In recent years, niche dairy products, milk alternatives beyond cow’s milk, have gradually captured consumers’ attention as they seek diverse options. These unique dairy products often win consumer favor through keywords such as high nutritional value, distinctive flavor, and rare milk sources. Camel milk is one such example. In promotional materials from certain media outlets and businesses, camel milk in China is hailed as “desert white gold”, highlighting its special status among dairy products. On RedNote (Xiaohongshu), the camel milk hashtag has already garnered over 36 million views. However, the camel milk market still faces numerous practical challenges, such as debates over whether its nutritional value significantly surpasses cow’s milk and whether its notably higher price relative to cow’s milk is justified.
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Camel milk market size
By 2025, the camel milk market in China is expected to be around RMB 2.5-3 billion, representing a 20% year-on-year growth. In comparison, China’s dairy industry achieved a retail market size of approximately RMB 521.67 billion in 2024. The industry faced overall pressure in 2025, with total omnichannel sales of dairy products declining by 8.8% year-on-year from January to November. Rough estimates suggest the final market size will be around RMB 480 billion. From a macro-industry perspective, camel milk remains an extremely niche segment, accounting for only about 0.5% of the overall dairy market (25 billion divided by 480 billion). As another branch of the niche milk market, goat milk is projected to reach a market size of RMB 13.981 billion in 2025, capturing a 2.9% market share.
The camel milk paradox: High growth, low share
During the six-month period from June to November 2023, the top two brands in the camel milk market remained unchanged: Raw Gold (原始黄金) and Gu Zhanggui (谷掌柜). Raw Gold’s market share increased from 27.5% in June 2023 to 31.64% in November 2023. According to data available from e-commerce platforms in March 2026, the 330g canned camel milk product under the Raw Gold brand secured the top spot on both the bestseller and top-rated lists on both Tmall and JD.com. This highlights the brand’s formidable influence. Other brands on the bestseller list include Tuobao (驼宝), Gu Zhanggui, Xintuo (新驼), Wangyuan (旺源), and Huaxia Silk Road (华夏丝路), etc.
Moreover, consumer demographics reveal a female-dominated audience (69.43%) and a primary age group of 40+ (49.63%). Regionally, purchases are concentrated in Zhejiang (15.10%), Guangdong (11.83%), and Jiangsu (11.03%). The consumer profile presents a demographic with significant purchasing power, who lives a slower pace of life and often prioritizes premium nutrition for themselves or their families.
Consumption motivation of camel milk in China
Consumption of camel milk in China may not be driven solely by factors like nutritional value. Instead, consumer motivations blend multiple elements: functional perceptions such as digestibility and specific nutritional benefits, emotional family care considerations, particularly for elderly parents and young children, and its premium positioning, making it an ideal gift choice. Despite regulatory warnings against medical claims, word-of-mouth on social media perpetuates the perception that camel milk is a health supplement. For instance, users on RedNote (Xiaohongshu) report their daughters’ enteritis improved after consistent consumption, while others claim it can supplement insulin and partially suppress diabetes. This demonstrates that consumer perceptions, rather than scientific evidence, influence purchasing decisions.
The constraints that camel milk producers are facing
The niche market status of camel milk is closely tied to its extremely limited production and processing methods. First, camels typically yield 5-6 liters of milk per day, though large-scale, standardized farms may yield 5-15 liters. This remains far below the average of 28 liters per day for dairy cows. Second, due to distinct physiological characteristics, camels require more demanding lactation conditions than cows. Not all camels produce milk; lactation only occurs after giving birth to a calf. Additionally, calves must be placed near their respective mothers in a quiet environment, where appropriate stimulation is used to trigger lactation. Camels have a longer gestation period than cattle, approximately 13 months, resulting in delayed and irregular lactation cycles that further limit the expansion of camel herds and camel milk production. Consequently, compared to the mature, standardized milk production of cows, camel milk output remains difficult to predict.
Constraints on camel milk processing and logistics
Most camel milk products currently available on the market are powdered milk rather than liquid milk. This was due to processing and storage constraints imposed by the inherent characteristics of camel milk. Compared to cow’s milk, camel milk lacks β-lactoglobulin, resulting in poorer heat resistance. Excessively high temperatures during pasteurization may cause camel milk to lose some of its health benefits and nutritional value. It may also lead to protein precipitation. Consequently, producing sterilized and ultra-high-temperature (UHT) camel milk presents significant challenges.
Too remote, too perishable: The geography of camel milk
Camel farming is concentrated in arid, remote regions like Xinjiang and Inner Mongolia. This also imposes constraints on the transportation of camel milk products. Long-distance transport of small batches from western production areas to eastern consumers requires reliable cold chains and rapid logistics. This makes it costly for niche products. Camel milk suppliers may not have the capacity to lease cold-chain equipment designed for milk transport directly. The milk cold chain is designed for large-volume, stable shipments along fixed routes, whereas the camel milk supply is typically small-batch and dispersed. This makes the unit economics of camel milk significantly less favorable than those of cow’s milk.
Furthermore, dairy collection systems impose strict requirements; mixing different raw milk sources increases the risk of spoilage, residue contamination, or quality inconsistencies. This can lead to disputes over liability for batch failures. Many milk distribution networks are reluctant to incorporate niche raw milk sources, such as camel milk, unless production volumes are large enough to justify dedicated storage tanks or processing lines.
The various limitations associated with camel milk production, processing, and transportation have resulted in a highly localized market. According to research, 19 of the top 20 camel milk brands in the Chinese market are domestic, with only Camelicious originating from Dubai. Sales figures indicate that domestic camel milk brands hold a 99% market share. This suggests that foreign brands may face significant challenges if they wish to compete in this segment.
Nutritional value of camel milk
Camel milk vendors heavily promote its rich nutritional value. While camel milk composition varies with factors such as season, water intake frequency, breed, milking interval, and climate, the overall differences are not particularly significant. In terms of specific components, camel milk differs little from goat or cow milk. Due to its smaller fat globules and lower lactose content, camel milk is easier to digest than cow milk.
Additionally, the presence of more tyrocolin peptides in camel milk lactose makes it more digestible and less allergenic than cow milk. The whey protein composition of camel milk also differs from that of cow’s milk. Unlike cow’s milk, camel milk lacks β-lactoglobulin, which helps prevent food allergies and makes it suitable for infant formula. A key unique feature of camel milk is its higher vitamin C content. Reports indicate that camel milk contains three to five times more vitamin C than cow’s milk, making it a viable alternative source of vitamin C.
Past regulatory gaps have made it difficult for consumers to select camel milk
To this day, due to the niche nature of camel milk products and the relatively late regulatory response, consumer awareness of such items remains incomplete. This has led to numerous issues in the camel milk market, undermining consumer trust. The most prominent issue is false advertising, in which some businesses deliberately link camel milk products to therapeutic benefits, such as treatment for diseases. However, clinical scientific research on processed camel milk remains extremely limited, lacking a sufficient factual basis.
Another focal point of false advertising concerns the actual formulation of camel milk products. Prior to the implementation of the new national standard “Milk Powder and Formulated Milk Powder” in February 2025, camel milk products were primarily produced according to national standards for cow’s milk. This loophole allowed some businesses to manufacture products in compliance with solid beverage standards. They sold products adulterated with cow’s milk powder, oat flour, and soy protein powder, with milk content often far exceeding that of camel milk. Following the new regulations, regulatory authorities have established robust safeguards for consumers.
Under the new standards, modified milk powder (调制乳粉) products must contain at least 70% milk solids derived from a single primary ingredient. Products previously diluted with substantial amounts of other powders are now classified as instant convenience foods (冲调类方便食品), helping consumers identify authentic camel milk products. In June 2025, Gu Zhanggui was penalized for non-compliance with new regulations. The reason was that its “Gu Zhanggui Camel Milk Tablets” contained only 2% to 10% camel milk powder, significantly below the required standard for camel milk products. Additionally, the product made functional claims such as “enhancing children’s intelligence” and “aiding treatment.” Subsequently, Gu Zhanggui initiated consumer compensation, removed the controversial products from shelves, and deleted 78 instances of promotional content.
What the camel milk market looks like and what is holding it back:
- China’s camel milk market is around RMB 2.5–3.0 billion by 2025. This accounts for around 0.5% of the overall dairy market, estimated at RMB 480 billion. The market is still tiny but growing.
- 2023 data shows 原始黄金 (Raw Gold) and 谷掌柜 (Gu Zhanggui) leading; the consumer base is female-skewed and 40 years old and above, with purchases concentrated in Zhejiang, Guangdong, and Jiangsu.
- Camels produce far less milk than dairy cows and have stricter lactation conditions (birth-dependent, requiring stimulation), plus 13-month gestation, which slows herd expansion and makes output harder to standardize.
- Camel milk is often sold as milk powder because it has weaker heat resistance (pasteurization challenges) and because production areas (Xinjiang, Inner Mongolia) are far from coastal demand, small-batch cold-chain logistics are expensive and operationally messy.
- Past regulatory gaps enabled false health claims and “camel milk” products with very low camel content. The Feb 2025 updated regulation raises the bar (≥70% milk solids for formulated milk powder).
