Upgrading of Domestic Dairy Consumption Continues

By CnAgri2016-05-17 10:15:30 Print Alongside the rising of people’s income, the per capita dairy consumption expenditure has been growing rapidly, and there is a trend of convergence towards medium/top-end consumption. The compound growth of the per capita food and beverage consumption expenditure (total of liquor, beer, red wine, dairy products and seasonings) hit 14.5% from 2003-2015, faster than the GDP compound growth during the same period and much faster than that in other countries and regions. The annual compound growth of the unit price of dairy products was 4.0% from 2003-2015, the growth of the price of medium/top-end products was faster than the industrial average.
 
We expect to see continuation of the upgrading of dairy consumption due to the following reasons:
 
First, the growth of per capita dispensable income and the improvement of the urbanization level shall be the driving force for the upgrading of consumption of food and beverage.
 
Second, the per capita dairy consumption of the Chinese residents is still at a low level, especially the per capita consumption of residents in cities of third and fourth tiers is much lower than the world average, there is space for improvement.

Third, the historical experience of dairy-developed countries indicates when the economic level is up to a certain degree, the demand for medium/low-end products would not rise, whereas the demand for top-end healthy products should grow fast and would witness a noticeable upgrading of consumption.