China’s dairy industry, once a sure bet for investors amid rising incomes and living standards, is nearing the end of a “multidecade boom” as a slowing economy, ageing population and declining birth rates take their toll, according to S&P Global Ratings.
Sales of the country’s top dairy firms fell between 9 and 13 per cent in the first half of 2024, according to the report published by the rating agency on Monday. Among them, China Mengniu Dairy reported a 12.6 per cent revenue slump to 44.7 billion yuan (US$6.2 billion) in the six months to June, while rival Inner Mongolia Yili Industrial Group’s sales fell 9.5 per cent to 59.9 billion yuan amid waning consumer appetite.
