Foreign milk producers are losing tremendous ground in China during the coronavirus pandemic, as nationalistic fervour influences sales amid souring relations with the United States and Australia.

Overseas brands accounted for 23 per cent of sales on Tmall from January to August, according to the latest dairy tracker report published by China Skinny. Their share on the business-to-consumer online platform has steadily declined from 52 per cent in 2016 and 35 per cent in 2019, it added.

“We are surprised to find the stark decline since the outbreak, which bucks a trend of Chinese consumers’ rising milk consumption,” said Mark Tanner, managing director of China Skinny, a Shanghai-based market research firm. “Many foreign brands we talked to cited rising nationalism as the reason for the declining market share.”
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