Current situation of China’s dairy industry
With the increase in income levels of Chinese consumers and changes in dairy consumption habits, China\’s dairy market has experienced rapid growth in recent years. According to data released by the China Dairy Products Association in 2020, China\’s dairy market size reached 193.8 billion yuan, of which fresh milk accounted for 29.2% of the market share, and dairy product imports increased by 9.4% year-on-year. Currently, China\’s dairy market is dominated by big brands such as Yili, Mengniu, Deluxe and Bright, which account for about 70% of the market share.
However, competition in the dairy market is extremely fierce, and brand competition and price wars occur frequently. The traditional fresh milk market is saturated, while high-end dairy products are growing rapidly, which also reflects the consumption upgrading trend of Chinese consumers.
Development Prospects of China’s Dairy Industry
With the growing consumption demands of Chinese consumers, China\’s dairy industry has broad prospects. The dairy industry has promoted the structural adjustment of China\’s dairy industry, shifting from quantitative expansion to quality improvement and brand upgrading, developing new products, enriching categories, developing new markets, reducing costs, reducing environmental pollution, improving safety and security, and promoting the sustainable development of the dairy industry.
Moreover, in recent years, China\’s dairy industry has also achieved fruitful results in technological innovation and R&D investment. The newly developed products have high technical content and market competitiveness, effectively promoting the high-quality development of China\’s dairy industry.
Challenges of the current situation of China’s dairy industry
Although China\’s dairy market is developing very rapidly, it still faces a series of challenges. Over the years, consumers\’ distrust in the quality of dairy products and quality and safety issues have seriously restricted the development of the dairy market. At the same time, fierce competition among costs has also affected the development of enterprises.
In addition, with the acceleration of industrialization, marketization and urbanization, problems such as shortage of raw materials, serious pollution, and high production costs also threaten the development of China\’s dairy industry.
Top 4 companies in China’s dairy industry
1. Yili Dairy Group: Yili has high brand awareness and good user reputation in the Chinese market, focusing on high-end products. The company was successfully listed on the Hong Kong Stock Exchange, with a market value of RMB 26 billion.
2. Mengniu Dairy: Mengniu is one of the leaders in China’s dairy market, accounting for approximately 25% of the market share. In addition, Mengniu has also jointly established the Mengniu Morgan Stanley Fund with Morgan Stanley, which mainly invests in the consumer sector.
3. Deluxe: Deluxe is a dairy company invested and established by China Overseas Investment Co., Ltd. with store channels and brand marketing as its core competitiveness. The company has close business linkages with well-known domestic companies such as Jiangxi Bayi Agricultural Reclamation Group and New Hope Liuhe Co., Ltd.
4. Guangming Dairy: Guangming is one of the well-known brands in China\’s dairy industry. It has a complete range of products, mainly involving fresh milk, room temperature milk, lactic acid drinks, adult milk powder and other varieties. Guangming Company won the honor of China\’s top ten pizza cheese suppliers in 2011.
Conclusion
In summary, with the development trend of consumption upgrading and the promotion of technological innovation, China’s dairy industryThe industrial market has huge development potential. There are also challenges, such as incomplete industrial chains, high production costs and ecological environment issues, but we believe that China\’s dairy industry will grow more healthily and rapidly under the challenges of various difficulties.
