Plant-based dairy alternatives are making a sustainable mark on the China market, riding a wave of consumer interest in environmentally friendly products. Despite economic uncertainties and geopolitical tensions, the dairy industry is experiencing a change in consumer preferences. Premium consumers are turning to oat, soy, and almond milk as sustainable alternatives to traditional cow's milk. Plant-based milk prices have seen substantial growth, although at a slightly slower rate compared to traditional cow's milk.
Plant-based yoghurt and cheese in China are flourishing, registering impressive retail volume growth rates. In contrast, soy drinks are facing dwindling demand as consumers explore diverse plant-based options. Although the price gap between traditional and plant-based dairy is shrinking, plant-based options still carry a slightly higher price tag. This, coupled with reduced disposable incomes among consumers, has tempered the resurgence of plant-based choices. However, the sustainability trend continues to drive interest and growth, despite the economic challenges facing the China.
Segmentation by Retail Channel
The retail landscape in the China's dairy and plant-based alternatives market is experiencing a surge in competitive marketing campaigns. Price sensitivity and innovative product formulations are pushing major brands to venture into the plant-based dairy market, expanding the range of options available to consumers. The convenience of e-commerce is driving sales of plant-based dairy, with online availability improving, and convenience stores are also benefiting from the demand for convenient plant-based products. Single-serve yoghurt products are emerging as meal substitutes, aligning with changing consumer patterns. In this ever-evolving landscape, the plant-based dairy market in the China offers growth potential, as consumers increasingly seek sustainable and environmentally conscious alternatives to traditional dairy products.
The plant-based dairy market in China is becoming increasingly competitive as more companies enter the market. With the rise of veganism and concerns over animal welfare, consumers are looking for alternatives to traditional dairy products. Local companies such as Vesta and Hey Maet are competing with international brands like Beyond Meat and Impossible Foods to capture a share of the growing market. However, challenges such as high production costs and limited consumer awareness of plant-based options remain obstacles for companies looking to succeed in this space.