Yogurt - China - December 2012

INTRODUCTION
Definitions
Market segments
Demographics
EXECUTIVE SUMMARY
The market
Figure 1: China yogurt market value, 2007-12
Figure 2: China yogurt market volume, 2007-12
Enablers and inhibitors to industry growth
The forecast
Figure 3: Yogurt market value, 2007-17
Figure 4: Yogurt market volume, 2007-17
Companies
Figure 5: Dairy market share of leading yogurt makers in China by value, 2009-12
Dairy scandals focus Mengniu’s development strategy
Yili grows despite setbacks
Bright growth through acquisitions
International makers face serious challenges in China
 CONSUMER GROUPS
From a demographic perspective
From a psychographic perspective
Key issues
Three domestic brands dominate the market
Figure 6: Repertoire of yogurt brands bought in the past 6 months, October 2012
Consumers wary of additive claims for greater health and beauty
Figure 7: Top 3 factors to consider when buying yogurt, October 2012
Figure 8: Most popular top ranked factors to consider when buying yogurt, by demographics, October 2012
Back to basics: Yogurt flavour and texture trump complexity in consumer tastes
Figure 9: Frequency of having yogurt, October 2012
Figure 10: Top 3 factors to consider when buying yogurt, October 2012
Engaging consumers who have been neglected in the market
Figure 11: Agreement with the statement ‘Yogurt is a healthy alternative to treats like dessert or ice cream’, by demographics, October 2012
Figure 12: Agreement with the statement ‘yogurts with nutritional benefits such as probiotics are worth paying more for’, by demographics, October 2012
Figure 13: Most popular occasions of having yogurt, by demographics, October 2012
Figure 14: Next most popular occasions of having yogurt, by demographics, October 2012
THREE DOMESTIC BRANDS DOMINATE THE MARKET
Key points
State-owned or government-backed dairies dominate the market
Figure 15: Yogurt brands bought in the past 6 months, October 2012
Figure 16: Number of yogurt brands bought in the past 6 months, October 2012
Figure 17: Number of yogurt brands bought in the past 6 months, by demographics, October 2012
Figure 18: Yogurt brands bought most often in the past 6 months, October 2012
Figure 19: Market share by value of top three dairy producers in China, 2009-12
Figure 20: Market share by volume of top three dairy producers in China, 2009-12
Figure 21: Yogurt brands bought most often in the past 6 months, October 2012
Sources of dominance – secured and sufficient supply of high quality raw milk
Local brands remain strong in their home markets
Figure 22: Most popular yogurt brands bought in the past 6 months, by demographics, October 2012
Figure 23: Brands bought most often in the past 6 months, by cities, October 2012
Consumers purchase big and familiar brands due to safety concerns
Figure 24: Attitudes toward yogurt, October 2012
International brands find it difficult to thrive in the market despite positive image
Figure 25: Attitudes toward yogurt, October 2012
Figure 26: Agreement with the statement ‘International yogurt brands are of higher quality than local brands’, by regions, October 2012
Figure 27: Agreement with the statement ‘International yogurt brands are of higher quality than local brands’, by demographics, October 2012
Figure 28: Agreement with the statement ‘International yogurt brands are of higher quality than local brands’, by demographics, October 2012
Opportunities for international brands
Investment in cow farm or R&D center
M&A & JV activity
Marketing to target the affluent
What it means
GREAT OPPORTUNITIES STILL EXIST IN HEALTH BENEFITS AND BEYOND
Key points
Digestive is one of the main health benefits people look for
Figure 29: Consumers’ attitude towards yogurt/yogurt drinks’, by demographics, October 2012
Figure 30: Attitudes toward yogurt, October 2012
Vanity aspects of the health benefits are under-appreciated
Figure 31: Top 3 factors to consider when buying yogurt, October 2012
Figure 32: Share of new yogurt product claims in China, 2008-12
Exploring yogurt’s health benefits and more
Figure 33: Occasions of having yogurt, October 2012
Food pairing for digestion, both on-trade and off-trade
Snacking is another trigger for consuming yogurt
Figure 34: Occasions of having yogurt, October 2012
Figure 35: ‘Yogurt is a healthy alternative to treats like dessert or ice cream’, by demographics, October 2012
Figure 36: Comparison of occasions for eating ice cream vs yogurt, 2012
Figure 37: Comparison of channels through which yogurt vs ice cream purchased, 2012
What it means
BACK TO BASICS: YOGURT FLAVOUR AND TEXTURE TRUMP COMPLEXITY IN CONSUMER TASTES
Key points
Consumers most keen on All Natural yogurt
Figure 38: Top 3 factors to consider when buying yogurt, October 2012
Figure 39: Attitudes towards yogurt, October 2012
Figure 40: Share of no additives/preservatives claims for new yogurt products launched into China market, January 2008-December 2012
Figure 41: Share of yogurt flavours launched in China, 2008-12
Figure 42: Top ingredients promoted by yogurt products sold in China
Figure 43: Frequency of having yogurt, October 2012
Figure 44: Usage of top ingredients promoted by yogurt products sold in China, 1997-2012
Brands respond by introducing all sorts of ‘natural’ yogurt products
Greek yogurt becomes very popular because of its natural image
Figure 45: Most popular frequency of having Greek-style yogurt, by demographics, October 2012
Figure 46: Most popular frequency of having Greek-style yogurt, by demographics, October 2012
Figure 47: Most popular frequency of having Greek-style yogurt, by demographics, October 2012
‘Old’ Yogurt has jumped on the ‘all natural’ bandwagon
Consumers want a sense of control over what goes into their yogurt
Figure 48: Top 3 factors to consider when buying yogurt, October 2012
Figure 49: Frequency of having yogurt, October 2012
Figure 50: Most popular frequency of having flavoured yogurt, by demographics, October 2012
Figure 51: Most popular frequency of having greek-style yogurt, by demographics, October 2012
Figure 52: Agreement with the statement ‘I prefer natural/Greek-style yogurts with a neutral flavour, which I can modify myself’, by demographics, October 2012
Figure 53: Agreement with the statement ‘I prefer natural/Greek-style yogurts with a neutral flavour, which I can modify myself’, by demographics, October 2012
What it means
UNDERSERVED CONSUMER SEGMENTS: CONVENIENCE SEEKERS, MEN IN THEIR FORTIES AND LOW INCOME EARNERS
Key points
Convenience seekers
Convenience is one of the USPs for yogurt drink
Figure 54: Most popular occasions of having yogurt drinks, by demographics, October 2012
Figure 55: Attitudes towards yogurt, October 2012
Reasons for not drinking yogurt drink more frequently
Figure 56: Frequency of having yogurt, October 2012
Figure 57: Cost of store drinks relative to yogurt drink, 2012
Opportunities to increase the frequency of drinking yogurt drink
Men aged 40+ another consumer group that has been neglected
Men are less interested in the health benefits of yogurt
Figure 58: Agreement with statements ‘, by demographics, October 2012
Men less likely to consume yogurt on most occasions
Figure 59: Occasions of having yogurt, by demographics, October 2012
Reasons for men’s lack of interest in yogurt
Figure 60: Key grocery shopping decision maker, by demographics, April 2012
Importance of men and how yogurt brands have been dealing with them so far
Opportunities in the men segment
Consumers with low income are missed as well
Low income earners are wary of additional health benefits and ingredients
Figure 61: Agreement with the statements ‘I believe yogurt is good for one's digestion’, by demographics, October 2012
Figure 62: Most popular top ranked factors to consider when buying yogurt, by demographics, October 2012
What yogurt brands have been doing so far?
Opportunities to sell yogurt to consumers with low income
What it means
THE FUTURE OF THE MARKET
Figure 63: Total yogurt market value, 2007-17
Figure 64: Market value projections for spoonable unflavoured yogurt, 2007-17
Figure 65: Market value projections for spoonable flavoured, 2007-17
Figure 66: Market value projections for drinkable/cultured yogurt, 2007-17
APPENDIX – FREQUENCY OF HAVING YOGURT
Figure 67: Frequency of having yogurt, October 2012
Figure 68: Frequency of having yogurt, October 2012
Figure 69: Most popular frequency of having natural yogurt, by demographics, October 2012
Figure 70: Next most popular frequency of having natural yogurt, by demographics, October 2012
Figure 71: Most popular frequency of having flavoured yogurt, by demographics, October 2012
Figure 72: Next most popular frequency of having flavoured yogurt, by demographics, October 2012
Figure 73: Most popular frequency of having Greek-style yogurt, by demographics, October 2012
Figure 74: Next most popular frequency of having Greek-style yogurt, by demographics, October 2012
Figure 75: Most popular frequency of having yogurt drink, by demographics, October 2012
Figure 76: Next most popular frequency of having yogurt drink, by demographics, October 2012
Figure 77: Most popular frequency of having other type of yogurt, by demographics, October 2012
APPENDIX – OCCASIONS OF HAVING YOGURT
Figure 78: Occasions of having yogurt, October 2012
Figure 79: Most popular occasions of having yogurt, by demographics, October 2012
Figure 80: Next most popular occasions of having yogurt, by demographics, October 2012
Figure 81: Occasions of having yogurt drinks, October 2012
Figure 82: Most popular occasions of having yogurt drinks, by demographics, October 2012
Figure 83: Next most popular occasions of having yogurt drinks, by demographics, October 2012
APPENDIX – YOGURT BRANDS BOUGHT IN THE PAST 6 MONTHS
Figure 84: Yogurt brands bought in the past 6 months, October 2012
Figure 85: Most popular yogurt brands bought in the past 6 months, by demographics, October 2012
Figure 86: Next most popular yogurt brands bought in the past 6 months, by demographics, October 2012
APPENDIX – NUMBER OF YOGURT BRANDS BOUGHT
Figure 87: Number of yogurt brands bought in the past 6 months, October 2012
Figure 88: Number of yogurt brands bought in the past 6 months, by demographics, October 2012
APPENDIX – YOGURT BRANDS BOUGHT MOST OFTEN IN THE PAST 6 MONTHS
Figure 89: Yogurt brands bought most often in the past 6 months, October 2012
Figure 90: Most popular yogurt brands bought most often in the past 6 months, by demographics, October 2012
APPENDIX – CHANNELS OF BUYING YOGURT
Figure 91: Channels of buying yogurt, October 2012
Figure 92: Most popular channels of buying yogurt, by demographics, October 2012
Figure 93: Next most popular channels of buying yogurt, by demographics, October 2012
APPENDIX – TOP THREE FACTORS TO CONSIDER WHEN BUYING YOGURT
Figure 94: Top 3 factors to consider when buying yogurt, October 2012
Figure 95: Most popular top ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 96: Next most popular top ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 97: Other top ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 98: Most popular second ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 99: Next most popular second ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 100: Other second ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 101: Most popular third ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 102: Next most popular third ranked factors to consider when buying yogurt, by demographics, October 2012
Figure 103: Other third ranked factors to consider when buying yogurt, by demographics, October 2012
APPENDIX – ATTITUDES TOWARD YOGURT
Figure 104: Attitudes toward yogurt, October 2012
Figure 105: Agreement with the statements ‘I believe yogurt is good for one's digestion’ and ‘I generally pay attention to the health claims on yogurt/yogurt drinks, by demographics, October 2012
Figure 106: Agreement with the statements ‘Yogurt is a healthy alternative to treats like dessert or ice cream’ and ‘It is not very convenient to eat yogurt while on the go’, by demographics, October 2012
Figure 107: Agreement with the statements ‘yogurt/yogurt drinks make a perfect snack in between meals’ and ‘yogurt is a good accompaniment to other food such as cracker, biscuits, cereals or salad’, by demographics, October 2012
Figure 108: Agreement with the statements ‘I prefer yogurt with fruit bits’ and ‘yogurts with nutritional benefits such as probiotics are worth paying more for’, by demographics, October 2012
Figure 109: Agreement with the statements ‘I am concerned about preservatives used in yogurt’ and ‘I would like to see more yogurt/yogurt drinks with 'super food' ingredients’, by demographics, October 2012
Figure 110: Agreement with the statements ‘I would like to see a greater variety of yogurt flavours’ and ‘I prefer natural/Greek-style yogurts with a neutral flavour, which I can modify myself’, by demographics, October 2012
Figure 111: Agreement with the statements ‘International yogurt brands are of higher quality than local brands’ and ‘I prefer well known yogurt brands for safety reasons’, by demographics, October 2012
Figure 112: Agreement with the statement ‘Own label yogurt is just as good as well-known yogurt brands’, by demographics, October 2012