Page 138 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
said an official with the ministry (Xinhua, “China domestic dairy products. Despite the slow-down of
to Implement Fishing Moratorium on High Seas”). the overall Fast-Moving Consumer Goods (FMCG)
sector, China’s import dairy market still boasted
China has developed a series of breeding centers significant growth, jumping from 1.61 million tons
to grow fish. One such is a new, two-story breeding of imported dairies consumed in 2015 to 3.48
demonstration building of Fengjiawan Modern million tons in 2020. The competition between
Fishery Industrial Park in Wenchang. The building domestic and imported brands in China’s dairy
adopts multi-story breeding to increase the space market is fierce, both online and offline. For what
for ponds. During the first three-year trial, the park regards consumers’ propensity to introduce dairy
also exempted fish farmers from fees, including rent foods into their diet, China’s Northwest records
and water supply costs. From April to May this 2022, the highest figures in terms of milk production and
one farm using the facilities sold over 250,000 high- per capita consumption. Nevertheless, consumers
end fish fry with a total income of about 1.5 million in Northeastern China, Southern China, Central
RMB (US$225,000). In 2021, the local government China, and Southwestern China rarely add dairy
relocated 195 households of fish farmers at products to their diets. Online platforms play a
Fengjiawan Bay to restore the environment. In critical role in facilitating the efficient distribution
their place, they planted mangroves. In 2020, of dairy products in China. Dairy foods boast a
the local government began to build the modern penetration rate of over 90% in first-tier cities,
fishery industrial park at Fengjiawan Bay area, where consumers are more inclined to shop online,
explored the multilayer breeding model, and whereas only 20% of the households consume
promoted the green transformation of the fishery dairy products on a regular basis in lower-tier cities
industry. As far as pollution from the facility, the and rural areas. Chinese consumers are aware
park collects the aquaculture tailwater together of the nutritional benefit of dairy products: such
and treats it with modern technology, and then foods are rich in calcium, facilitate digestion and
discharges the treated tailwater after it reaches the boost the immunity system. Powdered milk is also
required standard, which means it will not pollute quickly gaining popularity (Allison).
the seawater. Shrimp seedling survival rates and
quality have significantly improved compared to China's dairy output is expected to reach
the traditional breeding model (China Daily). 39.79 million tons in 2022 amid a rapid surge in
consumption demand, said a researcher with an
Dairy Product institute of the Ministry of Agriculture and Rural
Affairs. The country's dairy output will near 54
China is the world’s second-largest dairy market million tons in 2031, according to the Institute
after the US and the world’s largest one by dairy of Food and Nutrition Development under the
imports. China’s total dairy consumption volume ministry. Consumption demand for dairy products
has fluctuated, but the growth outlook remains has grown at an average rate of 3.6% over the past
positive, especially after the COVID-19 outbreak, 10 years. Household dairy consumption jumped in
which rekindled the need for more nutrition. the past two years, with per capita consumption
Nevertheless, according to Statista, in 2021, an rising 11.8% year on year to 42.3 kg in 2021.
average Chinese consumed about 13kg of dairy The ministry attributed the demand expansion
products per year, which equals less than one- to people's mounting attention to health and
third of the global average. Milk, baby formulas, nutrition, noting that the COVID-19 epidemic
and yogurt are the top three most consumed has influenced consumers' preferences and
dairies by volume, accounting for 39.3%, 27.6%, accelerated the consumption of low-temperature
and 23.6% of the market respectively. According fresh milk in the Chinese market. As cold-chain
to a survey carried out by Mintel in November facilities improved and people's views changed,
2017, among 3000 consumers aged between 29 consumption of dry dairy products, such as cheese
and 49 residing in first-to-third-tier cities, 43% and cream, is on the rise, while that of pasteurized
of Chinese consumers prefer imported dairies, milk also saw a prominent increase among liquid
compared to 34% who would rather purchase milk products. China produced 7.68 million tons of
milk in the first quarter of 2022, up 8.3% year on
138
said an official with the ministry (Xinhua, “China domestic dairy products. Despite the slow-down of
to Implement Fishing Moratorium on High Seas”). the overall Fast-Moving Consumer Goods (FMCG)
sector, China’s import dairy market still boasted
China has developed a series of breeding centers significant growth, jumping from 1.61 million tons
to grow fish. One such is a new, two-story breeding of imported dairies consumed in 2015 to 3.48
demonstration building of Fengjiawan Modern million tons in 2020. The competition between
Fishery Industrial Park in Wenchang. The building domestic and imported brands in China’s dairy
adopts multi-story breeding to increase the space market is fierce, both online and offline. For what
for ponds. During the first three-year trial, the park regards consumers’ propensity to introduce dairy
also exempted fish farmers from fees, including rent foods into their diet, China’s Northwest records
and water supply costs. From April to May this 2022, the highest figures in terms of milk production and
one farm using the facilities sold over 250,000 high- per capita consumption. Nevertheless, consumers
end fish fry with a total income of about 1.5 million in Northeastern China, Southern China, Central
RMB (US$225,000). In 2021, the local government China, and Southwestern China rarely add dairy
relocated 195 households of fish farmers at products to their diets. Online platforms play a
Fengjiawan Bay to restore the environment. In critical role in facilitating the efficient distribution
their place, they planted mangroves. In 2020, of dairy products in China. Dairy foods boast a
the local government began to build the modern penetration rate of over 90% in first-tier cities,
fishery industrial park at Fengjiawan Bay area, where consumers are more inclined to shop online,
explored the multilayer breeding model, and whereas only 20% of the households consume
promoted the green transformation of the fishery dairy products on a regular basis in lower-tier cities
industry. As far as pollution from the facility, the and rural areas. Chinese consumers are aware
park collects the aquaculture tailwater together of the nutritional benefit of dairy products: such
and treats it with modern technology, and then foods are rich in calcium, facilitate digestion and
discharges the treated tailwater after it reaches the boost the immunity system. Powdered milk is also
required standard, which means it will not pollute quickly gaining popularity (Allison).
the seawater. Shrimp seedling survival rates and
quality have significantly improved compared to China's dairy output is expected to reach
the traditional breeding model (China Daily). 39.79 million tons in 2022 amid a rapid surge in
consumption demand, said a researcher with an
Dairy Product institute of the Ministry of Agriculture and Rural
Affairs. The country's dairy output will near 54
China is the world’s second-largest dairy market million tons in 2031, according to the Institute
after the US and the world’s largest one by dairy of Food and Nutrition Development under the
imports. China’s total dairy consumption volume ministry. Consumption demand for dairy products
has fluctuated, but the growth outlook remains has grown at an average rate of 3.6% over the past
positive, especially after the COVID-19 outbreak, 10 years. Household dairy consumption jumped in
which rekindled the need for more nutrition. the past two years, with per capita consumption
Nevertheless, according to Statista, in 2021, an rising 11.8% year on year to 42.3 kg in 2021.
average Chinese consumed about 13kg of dairy The ministry attributed the demand expansion
products per year, which equals less than one- to people's mounting attention to health and
third of the global average. Milk, baby formulas, nutrition, noting that the COVID-19 epidemic
and yogurt are the top three most consumed has influenced consumers' preferences and
dairies by volume, accounting for 39.3%, 27.6%, accelerated the consumption of low-temperature
and 23.6% of the market respectively. According fresh milk in the Chinese market. As cold-chain
to a survey carried out by Mintel in November facilities improved and people's views changed,
2017, among 3000 consumers aged between 29 consumption of dry dairy products, such as cheese
and 49 residing in first-to-third-tier cities, 43% and cream, is on the rise, while that of pasteurized
of Chinese consumers prefer imported dairies, milk also saw a prominent increase among liquid
compared to 34% who would rather purchase milk products. China produced 7.68 million tons of
milk in the first quarter of 2022, up 8.3% year on
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