Covid-19: China to see US$1.6bn added to milk sales
Milk is projected to stand at US$26.9bn in 2020, US$1.6bn greater than the previously projected pre-Covid-19 value.
According to a recent press release by data and analytics company GlobalData, this translates to an increase on expected volumes from 9.6 billion kg to 10 billion kg in 2020 alone, primarily due to health concerns relating to Covid-19.
Ryan Whittaker, consumer analyst at GlobalData, says: “China invested heavily in modernising its dairy industry for the past several years and officially promotes milk consumption on the basis of its health benefits. Refrigeration has become increasingly ubiquitous in China, meaning that modern consumers have the space to store milk and other dairy products for longer. Milk is often positioned as a means to get more protein into their diet, and to help build and maintain the body’s immune system. Of course, the Covid-19 pandemic has forced Chinese consumers to focus on their health, prompting a surge in demand.”
GlobalData forecasted annual milk sales in China, which were valued at US$24.2bn in 2019, to increase gradually to US$29bn in 2023. Following Covid-19-related disruptions, the expected figure is now closer to US$31bn, with the largest jump in sales occurring in 2020.
Health concerns
GlobalData’s most recent consumer survey found that 47% of Chinese consumers consider themselves ‘extremely concerned’ about their health, whilst a further 52% said that they were ‘quite’ or ‘slightly concerned’ – in fact, only 2% of respondents said that they were ‘not concerned’ about their health at all.
When asked about white milk buying habits, 51% of respondents said that they were buying more than before, in addition to the 34% who said they were buying the same as before.
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“The impact of Covid-19 on cooking at home should not be overlooked. During China’s lockdown, consumers were forced to remain at home and cook for themselves far more than before, and in doing so, ate out and on-the-go much less than before. Milk offers a simple way to top-up nutrition at home with minimal effort while helping China’s dairy industry. Clearly, the milk category will do well during the pandemic, and attitudes towards health, supported by the government’s pro-dairy campaigns, are likely behind it,” adds Whittaker. Milk is China’s largest dairy category.
Source: GlobalData
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