Several key drivers underpin this surging demand. The Chinese government’s “Healthy China 2030” initiative has played a pivotal role, significantly boosting the recommended daily dairy intake and consequently leading to a substantial increase in overall consumption. Furthermore, consumers are increasingly seeking out dairy products that offer specific health benefits tailored to various life stages, from childhood nutrition to senior well-being. The rapid growth of the urban population further amplifies this burgeoning demand.

Fonterra is strategically responding to these market demands by supplying high-performing ingredients vital for innovative functional product development. This includes a robust offering of essential proteins, versatile cheeses, and specialized ingredients like Milk Fat Globule Membrane (MFGM), which is gaining recognition for its health benefits. The Co-op also uniquely benefits from New Zealand’s strong reputation for high-quality, grass-fed dairy, a provenance that deeply resonates with discerning Chinese consumers and enhances brand trust.

The dairy market in China also presents significant untapped growth potential, particularly in cheese consumption, which remains comparatively lower than in Western countries. Fonterra is actively capitalizing on this opportunity through dedicated partnerships and continuous product innovation. Recent collaborations have yielded exciting new products designed to enhance cognitive functions and even zero-sugar milk teas, demonstrating a commitment to diverse consumer needs.