Decoding COVID-19: The impact and outlook on dairy consumption

During the outbreak, the demand for dairy remains strong in China. Some consumers even spend more on Dairy.

According to Ipsos Report of Optimism and Anxieties during COVID-19 Outbreak, 13% respondents said they spent more on dairy under epidemic. Both pure milk and yogurt in normal temperature are still popular with in-home consumers. Milk in low temperature (yogurt/lactobacillus drinks) shows opportunity to boost sales. Impacted by epidemic, online channel, especially OTO platform is booming.

Compare the data before and during the epidemic, we find 8 opportunities for dairy growth after the epidemic. Key learnings are as below:

More People—Category penetration

  1. Raising awareness of drinking more milk
  2. Care more about intestinal immunity

More frequent/ more occasion— Higher frequency

  1. Exploring in cooking/baking scenario
  2. Making it healthy snacks
  3. Be an assistant in the new trend of exercise /fitness

More volume—Purchase more

  1. Stock-up buying drives FCL/Multi-pack sales
  2. O2O/E-commerce diversity sales channels

More brand—Brand penetration

  1. Open brand attitude provides a shortcut for emerging brands

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