According to a recent report by IMARC Group, titled “Organic Dairy Market in China: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the organic dairy market in China reached a value of US$ 860 Million in 2018. Being one of the rapidly growing segments of the organic food industry, organic dairy forms a key market in the overall Chinese economy. Organic dairy products are obtained from livestock raised through organic farming methods. These dairy products are relatively healthier as compared to their conventional counterparts since they are a rich source of omega-3 fatty acids, vitamins, antioxidants and conjugated linoleic acid (CLA). Their consumption offers various health benefits such as strengthening the immune system, boosting overall metabolism and significantly reducing the chances of diseases.
A majority of the consumers in the country have shifted from regular to organic dairy products on account of the 2008 milk scandal. The incident involved melamine-tainted milk formula causing numerous infant deaths across the country. Since organic products do not involve the usage of chemicals, they have become a preferred choice amongst the consumers. In addition to this, owing to the prevalence of chronic diseases in the country coupled with the growing awareness about the benefits offered by organic dairy products, consumers are now increasingly incorporating them in their daily diets. Moreover, the Government of China is encouraging the practice of organic farming due to rising environmental issues which, in turn, is bolstering the sales of organic products in the country. Other factors such as rapid urbanization and inflating disposable income levels are also contributing to the market growth. By 2024, the organic dairy market in China size is anticipated to reach US$ 2,014 Million, expanding at a CAGR of around 15% during 2019-2024.
- On the basis of the product type, the market has been divided into organic fluid milk, infant formula, yogurt, cheese, butter, cream and others. Amongst these, organic fluid milk represents the most preferred product type.
- Based on the packaging, tetra packs and pouches account for the biggest market share. Other major segments include bottles, cans and others.
- On the basis of the distribution channel, supermarkets and hypermarkets account for the largest market share. Organic specialty stores, convenience and grocery stores, discount stores, online/e-retailing and direct sales are the other significant distribution channels.
- Province-wise, the market has been classified into Guangdong, Jiangsu, Shandong, Zhejiang and Henan and others. Currently, Guangdong holds the leading position in the market.
- The competitive landscape of the market has also been examined in the report with some of the key players being China Shengmu Organic Milk Limited, Inner Mongolia Yili Industrial Group and China Mengniu Dairy Company Limited.
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