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Dairy Product Production in China Industry Data and Analysis
China is the fourth-largest milk producer in the world in 2020, after India, the United States and Pakistan. However, per capita consumption of dairy products in China is less than one-third of the global average and lower than in many other developing countries. Due to traditional Chinese dietary patterns and lower living standards, the routine consumption of dairy products is limited across the country.Moreover, dairy product consumption varies considerably across China. Consumption in rural regions is less than 10% of that in urban areas. Industry revenue is expected to grow at a CAGR of 3.4% over the five years through 2025, to $76.5 billion, increasing by 1.9% from 2024. Rising household incomes, peoples' rising consciousness on health, the implementation of China's three-child policy, the introduction of new dairy products and growing demand from rural markets have driven this growth.This industry covers a wide range of products, and profit margins depend on different kinds of products. Industry profit makes up approximately 8.6% of industry revenue in 2025. In 2023, China's per capita milk consumption was 42.4kg, far below the world average. China's dairy demand is expected to maintain a relatively high growth in the next few years. The driving factors include rural consumption upgrades, urbanization and multiple types of dairy products.The dairy industry was temporarily affected by the outbreak of COVID-19 epidemic in early 2020. However, the formation and development of greater national health awareness accelerated with the promotion from the Chinese government and authoritative organizations. Consumption of dairy products, in particular liquid milk, increased as consumers began to realize the importance of consuming high-quality milk protein to supplement nutrition and enhance immunity.Industry revenue is projected to grow at a CAGR of 2.4% over the five years through 2030, to $86.3 billion. Middle- and high-end market segments will account for an increasing share of total revenue, while the share of low-end product segments will decrease slightly. However, the low-end market will continue growing in terms of volume, particularly in less developed parts of China, where per capita incomes are lower.
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What's included in this industry analysis
IBISWorld's research coverage on the Dairy Product Production industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
About this industry
What's this industry report about?
The Dairy Product Production industry in China operates under the industry code 1440. Firms in the Dairy Product Production industry purchase cattle milk, sheep milk and other raw materials to produce milk and dairy products. Enterprises cleanse, sterilize, homogenize, concentrate, dry and ferment these products, and then package and sell them to wholesalers and retailers for resale to final consumers. Related terms covered in the Dairy Product Production industry in China include melamine, ultra high temperature (uht) milk and pasteurized milk.
What's included in this industry?
Products and services covered in Dairy Product Production industry in China include White milk, Milk powder and Yogurt.
What companies are included in this industry?
Companies covered in the Dairy Product Production industry in China include Inner Mongolia Yili Industrial Group Co., Ltd., China Mengniu Dairy Company Limited and Bright Dairy & Food Co., Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Dairy Product Production industry in China.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Dairy Product Production industry in China.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Dairy Product Production industry in China.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Dairy Product Production industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Dairy Product Production industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Dairy Product Production industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Dairy Product Production industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Dairy Product Production industry in China.
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Frequently Asked Questions
What is the market size of the Dairy Product Production industry in China in 2026?
The market size of the Dairy Product Production industry in China is $76.5bn in 2026.
How many businesses are there in the Dairy Product Production industry in China in 2025?
There are 802 businesses in the Dairy Product Production industry in China, which has grown at a CAGR of 1.7 % between 2020 and 2025.
How may import tariffs affect the Dairy Product Production industry in China?
The Dairy Product Production industry in China is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Dairy Product Production industry in China?
The Dairy Product Production industry in China is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Dairy Product Production industry in China grown or declined over the past 5 years?
The market size of the Dairy Product Production industry in China has been growing at a CAGR of 3.4 % between 2020 and 2025.
What is the forecast growth of the Dairy Product Production industry in China over the next 5 years?
Over the next five years, the Dairy Product Production industry in China is expected to grow.
What are the biggest companies in the Dairy Product Production industry in China?
The biggest companies operating in the Dairy Product Production industry in China are Inner Mongolia Yili Industrial Group Co., Ltd., China Mengniu Dairy Company Limited and Bright Dairy & Food Co., Ltd.
What does the Dairy Product Production industry in China include?
White milk and Milk powder are part of the Dairy Product Production industry in China.
Which companies have the highest market share in the Dairy Product Production industry in China?
The company holding the most market share in the Dairy Product Production industry in China is Inner Mongolia Yili Industrial Group Co., Ltd..
How competitive is the Dairy Product Production industry in China?
The level of competition is high and steady in the Dairy Product Production industry in China.
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