How China’s Mutton Market Is Evolving Amid Protein Demand

China’s demand for mutton is on the rise, driven by shifting dietary patterns, increasing health awareness, and the ongoing search for diverse sources of high-quality protein. Traditionally consumed in the northern and western provinces, mutton has now gained broader appeal across urban and semi-urban regions, with rising consumption both at home and in restaurants.

According to the China Mutton Market Report, the market was valued at approximately USD 55 billion in 2023 and is expected to grow at a CAGR of 4.5% through 2029. The market’s expansion is being shaped by both increased domestic production and higher import volumes to meet the growing protein demand.

Key Drivers of the China Mutton Market

• Diversification of Protein Consumption: As consumers seek healthier meat alternatives, mutton is gaining traction for its lower fat content and rich nutritional profile, especially among middle-income households.
• Regional Culinary Traditions: In provinces like Xinjiang, Inner Mongolia, and Gansu, mutton is a cultural staple. The popularity of regional cuisines featuring grilled, stewed, or hot pot-style mutton has spread to metropolitan areas, enhancing market growth.
• Post-African Swine Fever Effects: With the pork supply disrupted by ASF, mutton emerged as a substitute protein, increasing demand among both households and foodservice establishments.
• Halal and Specialty Meat Demand: China’s halal meat market has grown significantly, supporting the expansion of certified mutton production and imports, especially in ethnically diverse regions.
• Government Agricultural Support: Livestock breeding initiatives, modern sheep farming technologies, and subsidies for rural herders are driving improvements in quality and supply consistency.

Market Segmentation

The China mutton market is segmented into:

1. By Product: Fresh, Frozen, Processed
2. By Distribution Channel: Traditional Wet Markets, Supermarkets, Online Platforms, Foodservice
3. By Source: Domestic and Imported
4. By End-Use: Household Consumption, Restaurants & Hotels, Processed Food Industry

Frozen and imported mutton continues to be in high demand in urban areas due to scalability and longer shelf life, while fresh cuts dominate rural and traditional markets.

Import & Export Trends

China imports a significant share of its mutton from New Zealand, Australia, and Uruguay to supplement domestic production. These imports cater to both premium retail customers and foodservice operators seeking consistency in quality and supply.

The government continues to explore bilateral agreements to stabilize meat imports and reduce logistics disruptions in the cold chain.

China Mutton Market Challenges and Opportunities

Challenges:

• Price fluctuations in global meat supply
• Disease management in livestock populations
• Cold chain logistics in Tier 2 and Tier 3 cities
• Consumer concerns over imported meat traceability

Opportunities:

• Expansion of processed and ready-to-cook mutton products
• Growth of e-commerce platforms delivering fresh meat
• Rising demand for organic and grass-fed lamb varieties
• Export potential of value-added mutton products

Conclusion

The China mutton market is evolving rapidly as health trends, cultural preferences, and protein diversification continue to shape consumer demand. With government support, expanding distribution networks, and innovation in product offerings, mutton is poised to become a consistent player in China's modern meat landscape.

For industry stakeholders, the market presents strong potential across supply chain development, product innovation, and cross-border trade partnerships.