Executive Summary

Aug 2018
PROSPECTS
Coffee whiteners and condensed milk are hampered by specialist coffee shops

Coffee whiteners and condensed milk suffered sluggish current value growth in 2018, mainly dampened by the boom in specialist coffee shops. With rising personal incomes, more consumers, particularly younger consumers, preferred to enjoy freshly brewed coffee instead of instant coffee, leading to the contraction of sales of instant coffee in China towards the end of the review period, and only slow growth in coffee whiteners.

Cream sees a robust performance in foodservice

Cream showed dynamic growth in China in 2018, but only in the foodservice channel, thanks to the development of cream-topped freshly brewed tea, also called cheese tea or milk cap tea, and dubbed as the Asian Cappuccino, represented by Hey Tea. Targeting mainly younger people, born in the 1980s, 1990s or even 2000s, cream-topped freshly brewed tea enables consumers to enjoy two different tastes in a single tea product – creamy on the top and refreshing on the bottom.

Supermarkets dominates distribution

Supermarkets dominated the distribution of other dairy products in 2018. Supermarkets and hypermarkets accounted for the overwhelming majority of retail value sales, further squeezing distribution in independent small grocers and other grocery retailers.

COMPETITIVE LANDSCAPE
Nestlé (China) further consolidates its lead in other dairy

Nestlé (China) continued to dominate other dairy in 2018, and even increased its lead, mainly thanks to the withdrawal of its largest competitor, Maxwell House (Mondelez China) from the market in 2017. Nestlé (China) also bundles coffee whiteners with its instant coffee products, in addition to benefiting from established brand awareness and a good reputation amongst local consumers.

Multinational brands dominate the retail market

Multinational brands, represented by Coffee-mate, Eagle and Carnation, all under Nestlé (China), dominate the retail market for other dairy, owing to their dominance in instant coffee in China, taking into consideration the fact that coffee whiteners and condensed milk are used in instant coffee. On the other hand, domestic manufacturers were late-comers in these saturated categories, with little room for further development.

Domestic manufacturers develop more vigorously in the foodservice channel

Although facing an unfavourable situation in the retail market for other dairy, domestic players are making efforts in the foodservice channel, jumping on the bandwagon of the cream-topped tea craze in China. Zhejiang Panda Dairy Products takes the lead amongst domestic players, benefiting from its successful marketing and development in stores offering cream-topped tea and desserts.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Other dairy products industry in China with research from Euromonitor's team of in-country analysts.

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The Other dairy products in China market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

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This industry report originates from Passport, our Packaged Food market research database.

Packaged Food in China - Industry Overview

EXECUTIVE SUMMARY

Packaged food grows steadily mainly thanks to convenience, premiumisation and health trends
Packaged food posts steady current value growth in 2018, with the young generation being particularly targeted
Leading players consolidate their positions while other players shine in niches
Internet retailing and convenience stores continue to gain share
Packaged food is set for steady current value growth

FOODSERVICE

Sales to Foodservice
Rising health-awareness underpins sales of healthy food in foodservice
Foodservice-customised packaged food is on the rise
Foodservice is more concentrated than retail
Consumer Foodservice
The preference for light food is reshaping consumer foodservice
Changing consumer habits underpin the growth of consumer foodservice

CATEGORY DATA

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources