According to dairy company Arla Foods, premium products are in high demand in China's fast-growing middle class. With the country's second largest population of children in the world, this is a great opportunity for 'children's snacks'. Arla has set itself the goal of playing an important role in this market.
In China, organic food is seen as a luxury and as safe, healthy and natural. That attitude is growing, which is why analysts expect the organic market in China to grow by 2020% between 2025 and 16,3. The largest growth is expected to be seen in the 'baby food' and 'baby milk powder' markets.
New products
According to Steen Telsing, sales manager at Arla Foods Ingredients, children have a special place in Chinese culture. "Middle-class Chinese only want the very best for their children." That's why Arla has also recently added new organic dairy products to the Nutrilac Protein Solutions segment.
The fact that the above plays an important role is shown by the fact that about 75% of all mothers in China regard organic food as an important source of nutrition for babies. Most already use organic feed milk, although there are still plenty of opportunities to expand this market. "Especially with the older kids." About 44% of young women say they choose organic food when it is available in most places.
Sales growth in China
That the country is a major growth market for China is clear from the annual figures. In 2020, Arla Foods achieved sales growth of 24,3% in China, to €190 million. This profit is mainly due to the sale of dairy products. The export of baby food did not grow in 2020, because an exceptional amount was sold a year earlier. However, the export of butter and cheese increased by 73%. This is mainly due to the launch of liquid Lurpak.
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