Page 190 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
range from 1,000 to 20,000 dairy cows, but several urban young middle-income group, who values a
dairy farming companies have between 50,000- healthier lifestyle and cultivate good tastes. Oat milk
100,000 cows. Considering the current trend in products are available in over 10,000 cafes on the
China, it seems that the farming companies will Chinese mainland, and at boutique supermarkets
become even bigger in near future. Mergers seem and on e-commerce platforms. Both online and
to be one of the ways forward for the big Chinese offline sales performed well in 2021. Compound
dairy farming companies (DG). annual growth rate of plant-based protein beverage
in the Chinese market is expected to reach 2.7%
The Chinese milk sector value is expected to from 2019 to 2024. Brands tend to combine function
hit around US$31 billion by 2030 as consumers in with dairy products and upgrade old products with
China are turning to dairy products due to perceived new concepts, resulting in higher prices and higher
nutritional and health benefits, a situation that profit. However, plant-based milk market is still at an
has been accelerated by the onset of COVID-19. exploration stage in China compared with mature
People are paying more attention to the intake markets in some Western countries (Chen).
of nutritious and health food, which has further
stimulated people’s demands for dairy products. Pets and Pet Products
Roughly 52% of local consumers have said that
after the pandemic, they will pay more attention to China pet food market is growing due to the
their health, especially their immunity, and will buy increasing number of pet owners, more affordability
related products (Neo). to purchase a pet and feed, and a skyrocketing
popularity of pet ownership. Dogs and cats are the
Plant Based Milk most popular pets in China. Today, the country is
the third largest dog-owning market globally, with
China has a tradition of drinking plant-based milk a total number of assessed 480 million households
in the form of soybean milk. Chinese consumers nationwide owning a dog or cat. Needless to say,
appear to be open to expanding their interests in dogs and cats need to be fed. Pet food importers
this area. Milk made of plant-or vegetable-based are busier than ever as pet food stores continue to
sources is growing in popularity as a health food and mushroom in China. Pet care services are escalating,
has spawned a niche market whose sales have seen too. China’s imports of dog and cat food are on pace
significant growth in 2021. Health-minded Chinese to break another record. Imported pet food in China
consumers who are also keen to buy products is gaining attraction. Premium pet food brands are
whose sourcing and manufacturing processes doing well in the major cities. In the two largest
do not ravage the environment favor beverages Chinese local pet food markets Shanghai/Beijing,
made of such milk. Plant-based milk is a term for both cities have more than 1.5 million dogs and 700,
plant-based protein beverages like soybean milk, 000 cats. That indicates almost 11% of the families in
almond syrup, walnut dew and oat milk. It contains Shanghai/Beijing own a pet dog and the proportion
less fat, no lactose or cholesterol. Hence, lactose- of cat-owning family is 4%. This trend shows no signs
intolerant people, those allergic to dairy or formula of abating as huge portions of the market remain
milk, people on a diet, and some consumers with relatively untapped. Roughly half of Chinese pet
a heightened sense of animal protection tend to owners are under 30 years old. This consumer group
prefer plant-based milk. Against the backdrop of was born in the better times than their parents, and
the COVID-19 pandemic and increasing health mostly only children in their families. China’s pet
awareness, Chinese consumers showed a growing food, pet related market is far from saturated by
preference for healthy beverages whose labels have comparison with other countries (DCCC).
phrases like "sugar-free" and "plant-based". The
niche market for plant-based protein beverages is As Chinese pet owners are paying more attention
set to boom as major dairy giants, overseas brands to pets' health care and nutrition than before, the
and emerging labels are investing in the sector. pet healthy food sector is seeing robust growth, with
Consumers of plant-based milk in China are a broad increasing newcomers and billions of investments.
category, but emerging brands mainly target the In the first half of 2021, the number of financing
190
range from 1,000 to 20,000 dairy cows, but several urban young middle-income group, who values a
dairy farming companies have between 50,000- healthier lifestyle and cultivate good tastes. Oat milk
100,000 cows. Considering the current trend in products are available in over 10,000 cafes on the
China, it seems that the farming companies will Chinese mainland, and at boutique supermarkets
become even bigger in near future. Mergers seem and on e-commerce platforms. Both online and
to be one of the ways forward for the big Chinese offline sales performed well in 2021. Compound
dairy farming companies (DG). annual growth rate of plant-based protein beverage
in the Chinese market is expected to reach 2.7%
The Chinese milk sector value is expected to from 2019 to 2024. Brands tend to combine function
hit around US$31 billion by 2030 as consumers in with dairy products and upgrade old products with
China are turning to dairy products due to perceived new concepts, resulting in higher prices and higher
nutritional and health benefits, a situation that profit. However, plant-based milk market is still at an
has been accelerated by the onset of COVID-19. exploration stage in China compared with mature
People are paying more attention to the intake markets in some Western countries (Chen).
of nutritious and health food, which has further
stimulated people’s demands for dairy products. Pets and Pet Products
Roughly 52% of local consumers have said that
after the pandemic, they will pay more attention to China pet food market is growing due to the
their health, especially their immunity, and will buy increasing number of pet owners, more affordability
related products (Neo). to purchase a pet and feed, and a skyrocketing
popularity of pet ownership. Dogs and cats are the
Plant Based Milk most popular pets in China. Today, the country is
the third largest dog-owning market globally, with
China has a tradition of drinking plant-based milk a total number of assessed 480 million households
in the form of soybean milk. Chinese consumers nationwide owning a dog or cat. Needless to say,
appear to be open to expanding their interests in dogs and cats need to be fed. Pet food importers
this area. Milk made of plant-or vegetable-based are busier than ever as pet food stores continue to
sources is growing in popularity as a health food and mushroom in China. Pet care services are escalating,
has spawned a niche market whose sales have seen too. China’s imports of dog and cat food are on pace
significant growth in 2021. Health-minded Chinese to break another record. Imported pet food in China
consumers who are also keen to buy products is gaining attraction. Premium pet food brands are
whose sourcing and manufacturing processes doing well in the major cities. In the two largest
do not ravage the environment favor beverages Chinese local pet food markets Shanghai/Beijing,
made of such milk. Plant-based milk is a term for both cities have more than 1.5 million dogs and 700,
plant-based protein beverages like soybean milk, 000 cats. That indicates almost 11% of the families in
almond syrup, walnut dew and oat milk. It contains Shanghai/Beijing own a pet dog and the proportion
less fat, no lactose or cholesterol. Hence, lactose- of cat-owning family is 4%. This trend shows no signs
intolerant people, those allergic to dairy or formula of abating as huge portions of the market remain
milk, people on a diet, and some consumers with relatively untapped. Roughly half of Chinese pet
a heightened sense of animal protection tend to owners are under 30 years old. This consumer group
prefer plant-based milk. Against the backdrop of was born in the better times than their parents, and
the COVID-19 pandemic and increasing health mostly only children in their families. China’s pet
awareness, Chinese consumers showed a growing food, pet related market is far from saturated by
preference for healthy beverages whose labels have comparison with other countries (DCCC).
phrases like "sugar-free" and "plant-based". The
niche market for plant-based protein beverages is As Chinese pet owners are paying more attention
set to boom as major dairy giants, overseas brands to pets' health care and nutrition than before, the
and emerging labels are investing in the sector. pet healthy food sector is seeing robust growth, with
Consumers of plant-based milk in China are a broad increasing newcomers and billions of investments.
category, but emerging brands mainly target the In the first half of 2021, the number of financing
190
