Pasteurized milk sales to expand quicker
Print Edition
CHINA’S consumption of pasteurized milk will grow faster than ultra heat treated liquid milk in coming years as more milk sources become available and due to the development of cold chain logistics, according to a latest study.
An increasing number of consumers in economically developed regions will prefer the better flavor and increased health awareness of pasteurized milk, although ultra heat treated milk is expected to still dominate the market for a number of years, according to KPMG’s China Dairy overview released yesterday.
However, milk powder will see less growth momentum compared with liquid dairy products. The rising keen competition among milk powder makers will result in price wars and erosion of their profits, according to the study.
Wang Rui, KPMG China’s partner for consumer products, said dairy firms must keep investing to get a continuous supply of high-quality dairy sources in the next few years if they want their sales to grow.
Dairy products are also facing an increasingly fragmented retail channel with the rapid rise of online retailers.
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