With the slowdown in the macroeconomy and weak consumer demand, the Chinese dairy industry is experiencing a phase of deceleration and surplus. At the same time, influenced by factors such as consumption stratification and changes in population structure, the industry is entering a new phase of development, emphasizing both quantity and structural improvement. Consumers' demand for premium and healthy products is becoming increasingly significant, driving innovation and upgrades in niche categories within the industry. On the other hand, traditional supermarket channels are reaching their traffic limits, and dairy product sales channels are becoming increasingly diverse. Looking ahead, the industry faces both challenges and opportunities. How can enterprises break through in this new era and find new growth value points?

The main market for dairy products is shifting to lower-tier cities. Tier-3 and below cities account for 53.6% of dairy shoppers, particularly so for shelf-stable milk, cheese, and infant formula. Well received as refrigerated milk is in tier-1 and tier-2 cities, there is still room to increase the penetration rate.

High-tier cities are approaching channel saturation. Online channels, like PDD, Douyin, and take-outs, accelerate dairy products consumption in lower-tier cities. The number of consumers in tier-3 to 6 cities has surpassed that in tier-1 to 2 cities in 84% categories. Lower-tier cities boast of a large population, and entry-level consumers and young people in small town are exhibiting a stronger spending tendency.

How should dairy brands leverage the massive growth potential in lower-tier Cities?

I believe you all know Lactalis. When we are thinking about the present, it has figured out the future. From a small cheese workshop in the west of France that produced a dozen Camembert cheeses in 1933, the company has grown to become the world's largest dairy group. The futuristic thinking behind Lactalis' €28.3 billion revenue allows it to take advantage of new opportunities in the market as they arise. The Chinese market is also included this year.

Only 10% milk in the world comes from grass fed cow in the open prairie, and this 10% market is growing at 22.4% CAGR. Growing at over 30%, grass fed milk is the fastest growing track in the U.S. Maple Hill Creamery is the largest dairy company that offers 100% grass fed milk, selling its products in over 8,000 stores, including Wholefoods, Walmart, and Kroger. Growth rate was above 40% between 2017 and 2022. High-speed growth is a reality on the other side of the world, perhaps it is time for grass fed milk to speed up in China when Chinese consumers are spending more on dairy products and shifting from eating to stop hunger to eating high quality.

In recent years, the dairy industry seems to have entered an "innovative spring," with "new products every week" gradually becoming the new norm. If "new products every week" reflects the market's dynamism, then the success of these products must have something to do with their innovative elements.

On this topic, we've invited three "successful selling" brands: "Haihe", praised as the Shining Example of Domestic Products and Divine Milk by online netizens; "New Raspberry", the first to enter the stirred yogurt race and become a growth dark horse; and "Da Vinci", a treasure brand whose annual sales have skyrocketed from 30 million to an impressive 260 million yuan in just three years. Together, we'll explore the strategies behind selling and buying products.

As the leading brand in the domestic cheese stick category with a market share exceeding 40%, Milkground has achieved remarkable success in the cheese stick market with accumulated sales exceeding 3 billion units. However, the potential for cheese consumption clearly extends beyond cheese sticks. Breaking through demographic barriers and expanding into new scenarios present both opportunities and challenges. Milkground has already taken the first step towards practical implementation.

The Milk Fat Globule Membrane (MFGM) is a natural component extracted from milk, with its unique biological activity and nutritional properties, making it essential in infant formula milk powder. According to AFI research, MFGM not only positively affects infant brain development and cognitive function but also benefits adults and elderly in areas such as immunity, gut health, and muscle health. This discovery is opening up new market spaces for MFGM.

Data from Fact.MR shows that the global MFGM market reached approximately $89.4 million in 2021 and is projected to grow to $234 million by 2032 at a compound annual growth rate (CAGR) of 9.3%. Let's explore market gaps across generations starting from the Milk Fat Globule Membrane in milk and seize opportunities for growth.

Statistics show that the market size of the gray-hair sector in China is expected to reach RMB 12 trillion by 2026. Possessing both money and time, the gray-hair consumers are raising the bar of living standard. Formulated milk powder, thanks to its inherent health attributes, delivered impressive results. In the first half of this year, formula milk powder for the middle aged and elderly grew by 57% year-on-year. As the infant formula market enters a phase of stock competition, milk powder for middle-aged and elderly individuals, with claims of benefits for bone health, sleep quality, and blood sugar control, has become a new growth segment. Mapping out the development in the middle aged and elderly formula milk powder market is the key to growing in an expanding market.

According to BCG, the global market for new proteins is expected to reach US$290 billion (about RMB 2.08 trillion) in 2035, accounting for 11% of the market share of all protein types. In recent years, microorganisms have also gradually come into the vision of China's agri-food companies, becoming the third largest source of protein in addition to traditional crops and livestock resources. What are the products and applications of global and local innovative companies based on different microbial species and technology pathways? What are the consumer perceptions? The results of the Consumer Communication Study on Fermented Protein Products will be presented exclusively on-site!

The dairy industry is being challenged by sustainability, cyclicality of raw material supply and relative monopolization of resources. The development of precision fermentation is bound to bring about a sea change in the dairy industry.

"Our product isn't just like cheese, it is cheese," exquisite fermentation technology is revolutionizing the cheese industry. In terms of consumer acceptance, research from Formo, a precision fermented cheese brand from Germany, shows that 71% of consumers are willing to purchase non-animal dairy products crafted with precision fermentation techniques. In terms of taste, Formo's products have also gained favor from Michelin-starred chefs! Moreover, from a business perspective, Formo has secured the largest Series A financing round to date for a food technology startup in Europe. This is truly awesome!

It's no exaggeration to say that Perfect Day has taken the lead in the burgeoning field of precision fermentation for new protein. Commercialization is particularly crucial in emerging markets. As the new protein industry gradually matures, what does the industrial ecosystem look like? What about the market environment? We're eager to hear the story of Perfect Day, the pioneer of "man-made milk," a star company that has raised $840 million, and simultaneously the company with the most commercialization cases in the precision fermentation field (being favored by international giants such as Unilever, Nestlé, the Bel Group, and Mars). Let them tell us the story of Perfect Day and its friends.

Over 50% offerings at cafés in China are milk coffee, making for a fertile soil for fresh milk growth. When milk moves from the backstage to the front under the hat of barista milk, performance becomes a core measurement. Founded less than 10 years ago, Milklab, the Noumi's subsidiary brand, has filtrated 73% cafés in Australia, thanks to its excellence in textures, stretches, and making latte art. This is just the beginning. Gradually taking off in China, Southeast Asia, Singapore, and Malaysia, Milklab is walking into a broad international market.

Welcome to on-site coffee tasting! We are afraid that at this session only milk coffee is offered. Have a cup of coffee and experience the long-lasting aftertaste brought by the more integrated milk, then in this aroma, chat with our speakers about the culture behind this cup of coffee.

Euromonitor data shows that China has been the world's second bakery market besides the US since 2016. When young consumers become the main consumer group, the taste, shape, and color of products have different requirements. Cream, butter, cheese...... How to meet the ever-changing bakery and dessert market with a wide variety of dairy products? Sinodis under Savencia has prepared "Inspiration Recipes", which will be presented at the event. They'll be there to share inspirational ideas with you!