Market Trends of china dairy alternatives Industry
Growing concern for animals and sustainability followed by changing dietary habits is largely impacting dairy alternatives consumption in the country
- The vegan lifestyle is gaining traction in China in line with the growing vegan population. In 2022, the percentage of vegan and vegetarian populations in China was estimated to be about 5-6%. This increased significantly in the last 2-3 years due to the growing influence of Western culture in the country. The larger cities in China, such as Beijing, Hong Kong, Shanghai, Shenzhen, Guangzhou, and Chengdu, all have supermarkets stocking vegan products.
- Among dairy alternatives, plant-based milk like soy, almond, and oat milk held the majority share across the country in 2022. China is the leading country across the APAC region in terms of consumption of dairy alternative milk. Among plant-based milk, soy drinks have traditionally been the most popular in China due to the long-standing tradition of soy consumption and its wide availability. By the end of 2022, China produced over 17.5 million metric tons of soybeans.
- One of the key motivations for the Chinese population increasingly adopting non-dairy products, including butter, is growing concerns for animals and sustainability, followed by changes in dietary habits. Nuts and nut butter contribute significantly toward maintaining a healthy diet as nut butter contains natural and healthy fats. The per capita consumption of nut-based butter is estimated to increase over the forecast period.
- Strong consumption is projected for free-from dairy products in China. More than 92% of the Chinese population has allergic reactions to lactose in dairy products, including flatulence and diarrhea. Yogurt products break down a large portion of lactose during fermentation, greatly mitigating possible allergic reactions. Thus, consumption of plant-based yogurt is expected to grow at a faster rate during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Soybean dominates the Chinese market due to favorable environmental factors that promote its production in the country
