Yoghurt has been a key driver of growth for China
In just five years’ time China is set to overtake the United States as the world’s largest dairy market, worth a massive US$68.8 billion (£53.6bn).
New research on dairy markets by Euromonitor International suggests China will switch places with the US, which will be worth US$67.7bn (£52.8bn) in the same year.
The US dairy market currently was currently valued at US$64bn (£49.9bn) while China was second, valued at US$55bn (£42.9bn).
With consumers in China increasingly favouring more dairy products, Euromonitor senior food analyst Pinar Hosafci said consumer trends were changing towards milk product in the largest producing states.
He said: “Americans are drinking less milk and becoming wary of flavoured milk drinks, which they perceive to be unhealthy due to their high sugar content.
“China’s growing appetite for yoghurt on the other hand will result in it overtaking the US as largest dairy market by 2022.
“For overall yoghurt sales in China, driving yoghurt is a key growth driver. This is largely due to major players expanding their reach with ambient drinking yoghurt.”
The dairy market in India has also showed excelled growth and by 2022 was forecasted to be worth an estimated US$26bn (£20.3bn).
Currently eighth in the market value league table with a market size of US$17bn (£13.3bn) India was predicted to rise to fourth place in five years’ time.
Mr Hosafci said hygiene and changing consumer preferences were influencing India’s market valuation for dairy.
“In India, the growing health and hygiene awareness combined with urban consumers shifting from unpackaged to packaged milk will see the country switch places with Japan by 2021.”
Brazil’s market was predicted to grow from US$25bn (£19.5bn) in 2017 to US$27.3bn (£21.3bn) in 2022, remaining the third largest global market by value.
Japan, Russia and Germany have the fourth, fifth and sixth largest dairy markets by value, respectively, in 2017.
The UK stands in ninth place with a market value of $14.3bn (£11.2bn), behind France and India, with Mexico rounding out the top 10.