Yogurt is relatively new to China, Hong Kong, Taiwan, and other countries in Southeast Asia. This subcategory, which includes yogurt drinks, spoonable dairy yogurt, and other fermented and cultured dairy beverages, has not been part of traditional cuisines until recently. Furthermore, widespread lactose intolerance in the region has been a barrier to dairy consumption. The benefits of yogurt are hard to ignore, however, and the global marketplace for yogurt attracts consumers in China and Southeast Asia who purchase yogurt products for nutrition and health, and because yogurt is good for them.
Looking at four countries in the region, yogurt consumption is increasing among over 60 percent of Chinese consumers, along with half of consumers in Vietnam and 40 percent in Indonesia and Thailand. The primary reason given for the increase – health. Consumers also say that flavor and health, namely sugar, fat, and protein, are the most influential nutrition features.
Drinking yogurts, which make up a solid 59 percent of sales in China and 85 percent of sales in Thailand and Malaysia (2018), posted a CAGR of 37 percent, 2014-2018. The category overall shows strong growth in new product development (NPD), including an increase of 78 percent from 2017 to 2018.
‘Eating for Me,’ an Innova Market Insights top trend for 2019, describes consumers looking for products that meet their individual needs, including health and diet. Yogurt and drinking yogurt frequently are positioned for digestive/gut health and low fat and protein claims often appear on products. Sugar reduction claims (low/no sugar) show strong growth, as do claims pertaining to the inherent health features of yogurt, namely protein and probiotics.
The Japanese company Yakult has been producing a probiotic dairy drink since 1955. Its key NPD outside of Japan is a light/low sugar version of its classic product.
Vietnam based Vinamilk has introduced new products with specific nutrients to support health claims, including DHA and vitamin A for brain and eye health and suggest brain health benefits in the product name IQ.
Below: Lepur Three Three Three Double Layered Red Velvet Cake Flavored Greek Yogurt (China, Jul 2019), Greek yogurt flavored with red velvet cake, a popular cake flavor in the US. High protein, probiotic cultures. Yakult Ace Light Cultured Milk Drink (Malaysia, Dec 2018), contains 30 billion probiotic Lactobacillus casei Shirota strains which help improve bowel function. Light. Less sugar. Vinamilk Susu IQ Yogurt Drink With Strawberry Flavor (Vietnam, Sep 2019), source of fiber, calcium, vitamins A, B6 and B12. UHT treated. Certified halal. Naturally fermented. For IQ and lively bright eyes.
‘A Fresh Look at Fiber’ highlights the resurgence of fiber as a key nutrient, aided in part by the development of soluble fiber ingredients such as resistant dextrin, oligofructose, xylooligosaccharide, and inulin that increase fiber content without the typical grittiness of bran. Soluble fibers also deliver a natural sweetness that allows manufacturers to reduce added sugars.
Manufacturers and consumers are embracing fruits and vegetables, hence the 2019 trend ‘The Plant Kingdom.’ Fruit and vegetables add flavor, color, texture, and health benefits.
Below: Hua Hua Niu Opuntia Ficus Flavored Yogurt Drink (China, Aug 2019), prickly pear flavored yogurt drink with added resistant dextrin, oligofructose and xylooligosaccharide (prebiotics/soluble fiber). Probiotic cultures, lactose free, low fat. Indomarket Heavenly Blush Yogurt Drink: Banana Malt (Indonesia, Jan 2019), banana malt flavored yogurt drink with added inulin. Also contains wheat flour, brown rice flour, black rice flour. Source of fiber claim on front of pack. Beiqi Vegetable Lactobacillus Drink (China, May 2019), probiotic milk drink flavored with vegetables including carrots, broccoli, asparagus, cabbage, mountain celery, tomatoes, cucumber, spinach, pumpkin, beets and broccoli.
Moving forward, the yogurt subcategory is expected to continue growing to meet consumer demand. Lactose free claims are likely to become more prevalent to call attention to the natural lactose reduction by the bacteria that ferment yogurt. Cheese is a flavor to watch for its inherent health benefits that can help make yogurt even healthier.
Category Insider: Yogurt – China & Southeast Asia is a report from Innova Market Insights, which brings together consumer research, market sizes, company analysis and a review of new product trends and activity to demonstrate just how the picture has been changing and to suggest where the future opportunities can be found.
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