Organic Dairy Market in China 2018: Industry Trends, Growth, Demand, Share, Opportunities and Forecast till 2023

“Organic Dairy Market in China to Experience Double-Digit Growth”
The organic dairy market in China is expected to witness an exponential growth in the upcoming years. This can be attributed to factors such as escalating disposable incomes, growing health awareness amongst consumers and introduction of new product variants by manufacturers.

The recent report by IMARC Group, titled “Organic Dairy Market in China: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, estimates that the organic dairy market in China reached a value of around US$ 740 Million in 2017. Consumers in China earlier favoured products which were affordable and catered functionality, however, with the emergence of consumer revolution, they are now willing to spend on products which offer good taste and superior quality. This shift can be ascribed to factors like inflating income levels and improving standards of living. In line with this, China has emerged as one of the fastest growing markets for organic dairy products in Asia as these products contain higher amounts of vitamins, omega-3 fatty acids, anti-oxidants and conjugated linoleic acid (CLA).

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The 2008 Chinese milk scandal led a large fraction of the consumers to pay attention to the dairy products they consume. This created an inclination towards organic dairy products and provided a thrust to the growth of the market in China. Further, non-organic products are obtained from livestock that is given antibiotics or bovine growth hormones in order to improve the milk yield. These antibiotics and hormones get absorbed into the bloodstream of humans, thereby posing a negative impact on their health. A subsequent rise in awareness coupled with the numerous benefits offered by organic dairy products is stimulating the market growth in the country. Besides this, manufacturers are introducing new product variants so as to expand their product portfolio and attract a larger consumer-base, in turn, boosting the consumption of organic dairy products. Due to the aforementioned factors, the market value is projected to reach nearly US$ 1,760 Million by 2023, expanding at a CAGR of about 16% during 2018-2023.

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Market Summary:

  • Based on product type, the market has been segmented as organic fluid milk, organic infant formula, organic yogurt, organic cheese, organic butter, organic cream and others. Currently, organic fluid milk is the most popular product type as it reduces the risk of cancer and heart diseases, boosts metabolism, and improves the immune system.
  • On the basis of packaging, tetra packs and pouches represent the largest segment, followed by bottles, cans and others.  Tetra-packs and pouches help in keeping the products fresh for a longer duration without the need for refrigeration.
  • Based on distribution channel, the market has been segregated as supermarkets and hypermarkets, organic specialty stores, convenience and grocery stores, discount stores, online/e-retailing, direct sales and others. Presently, supermarkets and hypermarkets exhibit a clear dominance in the market.
  • Province-wise, the market has been divided into Guangdong Province, Jiangsu Province, Shandong Province, Zhejiang Province and Henan Province. Amongst these, Guangdong Province is the leading market, holding the majority of the total share.
  • The competitive landscape of the market has also been examined with some of the key players being China Shengmu Organic Milk Limited, Inner Mongolia Yili Industrial Group and China Mengniu Dairy Company Limited.

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