China to overtake the US as the largest dairy market by 2022
China is set to overtake the US as the world largest dairy market by 2022, according to new research on dairy markets by Euromonitor.
The database outlines that by 2022, China’s dairy market will be worth an estimated US$68.8bn, overtaking the US market which is forecast to be valued at US$67.7bn by 2022.
Currently, the US has the largest dairy market valued at US$64bn. China is currently second with their market valued at US$55bn.
Pinar Hosafci, senior food analyst at Euromonitor International, believes consumer trends are changing towards milk product in the largest producing states.
“Americans are drinking less milk and are becoming wary of flavoured milk drinks, which they perceive to be unhealthy due to their high sugar content. China’s growing appetite for yoghurt on the other hand will result in it overtaking the US as largest dairy market by 2022,” he said.
“For overall yoghurt sales in China, driving yoghurt is a key growth driver. This is largely due to major players expanding their reach with ambient drinking yoghurt,’’ he continued.
India
Also surging is the Indian dairy market. By 2022, its forecasted dairy sector will be at an estimated US$26bn, rising to the fourth highest globally. Currently, the southeast Asian country is eighth with a market size of US$17bn.
Hosafci also identified hygiene and changing consumer preferences as affecting India’s market valuation for dairy.
“[In] India, the growing health and hygiene awareness combined with urban consumers shifting from unpackaged milk to packaged milk, will see the country switch places with Japan by 2021,” he said.
Brazil’s market is forecast to grow from US$25bn in 2017 to US$27.3bn in 2022, remaining as the third largest global market by value.
Japan, Russia and Germany have the fourth, fifth and sixth largest dairy markets by value, respectively, in 2017.
Total global dairy market size (US$) over the next five years
2017: US$473bn.
2018: US$483bn.
2019: US$495bn.
2020: US$507bn.
2021: US$519bn.
2022: US$532bn.
Source: Irish Farmers Journal. Date: 2017-08-23