China to overtake USA as largest dairy market

In just five years’ time China is set to overtake the United States as the world’s largest dairy market, worth a massive $68.8 billion.

New research on dairy markets by Euromonitor suggests China will switch places with the US which will be worth $67.7bn in the same year.

The US is the world’s largest dairy market today with a market value of $64bn while China is second with a dairy market value of $55bn.

With consumers in China favouring more dairy products, Pinar Hosafci, senior food analyst at Euromonitor International, says consumer trends are changing towards milk product in the largest producing states.

He said: “Americans are drinking less milk and are becoming wary of flavoured milk drinks, which they perceive to be unhealthy due to their high sugar content.

“China’s growing appetite for yoghurt on the other hand will result in it overtaking the US as largest dairy market by 2022.

“For overall yoghurt sales in China, driving yoghurt is a key growth driver.”

He added: “This is largely due to major players expanding their reach with ambient drinking yoghurt.”

The dairy market in India is also showing excelled growth and by 2022 is forecasted to be worth an estimated $26bn.

India is eighth in the market worth league table with a market size of $17bn but will rise into fourth place in five years’ time.

Hosafci also said hygiene and changing consumer preferences are influencing India’s market valuation for dairy.

The senior food analyst added: “In India, the growing health and hygiene awareness combined with urban consumers shifting from unpackaged milk to packaged milk, will see the country switch places with Japan by 2021.”

Brazil’s market is forecast to grow from $25bn this year to $27.3bn in 2022, remaining as the third largest global market by value.

Japan, Russia and Germany have the fourth, fifth and sixth largest dairy markets by value, respectively, this year.