Concentrated sweetened milk and cream market in China

Earlier Report Observations

The market for concentrated sweetened milk and cream in China expanded from 2018 to 2021, with volume rising from 25 439 t to 33 047 t. This growth was supported by increased domestic milk production, driven by the scaling, standardization, and modernization of dairy farming, which improved efficiencies and raised output from 13 545 t to 16 626 t. Strong consumer demand and market expansion further contributed to the market's upward trajectory during these years.

After peaking in 2021, the market volume contracted to 27 785 t in 2022 and further to 25 894 t in 2023. This decline occurred despite continued growth in domestic production, which reached 18 387 t in 2023. The main driver was a sharp and sustained reduction in imports, falling from 17 906 t in 2021 to 9 892 t in 2023, as industry sources noted a broad decrease in dairy product imports alongside a shift in consumer preferences toward higher-value categories like cream and cheese.

Throughout the period, consumer preferences evolved toward healthier and more diverse products, prompting innovations such as zero-sugar sweet milk. Major dairy companies like Yili accelerated overseas expansion, building the largest production base in Southeast Asia and opening a flagship store in Los Angeles. By 2024, domestic milk production saw its first decline, easing previous oversupply and contributing to ongoing market adjustment.

Production concentrated sweetened milk and cream in China

In kind, 2017-2020, t

Between 2017 and 2020, China ranked 22nd globally in the production of concentrated sweetened milk and cream.

Top producers of concentrated sweetened milk and cream, 2017-2020

World map of production of concentrated sweetened milk and cream, 2017-2020

China's production of concentrated sweetened milk and cream grew for the third consecutive year. In 2020, output reached 15 704 tonnes, marking a 9.1% year-on-year increase. From 2017 to 2020, production rose by 18.2%, which translates to an annualized growth rate of 5.7%.

Annual dynamics of production in China in kind, 2017-2020, t

In value, 2017-2020, K $ US

Following a two-year decline, China's production of concentrated sweetened milk and cream rebounded. In 2020, the output was valued at 31 432 thousand US dollars, showing a significant 39.0% year-on-year improvement. Between 2017 and 2020, production increased by 14.8%, equivalent to an annualized rate of 4.7%. The lowest value was recorded in 2019 at 22 619 thousand US dollars, with the largest decline occurring in 2018 at 16.3%.

Annual dynamics of production in China in value, 2017-2020, K $ US

Exports concentrated sweetened milk and cream from China

Exports in kind, t

After two years of growth, China's exports of concentrated sweetened milk and cream decreased. In 2020, exports totaled 2 381 tonnes, reflecting a 14.2% decline compared to the previous year. Over the 2017-2020 period, exports increased by 22.2%, with a compound annual growth rate of 6.9%. The peak was in 2019 at 2 774 tonnes, and the largest increase was recorded in 2018 at 32.8%.

Annual dynamics of product's exports from China in kind, 2017-2020, t

From 2017 to 2020, Hong Kong and North Korea were the primary markets for China's exports of concentrated sweetened milk and cream in volume terms, together accounting for 81.1% of total flows, while other destinations held smaller shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, K $ US

In 2020, China's exports of concentrated sweetened milk and cream in value terms stood at 4 767 thousand US dollars, showing a modest 9.4% rise compared to 2019. Between 2017 and 2020, exports grew by 18.7%, equating to an annualized rate of 5.9%. The largest decline occurred in 2019 at 0.4%.

Annual dynamics of product's exports from China in value, 2017-2020, K $ US

Throughout 2017-2020, Hong Kong dominated China's export structure in value terms, with a share of 70.6% of total flows, while other markets contributed less significantly.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports concentrated sweetened milk and cream to China

Imports in kind, t

Following a two-year increase, China's imports of concentrated sweetened milk and cream in volume terms declined. In 2020, imports reached 17 709 tonnes, corresponding to a slight 8.4% reduction compared to 2019. Between 2017 and 2020, imports surged by 64.5%, representing an annualized growth rate of 18.0%. The highest volume was recorded in 2019 at 19 329 tonnes, with the largest increase occurring in 2018 at 34.5%.

Annual dynamics of product's imports to China in kind, 2017-2020, t

From 2017 to 2020, Australia, Germany, and the Netherlands were the main sources for China's imports of concentrated sweetened milk and cream in volume terms. Australia accounted for 63.7%, Germany for 13.9%, and the Netherlands for 13.5%, collectively making up 91.1% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, K $ US

After two years of growth, China's imports of concentrated sweetened milk and cream in value terms fell. In 2020, import value reached 27 223 thousand US dollars, representing a moderate 4.1% drop relative to the prior year. Between 2017 and 2020, imports increased by 68.3%, equating to an annualized rate of 18.9%. The peak was in 2019 at 28 373 thousand US dollars, and the largest increase was recorded in 2018 at 33.8%.

Annual dynamics of product's imports to China in value, 2017-2020, K $ US

In 2017-2020, Australia, the Netherlands, and Germany were the key destinations for China's imports of concentrated sweetened milk and cream in value terms. Australia held a 56.7% share, the Netherlands 17.0%, and Germany 16.7%, jointly accounting for 90.4% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020