China consumers shift to pasteurized milk, survey shows

By Ding Yining | April 15, 2015, Wednesday |

Online Edition

CHINA'S consumption of pasteurized milk would grow at a much faster pace than ultra heat treated liquid milk in the coming years with development of milk sources and cold chain logistics, a latest study shows.

More consumers in economically developed regions would favor pasteurized milk for better flavor amid increased health awareness although ultra heat treated milk would still dominate the market in a number of years, according to KPMG's China Dairy overview released yesterday.

At the same time, milk powder will see less growth momentum compared with liquid dairy products boosted by rising dispensable income and urbanization process.

Meanwhile, severe competition among milk powder makers is likely to lead to price wars and therefore erode their profits, the study shows.

Wang Rui, KPMG China's partner for consumer products, said that the key strategy for dairy companies to expand their business is to ensure enough investment for high quality dairy sources in the next few years.

Business Consumer

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China consumers shift to pasteurized milk, survey shows

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