category
                                                  • Policy support
                                                  • Market Segmentation

                                                    • Chilled milk is the fastest-growing segment, while ambient is resilient
                                                      • Figure 20: Retail market value of chilled plain milk, China, 2015-25
                                                      • Figure 21: Retail market value of ambient plain milk, China, 2015-25
                                                    • Lactobacillus drinks still growing but losing momentum
                                                      • Figure 22: Retail market value of lactobacillus drinks, China, 2015-25
                                                    • Flavoured milk keeps decreasing, facing threat from bigger beverage market
                                                      • Figure 23: Retail market value of flavoured liquid milk, China, 2015-25
                                                  • Key Players – What You Need to Know

                                                    • Whole industry keeps centralising
                                                      • Expanding from multiple directions
                                                        • Active global and domestic innovations
                                                        • Market Share

                                                          • CR2 keeps increasing, whole industry more centralised
                                                            • Figure 24: Leading companies’ value share of milk and flavoured milk segment, China, 2019-20
                                                          • Chilled lactobacillus brands are losing share temporarily
                                                            • Figure 25: Leading companies’ value share of the lactobacillus drinks segment, China, 2019-20
                                                          • Four competitive cohorts in chilled milk market
                                                          • Competitive Strategies

                                                            • Mergers and acquisitions
                                                              • Snatching upstream milk source is level up
                                                                • Mengniu cooperates with Coca-Cola to win bigger in chilled milk
                                                                  • IPO fever
                                                                    • Product strategy
                                                                      • A2 liquid milk is emerging
                                                                        • Dairy giants enter the market of lactobacillus sparkling water
                                                                          • Figure 26: Example of lactobacillus sparkling water from dairy giants, 2021, China
                                                                        • Chilled milk for seniors
                                                                          • Figure 27: Functional chilled milk from Bright, China, 2020
                                                                        • Channel strategy
                                                                          • Chilled milk is betting on door-to-door service
                                                                            • Figure 28: Bright cooperated with Tmall to promote Sui Xin Ding service, China, 2020
                                                                            • Figure 29: Official fresh grocery store of New Hope, 2020
                                                                          • Build quality perception through foodservice
                                                                            • Figure 30: Example of marketing dairy and dairy-alternative products in premium coffee houses, Shanghai, 2021
                                                                        • Who’s Innovating?

                                                                          • China Innovation trends
                                                                            • Ingredients related claims growing faster
                                                                              • Figure 31: Top 10 fastest growing claims in milk market, China, 2016 (April)-2021 (March)
                                                                            • Flavour: influenced by tea house but Chinese style is rising
                                                                              • Figure 32: Top 10 Fastest growing flavours in milk market, China, 2016 (April)-2021(March)
                                                                              • Figure 33: Yi Li Gu Li Duo with TCM ingredients, China, 2020
                                                                            • Core nutrition: Protein grows the fastest while sugar down
                                                                              • Figure 34: Average core nutrition of milk, China, 2016-20
                                                                            • Global Innovation Trends
                                                                              • Animal and plant mixed milk drinks
                                                                                • Figure 35: Live real farms lactose-free dairy + plant-based milk blend, USA, 2019
                                                                              • Broader functions beyond bone health
                                                                                • Figure 36: Examples of milk with function of mental health
                                                                                • Figure 37: Milk with collagen, Japan, 2019
                                                                              • Packaging: Eye-catching signs to communicate function
                                                                                • Figure 38: Examples of milk with function of mental health
                                                                            • The Consumer – What You Need to Know

                                                                              • Chilled milk faces bright future but threats at same time
                                                                                • Emerging occasions help generate future growth
                                                                                  • Potential space to shape consumers’ perception
                                                                                  • Consumption Frequency

                                                                                    • Overall popularity ranking remains unchanged, but chilled plain milk sees small increase
                                                                                      • Figure 39: Consumption frequency, January 2021
                                                                                    • Chilled milk still needs to do more to highlight its advantage
                                                                                      • Figure 40: Consumption frequency, 2019-21
                                                                                      • Figure 41: Percentage change in medium users of ambient yogurt and chilled plain milk between 2019 and 2021, by age and gender
                                                                                    • Dairy products have more growth potential in South and Mid-West
                                                                                      • Figure 42: Percentage of heavy users, by region, January 2021
                                                                                  • Consumption Occasions

                                                                                    • Plain milk’s strong occasion association is a double-edged sword
                                                                                      • Other dairy beverages are similarly seen as flavour drinks for leisure time
                                                                                        • Workout is still a niche occasion
                                                                                          • Figure 43: Consumption occasions, January 2021
                                                                                        • Opportunities for chilled milk to target different age groups
                                                                                          • Figure 44: Consumption occasions of chilled plain milk, by age groups, January 2021
                                                                                      • Opportunity for Premiumisation

                                                                                        • Nutrition and milk source quality communication carry more weight
                                                                                          • Figure 45: Premium product features, January 2021
                                                                                          • Figure 46: Preference of premiumisation, January 2017 and 2021
                                                                                        • Education about typical cows needs diving deeper
                                                                                          • Figure 47: Attitudes towards different breeds of cows, by selection of premiumisation product feature, January 2021
                                                                                      • Perception of Lactose

                                                                                        • Only one quarter of respondents know if they have a lactose issue or not
                                                                                          • Figure 48: Perception of lactose, January 2021
                                                                                        • Even lactose-aware consumers have limited product knowledge
                                                                                          • Figure 49: Perception of lactose, by consumer group, January 2021
                                                                                        • Plant-based dairy alternatives are getting ahead in competition
                                                                                        • Ideal Wellbeing Milk

                                                                                          • Beauty for female, physical health for male
                                                                                            • Figure 50: Ideal functions of healthy milk, January 2021
                                                                                            • Figure 51: Ideal healthy milk, by gender, China, February, 2021
                                                                                          • Build association with anti-ageing function and milk
                                                                                            • Figure 52: Signs of ageing, by gender, March 2021
                                                                                          • TCM ingredients help to target consumers with higher health expectations
                                                                                            • Figure 53: Percentage points difference of functions, by preference of different ingredients type, January 2021
                                                                                        • Attitudes towards Milk

                                                                                          • Still a lot of opportunities to shape consumers’ perception
                                                                                            • Figure 54: Attitudes towards nutritional value of different processing milk, January 2021
                                                                                            • Figure 55: Attitudes towards pasteurized milk and UHT milk, by consumer group, January 2021
                                                                                            • Figure 56: Attitudes towards nutritional value of different breeds, January 2021
                                                                                          • Being local doesn’t matter unless people trust you
                                                                                            • Figure 57: Attitudes towards factors influencing freshness of chilled milk, January 2021
                                                                                          • Different consumer segments to target
                                                                                            • TCM vs Western; both have fans
                                                                                              • Figure 58: Attitudes towards different type of ingredients, January 2021
                                                                                              • Figure 59: Attitudes towards different type of ingredients, by gender and age, January 2021
                                                                                              • Figure 60: Perception of milk – CHAID – Tree output, March 2021
                                                                                            • Health vs taste-driven for lactobacillus drinks
                                                                                              • Figure 61: Reason to drink lactobacillus beverages, January 2021
                                                                                          • Appendix – Market Size and Forecast

                                                                                              • Figure 62: Total market value of milk and dairy beverages (including lactobacillus drinks), China, 2015-25
                                                                                          • Appendix – Market Segmentation

                                                                                              • Figure 63: Retail market value of chilled plain milk, China, 2015-25
                                                                                              • Figure 64: Retail market value of ambient plain milk, China, 2015-25
                                                                                              • Figure 65: Retail market value of lactobacillus drinks, China, 2015-25
                                                                                              • Figure 66: Retail market value of flavoured liquid milk, China, 2015-25
                                                                                              • Figure 67: Retail market value of white powder milk, China, 2015-25
                                                                                          • Appendix – Methodology and Abbreviations

                                                                                            • Methodology
                                                                                              • CHAID analysis methodology
                                                                                                • Abbreviations

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