hina’s dairy industry is undergoing a profound transformation, moving from traditional smallholder setups to a highly modernized, technology-driven sector that is now shaping global dairy science. In 2024, the country produced 41 million tonnes of milk, with nearly 72% coming from around 700 medium-to-large enterprises, a sharp contrast to its fragmented structure just two decades ago. Despite this, per-capita dairy consumption in China stands at only 115 grams per day, far below the 300–500 grams recommended by dietary guidelines. This mismatch between rising production and relatively low consumption has created both a challenge and an opportunity.
Chinese scientists and dairy companies are responding by developing advanced processing techniques and innovative products aimed at boosting demand while addressing nutrition and sustainability. Research initiatives are exploring how dairy can be reshaped into culturally familiar forms—such as dairy-based tofu or yogurt with traditional flavors—while incorporating bioactive compounds, probiotics, and heat-resistant fat substitutes to meet consumer health needs. By deep-processing surplus milk into high-value nutritional products, the sector is turning potential oversupply into an engine for growth.
The focus is not only on domestic consumers but also on global markets. With rising expertise in dairy biotechnology, China is emerging as a standard-setter in food innovation, aligning its practices with international norms while pushing boundaries in functional foods, nutrition science, and sustainable dairy production. The integration of advanced farming, precision processing, and consumer-centric product design highlights China’s ambition to become a leader in dairy innovation.
For the global dairy industry, this shift is significant. It signals how science-led approaches can both solve nutritional gaps and improve value realization from milk. China’s trajectory offers a blueprint for other countries struggling with imbalances in milk supply and evolving consumer demand.
Industry Insights
China’s dairy innovation offers critical lessons for a world grappling with mismatched supply and demand. Their focus on deep-processing—creating dairy-based tofu, heat-resistant fat substitutes, and probiotics-rich products—addresses both nutritional gaps and waste reduction. As consumer expectations shift toward health and sustainability, China’s emerging model shows how science-driven product innovation can convert surplus supply into value-added demand. The emphasis on science, nutrition, and eco-friendly processing also signals a playbook for other national dairy industries aiming to modernize while shaping global norms.
Source dairynews7x7 Sep 5th 2025 Read full story here