Cheung and Grant (2006)

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Cheung and Grant (2006) - Chinese Dairy

China’s dairy industry is on the increase, with its consumption expected to double in size, to around $20b by 2010. This is due to increasing wealth and that the Chinese are copying their Asian neighbours in their seeking of higher-value-added dairy products, such as milk beverages, cheese, and yogurt. Consumption accounts for 25 percent, but is expected to rise annually by 22, 38 and 31 percent annually.

This means supermarkets can benefit, such as Carrefour, which is already established in China, as they can provide better marketing and distribution channels. The lifting of the trade barrier in December 2004 will further encourage the entrance of foreign investment from supermarket chains.
It also means that dairy companies need to work on their product development, marketing and branding to sell variants of their produce, such as flavoured milk, yogurts and cheeses. In Japan, for example, you can get milk-flavoured coffee sold in a package that looks like a paper coffee cup and it is marketed to white collar workers who want a break.

(This provides opportunities for stores such as Wal-Mart who are trying to break into India at present. It also implies that companies specialising in new dairy produce will benefit, such as Danone (yogurts, mousses and activel) and Frijj (flavoured milk))