Trendy products driving dairy purchases

Chinese consumers are no longer satisfied with simply drinking more milk, and they are focusing on better quality dairy items. The popularity of trendy dairy products such as milk tea and yogurt ice cream has contributed to the overall growth of dairy product consumption, according to a new report.

Chinese consumers have changed from passive acceptance to active selection when it comes to dairy product consumption, said the report by the China Dairy Industry Association, China International Exchange and Promotive Association for Medical and Health Care, and FrieslandCampina, the largest dairy company in the Netherlands.

The report, released on May 30, found that the milk quotient of Chinese consumers is 67 out of 100 points this year, showing slight progress over last year. The China Milk Quotient, an indicator system launched in 2018, is determined through industry research and expert workshops.

Out of over 3,800 surveyed respondents in 20 cities nationwide, the survey found that more people are paying attention to the nutritional value of dairy products and consumers are becoming more cautious in their purchasing decisions.

"Chinese residents' consumption of dairy products has shifted from being satisfied with quantity to the pursuit of quality, and this has put forward new requirements for the industry. We should fully leverage the role of technological innovation and help the country's dairy industry move toward high-quality growth," said Ren Fazheng, a professor at China Agricultural University.

According to the Chinese Dietary Guidelines, Chinese adults have been recommended a daily intake of 300 to 500 grams of milk or equivalent dairy products. The survey found that 36 percent of the public meets this standard, and that they consume about 266 grams of dairy products daily, which is consistent with last year.

In particular, Generation Z consumers, or those who were born between 1995 and 2009, lead the way in milk consumption and they are the front-runners in milk-drinking habits, the report found.

As far as the benefits of milk go, enhancing immunity continues to top public perception, followed closely by preventing osteoporosis and supplementing energy, the report said.

Dutch dairy maker FrieslandCampina said it has seen double-digit sales growth in China for four consecutive years, and online sales have been growing fast. In the first quarter of this year, its market performance beat expectations, and the company said it is confident of achieving double-digit growth again this year.

Last year, the Year of the Dragon, was an especially significant year for many Chinese people. Many couples may have sought to have a "dragon baby", and such a belief partly drove sales growth of infant formula, said Zhang Zhanhong, managing director for Specialized Nutrition China of FrieslandCampina.