Yoghurt and Sour Milk Products in Hong Kong, China

PROSPECTS

Newly defined as a “healthy snack”

Yoghurt has generally been perceived as a functional product for digestion only; and not commonly seen as a daily consumption option. With the rise in Westernised eating habits and growing health and wellness awareness among Hong Kong consumers, yoghurt received wider acceptance and grew its presence in 2018.

Entrance of fresh milk giants

Given relative category saturation and stable consumption patterns, some drinking milk products players have diversified their product portfolios by entering yoghurt, where they see better prospects in terms of profit. Kowloon Dairy and Trappist Dairy, well-established players in both fresh milk and flavoured milk drinks, launched entirely new product lines in drinking yoghurt and plain yoghurt, respectively, from 2017.

Keener competition in drinking yoghurt

While Yakult is the long-time dominant brand in drinking yoghurt, more international brands increased their shelf presence on supermarket shelves by 2018. Brands like Yoyi C (mainland China), Bifido (Taiwan), Meiji (Japan) and Maeil (South Korea) have increased the pressure on Yakult, which witnessed retail value share losses throughout the review period.

COMPETITIVE LANDSCAPE

Not just a milk brand

Well-established Kowloon Dairy remained the leading player in fresh milk in 2018. In mid-2017, the company launched another product line by introducing drinking yoghurt in both original and green apple flavours.

Nestlé’s healthy snack positioning

Dairy Farm (Nestlé Hong Kong) initiated “Finally We Got This Healthy Snack!” as a marketing slogan in mid-2017, newly positioning itself as a “healthy snack” option for children. The marketing claims that Dairy Farm contains no preservatives, but has active lactobacillus, which is good-for-digestion.

Yakult Honsha launches a new brand in Hong Kong

In mid-2017, Yakult Honsha introduced another good-for-breakfast drinking yoghurt brand, Joie, especially intended for children in Hong Kong. Adding milk to the original recipe of Yakult, Joie aims to bring new excitement and provide more health-functional ingredients, such as calcium, vitamin D and probiotics.

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