|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD 40.12 Billion
|
|
CAGR
(2024-2029)
|
8.35%
|
|
Fastest
Growing Segment
|
Online
|
|
Largest
Market
|
North-East
|
Market Overview
China Yogurt Market was valued at USD 40.12 billion
in 2023 and is anticipated to project robust growth in the forecast period with
a CAGR of 8.35% through 2029. The yogurt market in China has witnessed
remarkable growth and transformation over the past few years.
First and foremost, China's increasing health
consciousness has driven the yogurt market's expansion. Consumers are becoming
more aware of the benefits of yogurt, such as its probiotic properties, which
promote digestive health and boost the immune system. This has led to a surge
in yogurt consumption as a healthier snack or breakfast option.
Moreover, yogurt manufacturers have adapted to
Chinese tastes and preferences. They have introduced various flavors and
textures to cater to the diverse palate of Chinese consumers. Traditional
yogurt, drinkable yogurt, and Greek yogurt are just a few examples of the
product variations available in the market.
E-commerce has played a pivotal role in the growth
of the yogurt market in China. Companies have leveraged online platforms to
reach a broader audience and provide convenient home delivery options. This
trend has been further accelerated by the COVID-19 pandemic, which increased
the demand for online shopping and home delivery services.
Foreign yogurt brands have also made significant
inroads into the Chinese market. Companies like Danone, Yoplait, and Nestlé
have gained a strong foothold, capitalizing on their global reputation for
quality and taste. However, domestic brands like Yili and Mengniu continue to
dominate the market, benefiting from their understanding of local consumer
preferences.
In terms of innovation, the China yogurt market has
witnessed the introduction of yogurt-based desserts, snacks, and even skincare
products, capitalizing on yogurt's perceived health benefits. This
diversification has opened up new opportunities for manufacturers and created a
more dynamic market.
As China's middle class continues to grow, so does
its demand for healthier and premium food products, further driving the yogurt
market's expansion. While the COVID-19 pandemic presented temporary challenges,
the overall trajectory of the yogurt market in China remains positive, with
opportunities for continued growth and innovation.
Key Market Drivers
Health and Wellness Trends
The China yogurt market is experiencing significant
growth due to the increasing emphasis on health and wellness among consumers.
With rising concerns about lifestyle-related diseases and a growing awareness
of the importance of a balanced diet, yogurt has become a popular choice for
health-conscious individuals. This trend is driven by several factors:
Probiotics and Gut Health: Probiotic-rich yogurt
has gained popularity as it is believed to promote a healthy gut microbiome,
which is linked to improved digestion, better immunity, and overall well-being.
Many Chinese consumers are now seeking yogurt products with specific probiotic
strains known to offer health benefits.
High Protein Content: Yogurt is a rich source of
high-quality protein, making it appealing to consumers looking to maintain or
build muscle mass, control their weight, or follow low-carb diets. As a result,
the yogurt market is witnessing a surge in demand for high-protein yogurt
varieties.
Low-Fat and Low-Sugar Options: With the growing
concern about obesity and diabetes, there is a strong demand for low-fat and
low-sugar yogurt options. Manufacturers are responding by introducing a wide
range of yogurt products with reduced fat and sugar content, catering to
health-conscious consumers.
Convenient Snacking: Yogurt's convenient packaging
and portability make it an ideal on-the-go snack for busy urban dwellers. As
lifestyles become more fast-paced, yogurt's role as a convenient and healthy
snack option is driving its market growth.
Expanding Middle-Class and Urban Population
China's rapidly expanding middle-class and urban
population is another significant driver of the yogurt market's growth. This
demographic shift has several implications for the industry:
Changing Consumption Habits: As more people move to
urban areas and experience changes in their lifestyles, dietary habits are
shifting. Urban dwellers often have busier schedules, and they are increasingly
turning to yogurt as a quick and nutritious meal or snack option.
Western Influence: The urban population, with
access to international media and exposure to Western diets, is becoming more
receptive to Western-style foods and beverages. Yogurt, being a staple in many
Western diets, is benefiting from this cultural influence.
Increasing Disposable Income: As the middle class
continues to grow, consumers have more disposable income to spend on premium
yogurt products, including Greek yogurt, organic varieties, and yogurt-based
desserts, further boosting market growth.
Retail Expansion: The expansion of modern retail
channels such as supermarkets and convenience stores in urban areas has made
yogurt more accessible to consumers. This convenience factor has played a
significant role in the market's expansion.
Product Innovation and Diversification
Innovation and diversification in the yogurt market
have been instrumental in attracting consumers and sustaining market growth.
Manufacturers are constantly introducing new products and flavors to cater to
various consumer preferences:
Flavor Varieties: Chinese yogurt manufacturers have
introduced a wide range of flavors, from traditional options like plain and
fruit-flavored yogurt to more exotic choices, including matcha, taro, and
durian. This diversification in flavor options keeps consumers engaged and
attracts new buyers.
Plant-Based Alternatives: With the growing interest
in plant-based diets and lactose intolerance, manufacturers are developing and
promoting dairy-free yogurt alternatives made from ingredients like almond,
soy, and coconut. These products are gaining traction in the market.
Packaging Innovation: Yogurt packaging has evolved
to include various formats, such as yogurt drinks, squeezable pouches, and
portable cups with toppings or mix-ins. These innovations appeal to consumers
seeking convenient and indulgent options.
Customization: Some brands offer customizable
yogurt options, allowing consumers to choose their preferred toppings, fruits,
and sweeteners. This level of personalization caters to consumer preferences
and enhances brand loyalty.
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Key Market Challenges
Fierce Competition and Market Saturation
One of the primary challenges in the Chinese yogurt
market is intense competition and market saturation. The country boasts a vast
number of yogurt manufacturers, ranging from multinational giants like Yili and
Mengniu to numerous local and niche players. This fierce competition has led to
price wars and reduced profit margins, making it difficult for both established
and emerging brands to stand out.
To address this challenge, companies must focus on
product differentiation and innovation. Offering unique flavors, packaging, and
functional benefits can set a brand apart. Additionally, strategic marketing
and advertising campaigns can help companies connect with consumers on a
personal level, fostering brand loyalty in an overcrowded market.
Regulatory Hurdles and Quality Concerns
China's regulatory environment has posed challenges
for yogurt manufacturers, particularly in terms of product quality and safety.
The government has tightened regulations on food quality and safety, which can
result in increased compliance costs. Ensuring that products meet these
stringent standards while keeping prices competitive is a delicate balancing
act.
To overcome these challenges, companies must invest
in quality control measures, implement stringent quality assurance practices,
and maintain transparency in their operations. By doing so, they can build
trust with consumers and demonstrate their commitment to producing safe and
high-quality yogurt products. Collaborating with government agencies and
industry associations can also help navigate the regulatory landscape
effectively.
Evolving Consumer Preferences and Health Concerns:
As Chinese consumers become more health-conscious,
their preferences in yogurt products have evolved. There is a growing demand
for yogurt with lower sugar content, probiotics, and functional ingredients
that offer health benefits. Meeting these evolving preferences while
maintaining the appeal of traditional yogurt products is a significant
challenge for manufacturers.
To address this challenge, companies need to invest
in research and development to create healthier yogurt options that align with
consumer expectations. Moreover, they should communicate the nutritional
benefits of their products effectively through labeling and marketing.
Collaborating with healthcare professionals and dieticians to highlight the
health benefits of yogurt can also help gain consumer trust and market share.
Key Market Trends
Plant-Based Yogurts on the Rise
One of the most notable trends in the China yogurt market is the increasing popularity of plant-based yogurts. As Chinese
consumers become more health-conscious and environmentally aware, there is a
growing demand for dairy alternatives. Plant-based yogurts made from
ingredients such as soy, almond, coconut, and oats are gaining traction. These
products are not only lactose-free but also cater to the preferences of vegans
and individuals with dairy allergies.
A key driver of this trend is the influence of
Western diets and lifestyles, where plant-based diets have gained immense
popularity. Additionally, government initiatives promoting healthy living and
sustainability are contributing to the growth of plant-based yogurt brands.
Companies like Yili and Mengniu have introduced their own plant-based yogurt
lines to meet this demand.
Functional Yogurts with Health Benefits
Health-conscious consumers are increasingly seeking
yogurt products that offer functional benefits. This trend has given rise to
yogurts that contain probiotics, prebiotics, and other health-promoting
ingredients. Probiotics, in particular, are in high demand, as they are
believed to improve gut health and boost the immune system. Chinese consumers
are becoming more aware of the connection between gut health and overall
well-being, which is driving this trend.
Many yogurt brands in China are launching products
specifically marketed for their probiotic content. These functional yogurts are
often positioned as aids for digestion, immunity, and overall well-being.
Manufacturers are also exploring new and unique ingredients to add value to
their products, such as collagen, antioxidants, and vitamins, to tap into the
wellness and beauty market.
Online Sales and E-Commerce Dominance
The digital landscape has played a pivotal role in
the growth of the Chinese yogurt market. Online sales and e-commerce platforms
have become the preferred distribution channels for many consumers. The
convenience, extensive product variety, and competitive pricing offered by
online retailers have made e-commerce a dominant force in the industry.
Yogurt brands are leveraging e-commerce to reach a
wider audience and engage in direct-to-consumer marketing. Live-streaming and
social media platforms are being utilized to promote yogurt products and
interact with consumers in real-time. This trend is also attributed to the
changing shopping habits brought about by the COVID-19 pandemic, which
accelerated the shift towards online shopping.
Major yogurt manufacturers are partnering with
e-commerce platforms like Alibaba's Tmall and JD.com to reach consumers more
effectively. They are also investing in user-friendly mobile apps and websites
to enhance the online shopping experience. The development of supply chain
logistics and cold chain delivery has made it possible to deliver yogurt
products directly to consumers' doorsteps, ensuring product freshness and
quality.
Segmental Insights
Type Insights
Flavored yogurt has established itself as a
dominant player in the ever-expanding yogurt market in China. This culinary
delight has captivated the palates of millions of Chinese consumers, and its
popularity continues to grow. The phenomenon of flavored yogurt gaining a
substantial share in the Chinese market can be attributed to several key
factors.
First and foremost, the diversity of flavors in the
Chinese yogurt market is staggering. From traditional options like strawberry,
blueberry, and vanilla to more exotic choices such as dragon fruit, lychee, and
even savory flavors like matcha and taro, there is a yogurt flavor for every
preference. This extensive range appeals to the diverse taste preferences of
the Chinese population, making it a versatile and attractive option for
consumers.
Moreover, the fusion of Western and Eastern
culinary traditions has played a crucial role in the rise of flavored yogurt.
While traditional yogurt flavors remain popular, the incorporation of local
ingredients and traditional Chinese flavors has created a unique and appealing
product. This blend of familiarity and novelty has captured the imagination of
consumers across various demographics.
The health-conscious trend in China has also
contributed to the surge in flavored yogurt consumption. Many flavored yogurts
emphasize their probiotic content and are marketed as a healthy alternative to
sugary snacks. This positioning resonates with a growing number of
health-conscious consumers who are looking for tasty, yet nutritious options.
Furthermore, the convenience factor cannot be
overlooked. Flavored yogurt is readily available in single-serving cups, making
it a convenient on-the-go snack or breakfast choice. In a fast-paced society
like China, where people often have busy schedules, the portability of flavored
yogurt is a significant advantage.
Advertising and marketing strategies have also
played a pivotal role in the success of flavored yogurt in China. Many brands
have invested heavily in promoting their products, using celebrity
endorsements, social media, and creative advertising campaigns to capture
consumer attention.
In conclusion, flavored yogurt has undeniably
carved out a significant share in the China yogurt market due to its diverse
flavors, fusion of culinary traditions, health-conscious appeal, convenience,
and effective marketing efforts.
Sales Channel Insights
Online platforms have revolutionized the way
consumers in China access and purchase a wide range of products, and the yogurt
market is no exception. In recent years, online sales have captured a
significant share of the China yogurt market. This shift in consumer behavior
can be attributed to several key factors, each contributing to the growth of
online yogurt sales.
First and foremost, the convenience of online
shopping has played a pivotal role in driving the surge in yogurt sales.
Consumers can now browse a vast assortment of yogurt brands, flavors, and
packaging options from the comfort of their own homes or while on the go. With
just a few clicks, they can place their orders and have their desired yogurt
products delivered directly to their doorstep, saving time and effort compared
to traditional in-store shopping.
Furthermore, e-commerce platforms have empowered
consumers with an abundance of information. Shoppers can easily access detailed
product descriptions, customer reviews, and ratings, enabling them to make
well-informed decisions. This transparency has fostered trust in online yogurt
purchases, making it a reliable option for consumers seeking the best quality
and value for their money.
Price competitiveness is another driving force
behind the online yogurt market's success. Online retailers often offer
competitive pricing and a wide range of discounts and promotions, attracting
cost-conscious consumers. This has significantly influenced purchasing
decisions, as consumers look for the best deals and savings on their favorite
yogurt products.
Social media and online marketing have also played
a crucial role in promoting yogurt brands and products to a broader audience.
Companies leverage digital marketing strategies, influencers, and
user-generated content to create brand awareness and engage with their
customers. These efforts have helped establish a loyal customer base and drive
online sales growth.
The COVID-19 pandemic further accelerated the shift
toward online shopping for yogurt in China. The public health crisis
underscored the importance of contactless shopping, home delivery, and
minimizing physical store visits. As a result, many consumers who were
initially hesitant to buy yogurt online have embraced the convenience and
safety of e-commerce platforms.
In conclusion, the China yogurt market has
witnessed a significant increase in online sales due to factors such as
convenience, information availability, price competitiveness, and effective
marketing strategies.
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Regional Insights
The North-East region of China, comprising
provinces like Heilongjiang, Jilin, and Liaoning, has established a significant
presence in the Chinese yogurt market, which is a testament to the region's
agricultural strength and changing consumer preferences. This region, known for
its harsh climate and fertile land, has made remarkable strides in dairy
production and distribution.
One of the key factors contributing to the
North-East region's success in the Chinese yogurt market is its rich
agricultural heritage. This area is known for its vast farmlands and abundant
water resources, providing an ideal environment for dairy farming. The dairy
industry has thrived, with numerous dairy farms producing high-quality milk, a
crucial ingredient in yogurt production.
Moreover, the North-East region has embraced modern
dairy farming practices, focusing on technology-driven efficiency and quality.
Many farms in this region have adopted advanced technologies, such as automated
milking systems, to increase milk production while ensuring the well-being of
the animals. This commitment to quality and innovation has made the milk
produced in this region highly sought after by yogurt manufacturers.
The changing dietary preferences of the Chinese
population have also played a pivotal role in the North-East region's
prominence in the yogurt market. With rising health consciousness and a growing
awareness of the nutritional benefits of yogurt, the demand for yogurt products
has surged. Yogurt is increasingly viewed as a healthy and convenient snack,
and this trend has significantly boosted its consumption in China.
North-Eastern dairy companies have seized this
opportunity by diversifying their product offerings and introducing a wide
range of yogurt products tailored to various tastes and preferences. These
companies have also invested in marketing and branding efforts to promote their
yogurt products to a wider audience.
Furthermore, the North-East region's strategic
location has facilitated efficient distribution networks, allowing yogurt
manufacturers to reach both local and distant markets effectively. This region
serves as a crucial transportation hub, enabling the swift delivery of dairy
products to major Chinese cities.
Recent Developments
- In 2023, Dow, a global materials science company,
forged a partnership with Mengniu, a leading dairy company in China, to
introduce an all-polyethylene (PE) yogurt pouch, specifically designed for
recyclability. This remarkable innovation underscores the unwavering commitment
of both organizations towards fostering a circular economy in China.
- In 2023, Junlebao unveiled a groundbreaking
addition to its product lineup: N-15 probiotic yogurt. Crafted from 100% fresh
milk, this exceptional offering is enriched with the probiotic strain N1115.
Notably, this strain exhibits remarkable resistance to acid and bile salts,
ensuring its survival and efficacy within the intestines. Furthermore, the
formulation of this new product is elegantly simple, devoid of sucrose,
artificial flavors, and artificial colors. It is the company's proprietary
probiotic strain that truly sets the brand apart, providing a distinct
competitive edge in the market.
Key Market Players
- Inner Mongolia Yili Industrial Group Company Limited
- China Mengniu Dairy Company Limited.
- Bright Dairy & Food Co. Ltd.
- Xinjiang Tianrun Dairy Company Limited.
- Shijiazhuang Junlebao Dairy Co., Ltd.
- Beijing Sanyuan Foods Co., Ltd.
- Haocaitou Fujian Food Co., Ltd.
- Huaxia Dairy Farm Ltd.
- Nestle China Ltd.
- Kowloon Dairy Limited
|
By Type
|
By Fat Content
|
By Form
|
By Packaging
|
By Sales
Channel
|
By Region
|
|
|
|
- Conventional
Yogurt
- Set Yogurt
- Greek Yogurt
- Frozen
Yogurt
- Yogurt
Drinks
- Others
|
- Pouches
- Plastic
Bottles
- Tetra Packs
- Others
|
- Supermarkets/Hypermarkets
- Convenience
Stores
- Online
- Others
|
- South-Central
- South-West
- East
- North-East
- North-West
- North
|
Report Scope:
In this report, the China yogurt market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- China Yogurt Market, By Type:
o Non-Flavored
o Flavored
- China Yogurt Market, By Fat Content:
o Regular
o Low Fat
o Fat-Free
- China Yogurt Market, By Form:
o Conventional Yogurt
o Set Yogurt
o Greek Yogurt
o Frozen Yogurt
o Yogurt Drinks
o Others
- China Yogurt Market, By Packaging:
o Pouches
o Plastic Bottles
o Tetra Packs
o Others
- China Yogurt Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Convenience Stores
o Online
o Others
- China Yogurt Market, By Region:
o South-Central
o South-West
o East
o North-East
o North-West
o North
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the China
yogurt market.
Available Customizations:
China Yogurt Market report with the given market
data, Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
China Yogurt Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]