H1 2023 Whitepaper: China's Dairy Products Market Analysis

Key Finding 1

China's online dairy market reached CN¥ 82.16 billion in trailing-year sales (MAT 2023) on major shelf e-commerce platforms, up +2.5% YoY, driven primarily by average price increases of +4.6%.

Despite offline channels still commanding approximately 84.2% of total dairy sales, e-commerce demonstrated resilient growth over the trailing twelve months ending June 2023. The premiumization trend proved particularly pronounced, with products priced above CN¥ 500 growing the fastest among all price tiers. Consumers gravitated toward the CN¥ 200-250 price band, signaling a clear preference for mid-to-premium dairy products over mass-market alternatives.

Key Finding 2

Children's growth milk powder emerged as the standout category, surging +27.4% YoY to exceed CN¥ 4.4 billion in trailing-year sales, while infant milk powder growth flatlined at +0.5% amid market saturation.

The structural shift from infant to children's nutrition reflects China's evolving demographics: a declining birth rate juxtaposed with rising parental investment per child. Middle-aged and elderly milk powder similarly outperformed, growing +13.1% YoY to CN¥ 7.39 billion, as health-conscious older consumers drove demand for functional formulations targeting blood sugar management and bone health.

Key Finding 3

Emerging ingredient CBP (colostrum basic protein) powered explosive growth of +591.8% YoY in the children's growth milk powder sub-segment, reaching CN¥ 71.3 million as efficacy-focused parents drove demand.

The CBP children's growth milk powder market is rapidly taking shape, with active brand count surging from 6 to 138 between mid-2021 and mid-2023. Yeeper dominates with a multi-brand strategy, while Mengniu and Adopt a Cow have entered the space. On social media, 86.6% of CBP-related discussions come from women aged 26-40, the core purchasing demographic for children's nutrition products.