China Dairy Products Market Intelligence Report Q1 2024

Key Finding 1

China's adult milk powder market reached CN¥ 9.18 billion in online sales across China's leading marketplaces and content-led commerce channels in 2023, growing +16.1% year-over-year (YoY), driven by population aging, rising health awareness, and expanding e-commerce channel penetration.

The domestic adult milk powder market has grown steadily over recent years, with Euromonitor forecasting the total market (online and offline) to reach CN¥ 24.82 billion by 2026. Online channels now account for over 25% of total sales, and content-led commerce has gained share, signaling its growing influence in the category. The market's primary sales peak coincides with Double 11 promotions, while Chinese New Year gift-giving scenarios have consistently boosted January sales over the past three years.

Key Finding 2

The middle-aged and elderly milk powder segment surged +53.0% YoY in 2023, expanding its share of the adult milk powder market from 27.6% in 2021 to 39.4% in 2023, as younger consumers increasingly purchase health-oriented products for their parents and elders.

This segment's rapid growth reflects China's demographic transition and the "filial piety economy" --- younger consumers spending on their aging parents' health. Nutritional composition and functional efficacy are the top purchasing considerations for middle-aged and elderly milk powder, with specific health claims around bone health (calcium supplementation), digestive wellness (probiotics), and blood sugar management (low-GI formulations) driving product innovation. Large dairy brands such as Yili, Nestle, and Mengniu (蒙牛) compete in the segment, though concentration is declining as new entrants fragment the market.

Key Finding 3

Consumer review analysis of adult milk powder reveals a critical gap between what buyers value (flavor, dissolving performance) and what brands communicate (origin, nutrition).

Competitive benchmarking reveals that all six brands analyzed --- Devondale (德运), Nestle, a2, Anchor (安佳), btnature, and Maxigenes (美可卓) --- share a common gap: consumers consistently rank flavor/taste and dissolving performance as their top purchase decision factors, yet brand marketing communications emphasize nutritional composition and origin. This disconnect presents an actionable opportunity for brands to differentiate by addressing taste and solubility expectations in both product development and marketing messaging.

Key Finding 4

Australian brand btnature grew in 2023 through cross-border channel expansion and Xiaohongshu (小红书) content marketing, demonstrating that imported milk powder brands can scale rapidly in China by targeting health-conscious consumers with clean-label positioning.

Among the competitive set, btnature's "Blue Label" whole family nutrition milk powder and middle-aged/elderly products resonated with consumers seeking additive-free, naturally sourced options. The wider competitive set suggests sales are being redistributed among foreign brands. For imported brands, btnature's approach offers a blueprint for leveraging cross-border channels and social media-driven brand awareness.