China Focus: Coconut yoghurt brand Yeyo, new packaging rules, cage-free eggs, and growth in the baijiu and dairy sectors

Broadening horizons: China’s Yeyo looks to expand reach beyond Tier 1 cities with nationwide premium supermarket launch​​

Chinese coconut yoghurt brand Yeyo has set its sights on consumers in markets beyond its Tier 1 strongholds with a new nationwide launch in Ole, the largest premium supermarket chain in the country.

Yeyo lays claim to being the first coconut yoghurt specialist brand in China, and is best known for its lifestyle-focused collaborations with big brands such as Nike and Lululemon. The firm has strong presence in the China Tier 1 cities such as Shanghai due to the presence of many of its key target consumer audience i.e. fitness-loving Gen-Y females between age 25 to 35, but it has now set its sights beyond these cities with a stronger offline presence.

China excessive packaging rules: Tea in the spotlight as regulator implements stricter bans on entire category​​

China State Administration for Market Regulation (SAMR) has announced new, stricter excessive packaging regulations governing the tea industry, one of the country’s largest and most traditional commodities.

Since 2021, China has been on a mission to expel the use of what it has deemed ‘excessive packaging’ in the country with particular focus on the foods and cosmetics sectors. In its latest update to the excessive packaging regulation, SAMR has now mandated that tea and tea-related products will fall under the latter category and allowed a maximum of three packaging layers instead of four.

The tea sector also has the unfortunate potential of generating a huge amount of waste e.g. via the plastic bottles used to sell RTD teas in if not controlled, hence it comes as no surprise that SAMR is hoping to nip this potential issue in the bud.

Cage-free challenges: China egg industry leaders cite need for better traceability tech to prevent authenticity issues​​

Egg industry leaders in China have highlighted a need to develop better traceability technology to ensure cage-free eggs reaching consumers are authentic, in order for the sector to reach the next phase of development.

“The main issue here in China is that although consumers know what cage-free eggs are and may demand them, they often don’t know the differentiation between eggs that are caged or cage-free,” ​Szechuan Xinde Agriculture spokeswoman Manly told the floor at the recent Sino-Malaysia Cage-Free Egg Symposium.

“This is why there is a strong need for this traceability technology to come in and give them assurance that the eggs they are consuming are definitely cage-free.​

China beverage boost: Baijiu and dairy industry leaders call for incentives to modernise and increase productivity​​

Industry leaders in China’s baijiu and dairy sectors have urged lawmakers to prioritise policies that encourage modernisation and productivity to help drive exports.

With China’s international trade having opened up significantly since the worst of the pandemic, many brands have been keen to explore additional revenue and expansion opportunities in other markets but found this difficult due to a variety of possible factors from stable high-quality production to the difference in distribution channels overseas.

Industry leaders from the dairy and baijiu alcohol categories in particular believe that regulators need to provide more policy incentives for industry players to improve.

Access advantages: Distribution gains driving China dairy growth but reduced sugar products remain crucial​​

China dairy giant Yili believes that cold chain advances and new distribution models have transformed the sector in the country, but advises that reduced sugar products are ‘basic but crucial’ to maintain growth. With dairy having become increasingly well-established as a protein source in China over the past few years, many new brands have entered the market.

According to market leader Yili, it is not enough to simply have a good product, as brands also need to ensure availability across multiple channels across the entire country.

In addition to logistical transportation and online platforms, Yili also views convenient consumption as a form of accessibility to consumers. The firm has also highlighted sugar reduction as a continued driver in the dairy sector, positioning this as not so much a trend as a necessity.