China Dairy Alternative Market Research Report, 2030

Dairy alternatives in China have evolved as a result of the country's historically plant-based cuisine and the fact that more than 90% of adults are lactose intolerant. For instance, soy milk has been a mainstay of Chinese cuisine for centuries, fulfilling both nutritional and cultural functions. Rising health awareness, environmental worries, and a move toward flexitarian and vegan lifestyles have all contributed to the recent boom in the market for plant-based dairy substitutes. There are a number of obstacles facing Chinese manufacturers in the dairy alternatives industry. The need for ongoing innovation and increasing production costs pose major challenges. Furthermore, the emphasis on health and wellbeing continues to fuel consumer demand for foods high in probiotics, omega-3, and other nutrients, which calls for continuous R&D. Dietary decisions are influenced by traditional Chinese medicine (TCM), which includes the use of dairy substitutes. TCM often believes that dairy causes the production of "phlegm," which is thought to be the cause of many health problems. From this viewpoint, plant-based substitutes are encouraged for their compatibility with TCM concepts and their appeal to health-conscious consumers. There are clear regional variations in the use of dairy alternatives throughout China. Due to increased health awareness and access to a wider range of product options, urban areas, particularly in the eastern and southeastern regions, have higher consumption levels. On the other hand, rural regions exhibit lower adoption rates, indicating variations in consumer tastes and economic circumstances. China's market for dairy alternatives is greatly impacted by urbanization. The demand for plant-based dairy products is driven by increased health awareness and exposure to a wider range of dietary options as more people move to cities. The advantages of being lactose-free and having a lesser environmental effect are driving an increasing number of urban consumers to choose plant-based milk and yogurt. Urbanization, traditional dietary practices, and health concerns are driving the rapid expansion of China's dairy alternatives market. According to the research report, "China Dairy Alternatives Market Research Report, 2030," published by Actual Market Research, the China Dairy Alternatives market is anticipated to grow at more than 10.14% CAGR from 2025 to 2030. Among the biggest players in China's dairy alternatives market are Nestlé, Danone (via Whitewave Foods), and Oatly. By aligning its products with sustainability trends and emphasizing environmental responsibility, Oatly has established a strong presence in the oat milk market, especially in metropolitan centers. In order to satisfy a variety of customer needs, Nestlé and Danone offer diverse portfolios of dairy-free beverages, such as those made from almonds, soybeans, and coconuts. There are several chances for market expansion, particularly in the creation of fortified plant-based goods that target particular health issues, like bone health and immune support. The growing desire for functional foods provides a large opportunity for innovation and product diversification. Meeting certification and compliance standards is essential for establishing and maintaining a market presence. The China Quality Certification Centre (CQC) has implemented standards like CNAS-CC180:2023, which specifies the requirements for certification bodies of food safety management systems, including FSMS, HACCP, and dairy GMP certifications. In addition, imported dairy substitutes must pass national assessments and get import permits at the state level, guaranteeing that only goods that meet high safety and quality standards are allowed onto the market. The present state of the market points to a move toward environmentally friendly and health-focused goods. Customers are increasingly looking for dairy substitutes that offer additional health advantages, such as enhanced digestive health and immune support. The emphasis on ethical and sustainable sourcing is also affecting purchase decisions, with consumers choosing products that are manufactured sustainably and utilize environmentally friendly methods.

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Due to its long history in Chinese cuisine, soybean is still the most well-known and widely used ingredient. Traditional soy milk has been a staple for a long time, frequently had warm at breakfast, and its modern variants are still popular due to their affordability, familiarity, and high protein content. By providing both traditional and flavored varieties, local companies like Wei Chuan and Vitasoy have been able to keep a devoted customer base. Younger, health-conscious consumers in urban areas are becoming more and more fond of almond milk. Almond milk is highly prized for its light texture and low-calorie count, and it is becoming increasingly common in cafes, where it is frequently used as a dairy alternative in coffee and smoothies. However, its widespread use is restricted by expensive production costs and a lack of domestic almond agriculture. Products made with coconut are growing in popularity as dairy substitutes in yogurts, desserts, and plant-based creamers. Their creamy, rich texture makes them a popular option among luxury goods. The inherent sweetness and tropical appeal of coconut also appeal to consumers looking for unique flavor experiences. Rice milk is not as widely used as other choices, but it is attractive to a niche market looking for foods that are hypoallergenic and simple to digest. Rice milk is naturally sweet, making it a suitable choice for cereals and light drinks, and it is frequently marketed to youngsters and people with several food intolerances. In China, oat milk has become increasingly popular, following worldwide trends. Urban customers, especially in top-tier cities, are drawn to its creamy texture and environmental credentials. Oat milk has gained popularity and acceptance thanks to Oatly's strategic marketing and partnerships with local coffee businesses. New sources like hemp, pea, and flax are classified as others and are gradually breaking into the market via high-end or imported product lines. The biggest and most developed market is still plant-based milk, especially soy and oat milk. Because of its creamy texture and environmentally friendly reputation, oat milk, which was made famous by companies like Oatly, is quickly gaining popularity among urban youth and coffee aficionados, but soy milk, which has strong cultural roots, still reigns supreme in both traditional and packaged varieties. Particularly in health food stores and in the refrigerated sections of supermarkets, yogurt alternatives are becoming more and more popular. These goods, which are often made with coconut or almond bases, include probiotics and attract consumers looking for dairy-free gut health remedies. Particularly in metropolitan settings where wellness and convenience go hand in hand, flavored and drinkable varieties have gained popularity. Although they are still in their infancy in China, cheese substitutes have potential as more people learn about vegan and flexitarian diets. Cheese made from plants is still a niche market, mostly imported or sold by specialized companies. These substitutes, which are made mostly of coconut, soy, or cashew oil, are becoming more well-known in vegan-friendly stores, bakeries, and Western-style restaurants. Plant-based ice cream is establishing its own niche, especially among younger consumers and people who have dairy allergies. Frozen sweets made with oats and coconut are popular because of their rich taste and silky texture. They are now more readily accessible in cafes and dessert shops, as well as supermarkets. In line with the expanding café culture and increased interest in home coffee brewing, creamers, particularly non-dairy alternatives for coffee and tea, are gradually making their way into mainstream retail. Plant-based butter, whipped toppings, and snack foods are included in the others" group. The main retail channels are still hypermarkets and supermarkets, especially for yogurt and plant-based milk. Major chains such as Carrefour, Walmart China, and Hema Fresh provide a wide selection of dairy-free alternatives, catering to families and health-conscious consumers who value product diversity and nutritional labeling. These retailers provide reliable platforms where customers can compare brands, flavors, and practical advantages, frequently backed by in-store promotions and sampling. FamilyMart and 7-Eleven are two examples of convenience stores that are becoming more popular in metropolitan areas by carrying single-serve versions of plant-based beverages and snack-sized yogurt substitutes. These shops meet the demands of busy customers, particularly younger people and office workers looking for a dairy-free, fast snack. However, because convenience shops have a limited selection of items due to their limited shelf space, they are better used as entry points rather than complete distribution centers. Online retail is revolutionizing how people in China can access dairy alternatives. Consumers may now access a wider range of both domestic and foreign brands, including specialized items like pea or hemp milk, through platforms like JD.com, Tmall, and Pinduoduo. The popularity of e-commerce is due to its convenience, targeted marketing, and subscription choices, which have grown especially widespread in big cities. Online sales have increased even more due to the popularity of live streaming shopping and influencer endorsements, which have raised awareness of new dairy-free products and encouraged people to try them. Other channels, such as health food shops, vegan cafes, fitness clubs, and cross-border e-commerce, are becoming increasingly important in the introduction of high-end or functional dairy substitutes. Particularly among affluent, health-conscious customers, these stores contribute to the development of brand recognition and trust.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Dairy Alternatives Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Source • Soy • Almond • Coconut • Rice • Oats • Others

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By Product • Milk • Yogurt • Cheese • Ice Cream • Creamer • Others By Distribution Channel • Supermarket & Hypermarkets • Convenience Stores • Online retail • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.