Dairy industry in this half year: polarization is accelerating, and it is becoming more and more difficult for small and medium-sized enterprises

After years of market-oriented competition, China's dairy industry has formed a pattern

The two giants occupy half of the country

According to the data, listed dairy enterprises achieved a total revenue of 186.

From the perspective of revenue scale, there are 3 dairy enterprises with revenues of more than 10 billion yuan, namely Yili Shares, Mengniu Dairy and Bright Dairy, with revenues of 63.

It is worth noting that the two giants of the dairy market, Yili and Mengniu, have achieved double growth in revenue and net profit during the reporting period, continuing to lead the industry

It can be seen that whether it is the scale of revenue or the scale of net profit, the two giants of Yili and Mengniu occupy half of the industry

For the performance of the two giants, industry insiders believe that in the overall fluctuating environment of the dairy industry, the anti-risk ability of leading enterprises is relatively stronger

At the same time, dairy giants are also enriching their product lines through investment or acquisition, etc.

Since 2021, Yili has strategically invested in Ausnutria Dairy to strengthen its market competitiveness in the field of infant milk powder; Mengniu acquired Miaoke Lando, and the overall cheese business after the merger jumped to the top of the

Small and medium-sized dairy enterprises are looking to list for financing

Compared with the net profit of Yili, Mengniu, etc.

Zhu Danpeng, a senior researcher at the China Brand Research Institute, said that the counter-trend growth of Yili and Mengniu has brought a stronger sense of oppression to small and medium-sized enterprises

To this end, in recent years, some regional and niche dairy companies have tried to break the double strong situation in the field of liquid milk through concept marketing, social media promotion, live streaming and other means

According to statistics, since 2022, more than 10 dairy companies have launched an impact on

Higher raw material costs lead to changes in performance

In the elaboration of the reasons for the change in performance, factors such as the rise in raw material prices and the decline in sales in some regions under the influence of the epidemic were frequently mentioned

In the first half of this year, the average daily intake of dairy products declined

In terms of milk powder, according to AC Nielsen data, the overall sales level of the industry in January-April this year fell by 4.

At the same time, the price increase of raw materials is also a problem

According to customs data, from January to May this year, the average landed price of alfalfa hay in China was 456 US dollars / ton, up 27% year-on-year, and the cumulative import of dairy products was 1.
524 million tons, and the average landed price was 4006 US dollars / ton, up 25%
year-on-year.

Industry analysts pointed out that in the current market environment, dairy companies are facing three core challenges, one is to overcome cost pressures and optimize benefits; The second is to develop incremental disks and find a stable and sustainable new growth curve in addition to the main business; The third is to keep the basic disk and constantly innovate to cope with competition
.

Looking forward to the future, the above-mentioned people said that at present, on the cost side, raw milk prices and packaging materials have fallen
slightly.
It is expected that from the second half of this year to next year, dairy enterprises will most likely achieve both revenue and profitability
.

(Yang Xiaojing, comprehensive arrangement)

China Food News (2022-09-06 04 edition)

(Editor-in-charge: Yang Xiaojing)