The dairy industry is an important part of modern agriculture and food industry. And it is also an important pillar industry of economy. In this article, we will analyze market status and development trend of dairy industry in China.
A. Industry status
The dairy industry is an important livelihood industry. The national economy and the improvement of living standards are improving. Dairy products have become the daily nutritious food for residents.
A1. The market scale of the dairy industry continues to grow
The dairy industry in China has once again shown strong vitality. In 2021, the consumption of dairy products in China reached 30.32 million tons. And sales of dairy products reached 30.35 million tons. The dairy product market is rich in variety and sufficient in supply.
The living standards of Chinese people are improving. And the dairy industry market will continue to expand. The domestic dairy product production and sales volume will reach 30.45 million tons and 30.52 million tons respectively in 2022. And China will become the largest dairy consumer in the world.
A2. Good quality and saftey of dairy products
The quality and safety supervision system is improving everyday. And the supervision is becoming stronger gradually. Sampling inspection of raw milk covers all milk collection stations and transport vehicles. All dairy products are subject to a batch-by-batch inspection system.
According to the government reports, the pass rate of dairy product samples has been over 99% for three consecutive years. There isn’t any melamine in infant formula milk powder for 10 consecutive years. And we haven’t detected any aflatoxin M1 in dairy products for 5 consecutive years.
In the first half of 2020, we have tested a total of 25,900 batches of dairy products. And the pass rate reached 99.86%. The quality and safety level of dairy products are good now. When consumers choose dairy products, their confidence in domestic brands is increasing.
A3. The consumption structure of dairy products in China
High temperature sterilized milk production and packaging technology is developing. And therefore the growth rate of liquid milk is obvious. In 2019, China’s liquid milk production reached 25.4 million tons, an increase of 66.38% over 2008. And its proportion in dairy product production also increased from 84.24% in 2008 to 93.32% in 2019.
Liquid milk has increasingly become an important component of national consumption. In China’s liquid milk product in 2019, pasteurized milk accounted for 6.4%, sterilized milk accounted for 42.0%, fermented milk accounted for 33.8%, and modulated milk accounted for 17.8%. Pasteurized milk accounts for more than 80% of the total consumption of liquid milk in developed countries. And it accounts for less than 10% in China, which is relatively low.
For a long time, UHT milk was the main product type in China. The low-temperature dairy products have short shelf life. So they require the whole process of cool chain transportation. However the cost and price are high. It is difficult to meet the strong demand of consumers for low-temperature dairy products at present.
B. Future development trend
B1. The potential of the dairy product market is huge
Regarding per capita milk consumption, there is still a big gap between China and the world average. At present, China’s per capita milk consumption is only one-third of the world average. And the gap is even bigger between China and developed countries. The government guideline set the goal of 300 grams dairy products per person per day. With further improvement of living standards, dairy product market in China has huge potential.
B2. Low temperature dairy products are the future
The consumption level and health awareness of Chinese residents are improving. And they have growing requirements for quality dairy products. From pasteurized pure milk to pasteurized yogurt and low temperature fresh milk.
In recent years, dairy companies have developed high-end products for Chinese residents. With the acceleration of cool chain construction, the consumption of low-temperature yogurt in China is increasing. And it will become the leading product in the future.
B3. The safety supervision of dairy products
At present, dairy industry in China has initially established a governance system. The entire process from farm to dining table is covered. The quality and safety level of the entire dairy chain are improving. The safety supervision of dairy products in China will develop further in the future.
The ’13th Five-Year Plan for the Dairy Industry’ positions the dairy industry as a representative industry of food safety. In the future, the industry standards, regulations and systems will be more complete. And the industry threshold will be further improved. The dairy product safety testing technology will continue to improve.