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Yili and Mengniu accelerated their deployment, and Bright Dairy and New Hope Dairy expanded their positions... This kind of dairy products are getting more and more popular!

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Yili and Mengniu accelerated their deployment, and Bright Dairy and New Hope Dairy expanded their positions... This kind of dairy products are getting more and more popular!

  • Categories:Industry news
  • Author:财经新媒体
  • Origin:螳螂财经
  • Time of issue:2021-03-12 21:19
  • Views:

(Summary description)If you are a milk consumer, how would you choose between room temperature milk and low temperature milk?
The former may be your long-term choice, but the latter is being favored by more and more consumers. Data show that in 2019, the market size of low-temperature pasteurized milk reached 34.3 billion, a year-on-year growth rate of over 11%, while the growth rate of normal temperature white milk was less than 2% in the same period.

To




To


To

Low-temperature milk ushered in a "sudden prosperity", and the sudden enthusiasm made some people think that it is a new species with a high sense of quality. In fact, low-temperature milk has been "snow hidden" in the domestic dairy product market for decades. During this period, the low-temperature milk companies scattered all over the country were in a corner and kept their sides.

To

The competitive landscape of low-temperature milk is scattered, and its high-volume development is facing multi-dimensional restrictions. For this reason, the "wealth code" of the market may be hidden in the "yoke" break free.

To

In recent years, the national normal temperature milk giants Yili and Mengniu have focused on exploring the low-temperature milk circuit. Several regional dairy companies have also pressed the expansion accelerator button, eager to further open the situation. The low-temperature milk market "fights with gods" is constantly escalating in a multi-dimensional confrontation.

To

Low-temperature milk "old trees bloom new flowers", in what direction will players lead the industry to evolve?

To






To




Three "shackles" of low-temperature milk to be removed





To

If you want to talk about low temperature milk, you have to mention room temperature milk. The low-temperature milk circuit has gained attention again, and there is also a "dark line" buried here.

To

In the past, after the introduction of UHT sterilization technology, room temperature milk rose widely. At the same time, leading companies such as Yili and Mengniu have laid out large-scale channels and continuously invested in marketing, realizing the rapid expansion of room temperature milk channels and categories.

To





To

Subsequently, room temperature milk shifted to product structure upgrades and price increases, and sales volume declined for three consecutive years after 2016. The growth rates from 2017 to 2019 were -2.06%, -1.07% and -0.98%, respectively. This reflects that the era of "volume increase" in the room temperature milk industry has passed, and the dairy market needs new "increment". In this context, low-temperature milk has surpassed normal-temperature milk and has become a hot spot that may be detonated under the development of the industry.

To

According to Euromonitor data, the representatives of low-temperature pasteurized milk companies in 2018 are Bright Dairy, Sanyuan Shares, and New Hope Dairy, with corresponding market shares of 11.5%, 9.2%, and 5.9%, respectively. They do not occupy a high market share, and the industry has not been significantly centralized, so individual leaders may be bred in the future.

To

But the reality is that there are still some problems in the low-temperature milk industry that urgently need to "break the ice." As companies in the product chain continue to improve on the technical level, they are gradually being "melted", and the industry is also undergoing heavy development.

To





At present, the problems of the low-temperature milk industry are mainly reflected in many aspects, including three dimensions of quality, efficiency, and distance.

To

From the perspective of quality, the production process of low-temperature pasteurized milk is different from normal temperature milk, and has higher requirements for the quality of raw materials. If it is a non-large-scale pasture, it is difficult to ensure that pasteurized milk must be properly maintained throughout the subsequent transportation process. The state of refrigerated preservation, at this time quality puts forward high requirements on cold chain storage. The latter is the obstacle to the operation of low-temperature pasteurized milk by many dairy companies.

To

It is worth noting that if the transportation link is optimized, the distance dimension problem will also be solved from one direction. The domestic consumption area and the golden milk source are separated from the north to the south, and the optimization of transportation links can help realize long-distance, cross-regional transportation and distribution. Another solution is to set up a new pasture adjacent to the consumption area.

To

For the efficiency dimension, the key is the distribution link of low-temperature pasteurized milk. Under the premise of normal cold chain transportation, the shelf life of low-temperature pasteurized milk is about 5 days, and promotional discounts generally start on the fourth day. In other words, the first three days are important sales time. How the industry efficiently

Yili and Mengniu accelerated their deployment, and Bright Dairy and New Hope Dairy expanded their positions... This kind of dairy products are getting more and more popular!

(Summary description)If you are a milk consumer, how would you choose between room temperature milk and low temperature milk?
The former may be your long-term choice, but the latter is being favored by more and more consumers. Data show that in 2019, the market size of low-temperature pasteurized milk reached 34.3 billion, a year-on-year growth rate of over 11%, while the growth rate of normal temperature white milk was less than 2% in the same period.

To




To


To

Low-temperature milk ushered in a "sudden prosperity", and the sudden enthusiasm made some people think that it is a new species with a high sense of quality. In fact, low-temperature milk has been "snow hidden" in the domestic dairy product market for decades. During this period, the low-temperature milk companies scattered all over the country were in a corner and kept their sides.

To

The competitive landscape of low-temperature milk is scattered, and its high-volume development is facing multi-dimensional restrictions. For this reason, the "wealth code" of the market may be hidden in the "yoke" break free.

To

In recent years, the national normal temperature milk giants Yili and Mengniu have focused on exploring the low-temperature milk circuit. Several regional dairy companies have also pressed the expansion accelerator button, eager to further open the situation. The low-temperature milk market "fights with gods" is constantly escalating in a multi-dimensional confrontation.

To

Low-temperature milk "old trees bloom new flowers", in what direction will players lead the industry to evolve?

To






To




Three "shackles" of low-temperature milk to be removed





To

If you want to talk about low temperature milk, you have to mention room temperature milk. The low-temperature milk circuit has gained attention again, and there is also a "dark line" buried here.

To

In the past, after the introduction of UHT sterilization technology, room temperature milk rose widely. At the same time, leading companies such as Yili and Mengniu have laid out large-scale channels and continuously invested in marketing, realizing the rapid expansion of room temperature milk channels and categories.

To





To

Subsequently, room temperature milk shifted to product structure upgrades and price increases, and sales volume declined for three consecutive years after 2016. The growth rates from 2017 to 2019 were -2.06%, -1.07% and -0.98%, respectively. This reflects that the era of "volume increase" in the room temperature milk industry has passed, and the dairy market needs new "increment". In this context, low-temperature milk has surpassed normal-temperature milk and has become a hot spot that may be detonated under the development of the industry.

To

According to Euromonitor data, the representatives of low-temperature pasteurized milk companies in 2018 are Bright Dairy, Sanyuan Shares, and New Hope Dairy, with corresponding market shares of 11.5%, 9.2%, and 5.9%, respectively. They do not occupy a high market share, and the industry has not been significantly centralized, so individual leaders may be bred in the future.

To

But the reality is that there are still some problems in the low-temperature milk industry that urgently need to "break the ice." As companies in the product chain continue to improve on the technical level, they are gradually being "melted", and the industry is also undergoing heavy development.

To





At present, the problems of the low-temperature milk industry are mainly reflected in many aspects, including three dimensions of quality, efficiency, and distance.

To

From the perspective of quality, the production process of low-temperature pasteurized milk is different from normal temperature milk, and has higher requirements for the quality of raw materials. If it is a non-large-scale pasture, it is difficult to ensure that pasteurized milk must be properly maintained throughout the subsequent transportation process. The state of refrigerated preservation, at this time quality puts forward high requirements on cold chain storage. The latter is the obstacle to the operation of low-temperature pasteurized milk by many dairy companies.

To

It is worth noting that if the transportation link is optimized, the distance dimension problem will also be solved from one direction. The domestic consumption area and the golden milk source are separated from the north to the south, and the optimization of transportation links can help realize long-distance, cross-regional transportation and distribution. Another solution is to set up a new pasture adjacent to the consumption area.

To

For the efficiency dimension, the key is the distribution link of low-temperature pasteurized milk. Under the premise of normal cold chain transportation, the shelf life of low-temperature pasteurized milk is about 5 days, and promotional discounts generally start on the fourth day. In other words, the first three days are important sales time. How the industry efficiently

  • Categories:Industry news
  • Author:财经新媒体
  • Origin:螳螂财经
  • Time of issue:2021-03-12 21:19
  • Views:
Information

If you are a milk consumer, how would you choose between room temperature milk and low temperature milk?

 

The former may be your long-term choice, but the latter is being favored by more and more consumers. Data show that in 2019, the market size of low-temperature pasteurized milk reached 34.3 billion, a year-on-year growth rate of over 11%, while the growth rate of normal temperature white milk was less than 2% in the same period.

 

 

Low-temperature milk ushered in a "sudden prosperity", and the sudden enthusiasm made some people think that it is a new species with a high sense of quality. In fact, low-temperature milk has been "snow hidden" in the domestic dairy product market for decades. During this period, the low-temperature milk companies scattered all over the country were in a corner and kept their sides.

 

The competitive landscape of low-temperature milk is scattered, and its high-volume development is facing multi-dimensional restrictions. For this reason, the "wealth code" of the market may be hidden in the "yoke" break free.

 

In recent years, the national normal temperature milk giants Yili and Mengniu have focused on exploring the low-temperature milk circuit. Several regional dairy companies have also pressed the expansion accelerator button, eager to further open the situation. The low-temperature milk market "fights with gods" is constantly escalating in a multi-dimensional confrontation.

 

Low-temperature milk "old trees bloom new flowers", in what direction will players lead the industry to evolve?

 

 

Three "shackles" of low-temperature milk to be removed

 

If you want to talk about low temperature milk, you have to mention room temperature milk. The low-temperature milk circuit has gained attention again, and there is also a "dark line" buried here.

 

In the past, after the introduction of UHT sterilization technology, room temperature milk rose widely. At the same time, leading companies such as Yili and Mengniu have laid out large-scale channels and continuously invested in marketing, realizing the rapid expansion of room temperature milk channels and categories.

 

图片

 

Subsequently, room temperature milk shifted to product structure upgrades and price increases, and sales volume declined for three consecutive years after 2016. The growth rates from 2017 to 2019 were -2.06%, -1.07% and -0.98%, respectively. This reflects that the era of "volume increase" in the room temperature milk industry has passed, and the dairy market needs new "increment". In this context, low-temperature milk has surpassed normal-temperature milk and has become a hot spot that may be detonated under the development of the industry.

 

According to Euromonitor data, the representatives of low-temperature pasteurized milk companies in 2018 are Bright Dairy, Sanyuan Shares, and New Hope Dairy, with corresponding market shares of 11.5%, 9.2%, and 5.9%, respectively. They do not occupy a high market share, and the industry has not been significantly centralized, so individual leaders may be bred in the future.

 

But the reality is that there are still some problems in the low-temperature milk industry that urgently need to "break the ice." As companies in the product chain continue to improve on the technical level, they are gradually being "melted", and the industry is also undergoing heavy development.

At present, the problems of the low-temperature milk industry are mainly reflected in many aspects, including three dimensions of quality, efficiency, and distance.

 

From the perspective of quality, the production process of low-temperature pasteurized milk is different from normal temperature milk, and has higher requirements for the quality of raw materials. If it is a non-large-scale pasture, it is difficult to ensure that pasteurized milk must be properly maintained throughout the subsequent transportation process. The state of refrigerated preservation, at this time quality puts forward high requirements on cold chain storage. The latter is the obstacle to the operation of low-temperature pasteurized milk by many dairy companies.

 

It is worth noting that if the transportation link is optimized, the distance dimension problem will also be solved from one direction. The domestic consumption area and the golden milk source are separated from the north to the south, and the optimization of transportation links can help realize long-distance, cross-regional transportation and distribution. Another solution is to set up a new pasture adjacent to the consumption area.

 

For the efficiency dimension, the key is the distribution link of low-temperature pasteurized milk. Under the premise of normal cold chain transportation, the shelf life of low-temperature pasteurized milk is about 5 days, and promotional discounts generally start on the fourth day. In other words, the first three days are important sales time. How the industry efficiently allows consumers to buy goods will determine whether it can expand profits.

 

The new blue ocean of dairy enterprises fighting

 

"The breakthrough development of the industry is reflected in the application, there are two alternative paths and a key word that must be possessed." An insider said, “The former is to extend the radius and increase the center of the circle, while the latter is to meet the consumption frequency. The domestic cold chain logistics infrastructure is continuously improved, which just lays the foundation for the company's “extended radius”.

 

According to data from the Cold Chain Committee of the China Internet of Things, from 2017 to 2019, the scale of China's cold chain logistics market continued to expand, with an average annual compound growth rate of 15.3%. In 2019, the market size of the cold chain logistics industry reached 339.1 billion yuan, a year-on-year increase of 17.5%.

 

Some investors pointed out that due to the success of Mengniu and Yili in the low-temperature yogurt category, their relatively leading cold chain quantity and quality will help to develop low-temperature pasteurized milk.

 

图片

 

After 2018, Mengniu and Yili successively entered the field of low-temperature pasteurized milk. Mengniu established an independent fresh milk business unit in 2018; its 2019 annual report shows that fresh milk products have covered 24 provinces and 50 key cities; in October 2020, Mengniu joined hands with Coca-Cola to establish a "Ke Niu Le" company to enter the high-end low temperature milk.

 

In order to expand the low-temperature pasteurized milk products nationwide, Mengniu has enriched its strategy of "stretching the radius", using ESL and other technologies to produce pasteurized milk with longer shelf life on the basis of mature cold chain transportation. This can extend the shipping period and extend the reach of business to further consumer locations.

 

From another perspective, this also means that the distance between the place of production and the place of consumption has become more controllable. Mengniu's production plants do not need to be located outside the core consumer cities, but can choose more distant neighboring cities, and ultimately achieve "extended radius".

 

图片

 

Mengniu's old rival, Yili, launched three new low-temperature fresh milk products at the end of 2019, releasing signals for the layout. However, Yili is conservative in this area.

 

Last year, Liu Chunxi, vice president of Yili Group, said, "In the future, China's dairy products will still be mainly liquid milk at room temperature. Yili will continue to develop room temperature business while actively deploying low temperature business." Although he said that he would still do something, Yili still seems to be cautious about the low-temperature milk track.

 

In addition to "stretching the radius", "increasing the center of the circle" is another path, which typically represents a dairy company that must be New Hope Dairy. At present, it is difficult to develop new pastures around developed cities, and the transportation radius of low-temperature pasteurized milk is limited. Therefore, New Hope Dairy has adopted the method of acquiring local brands to penetrate into the "hinterland" of competitors.

 

 

Since 2002, New Hope Dairy has set off two rounds of acquisitions. The first round of acquisitions of regional dairy companies such as Huaxi, Shuangfeng, Tianxiang, etc., to attack the East China and North China markets; the second round of acquisitions of Nanshan cut into the Central China market, followed by the acquisition of Shuangxi, Sanmu, etc., continued to increase. Through the acquisition of local low-temperature milk brands, New Hope Dairy can quickly obtain its local brand recognition, channels, and overall planning capabilities, expand the market, and form coverage and penetration in new market areas.

 

In 2019, New Hope Dairy entered the A-share market, and its expansion continued to accelerate. It acquired different proportions of shares in Australian Cattle Dairy, Modern Dairy and Huanmei Dairy. As a result, the road to nationalization of New Hope Dairy is very clear.

 

If the above-mentioned companies are the "juniors" in the low-temperature milk market, then Bright Dairy can be said to be one of the "veteran" companies. As a veteran dairy company in the Yangtze River Delta region, it has missed the opportunity for the development of room temperature milk in the past. Bright Dairy has been working hard to accelerate its deployment in the low-temperature milk market.

 

At the end of 2019, Bright Dairy acquired the assets of Jiangsu Huishan Dairy for 715 million yuan. On this basis, it also teamed up with Jiangsu Yinbao Group to establish a production plant and a ranch. Some insiders believe that "the purpose of this move may be to occupy a favorable position in advance, and use this as a starting point to radiate the target market to the surrounding areas."

 

 

In addition, Bright Dairy has already built its own distribution platform "Order Freely", which currently covers at least 34 large and medium-sized cities across the country. This reflects that Bright Dairy is also committed to "stretching the radius" and gradually improving the cold chain distribution system.

 

On the whole, all dairy companies are focusing on the strategy of "stretching the radius" and "increasing the center of the circle" in order to expand the national territory again. The participation of giants amplifies the volume of low-temperature pasteurized milk, but the overlap of strategic territory naturally brings fiercer competition.

 

With the accelerated improvement of the cold chain transportation system, companies with scale advantages will continue to reduce supply chain costs in the competition. As a result, regional dairy companies will inevitably face the "squeeze" of national dairy companies. From the perspective of competition, in the face of the pressure that may arise, dairy companies naturally need to squeeze in a race to gain market share.

"For low-temperature pasteurized milk, if dairy companies do not occupy the blank market first, they may lose opportunities because the market will not wait for you," an industry insider said.

 

 

Where does the low-temperature milk "tuyue" blow?

 

Countries around the world have their own emphasis on the choice of room temperature milk and low temperature pasteurized milk. In European countries such as Belgium and Spain, the market share of room temperature milk is more than 90%. In developed countries such as the United States, Japan, and New Zealand, pasteurized milk is preferred.

 

If we take some mature markets abroad as a reference, the animal husbandry is mature, the pastures are relatively even, the "radius" of the production area and the consumption area is relatively short, and the cold chain facilities are perfect. Under the premise of the continuous upgrading of cold chain and transportation, although domestic low-temperature pasteurized milk consumption cannot exceed the share of room temperature milk, the continuous increase in the proportion is worth looking forward to.

 

 

Behind the transformation of the dairy consumption structure is the structural opportunity of the industry.

 

At present, the domestic low-temperature milk product category is relatively single, and the product matrix has room for further development. In the future, with the further expansion of the category, the consumer group for low-temperature milk will be expanded, and the market scale will also expand accordingly.

 

It is worth noting that the characteristics of low-temperature milk products determine that they are quite different from normal-temperature milk, which is reflected in consumer demand as "small quantity and high frequency". Data shows that low-temperature milk consumption accounted for 31% of convenience stores and small and medium-sized supermarkets, delivery of milk to households accounted for 27%, large-scale KA accounted for 20%, and e-commerce accounted for 16%.

 

Convenience stores and small and medium supermarkets are closer to consumers, which is in line with consumers' frequent consumption scenarios. Moreover, they have sufficient low-temperature cold chain equipment, which can also help better achieve "meeting consumption frequency." In the past, consumers needed to frequently go to large supermarkets to "stock up" or "order for half a year" at offline milk stations. As the distance between consumption places and homes narrows, dairy companies will also achieve further "stretching the radius."

 

In recent years, fresh food e-commerce has developed rapidly, providing a sales platform for low-temperature pasteurized milk and becoming a "dongfeng" that dairy companies can use. Through these platforms, consumers can buy fresh milk just like ordering takeout, and enjoy the service that is ready to buy.

 

Low-temperature pasteurized milk basically fits the fresh customer base. Fresh e-commerce platforms act as "terminal outlets + milk deliverers", directly connecting manufacturers and consumers, reducing intermediate links, which is equivalent to reducing losses and improving circulation efficiency.

 

 

At present, Mengniu has "on the car" new retail, and has established technical cooperation with Alibaba to build "Tianxian" and provide periodic distribution business; Bright Dairy has reached a cooperation with Tmall Periodic. After placing an order at the flagship store, it can be ordered Periodic delivery to households.

 

When the distribution and purchase of low-temperature pasteurized milk become more efficient and convenient, dairy companies can naturally extend their business reach to further markets and still bring about the effect of "extending the radius".

 

In general, the "main force" channel can help the industry bid farewell to problems such as low consumption frequency, high loss, and user inaccuracy. In the future, how to better occupy the "main force" channels has become a new topic that dairy companies need to learn. Laying a firm foundation, low-temperature milk may have the minimum conditions.

 

As the "last step" to reach consumers, dairy companies have realized its importance. High-efficiency new retail has become the "new favorite" of dairy companies, and the "flavor of gunpowder" that will cover this area in the future will also become more intense.

 

Source: Mantis Finance, author Leo Chen. The article is only for industry communication
Editor: New Dairy Industry. Some pictures in this article are from the Internet, if there is any infringement, please contact to delete

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