After the pandemic resulted in declining sales in China in both 2020 and 2022, the macroeconomic challenges this country was experiencing meant sales continued falling in 2023. With China being the region’s biggest market, this was impacting the overall regional performance. India, on the other hand, continued to see dynamic growth, helping to offset the declining Chinese sales. Positive growth is expected throughout the forecast period in Asia Pacific.
This report comes in PPT.
Although baby food is growing in much of Asia Pacific, it continues to decline in China and Japan, due to the falling birth rates in these countries. With China dominating regional sales of baby food, it has a major impact on the overall Asia Pacific performance, which is expected to remain in negative territory over the forecast period.
Manufacturers in dairy products and alternatives are launching more products with health benefits in Japan, trying to redouble their efforts to provide added benefits beyond the ordinary functions of products, such as yoghurt with the claim of improving brain function or drinking milk products claimed to reducing body fat.
New national standards for milk formula were formally implemented in China in 2023. They set out more explicit and stringent provisions concerning the composition of protein, carbohydrates, trace elements and other ingredients in such products. These standards are thought likely to lead to a greater concentration of the market in the hands of fewer, larger players and the phasing out of many small and medium-sized producers.
New players entering the market in India
As the shift towards organised dairy has accelerated in recent years in India, boosted by the pandemic and the need for hygienic packaged food products, the number of players in the industry has also been increasing. Many start-ups and companies from other industries have expanded their portfolios to include dairy products and alternatives, such as bakery specialist Britannia or wine company Fratelli.
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