China’s dairy industry is experiencing its first production decline in five years, with liquid milk output dropping 2.8% to 27.4 million tons in 2024. Total dairy product output also fell by 1.9% to 29.6 million tons, marking a significant shift from the previous years’ growth trends.
This downturn is attributed to evolving consumer preferences and economic factors. The average per capita dairy consumption decreased by 5.6% to 41.5 kilograms, reflecting a reduced demand for traditional liquid milk. Conversely, there is a growing appetite for premium dairy products, such as cream, condensed milk, and whey protein, with cream imports rising by 9% to 290,000 tons.
Major dairy companies like Yili Group, Mengniu Dairy, and Bright Dairy reported revenue declines between 8% and 10%, signaling the financial impact of these market changes. In response, these companies are pivoting towards health-oriented and functional dairy products, including probiotics and items catering to the aging population.
Industry experts emphasize the need for innovation in dairy nutrition and the development of products that align with modern health trends. The focus is shifting towards ready-to-eat cheese, protein supplements, and other functional dairy items that cater to the evolving tastes and health consciousness of consumers.
Industry Insight:
China’s dairy sector is undergoing a transformation driven by changing consumer behaviors and economic pressures. For global dairy stakeholders, this highlights the importance of adaptability and innovation in product offerings to meet the dynamic demands of the market.
Source : Dairynews7x7 May 31st 2025 YICAIglobal