China to be the world’s largest dairy market by 2022 - Cowsmo

China to be the world’s largest dairy market by 2022

China will overtake the US as the world’s largest dairy market by 2022, with India rising to fourth place, according to market research producer Euromonitor International.

Drinking yogurt is the key growth driver in China, with major players such as Mongolia Yili with the Ambrosial brand expanding their reach. Meanwhile, US consumers are drinking less milk and shifting away from flavoured milk drinks.
In India, growing health awareness combined with urban consumers shifting from unpackaged milk to packaged milk will see the country overtake Japan, Russia, Germany and France by 2021.

The Russian dairy market will experience steady growth in the next five years, despite a warning last year from the country’s milk producers’ association Soyuzmoloko about the consumer shift towards dairy alternatives.

Senior food analyst at Euromonitor International Pinar Hosafci said: “The dairy’s heavyweights, which combined make up two thirds of global sales in 2017, remain stable over 2012-2022.

“Yet in the next five years countries will shift in importance due to a change in consumer demand in dairy. Americans are drinking less milk and are becoming wary of flavoured milk drinks, which they perceive to be unhealthy due to their high sugar content.”

Speaking of the growth of ambient yogurts in China, Hosafci added: “Ambient drinking yogurt benefits from offering added convenience for both consumers and retailers, helping to achieve a wider distribution than chilled yoguurts.

‘Manufacturers also focus on probiotic variants of drinking yogurts, which contributes to boosting the health credentials of the category. However, rising sales of drinking yogurts led to a parallel decline in for flavoured milk drinks perceived as less healthy.”

The current top ten dairy consuming countries are: US, China, Brazil, Japan, Russia, Germany, France, India, UK and Mexico.

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