Table of Contents
Overview
-
- What you need to know
- Products covered in this report
-
- Figure 1: Definition of low/mid/high MHI groups, by city tier
Executive Summary
-
- The market
-
- Figure 2: Total China milk and flavoured milk market retail value, 2010-20
- Key players
-
- Figure 3: Value share of top 10 companies, 2013-15 (Jan-Jun)
- The consumer
- Consumers favour plain milk but lose interest in flavoured milk products
-
- Figure 4: Usage frequency of different types of milk, December 2015
- Consumers drink plain milk for nutritional content and flavoured milk for taste
-
- Figure 5: Drinking purposes of different types of milk, December 2015
- Laborious market education required for lactose intolerance
-
- Figure 6: Attitudes towards lactose intolerance, December 2015
- The market calls for more on-the-go packaging
-
- Figure 7: Barriers of drinking milk, December 2015
- Non-dairy drinks gain popularity
-
- Figure 8: Substitutes of milk, December 2015
- Premium milk prove its high-quality via taste
-
- Figure 9: Purchase consideration factors (for self), December 2015
-
- Figure 10: Perception and attitudes towards milk, December 2015
- What we think
Issues and Insights
-
- The prospects for lactose-free milk
- The facts
- The implications
- PPDs grab market share from milk
- The facts
- The implications
- Paradigm shift to ‘good fat’
- The facts
- The implications
The Market – What You Need to Know
-
- Milk market growth is slowing
- UHT segment drives volume growth while pasteurised segment touts freshness for premiumisation
- Raw milk oversupplies
- Adjacent categories and imported milk compete to grab market share
Market Size and Forecast
-
- Milk market growth is slowing
-
- Figure 11: Retail market size of milk and flavoured milk in China, 2010-15
- The market is forecast to grow at a CAGR of 6%
-
- Figure 12: Total China milk and flavoured milk market retail value, 2010-20
- Figure 13: Total China milk and flavoured milk market retail volume, 2010-20
Market Drivers and Challenges
-
- Oversupply of raw milk in 2015
- Increasing disposable incomes assist growth
-
- Figure 14: Per capita disposable income, China, 2010-14
- Figure 15: Per capital consumption of milk and flavoured milk, China and top 10 counties, 2015
- Competition from adjacent categories
-
- Figure 16: Retail market value of plant protein drinks and yogurt, 2010-15
- Competition from imported milk
Market Segmentation
-
- Plain milk drives category growth
-
- Figure 17: Retail market value of milk and flavoured milk, by segments, 2010-15
- Figure 18: Retail value of pasteurised plain milk, 2010-20
-
- Figure 19: Retail value of UHT plain milk, 2010-20
- Flavoured milk needs to enhance healthy image to regain interest
-
- Figure 20: Retail value of flavoured milk, 2010-20
- Adult milk powder segment is dying
-
- Figure 21: Retail value of white milk powder, 2010-20
Key Players – What You Need to Know
-
- Top 10 companies losing market share
- Leading dairy companies add non-dairy products to portfolios
- Regional dairy companies strengthen pasteurised products
Market Share
-
- A consolidated market structure
-
- Figure 22: Value share of top 10 companies, 2013-15 (Jan-Jun)
- Mengniu loses 2% market share in 2015
- Yogurt segment drives growth
-
- Figure 23: Annual revenue of Mengniu, by segments, 2014-15
- Competitive strategies
- Mengniu and Yili look to plant protein segment
-
- Figure 24: Silk plant protein drinks, China, 2014
- Mengniu exploits lactose-free market
- Regional companies are proactive in innovation
- Touting exclusive pastures
- Interacting with consumers via online platforms
-
- Figure 25: New liquid milk from New Hope, China, 2014-15
- Innovating around packaging design
-
- Figure 26: New liquid milk from Modern Farming, China, 2015
- Regional companies stake chilled milk
- Modern Farming touts ‘two-hour milk’
- New Hope constructing pastures nationwide through M&A
- Weichuan promotes happy cows
Who’s Innovating?
-
- Chilled segment increases
-
- Figure 27: Newly launched liquid milk products, China, 2011-15
- Selling high protein as premium
-
- Figure 28: Protein content of liquid white milk, China and global, 2011-15
- Figure 29: Examples of new launches with ‘high protein’ claim, global, 2014-15
- Packaging opportunities in the dairy market
- China leads small-size packaging
-
- Figure 30: Top 5 unit packaging size of liquid milk, China and global, 2011-15
- On-the-go packaging innovations
-
- Figure 31: On-the-go packaging from U-best of Bright, China, 2012
- Minimalist packaging design can enhance naturalness
-
- Figure 32: Examples of minimalist packaging, global, 2014-15
- Simplifying on-pack nutrition tables
-
- Figure 33: Examples of on-pack nutrition table, global, 2014-15
- Whole milk highlighting ‘good fat’ in global market
-
- Figure 34: Milk with ‘good fat’, global, 2014-15
The Consumer – What You Need to Know
-
- Consumers favour plain milk but are losing interest in flavoured milk
- Competition from plant protein drinks increases
- Prospects for lactose-free milk
- The market calls for on-the-go packaging
Usage Frequency
-
- Ambient plain milk is most popular
-
- Figure 35: Usage frequency of different types of milk, December 2015
- Consumers drink less flavoured milk due to safety concerns
- Lactose-free milk has white space
- Different usage patterns by age and region
-
- Figure 36: Usage frequency of different types of milk, By age and gender, December 2015
Drinking Purposes
-
- Plain milk’s protein and calcium content appeal to consumers
-
- Figure 37: Drinking purposes of different types of milk, December 2015
- Flavoured milk and milk beverages compete as tasty drinks
Dissatisfaction towards Milk
-
- Consumers expect to see more flavour options
-
- Figure 38: Barriers to drinking milk, December 2015
-
- Figure 39: Barriers to drinking milk, By age, December 2015
- The market calls for more on-the-go packaging
-
- Figure 40: Barriers to drinking milk (continued), December 2015
- High prices stop low-income groups from drinking milk
-
- Figure 41: Barriers to drinking milk, By income, December 2015
- Only 9% of consumers are aware of discomfort after drinking milk
-
- Figure 42: Barriers to drinking milk (continued), December 2015
Purchase Consideration Factors
-
- Authentic taste, promotion and rich nutritional content drive self-consumption
-
- Figure 43: Purchase consideration factors, December 2015
- High nutritional value and safety are key for children’s milk
-
- Figure 44: Newly launched kids milk, by top 10 claims, 2011-15
- Consumers perceive lactose free and low fat milk as suitable for the elderly
Substitutes for Milk
-
- Non-dairy drinks gain popularity
-
- Figure 45: Substitutes of milk, December 2015
- RTDs can hardly replace milk
Perception and Attitudes towards Milk
-
- Consumers are sophisticated enough to check product details
-
- Figure 46: Perception and attitudes towards milk, December 2015
- Premium milk proves high-quality via taste
-
- Figure 47: Perception and attitudes towards milk, December 2015
- Prospects for more functional milk
-
- Figure 48: Perception and attitudes towards milk (continued), December 2015
- Consumers lack knowledge about lactose intolerance
-
- Figure 49: Perception and attitudes towards milk (continued), December 2015
- Imported milk offers fierce competition
-
- Figure 50: Perception and attitudes towards milk (continued), December 2015
Meet the Mintropolitans
-
- Mintropolitans favour chilled plain milk
-
- Figure 51: Heavy usage (once a day or more) of different types of milk, by consumer classification, December 2015
- Mintropolitans demand on-the-go packaging
-
- Figure 52: Barriers of drinking milk, by consumer classification, December 2015
- Milk is a functional food for Mintropolitans
-
- Figure 53: Purchase consideration factors (for myself), by consumer classification, December 2015
Appendix – Market Size and Forecast
-
-
- Figure 54: China yogurt market, total volume sales, by retail and non-retail, 2010-20
- Figure 55: Volume sales of total yogurt market, China, 2010-20
-
Appendix – Market Segmentation
-
-
- Figure 56: Retail volume of pasteurised plain milk, 2010-20
- Figure 57: Retail volume of UHT plain milk, 2010-20
- Figure 58: Retail volume of flavoured milk, 2010-20
- Figure 59: Retail volume of white milk powder, 2010-20
-
Appendix – Methodology and Abbreviations
-
- Methodology
- Fan chart forecast
- Mintropolitans
- Why Mintropolitans?
- Who are they?
-
- Figure 60: Demographic profile of Mintropolitans vs non-Mintropolitans, by gender, age and personal income
- Figure 61: Demographic profile of Mintropolitans vs non-Mintropolitans, by marital status, city tier and education level
- Abbreviations
Back to top