Dairy products and alternatives in 2025: The big picture
Overall dairy products and alternatives in China is recording falls in both retail value and volume sales in 2025. Baby food, dairy, and plant-based dairy are all in decline, with baby food seeing value sales slightly decrease primarily due to demographic pressure and category maturity. The dragon year baby bump in 2024 did bring temporary lift in birth numbers thanks to traditional beliefs about auspicious years, which include the Year of the Dragon; however, this was more of a mini baby boom than a true reversal in demographic trends.
Key trends in 2025
Health consciousness continues to shape the evolution of dairy and baby nutrition in China. Consumers are increasingly seeking products that align with their functional needs, natural preferences and long-term wellbeing goals.
Competitive Landscape
Inner Mongolia Yili is the leading company within dairy products and alternatives overall in 2025. Yili maintains one of the most comprehensive and diverse product portfolios in dairy products and alternatives in China’s, ranking as the leader in both drinking milk products and yoghurt. However, its overall market share is seeing a slight decline 2025. While Yili has gained share in baby food and cheese, these gains are offset by declines in the larger-volume drinking milk and yoghurt. The drop is driven by Yili’s heavy reliance on ambient products, which face increasing headwinds due to growing consumer preferences for fresher and healthier options. Additionally, an oversupply of raw milk in both 2024 and 2025 has led to the emergence of numerous new entrants, further diluting the market share of leading players.
Channel developments
Supermarkets is the leading distribution channel within dairy products and alternatives overall in 2025. However, its market share has been gradually declining, with a shift toward more convenient channels such as e-commerce and convenience stores, as well as emerging trendy channels such as warehouse clubs. Warehouse clubs has benefited from the continued rollout of stores by major players like Sam’s Club and Costco.
What next for dairy products and alternatives?
During the forecast period, overall dairy products and alternatives will see volume decline driven by yoghurt and sour milk products, and baby food, with the latter facing persistent headwinds from falling birth and marriage rates in China. At the same time, other categories will see some support from structural shifts in consumption habits, health-driven innovation and diversification within emerging subcategories.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in China report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in China?
- Which are the leading brands in Dairy Products and Alternatives in China?
- How are products distributed in Dairy Products and Alternatives in China?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in China?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in China
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in China
KEY DATA FINDINGS
Baby food enjoys pockets of resilience amid broader decline
Leaders hold ground as niche players rise
Traditional non-grocery retail still anchors trust
Structural shifts shape a polarised market
Rising demand for functional and organic offerings
Digital and technological innovation: from channel control to consumer loyalty
Butter and Spreads in China
KEY DATA FINDINGS
Butter drives overall growth in 2025
Fonterra leads with its popular Anchor brand
E-commerce as preferred channel for butter purchases
Further growth forecast for butter and spreads in China
Limited innovation in terms of health and wellness
Rising importance of social commerce
Cheese in China
KEY DATA FINDINGS
Improved performance for cheese despite continued decline
Milkground maintains leadership as Bel forges on
Supermarkets leads distribution of cheese
Cheese will see further rises during forecast period
Free-from trends set to accelerate
Bel focuses on expanding consumption occasions
Drinking Milk Products in China
KEY DATA FINDINGS
Shelf stable milk drives drop in drinking milk
Yili leads while smaller players gain greater ground in 2025
Supermarkets leads distribution of drinking milk products
Fresh milk and powder milk as key growth drivers
Health claims become more prevalent in fresh milk
ESL technology expands, intensifying competition
Yoghurt and Sour Milk Products in China
KEY DATA FINDINGS
Yoghurt and sour milk products suffers deep declines in 2025
Yili leads overall, and Le Pur Tech enjoys greatest dynamism
Supermarkets remains favoured channel, with discounters recording fastest growth
Drinking yoghurt set to drive further decline
Health and wellness trends impact development
Low-calorie sweetener likely to become more prevalent
Other Dairy in China
KEY DATA FINDINGS
Further falls for retail sales of other dairy in 2025, as foodservice sees growth
Nestlé leads despite share loss amid intensifying competition
Supermarkets as main distribution channel, with e-commerce rising fastest
Other dairy set to remain in decline for forecast period
Rising health consciousness will prompt players to sharpen focus on wellness attributes
Local consumers favour smaller pack formats
Plant-Based Dairy in China
KEY DATA FINDINGS
Value sales decline amid waning interest
Hebei Yangyuan Zhihui leads overall plant-based dairy in China
Plant-based dairy products purchased mainly in supermarkets
Rising sales forecast thanks to plant-based milk
Innovation to centre around prevailing health and wellness trends
Tightened regulations will address safety concerns
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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