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Milk and Flavoured Milk - China - April 2014

Published By :

Mintel

Published Date : May 2014

Category :

Soft Drinks

No. of Pages : 222 Pages

The milk market has been in the process of reshuffle with many large-scale merger and acquisition deals were agreed in 2013. The tightening regulations and stricter rules implemented by the government aiming at ensuring the quality of milk products tend to indirectly encourage the reshuffle of this market. In the near future, small operators are likely to face increasing pressures resulting in further consolidation.

Table of content

Introduction

Definition
Methodology
Abbreviations

Executive Summary

The market
Figure 1: Value retail sales of milk and flavoured milk in China, 2008-18
Figure 2: Volume retail sales of milk and flavoured milk in China, 2008-18
Market drivers
Ageing population and the new wave of baby boom drive demand up
Urbanisation fuels milk consumption
Healthy lifestyles gain popularity
Shortage of supply and growing labour costs drive the price up
Scandals in the milk industry drive demand for freshness up
Mixed feelings: Opportunities and pressures faced by imported milk
Companies, brands and innovation
Figure 3: Manufacturers’ value shares in the milk and flavoured milk products retail market, 2011 and 2012
Figure 4: Manufacturers’ volume shares in the milk and flavoured milk products retail market, 2011 and 2012
The consumer
Premium milk is gaining momentum
Figure 5: The change of frequency of buying milk in the last six months, January 2014
Pasteurised milk enjoys a healthy image and associations with the original taste
Figure 6: Qualities associated with different types of milk, January 2014
Milk is a popular drink to start or finish the day
Figure 7: Milk drinking occasions, January 2014
Organic and freshness claims could encourage consumers to spend more
Figure 8: Features to encourage consumers to pay more for liquid milk, January 2014
Concerns over the quality of milk powders remain strong
Figure 9: Attitudes towards milk powder, January 2014
Detailed information of milk products needed
Figure 10: Attitudes towards safety, January 2014
Imported milk remains a safer choice than domestic counterparts
Figure 11: Attitudes towards imported brands, January 2014
Premium liquid milk enjoys positive perceptions
Figure 12: Attitudes towards pricing and gifting, January 2014
Key issues

Issues and Insights

Premium milk tends to be more relevant in the gifting market for the old
The facts
Implications
Figure 13: Selected attitudes towards premium milk, by age, January 2014
Pasteurised milk shows bright future with its fresh and healthy image
The facts
Implications
Using social media and customised products to target the young
The facts
Implications
Figure 14: Attitudes towards safety, by age, January 2014
Milk drinks for men – the uncharted water with potential
The facts
Implications
Figure 15: Selected milk drinking occasions, by gender, January 2014

Trend Applications

Trend: Prove it
Trend: Man in the Mirror
Mintel futures: Brand Intervention

Market Drivers

Key points
Ageing population and the new wave of baby boom drive demand up
Figure 16: Population structure of China, by age, 2000-12
Figure 17: High-calcium milk powder for senior and elderly groups, Q2 2012
Figure 18: Happy Prince’s milk powder product for students, January 2014
Urbanisation fuels milk consumption
Figure 19: Disposable income of urban residents and urban population in China, 2000-11
Healthy lifestyles gain popularity
Shortage of supply and growing labour costs drive the price up
Figure 20: Average retail prices of milk in China, 2013-14
Scandals in the milk industry drive demand for freshness up
Mixed feelings: opportunities and pressures faced by imported milk
The opportunities
The challenges
Figure 21: International milk prices, 2012-14

Who’s Innovating?

Key points
Range extension and new production innovation remain popular
Figure 22: New product launches in the China milk market, by launch type, 2011-13
Cartons become increasingly popular as package for milk products
Figure 23: New launches in the China milk market, by types of packaging, 2011-13
Figure 24: Kellogg’s Breakfast to Go product launched in 2013
Nut and fruit gaining share among newly launched products
Figure 25: New launches in the China milk market, by ingredients, 2011-13
Figure 26: Banana milk products introduced by New Hope Dairy using pasteurised milk, Q3 2013
Figure 27: Mengniu wheat-flavoured breakfast milk introduced in Q3 2013

Market Size, Forecast and Segment Performance

Key points
Sales by segment
Figure 28: Retail value sales of milk and flavoured milk, by sector, 2011-13
Figure 29: Retail volume sales of milk and flavoured milk, by sector, 2011-13
Price increases drive the market
Figure 30: Retail value and volume sales of milk and flavoured milk in China, 2008-18
Steady but slowing growth expected in the milk market
Figure 31: Value retail sales of milk and flavoured milk in China, 2008-18
Figure 32: Volume retail sales of milk and flavoured milk in China, 2008-18
Forecast methodology
Brands and Companies
Inner Mongolia Yili Industrial Group Co., Ltd.
China Mengniu Dairy Co., Ltd.
Bright Dairy & Food Co., Ltd.
Want Want China Holdings Ltd

Market Share

Key points
The market is being consolidated
Figure 33: Manufacturers’ value shares in the milk and flavoured milk market, 2011 and 2012
Figure 34: Manufacturers’ volume shares in the milk and flavoured milk market, 2011 and 2012

The Consumer – Usage of Milk

Key points
Premium milk is gaining momentum
Figure 35: The change of frequency of buying milk in the last six months, January 2014
Figure 36: Lily Papaya Milk Drink introduced by Hung Fook Tong, Q1 2014
Parents of young children tend to increase their spending on milk
Figure 37: Proportion of consumers who spent more on milk in the past six months, by age of their children, January 2014
Figure 38: Multiple nutrition formula milk for children from Zhuang Yuan Mu Chang, Q1 2012
Figure 39: Milk powder for students from Bright Dairy and Food, Q1 2014
Pasteurised milk shows skew towards Southern China
Figure 40: Proportion of consumers who spent more on chilled plain milk in the past six months, by city, January 2014
Men in their twenties tend to increase their spending on flavoured milk
Figure 41: Proportion of consumers who spent more on flavoured milk in the past six months, by age and gender, January 2014
Young consumers and high earners increase their spending on skimmed milk
Figure 42: Change in frequency of buying milk in last six months – Skimmed/semi-skimmed milk, by demographics, January 2014
Older consumers spending more on premium milk
Figure 43: Consumer spending on premium milk in the past six months, by age, January 2014
Product origin drives spending on premium milk
Figure 44: Proportion of consumers who spent more on premium milk, by selected consideration factors, January 2014
Figure 45: Miralail’s premium New Zealand UHT milk with QR code highlighting product origin, Q3 2013

The Consumer – Quality Associated with Different Types of Milk

Key points
Qualities associated with different types of milk
Figure 46: Qualities associated with different types of milk, January 2014
Figure 47: Attitudes towards different types of milk, January 2014
Pasteurised milk enjoys a healthy image and associations with the original taste
UHT milk is considered as convenient and suitable for different occasions and users
Additives are the key barrier for flavoured milk
Figure 48: Banana milk products introduced by New Hope Dairy using pasteurised milk, Q3 2013
Milk powder is considered suitable for children and rich in nutrition

The Consumer – Milk Drinking Occasions

Key points
Milk is a popular drink to start or finish the day
Figure 49: Milk drinking occasions, January 2014
Breakfast is the most popular occasion
Figure 50: Milk drinking as part of breakfast, by features to encourage consumers to pay more for liquid milk, January 2014
Figure 51: Breakfast milk launched in 2013 with healthy benefit claims
Bedtime occasions still have the potential to catch up
Figure 52: Got Milk? Campaign, 2014
Dinner and lunch occasions could drive spending up
Figure 53: Consumers who spent more in the past six months, by occasions, January 2014
Most consumers drink milk on more than three occasions
Figure 54: Repertoire analysis of drinking occasions of milk, January 2014
Figure 55: Kellogg’s Breakfast to Go product launched in 2013
Figure 56: Want Want O Pao launched in 2010
Regional differences define consumers’ drinking habits
Figure 57: Milk drinking occasions, by city, January 2014
Women more likely to drink milk on most occasions
Figure 58: Selected milk drinking occasions, by gender, January 2014
Figure 59: Emmi’s energy milk and Tine’s sports milkshake, 2013
Flavoured milk as healthy substitute to soft drinks
Figure 60: Milk drinking occasions, by change in frequency of buying flavoured milk, January 2014

The Consumer – Features to Encourage Consumers to Pay More for Liquid Milk

Key points
Organic and freshness claims could encourage consumers to spend more
Figure 61: Features to encourage consumers to pay more for liquid milk, January 2014
Figure 62: The chocolate flavoured milk from All Natural Promised Land D, Q2 2013
New flavour and customisation appeal to young consumers
Figure 63: Selected features to encourage consumers to pay more for liquid milk, by age, January 2014
Figure 64: Mengniu’s campaign for its Naite product line, Q4 2013
Product origin shows strong skew towards affluent consumers
Figure 65: Selected features to encourage consumers to pay more for liquid milk, by household income, January 2014

The Consumer – Attitudes towards Milk Powders

Key points
Concerns over the quality of milk powder products remain strong
Figure 66: Attitudes towards milk powder, January 2014
Exploiting suitable occasions helps brands to grow
Brand image remains important
Flavoured milk powder products are not well received
Figure 67: Heijiaru by Gong Xiang Agriculture Technology, Q2 2013

The Consumer – Attitudes towards Product Safety

Key points
Detailed information of milk products needed
Figure 68: Attitudes towards safety, January 2014
Figure 69: Nutricia’s the safety you can see campaign, 2012
Green and organic claims seem to be unconvincing
Young consumers tend to be more suspicious than older counterparts
Figure 70: Attitudes towards safety, by age, January 2014

The Consumer – Attitudes towards Imported Brands

Key points
Imported milk remains as a safer choice than domestic counterparts
Figure 71: Attitudes towards imported brands, January 2014
Imported milk has the potential to reach low earners from lower tiers
Figure 72: Selected attitudes towards imported brands, by household income, January 2014
Figure 73: Selected attitudes towards imported brands, by city tier, January 2014
Figure 74: Agreement with the statement ‘Imported milk tastes better than domestic ones’, by city, January 2014

The Consumer – Attitudes towards Pricing and Gifting

Key points
Premium liquid milk enjoys positive perceptions
Figure 75: Attitudes towards pricing and gifting, January 2014
Figure 76: Sea Cucumber Gold Milk gift pack launched by Beijing Jiatianhui, Q1 2014
Older consumers are the potential target for premium milk products
Figure 77: Selected attitudes towards premium milk, by age, January 2014

Appendix – Change in Frequency of Buying Milk in Last Six Months

Figure 78: Change in frequency of buying milk in last six months, January 2014
Figure 79: Change in frequency of buying milk in last six months – Any, by demographics, January 2014
Figure 80: Change in frequency of buying milk in last six months – Chilled plain milk, by demographics, January 2014
Figure 81: Change in frequency of buying milk in last six months – Ultra-high-temperature (UHT)/long life plain milk, by demographics, January 2014
Figure 82: Change in frequency of buying milk in last six months – Flavoured milk, by demographics, January 2014
Figure 83: Change in frequency of buying milk in last six months – Skimmed/semi-skimmed milk, by demographics, January 2014
Figure 84: Change in frequency of buying milk in last six months – Lactose-free milk, by demographics, January 2014
Figure 85: Change in frequency of buying milk in last six months – Premium milk, by demographics, January 2014
Figure 86: Change in frequency of buying milk in last six months – Milk powder, by demographics, January 2014
Figure 87: Change in frequency of buying milk in last six months, by most popular features to encourage consumers to pay more for liquid milk, January 2014
Figure 88: Change in frequency of buying milk in last six months, by next most popular features to encourage consumers to pay more for liquid milk, January 2014
Figure 89: Change in frequency of buying milk in last six months, by most popular attitudes towards milk powder, January 2014
Figure 90: Change in frequency of buying milk in last six months, by next most popular attitudes towards milk powder, January 2014
Figure 91: Change in frequency of buying milk in last six months, by agreement with the statement ‘The milk scandals in China in recent years have put me off buying milk’, January 2014
Figure 92: Change in frequency of buying milk in last six months, by agreement with the statement ‘Milk packaging should provide detailed information about the product’, January 2014
Figure 93: Change in frequency of buying milk in last six months, by agreement with the statement ‘Green/organic claims of domestic milk products are unconvincing’, January 2014
Figure 94: Change in frequency of buying milk in last six months, by agreement with the statement ‘Milk products from domestic brands are fresher than imported ones’, January 2014
Figure 95: Change in frequency of buying milk in last six months, by agreement with the statement ‘Imported milk is safer to drink than domestic milk’, January 2014
Figure 96: Change in frequency of buying milk in last six months, by agreement with the statement ‘Imported milk tastes better than domestic ones’, January 2014
Figure 97: Change in frequency of buying milk in last six months, by agreement with the statement ‘There is a lack of variety of flavours available for flavoured milk’, January 2014
Figure 98: Change in frequency of buying milk in last six months, by agreement with the statement ‘Flavoured milk tastes better than plain milk’, January 2014
Figure 99: Change in frequency of buying milk in last six months, by agreement with the statement ‘Milk is overpriced’, January 2014
Figure 100: Change in frequency of buying milk in last six months, by agreement with the statement ‘Higher-priced milk is safer to drink’, January 2014
Figure 101: Change in frequency of buying milk in last six months, by agreement with the statement ‘There is a noticeable difference in quality between premium milk and mass milk products’, January 2014
Figure 102: Change in frequency of buying milk in last six months, by agreement with the statement ‘Premium liquid milk is suitable for gifting’, January 2014
Figure 103: Change in frequency of buying milk in last six months, by agreement with the statement ‘There is a lack of premium milk products that are suitable as a gift’, January 2014

Appendix – Attitudes towards Different Types of Milk

Figure 104: Attitudes towards different types of milk, January 2014
Figure 105: Most popular attitudes towards different types of milk – Chilled plain milk, by demographics, January 2014
Figure 106: Next most popular attitudes towards different types of milk – Chilled plain milk, by demographics, January 2014
Figure 107: Most popular attitudes towards different types of milk – Ultra-high-temperature (UHT)/long life plain milk, by demographics, January 2014
Figure 108: Next most popular attitudes towards different types of milk – Ultra-high-temperature (UHT)/long life plain milk, by demographics, January 2014
Figure 109: Most popular attitudes towards different types of milk – Flavoured milk, by demographics, January 2014
Figure 110: Next most popular attitudes towards different types of milk – Flavoured milk, by demographics, January 2014
Figure 111: Most popular attitudes towards different types of milk – Milk powder, by demographics, January 2014
Figure 112: Next most popular attitudes towards different types of milk – Milk powder, by demographics, January 2014

Appendix – Milk Drinking Occasions

Figure 113: Milk drinking occasions, January 2014
Figure 114: Most popular milk drinking occasions, by demographics, January 2014
Figure 115: Next most popular milk drinking occasions, by demographics, January 2014
Figure 116: Other milk drinking occasions, by demographics, January 2014
Figure 117: Milk drinking occasions, by change in frequency of buying milk in last six months – Any, January 2014
Figure 118: Milk drinking occasions, by change in frequency of buying milk in last six months – Chilled plain milk, January 201
Figure 119: Milk drinking occasions, by change in frequency of buying milk in last six months – Ultra-high-temperature (UHT)/long life plain milk, January 2014
Figure 120: Milk drinking occasions, by change in frequency of buying milk in last six months – Flavoured milk, January 2014
Figure 121: Milk drinking occasions, by change in frequency of buying milk in last six months – Skimmed/semi-skimmed milk, January 2014
Figure 122: Milk drinking occasions, by change in frequency of buying milk in last six months – Lactose-free milk, January 2014
Figure 123: Milk drinking occasions, by change in frequency of buying milk in last six months – Premium milk, January 2014
Figure 124: Milk drinking occasions, by change in frequency of buying milk in last six months – Milk powder, January 2014
Figure 125: Milk drinking occasions, by agreement with the statement ‘The milk scandals in China in recent years have put me off buying milk’, January 2014
Figure 126: Milk drinking occasions, by agreement with the statement ‘Milk packaging should provide detailed information about the product’, January 2014
Figure 127: Milk drinking occasions, by agreement with the statement ‘Green/organic claims of domestic milk products are unconvincing’, January 2014
Figure 128: Milk drinking occasions, by agreement with the statement ‘Milk products from domestic brands are fresher than imported ones’, January 2014
Figure 129: Milk drinking occasions, by agreement with the statement ‘Imported milk is safer to drink than domestic milk’, January 2014
Figure 130: Milk drinking occasions, by agreement with the statement ‘Imported milk tastes better than domestic ones’, January 2014
Figure 131: Milk drinking occasions, by agreement with the statement ‘There is a lack of variety of flavours available for flavoured milk’, January 2014
Figure 132: Milk drinking occasions, by agreement with the statement ‘Flavoured milk tastes better than plain milk’, January 2014
Figure 133: Milk drinking occasions, by agreement with the statement ‘Milk is overpriced’, January 2014
Figure 134: Milk drinking occasions, by agreement with the statement ‘Higher-priced milk is safer to drink’, January 2014
Figure 135: Milk drinking occasions, by agreement with the statement ‘There is a noticeable difference in quality between premium milk and mass milk products’, January 2014
Figure 136: Milk drinking occasions, by agreement with the statement ‘Premium liquid milk is suitable for gifting’, January 2014
Figure 137: Milk drinking occasions, by agreement with the statement ‘There is a lack of premium milk products that are suitable as a gift’, January 2014
Repertoire analysis
Figure 138: Repertoire of milk drinking occasions, January 2014
Figure 139: Features to encourage consumers to pay more for liquid milk, by repertoire of milk drinking occasions, January 2014
Figure 140: Attitudes towards milk powder, by repertoire of milk drinking occasions, January 2014
Figure 141: General attitude towards milk, by repertoire of milk drinking occasions, January 2014

Appendix – Features to Encourage Consumers to Pay More For Liquid Milk

Figure 142: Features to encourage consumers to pay more for liquid milk, January 2014
Figure 143: Most popular features to encourage consumers to pay more for liquid milk, by demographics, January 2014
Figure 144: Next most popular features to encourage consumers to pay more for liquid milk, by demographics, January 2014

Appendix – Attitudes towards Milk Powder

Figure 145: Attitudes towards milk powder, January 2014
Figure 146: Most popular attitudes towards milk powder, by demographics, January 2014
Figure 147: Next most popular attitudes towards milk powder, by demographics, January 2014

Appendix – General Attitude towards Milk

Figure 148: General attitude towards milk, January 2014
Figure 149: Agreement with the statement ‘The milk scandals in China in recent years have put me off buying milk’, by demographics, January 2014
Figure 150: Agreement with the statement ‘Milk packaging should provide detailed information about the product’, by demographics, January 2014
Figure 151: Agreement with the statement ‘Green/organic claims of domestic milk products are unconvincing’, by demographics, January 2014
Figure 152: Agreement with the statement ‘Milk products from domestic brands are fresher than imported ones’, by demographics, January 2014
Figure 153: Agreement with the statement ‘Imported milk is safer to drink than domestic milk’, by demographics, January 2014
Figure 154: Agreement with the statement ‘Imported milk tastes better than domestic ones’, by demographics, January 2014
Figure 155: Agreement with the statement ‘There is a lack of variety of flavours available for flavoured milk’, by demographics, January 2014
Figure 156: Agreement with the statement ‘Flavoured milk tastes better than plain milk’, by demographics, January 2014
Figure 157: Agreement with the statement ‘Milk is overpriced’, by demographics, January 2014
Figure 158: Agreement with the statement ‘Higher-priced milk is safer to drink’, by demographics, January 2014
Figure 159: Agreement with the statement ‘There is a noticeable difference in quality between premium milk and mass milk products’, by demographics, January 2014
Figure 160: Agreement with the statement ‘Premium liquid milk is suitable for gifting’, by demographics, January 2014
Figure 161: Agreement with the statement ‘There is a lack of premium milk products that are suitable as a gift’, by demographics, January 2014

Appendix – Further Analysis

Figure 162: Target groups, January 2014
Figure 163: Target groups, by demographics, January 2014
Figure 164: Change in frequency of buying milk in last six months, by target groups, January 2014
Figure 165: Attitudes towards different types of milk, by target groups, January 2014
Figure 166: Milk drinking occasions, by target groups, January 2014
Figure 167: Features to encourage consumers to pay more for liquid milk, by target groups, January 2014
Figure 168: Attitudes towards milk powder, by target groups, January 2014
Figure 169: General attitude towards milk, by target groups, January 2014

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