Despite producing over 41 million tons of raw milk last year, the true story of China's dairy industry is found not just in its massive scale but in the remarkable transformation behind every liter.
Key Takeaways
- In 2022, China's total raw milk production reached 41.96 million metric tons, marking a 3.2% increase from 2021
- China's Inner Mongolia Autonomous Region produced 15.2 million tons of raw milk in 2022, accounting for 36% of national total
- Average milk yield per dairy cow in China improved to 7.5 tons in 2022 from 7.1 tons in 2021
- Per capita fresh milk consumption in China was 14.2 kg in 2022, up from 13.8 kg in 2021
- China's total dairy consumption volume reached 38.2 million tons in 2022
- Liquid milk consumption accounted for 72% of total dairy intake in urban China in 2022
- China's dairy market size was valued at RMB 728 billion in 2022, growing 5.8% YoY
- Liquid milk segment revenue was RMB 456 billion in 2022, 62% of total dairy market
- Dairy industry contributed 0.9% to China's GDP in 2022
- Mengniu Dairy held 25.8% market share in liquid milk in 2022
- Yili Group revenue from dairy was RMB 124.5 billion in 2022, up 6.2%
- Bright Dairy & Food market cap was RMB 45 billion as of end-2022
- China's dairy imports totaled 3.62 million tons in 2022, valued at USD 5.8 billion
- New Zealand supplied 28% of China's dairy imports in 2022, 1.02 million tons
- Dairy imports from EU reached 0.85 million tons in 2022
China's dairy industry saw strong growth in production, consumption, and market value in 2022.
Companies
- Mengniu Dairy held 25.8% market share in liquid milk in 2022
- Yili Group revenue from dairy was RMB 124.5 billion in 2022, up 6.2%
- Bright Dairy & Food market cap was RMB 45 billion as of end-2022
- Sanlu Group restarted operations with 1.2 million tons capacity in 2022
- Feihe International infant formula sales reached RMB 18.9 billion in 2022
- Junlebao Dairy's revenue grew 28% to RMB 22.4 billion in 2022
- New Hope Dairy milk powder production capacity 0.5 million tons in 2022
- Sanyuan Foods Beijing market share 15% in 2022
- Beingmate infant nutrition revenue RMB 12.3 billion in 2022
- Modern Dairy's herd size was 140,000 cows in 2022
- Synutra International sales RMB 8.7 billion in 2022
- Want Want China dairy beverages revenue RMB 15.2 billion in 2022
- Ausnutria Dairy's China revenue RMB 9.4 billion in 2022
- Huishan Dairy restarted with RMB 3.5 billion revenue in 2022
- Nestle China's dairy sales RMB 28 billion in 2022
- Danone China's yogurt market share 12% in 2022
- Fonterra's China joint ventures produced 1.8 million tons in 2022
- Arla Foods China cheese sales grew 22% in 2022
- DuPont Danisco probiotics supplied to 60% Chinese dairy firms in 2022
- China Mengniu Dairy Co., Ltd. exported 0.12 million tons products in 2022
- Yili Group's R&D investment was RMB 2.1 billion in 2022
- Bright Dairy's organic milk line revenue RMB 5.6 billion in 2022
- Top 10 dairy companies controlled 65% market share in 2022
Companies Interpretation
The Chinese dairy sector has evolved from a marketplace of cautious sips to a battleground of strategic gulps, where giants like Mengniu and Yili fiercely defend their turf while once-fallen players like Sanlu attempt a cautious comeback, all under the watchful eye of consumers who now scrutinize everything from infant formula revenues to probiotic supply chains with the intensity of a food safety inspector.
Consumption
- Per capita fresh milk consumption in China was 14.2 kg in 2022, up from 13.8 kg in 2021
- China's total dairy consumption volume reached 38.2 million tons in 2022
- Liquid milk consumption accounted for 72% of total dairy intake in urban China in 2022
- Yogurt consumption per capita in China was 4.1 kg in 2022, growing 7.5% YoY
- Urban residents' dairy expenditure was RMB 456 per capita annually in 2022
- China's infant formula milk consumption was 1.1 million tons in 2022
- Milk tea beverage consumption involving dairy reached 12 billion servings in China in 2022
- Rural per capita dairy consumption was 9.8 kg in 2022, up 4.2%
- UHT milk held 45% share of liquid milk consumption in 2022
- Cheese consumption per capita in China reached 0.12 kg in 2022, up 18%
- Plant-based milk alternatives consumption grew to 0.9 million tons in 2022
- Online dairy sales accounted for 28% of total consumption value in 2022
- Flavored milk consumption volume was 3.2 million tons in 2022
- Elderly population's dairy intake averaged 300 ml/day in 2022 survey
- School milk program served 12 million students daily in 2022, totaling 1.2 million tons
- Low-fat milk consumption share rose to 22% in 2022
- Milk powder consumption for adults was 0.75 million tons in 2022
- Beijing residents' per capita dairy consumption was 25.6 kg in 2022
- Lactose-free dairy products consumption doubled to 0.15 million tons in 2022
- Coffee with milk consumption reached 8 billion cups in 2022
- High-protein dairy products sales grew 25% to RMB 15 billion in 2022
- Shanghai's dairy consumption per capita was 28.1 kg in 2022
- Functional dairy beverages consumption was 2.8 million tons in 2022
- Vegan dairy substitute penetration reached 15% in Tier 1 cities in 2022
- Ice cream consumption volume hit 4.5 million tons in 2022
- Guangdong province dairy consumption totaled 3.9 million tons in 2022
- Probiotic yogurt market value reached RMB 68 billion in 2022
Consumption Interpretation
China's dairy industry is bubbling over with growth, as evidenced by a half-kilo bump in per capita milk consumption, 12 billion milk tea servings, and lactose-free products doubling, yet it remains a market carefully poured between urban and rural divides, yogurt cravings, and a still-modest but booming love for cheese.
Market
- China's dairy market size was valued at RMB 728 billion in 2022, growing 5.8% YoY
- Liquid milk segment revenue was RMB 456 billion in 2022, 62% of total dairy market
- Dairy industry contributed 0.9% to China's GDP in 2022
- Average retail price of raw milk was RMB 3.65 per kg in 2022
- Milk powder market revenue reached RMB 156 billion in 2022
- Yogurt segment grew at CAGR 8.2% from 2018-2022 to RMB 112 billion
- Import tariffs on dairy products averaged 12.5% in 2022
- E-commerce dairy sales revenue was RMB 204 billion in 2022, up 22%
- Private label dairy products market share reached 18% in 2022
- Organic dairy market valued at RMB 42 billion in 2022, CAGR 15%
- Dairy processing capacity utilization rate was 78% in 2022
- RMB/USD exchange rate impact led to 4% rise in import dairy costs in 2022
- Infant formula market size was RMB 78 billion in 2022
- Cheese market revenue grew to RMB 28 billion in 2022
- Dairy export rebate rate was 15% for most products in 2022
- Premium dairy segment (above RMB 10/liter) grew 12% to RMB 89 billion in 2022
- Supply chain logistics costs for dairy averaged 9% of revenue in 2022
- Functional dairy market valued at RMB 156 billion in 2022
- Dairy industry employment reached 2.1 million direct jobs in 2022
- Inflation-adjusted dairy price index rose 2.8% in 2022
- Plant-based dairy market size was RMB 35 billion in 2022
Market Interpretation
In 2022, China's dairy industry was a half-trillion-yuan juggernaut of liquid milk, where rising premiums, yogurt cravings, and online shopping carts not only powered steady growth but also faced the sobering squeeze of tariffs, logistics costs, and a plant-based rival nipping at its heels.
Production
- In 2022, China's total raw milk production reached 41.96 million metric tons, marking a 3.2% increase from 2021
- China's Inner Mongolia Autonomous Region produced 15.2 million tons of raw milk in 2022, accounting for 36% of national total
- Average milk yield per dairy cow in China improved to 7.5 tons in 2022 from 7.1 tons in 2021
- China's goat milk production was 2.1 million tons in 2022, up 4.5% year-on-year
- Heilongjiang province's raw milk output hit 3.8 million tons in 2022, second highest nationally
- Number of dairy cows in China stood at 5.8 million heads in 2022
- China's pasteurized milk production volume was 28.4 million tons in 2021
- Xinjiang Uyghur Autonomous Region contributed 2.9 million tons of raw milk in 2022
- Milk production growth rate in Shandong province was 5.1% in 2022, reaching 2.5 million tons
- China's UHT milk production reached 22.6 million tons in 2022
- Total dairy farms in China numbered 456,000 in 2022, with average herd size of 85 cows
- Gansu province's raw milk production grew 6.2% to 1.2 million tons in 2022
- China's organic milk production was 0.85 million tons in 2022, up 12%
- Jilin province produced 2.1 million tons of raw milk in 2022
- Dairy cow stocking density in major provinces averaged 1.2 cows per hectare in 2022
- China's yogurt production volume hit 8.9 million tons in 2022
- Shaanxi province's milk output was 1.1 million tons in 2022, up 3.8%
- Feed cost per liter of milk in China was RMB 2.1 in 2022
- China's cheese production reached 0.45 million tons in 2022, growing 15%
- Ningxia Hui Autonomous Region produced 0.95 million tons raw milk in 2022
- Milk fat content in Chinese raw milk averaged 3.8% in 2022
- China's powdered milk production was 1.2 million tons in 2022
- Tianjin municipality's dairy production was 0.32 million tons in 2022
- Somatic cell count in Chinese dairy herds averaged 250,000 cells/ml in 2022
- China's condensed milk production stood at 0.67 million tons in 2022
- Hubei province produced 0.88 million tons raw milk in 2022
- Automated milking systems in use on 25% of large-scale Chinese dairy farms in 2022
- China's butter production was 0.31 million tons in 2022, up 8.2%
- Liaoning province's milk output reached 1.05 million tons in 2022
- China's raw milk self-sufficiency rate was 96.5% in 2022
Production Interpretation
China's dairy industry is no longer just a national affair, but a sophisticated, data-driven empire where Inner Mongolia lords over a third of the moo-vement, cows are politely but firmly asked to be 5.6% more productive, and the nation proudly claims 96.5% self-sufficiency, all while quietly cultivating a surprisingly goaty side hustle.
Trade
- China's dairy imports totaled 3.62 million tons in 2022, valued at USD 5.8 billion
- New Zealand supplied 28% of China's dairy imports in 2022, 1.02 million tons
- Dairy imports from EU reached 0.85 million tons in 2022
- Whole milk powder import volume was 0.72 million tons in 2022
- Skim milk powder imports declined 5% to 0.41 million tons in 2022
- Infant formula imports valued USD 2.1 billion in 2022
- China's dairy exports grew 12% to 0.28 million tons in 2022
- Dairy trade surplus with ASEAN countries was USD 150 million in 2022
- Butter imports reached 0.18 million tons in 2022, up 9%
- Cheese imports totaled 0.12 million tons, valued USD 850 million in 2022
- Australia exported 0.65 million tons dairy to China in 2022
- Whey protein concentrate imports were 0.35 million tons in 2022
- RCEP agreement boosted dairy imports by 8% post-2022 implementation
- Dairy exports to Southeast Asia reached 0.15 million tons in 2022
- Liquid milk imports dropped 15% to 0.09 million tons in 2022
- Ireland's dairy exports to China valued EUR 450 million in 2022
- China's share of global dairy imports was 15.2% in 2022
- UHT milk exports from China hit 0.05 million tons in 2022
- Dairy tariff quota utilization was 102% for WTO allotments in 2022
- Imports from Netherlands grew 14% to 0.22 million tons in 2022
- Yogurt imports reached 0.03 million tons, mostly premium brands, in 2022
- China's dairy re-exports to Hong Kong were 0.42 million tons in 2022
- Milk protein concentrate imports 0.11 million tons in 2022
- Exports to Middle East dairy products valued USD 120 million in 2022
- Import growth rate for lactose-free dairy was 25% in 2022
Trade Interpretation
While China's dairy imports reveal a voracious appetite for New Zealand's milk powder and Europe's infant formula, its own growing exports of UHT milk to Southeast Asia suggest it's learning to milk the global market from both ends.
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