Leading dairy producer Yili faces growing competition from domestic and international rivals, particularly in the premium segment, as illustrated by falling popularity in our survey. However, improving product mix and rising margins offer reasons for optimism.

China’s largest dairy farm operator by herd size has benefitted from recent supply disruptions to grow rapidly on advantages in terms of technology and scale.

Chinese dairy firm Mengniu is beginning to reap the rewards of an acquisition-led strategic overhaul in 2013. 

China’s growing appetite for dairy and further upstream and downstream consolidation should drive strong revenue and profit growth for large-scale dairy farm operators and leading dairy product manufacturers as the industry continues to recover from a series of safety scandals.

Carlsberg is expanding its presence in China, building on growing popularity for its key international brand in first-tier cities with a series of acquisitions to develop revenue streams in lower-tier markets.

Aggressive acquisition strategies and rapid distribution and capacity expansion have helped to insulate leading beermakers in China from an industry-wide slowdown. However, intense competition continues to hold down prices and profit margins.

While CR Snow remains market leader in China, posting solid revenue growth supported by improving average selling price, margins remain tight as intensifying competition forces the firm to invest in expansion and acquisitions.

A volume-led growth strategy targeting the mass market has driven growth in popularity and sales, but a falling average selling price and higher marketing expenses have squeezed margins.