Future Prospects for the Yogurt Market in China
2018-11-14 09:14 Wednesday
The Chinese yogurt market is growing rapidly, and per-capita consumption still has room to nearly double.
Milk sales in China rose 4% in 2017 from 2016, and yogurt sales rose 18% to 122 billion RMB, according to Euromonitor International. Mature retail and distribution channels for milk and yogurt have set off explosive growth. Large producers have led the way, but small to medium-sized enterprises have also taken advantage of the robust market.
Rapid economic growth in China has been a boon for high-end products, which now occupy a 12% market share, and a market penetration rate of 33.6%, up 4.2% from 2016, according to Kantar Retail.
As the yogurt market continues to mature, brands have sought to achieve product innovation, in order to anticipate changes to consumer preferences.
Convenience is perhaps the leading concern for yogurt consumers, but demand for high-end yogurts with fruit and other novelty flavors, has soared in recent years.
2. Market Niches
Many successful yogurt brands have achieved a niche in a highly diverse market, offering unique value from raw materials, to a specific consumer group, or superior packaging.
Future trends for functional yogurt include protein supplements, intestinal health, calcium supplements, and meeting the needs of special populations. Yogurt brands would be well advised to develop functional products, in the wake of increasing consumer demand for health and clan label foods.