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An In-depth Look at 7 Key Trends Shaping China's Dairy Sector: Part 1 Premiumization

Updated: Mar 15

In my last article, I gave a brief overview of the 7 key trends that shaped China's infant formula sector. In this article, I will take a deeper dive into those topics and offer some context on newer trends shaping China's dairy sector during these uncertain times.



1) A Race to the Top: Premiumization Trends

To get a grip on premiumization trends in China's dairy sector you need to understand Chinese consumer's hierarchy of needs.


Chinese consumer hierarchy of needs (dairy)

  1. brand recognition

  2. provenance/origin of products

  3. ingredients, functionalization, and segmentation (evidence-based efficacy)


These 3 key components are key checklists for all enterprises looking to tap into the potential of China's premium markets. Established multinationals like Danone and Nestle and Chinese dairy giants like Yili, Mengniu, and Bright dominate the market by being able to make products that tick all 3 boxes.



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