The Chinese retail dairy market totalled US$36.6 billion in 2010, and is expected to grow by 80.3% from 2011 to 2016. This market includes drinking milk, baby milk formula, yogurt, ice cream, coffee whitener, condensed milk, cheese and butter. Sales of dairy in the foodservice sector reached almost US$4.7 billion* in 2010.
China’s imports of dairy products have more than doubled in the past five years, reaching over US$1.9 billion in 2010. China is not only increasing its imports of finished dairy products, but also its imports of ingredients necessary for the production of dairy products, dairy cattle genetics, and breeding cattle.
Production and consumption of dairy products are expected to continue to rise after a small dip in 2009, due to melamine-tainted products. Prices of dairy products are also on the rise, as more high-end health and wellness products enter the market to counter the melamine scandal. Prices are also rising due to increases in imports, higher labour and other input costs for raw milk, as well as low domestic supply and high demand.
*In operator buying prices (the prices foodservice operators pay to manufacturers for various food and beverage items), dairy includes milk, yogurt, ice cream, spreadable fats (includes margarine and butter), cheese and cream.
