Rapid Growing Trend for Top-end Liquid Milk

By CnAgri2016-08-05 14:39:22 Print Based on the benchmark price of over 12 yuan for per liter of top-end liquid milk, liquid milk products witnessed a noticeable upgrading trend from 2009-2013. The proportion of top-end liquid milk was 19% in 2009, it rose to 29% in 2013, CAGR was 24%, whereas the CAGR for popular liquid milk was during the same period of time was merely 8%. Top-end liquid milk shall sustain a rapid growing trend in the future, the proportion shall hit 45% in 2018, and CAGR should be 21% from 2013-2018.
 
(1) There was improvement of residents’ consumption capability. According to data from the National Statistics Bureau, the per capita disposable income of urban residents was 21,810 yuan in 2011, 31,195 yuan in 2015, the compound growth was 7.4% during these five years. The per capita net income of rural residents was 6,977 yuan in 2011 and 10,772 yuan in 2015, the compound growth was 9.1% during these five years. The income level of both urban and rural residents rose year after year, and the average year on year growth of the rural income during the five years was faster than the year on year growth of urban income, which laid a solid foundation for the upgrading of dairy products.
 
(2) There has been improvement of consumers’ conscience on brands and health. Dairy products are daily necessities, after nearly two decades of market fostering, the penetration rate at the urban market is already at a high level. Alongside the rising of people’s living standard, consumers have enhanced conscience on food safety, more and more consumer choose top-end products of famous brands that put priority on health and quality after the melamine incident.
 
(3) It is related to the supply pattern of the industry and the operational strategy of companies. For a long time there was insufficient local raw milk supply and there had to be import, there was shortfall of raw milk supply in 2013, whereas producers reduced low-end production for the sake of guaranteeing medium/top-end production. As a result, there was an acceleration of upgrading of product portfolio and pacing up of upgrading of consumption.