Gen Z tops in consuming dairy products

Generation Z is leading in the consumption of dairy products, and their intake of milk and milk derivatives has been higher than the total average in China, according to a new report.

Gen Z refers to those born between 1995 and 2009.

These young consumers pay attention to the types of dairy products, purchasing scenarios and channels. Young parents also tend to put more emphasis on scientific parenting, leading to more valuation over details of various dairy products, showed the survey recently released by the China Dairy Industry Association and Royal FrieslandCampina, the largest dairy firm in the Netherlands.

The report found that the milk quotient of Chinese consumers is 64.1 points out of 100 this year, the highest reading since the survey began. The China Milk Quotient, an indicator system launched in 2018, is determined through industry research and expert workshops.

"With the upgrading of consumption structure, Chinese residents have been increasingly pursuing high-quality food that is green and healthy. The steady increase in the milk quotient over the past six years indicates such a trend," said Ren Fazheng, a professor at China Agricultural University.

Since the COVID-19 pandemic, Chinese consumers have shown higher health awareness and have consumed more dairy products to enhance their immunity.

The dairy consumption market in China has continued to expand. Last year, the national raw milk production volume reached 40.69 million metric tons, up 7.8 percent year-on-year, marking growth for five years in a row, according to the National Bureau of Statistics.

In 2022, China had 622 dairy-producing enterprises above a designated size, and their total sales revenue of main businesses came in at 471.73 billion yuan ($66.3 billion), edging up 1.1 percent on a yearly basis, the NBS said.

Out of some 4,000 surveyed respondents in 20 cities across the nation, 78.4 percent said they would check the labels of dairy products while making purchases. Rich nutrition, high-quality source region of milk, low sugar, low fat, zero additives, and organic certification have all become important factors when Chinese consumers choose dairy products, the report found.

In addition, over half of the interviewees supplement their protein and energy by drinking milk after exercising, and functional dairy products related to exercising have received greater public attention, the report said.

"We will continue to integrate the concept of sustainable development into the entire chain of product research and development, and make more efforts to popularize scientific facts about dairy products in China," said Chen Ge, president of FrieslandCampina China.

Chinese adults have been recommended to consume 500 grams of milk or equivalent dairy products daily, according to the latest Chinese Dietary Guidelines.

However, Chinese residents consume relatively low volumes of dairy products compared with some major dairy-consuming countries, and China's annual dairy consumption volume is less than one-third of the global average, according to the China Dairy Industry Association.

Last year, major Chinese dairy producer Yili Group, based in the Inner Mongolia autonomous region, achieved sales revenue of 123.2 billion yuan, up 11.37 percent year-on-year. During the period, its net profit reached 9.43 billion yuan, growing 8.34 percent year-on-year. According to the company's latest annual report, both sales and net profit hit record highs.