The dairy market in the past two years has not been hot.
According to the 2023 China Shopper Report, Series 2, jointly released by Bain & Company and Kantar in December 2023, sales of affordable, mid-range, high-end yoghurt and infant formula all declined in the first three quarters of 2023. At the same time, the average selling price of milk is also decreasing; Categories such as cheese and ice cream, which had grown in previous years, also suffered declines, with cheese down 18% and ice cream down 6%. [1]
At the same time, the dairy industry seems to have entered a "spring of innovation", and "new products every week" has gradually become the new normal of the industry.
"Difficult" and "volume" means cycle, but also means new opportunities. This is not only a race for survival, but also a feast for innovation. In this new era full of variables, dairy enterprises can only be invincible in the fierce market competition by continuous innovation.
Some new products of dairy enterprises; Image source: Anmuxi official, Weibo @茉yogurt MOREYOGURT, Weibo @Mengniu Milk, Xiaohongshu @Miaokelando, Nestle
As the 2023 "annual report season" comes to an end, dairy companies that are "breaking out of the new" have also attracted attention. The revenue of 34 listed/listed dairy companies has been announced, of which 23 have risen, accounting for about 67.65%; There were 11 declines, accounting for about 32.35%. [2]
The FBIF2024 Dairy Innovation Forum, which will be held in Shanghai from June 25 to June 26, will invite Alexandre Pasquet, General Manager of Lantriis North Asia, Liu Chunxi, Executive President of Yili, Ravi Jhala, Global Head of Commercialization of Perfect Day, Gerard Smith, Chief Marketing Officer of Noumi Group, Ren Song, CEO of Microcolando and other guests, who will discuss the "global insight", "new people" and "new proteins" From the four perspectives of "new scenes", the "effective" innovation ideas of the dairy industry are deeply discussed.
1. Big coffee gathered to talk about the growth opportunities of the dairy industry
⭐ Time: Morning of June 25
⭐ Topic: Global Insights
⭐ Recommended keyword: #下沉市场 #巨头战略 #增长策略
The dairy industry is in transition, where is the next structural growth opportunity? Let's start with the sinking market.
The dairy market is shifting to the sinking market, with dairy consumers accounting for 53.6% of the third- and fourth-tier markets. In 84% of the categories, the number of consumers in third- to sixth-tier cities has grown faster than in first- and second-tier cities. From the perspective of the population, the down-line population base is huge, and the strength of entry-level consumer groups and small-town youth has begun to be highlighted. With the huge space for expansion in lower-tier cities, how can dairy companies seize the opportunity?
○ Recommended topic: "Upper position" in the sinking market
○ Speaker: Liu Chunxi, Executive President, Yili
Image source: Lactalis official website
○ Recommended topic: Lactalis: The future thinking behind the 28.3 billion euro revenue
○ 分享嘉宾:Alexandre Pasquet,北亚区总经理,兰特黎斯
Lactalis needs no introduction! When we think about the present, it already thinks about the future. From producing more than a dozen pieces of Camembert cheese in 1933, to today, 90 years later, the Besnier family has developed a small cheese mill in western France into the world's largest dairy group. The futuristic thinking behind the €28.3 billion in revenue allows Lactalis to always seize new opportunities in the market. This year, they also have new insights into the Chinese market.
The next step is the landing link!
If it is said that "pushing new products every week" illustrates the "volume" of the market, then the products that sell well must have the place of "breaking the volume and creating a new one". On this topic, we invited three "selling well" brands to discuss the strategies behind the sale and purchase of goods.
○ Recommended topic: Where do those dairy products that sell well?
○ Speakers:
○ Zou Yang, Secretary of the Party Committee and Chairman of the Board, Haihe Dairy Company
○ Bai Xuedong, Vice President and Co-Founder, New Hope Blue Ocean
○ Zhang Xingshi, General Manager of Marketing Center, Jiangsu New Berry
Image source: Tmall @ Tmall Supermarket, Tmall @ Haihe flagship store
On the yogurt shelves in the past two years, chewing yogurt is gradually occupying consumers' attention and shopping carts, and New Xiaoberry is the first brand to enter this track. According to the CR10 ranking of yogurt brands in the yogurt category that wins data immediately, from Q1 of 2022 to Q3 of 2023, the ranking of New Xiaoberry has risen from 21 to 10th, which is a proper dark horse.
Needless to say, Haihe milk. If the blood vessels of Qingdao people are beer, and the blood vessels of Chengdu people are chili oil, then the blood vessels of Tianjin people must be Haihe milk. As one of the "famous specialties of Tianjin", the brand value of Haihe Dairy has reached 7.3 billion, and the company has also become a representative of the reform and transformation of local dairy enterprises. Just by looking at the number of likes on social media, you can see that the gold of Haihe River is shining.
And Da Vinci is a treasure brand! It was born in March 2021, and in three years, the annual sales have increased from 300 million to 260 million! Even the "investment" strategy, it is particularly unique - mainly from the purchase and sales recommendation.
Image source: Fonterra official website
Dairy products have their own "natural" attributes, and "grass-fed" is a concept with good potential from nature.
○ Recommended topic: "grass-fed" concept, turn the high-order nutrient growth flywheel
○ 分享嘉宾：Casey Thomas，大中华区副总裁，恒天然
Only 10% of the world's milk is outdoor-fed grass-fed milk, and this 10% carries a compound annual growth rate of 22.4%. In the U.S., grass-fed dairy products are growing at more than 30 percent, making it the fastest-growing segment. Since the high growth of grass-fed dairy products can be achieved abroad, it is time for the growth flywheel of grass-fed dairy products to fly in China when the consumption power of domestic dairy drinkers improves and the concept shifts from "food and clothing" to "quality".
2. New people and new scenarios bring new growth
⭐ Time: Afternoon of June 25
⭐ Theme: New Population, New Increments
⭐ Recommended keyword: #人群破圈 #银发经济 #高附加值乳品
To understand the changing logic of the dairy market, in addition to grasping product trends at the macro level, new technologies are also essential. And between technology and the market, there is still a gap between consumers and consumption scenarios.
Which new technologies or strategies will be more popular? Then we must start with "people" and "scenes".
○ Recommended topic: [Practice] The crowd of cheese breaks the circle and crosses the scene
○ Guest speaker: Ren Song, CEO, Miaokelando
As the largest brand in the domestic cheese stick category with a market share of more than 40%, the cumulative sales volume of Microcolando on cheese sticks has exceeded 3 billion, and the construction and achievements in the cheese stick category are obvious to all. However, the consumption potential of cheese is obviously not limited to cheese sticks, and the crowd breaking circle and scene crossing are full of opportunities and challenges, and Microcolando has taken the first step in practice.
Image source: Tmall @ Miaokeland official flagship store
○ Recommended topic: Starting from the milk fat globule membrane in milk, we will explore the market gap between generations
○ Guest speaker: Yin Jing, Head of Chinese Nutritional Science, Arla Food Raw Materials
Milk fat globule membrane (MFGM) is a natural ingredient extracted from cow's milk, and its unique bioactivity and nutritional properties make it an important part of infant formula. According to AFI research, MFGM not only has a positive effect on infant brain development and cognitive function, but also has benefits for immunity, gut health, and muscle health in adults and the elderly. And this discovery is opening up a new market space for MFGM.
According to Fact.MR data, the global MFGM market size reached approximately $89.4 million in 2021 and is expected to grow to $234 million by 2032 at a compound annual growth rate (CAGR) of 9.3%. Let's start from the milk fat globule membrane in milk, tap the market gap between generations, and achieve new growth.
○ Recommended topic: Middle-aged and elderly milk powder: silver economy, "sunrise" market
○ Guest Speaker: Dr. Lou Yuanying, Nutrition Expert, IFF
According to the data, the market size of the mainland's silver economy is expected to reach 12 trillion yuan in 2026. The "rich and free" silver-haired people are raising the benchmark of life, and milk powder is excellent with its natural health attributes. In the first half of this year, middle-aged and elderly milk powder increased by 57% year-on-year. When the infant formula market enters the stock competition, middle-aged and elderly milk powder with functional claims such as bones, sleep, and blood sugar has become a new increment. How to lay out middle-aged and elderly milk powder is the key to the expansion and growth of the current market.
⭐ Time: Afternoon of June 26
⭐ Theme: New Scenes, New Increments
⭐ Recommended keyword: #场景破圈 #咖啡专用乳
○ Recommended topic: I make a special milk for coffee which I can "play" more
○ Speaker: Gerard Smith, Chief Marketing Officer, Noumi Australia
Chinese milk coffee accounts for more than 50% of the products in cafes, so there is fertile soil for the expansion of fresh milk. When milk became a special milk for coffee, it was put in front of the stage from behind the scenes, and "Noh hit" became the core. Founded less than 10 years ago, Milklab (a brand owned by Noumi) has already broken into 73% of Australian cafes with its high stretch, ductility and latte texture! This is just the beginning, it is penetrating into China, Southeast Asia, Singapore and Malaysia and other regional markets, towards a broader coffee stage.
Image source: milklab official website
○ Recommended topic: [Tasting] "Milk" coffee: milk and coffee, culture and aftertaste
○ Speakers:
○ Jian Yu, General Manager, Greater China, Kantar Worldpanel
○ Gerard Smith, Chief Marketing Officer, Noumi Australia
You are welcome to come and taste the coffee on site, but the dairy only provides [milk coffee]! Have a cup of coffee, feel the lingering aftertaste brought by the more integrated dairy products, and then talk about the culture behind this cup of coffee with the guests in this aroma.
3. New proteins may change the dairy industry
⭐ Time: Morning of June 26
⭐ Special Topic: Novel Protein Discovery
⭐ Recommended keyword: #新蛋白 #产业颠覆 #精密发酵
The development of the dairy industry is being challenged by sustainable development, cyclical raw material supply and relative monopoly of resources. The development of precision fermentation will bring earth-shaking changes to the dairy industry. When the production of milk ingredients does not require the participation of real milk, the production of dairy products will also be subverted! The change from farm to factory will drive change across the supply chain.
In the topic of New Protein Exploration, we will present comprehensive and in-depth content for the audience from five perspectives: prospects, supply changes, products, business, and summary.
○ Recommended topic: [Forward-looking] New protein technology reshapes the food world
○ 分享嘉宾：Bruce Friedrich，创始人兼总裁，The Good Food Institute
For the past 120 million years, the Earth has been using animals as a medium to create proteins. Today, however, we have a more advanced way of production: the rise of plant and cellular agriculture, known as the future of "alternative proteins".
Just like China's world leadership in new energy and electric vehicle technology, this is not only critical to global climate goals, but also pays off handsomely for China's industry. In the field of food technology, China also has the ability to be at the forefront.
○ Recommended topic: [Supply Change] Dairy raw materials that ignore the cycle
○ Guest speaker: Wu Jiantao, CEO, Water Drop Farm
This is an amazing guest with a rich industry background, having served as a senior executive in Greater China for international companies such as FrieslandCampina Food Ingredients, Kerry and Chr. Hansen! From the head of the multinational ingredient company in China to starting his own business, why is he optimistic about precision fermentation?
Image source: Formo official website
Raffael once said, "Our product is not like cheese, it is cheese"! Looking at Formo's products, can you tell if these cheeses are completely cow's milk-free? At the same time, when it comes to the taste of cheese, Formo's products have also won the favor of Michelin-starred chefs. That's so cool!
○ Recommended topic: [Product] Formo: Cheese review, transformation, subversion
○ 分享嘉宾:Raffael Wohlgensinger,创始人及首席执行官,FORMO
图片来源：Perfect Day官网
○ Recommended topic: [Business] The "richest" new protein company in history: Perfect Day and its friends
○ 分享嘉宾：Ravi Jhala，商业化全球负责人，Perfect Day
It is no exaggeration to say that in the field of precision fermentation of new proteins, Perfect Day's commercialization practice is unbeatable. This start-up company in the field of new protein, the originator of "artificial milk", a star company that has melted 840 million US dollars, and the company with the most commercial cases in the field of precision fermentation, has finally come to the FBIF scene! Let's make it a perfect day!
○ Recommended topic: [Summary] Inventory of global innovation cases in the new protein industry
○ Speakers:
○ Chen Jinhui, Head of Innovation, Gu Fu
○ Ruzhi Chen, Industry Analyst, Gu Fu
According to BCG, the global new protein market is expected to reach US$290 billion (about 2.08 trillion yuan) in 2035, accounting for 11% of the market share of all protein types. In recent years, microorganisms have gradually entered the field of vision of mainland agri-food companies, becoming the third largest source of protein in addition to traditional crops and livestock and poultry resources. Based on different microbial species and technology paths, what are the products and application cases of global and local innovative companies? What do consumers think about this? The results of the "Research on Consumer Communication of Fermented Protein Products" will be released exclusively on the spot!
4. Agenda of FBIF Dairy Innovation Forum
(This agenda ends May 10)
5. About FBIF2024
With the theme of "Breaking the Roll and Creating the New", the FBIF2024 Food and Beverage Innovation Forum and FBIF Food Innovation Exhibition will be held at the National Exhibition and Convention Center (Shanghai) on June 25-27, 2024. The forum will discuss industry trends and innovation cases from different product categories such as dairy, beverages, snacks, bakery, wine, condiments and prepared dishes, as well as industry strategy, functionality and ingredients, marketing, channels, packaging, entrepreneurship, technology, etc., and bring the new version of Wow Food Competition Award Ceremony and more than 62,000 square meters of food innovation exhibition to exchange industry innovation. FBIF2024 is expected to have 200+ topics, 240+ speakers, 150+ channel dinner guests, 900+ exhibitors, 7400+ industry guests, and 47,000+ professional visitors to attend the exhibition.
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