Abstract: Farm animal welfare improvement helps promote high-quality development of the livestock industry in terms of efficient output, safe products, resource conservation, environmental friendliness, and effective regulations. Consumers’ willingness to pay for farm animal welfare products is a prerequisite to motivate farming entities to improve animal welfare. Based on a data of 1 137 consumers in China and applying the conditional value method, this paper analyzed the influencing factors of consumers’ willingness to pay for animal welfare dairy products and explored the heterogeneity of the influencing factors among different income groups by the ordered Logistic model. Results show that most consumers have a strong willingness to purchase animal welfare dairy products, but consumers’ willingness to pay is concentrated at the premium level of (0, 10%, which still needs to be improved. Study also finds that farm animal welfare perceptions, education level, and monthly household income level have significant positive effects on consumers’ willingness to pay for animal welfare dairy products. However, legislative claims, perceived quality safety risks, and quality safety concerns have significant negative effects on consumers’ willingness to pay for animal welfare dairy products. In addition, there are differences in the effects of farm animal welfare perceptions, attention to animal welfare reports or events, age, feeding experience and dairy product purchase frequency on consumers’ willingness to pay for animal welfare dairy products across different income groups. Therefore, to increase consumers’ willingness to pay for farm animal welfare products and to motivate farming entities to improve animal welfare, this paper suggests that the government should strengthen national and professional education on animal welfare, improve animal welfare-related regulations, standards, and systems at the national level, and encourage farming entities to carry out animal welfare improvement actions. From the business perspective, enterprises should develop consumer market for farm animal welfare products.