Click the image for details The decline in China's soft drink sales has echoed in our ears since 2016. With consumption upgrading and the health trend in consumer demand, plant-based protein beverages have gradually entered consumers' view. The rise of Six Walnuts in 2013, the emergence of Special Forces Fresh Coconut Juice in 2015, and the current focus on soy milk all indicate that plant-based protein beverages have become a new field actively explored within the industry. Yes, today we are talking about soy milk, a familiar old category that has suddenly gained new "shine." Are you ready for this wave of soy milk craze? Here are the major events in the soy milk category in recent years, sorted by time:

  1. At the end of 2014, Mengniu formed a joint venture with WhiteWave Foods, a leader in plant-based nutrition in Europe and the US. In December 2014, they launched Silk (Zhipu Mofang), and in June 2016, they launched Pure Fragrance Soy Milk.
  2. In August 2015, VV Soy Milk held a launch event in Xuzhou for bottled soy milk under the theme "Bottled Soy Milk, Joy Upgrade." In 2016, they launched the "Dou" series.
  3. In June 2016, Vitasoy, which held 42.3% of the ready-to-drink soy milk market, entered the mid-to-high-end market with the "Vita Health+" brand soy milk.
  4. In April 2017, Dali Group launched Doudou soy milk, positioning it as a strategic product for the group.
  5. In July 2017, Beidahuang Group launched "Beidahuang Northeast Soy Milk" with ambitions for a 10-billion-yuan market.
  6. Of course, a wave of national and regional brands have also entered the soy milk category, such as Coconut Palm Soy Milk, Xianjin 1985, Black Bull PET new soy milk, and Tianwo's "Young You" soy milk.
  7. According to insiders at Yili, Yili will launch a soy milk series in the fourth quarter. ... With the entry of dairy giant Yili, a "tug-of-war" among soy milk brands is expected to begin. As an observer of the FMCG industry, New Distribution has conducted market research, consumer communication, distributor interviews, and exchanges with industry insiders. Regarding the entry of the soy milk category, we have heard two different voices:
  • One is supportive, believing that soy milk will become a daily beverage for the masses, a 10-billion-yuan market;
  • The other is pessimistic, believing that soy milk will be just a temporary trend like coconut juice. In response to these two voices, as an observer, I will objectively present each viewpoint without subjective commentary or guidance: I. Supportive Voice: Believing soy milk will become a daily beverage for the masses, a 10-billion-yuan market
  1. In terms of nutritional value, soy milk is no less than yogurt or milk on the market. It also aligns with consumers' health and nutrition trends. Attached is a nutritional value comparison chart [Source: New Processes and Formulas for Protein Foods] Milk | Yogurt | Soy Milk Contains various active substances that play a significant role in eliminating external bacteria and viruses, repairing damaged cells, and maintaining the stability of the internal environment. Milk is also a good source of calcium, vitamins, and other nutrients. | Made from fresh milk, sterilized and fermented with active lactic acid bacteria. The lactic acid bacteria ferment lactose to produce large amounts of lactic acid, which inhibits harmful bacteria. Yogurt aids digestion and absorption in the intestines and enhances immunity. | Contains high-quality plant protein, fat, and vitamins, with higher levels of lecithin and vitamin E than milk. It has strong antioxidant effects, inhibits the formation of spots, promotes fat metabolism, softens blood vessels, and prevents obesity.
  2. Soy milk is a national beverage, a well-known category among the public, with a broad consumer awareness base. From childhood, many of us have had awareness of soy milk, especially soy milk powder, such as VV Soy Milk and Black Bull Soy Milk, which I remember well. Whether it's Tetra Pak or bottled soy milk, the category itself requires little consumer education.
  3. With the involvement of FMCG giants like Dali and Yili, they can further stimulate the market and consumers on a large scale, giving consumers another choice among healthy beverages (milk, yogurt, juice). In the past, the soy milk market was regional, mainly in Sichuan-Chongqing (Vivi Soy Milk), Pearl River Delta, and Yangtze River Delta (Vitasoy and VV). With the entry of giants like Yili and Dali, leveraging existing national channel networks and distribution, along with mass media communication, can change the regional consumption characteristics of soy milk.
  4. The success of Vivi Soy Milk in the Sichuan-Chongqing market indirectly verifies the possibility of soy milk becoming a sustained consumer beverage. Vivi Soy Milk was launched around 2000. By 2012, its annual sales in Sichuan Province alone reached 700 million yuan. In 2009, Vivi's market share in the Sichuan-Chongqing market reached 80%. After more than a decade of operation, sales have continued to rise. Currently, Vivi Soy Milk has become a "standard" for locals eating hotpot in the Sichuan-Chongqing region. ... After reading the supportive voice, do you think the soy milk category is about to become a 10-billion-yuan market? Now, let's hear the pessimistic voice. II. Pessimistic Voice: Believing soy milk will be just a temporary trend like coconut juice.
  5. The main consumer group for soy milk is still families. Compared to the universal consumption of milk, soy milk remains a marginal beverage for mainstream consumers. Changing consumer perception is difficult.
  • I buy it often; it's nutritious and tasty, and my kids love it. Personally, it tastes like soy milk;
  • I bought it for my kids, and they drank it right away. It's really good, especially after chilling; sweet with a soy aroma;
  • It still tastes like childhood;
  • It's okay; the elderly like it;
  • It's good; I often miss breakfast, so I bought a lot of cereal and such. The traditional perception of soy milk is soy milk powder, which mainly serves family breakfast consumption (also declining), especially for middle-aged and elderly people with blood sugar and lipid concerns, and some consumer preferences (children's nutritional soy milk powder has been replaced by milk and yogurt). However, the current mainstream hot market products are mainly Tetra Pak and bottled forms. To get more mainstream young consumers to accept liquid soy milk as a daily beverage or as a substitute for milk, changing consumer perception is difficult.
  1. Soy milk's perceived nutritional value is significantly lower than milk. Under consumption upgrading, consumers prefer milk. Soy milk is made from soybeans, which are not scarce (soybeans are a daily food), so the perceived value is low. In contrast, milk's raw material is scarcer, giving it a higher perceived value than soy milk. Simply put, cows have more perceived value than soybeans. (Of course, this is also related to years of category promotion by milk manufacturers.)
  2. Soy milk has basic consumer awareness but lacks typical consumption scenarios. How can consumers be motivated to buy it, or in what scenarios would they buy it? Take the breakfast market: consumers can drink soy milk (either ready-made or homemade from a soy milk machine), milk, juice, porridge, etc. For breakfast beverages, soy milk is highly substitutable. Its competitors are not just same-category brands but also other categories. Other 10-billion-yuan categories have clear scenarios: herbal tea addresses "heatiness," walnut milk addresses "brain health," and energy drinks address "energy replenishment." What about soy milk?
  3. Why haven't established FMCG giants like VV and Vitasoy, which have operated for over a decade, ignited the market? Why should Yili and Dali be able to spark the market and create a mass market of over 10 billion yuan? So, after hearing the pessimistic voice, what do you think? Do you think soy milk is just a temporary hotspot? Will it be like coconut juice? What should you do? Should you take on a new brand for short-term gains, or plan for long-term operation with a well-known brand to establish a foothold? Conclusion:
  4. This article is an introductory guide to the soy milk category. Amidst such "hot trends," it provides you with "pros and cons" to consider, hoping distributors will better understand the essence of soy milk consumption and avoid blind participation and investment.
  5. Of course, this article does not argue whether you can or cannot participate in the soy milk business. If you decide to participate, you need to find the right methods and operational logic. Under the brand manufacturer's strategies, combine your own operational advantages and configuration to achieve differentiated operations.
  6. Regarding the "supportive voice" and "pessimistic voice" presented in this article, as the voice from the front line, we want to hear your thoughts. To deepen and broaden the discussion on the soy milk market, New Distribution has set up a temporary WeChat group. Scan the QR code below to share your views on the soy milk category or the difficulties you've encountered in soy milk operations. Let's discuss together.
  7. Preview: The second issue of soy milk interpretation, "Practical Operational Guide for Regional Soy Milk Markets," is coming soon. Are you interested in the soy milk market? Want to join more discussions on how to operate in the soy milk market? You can add friends via the QR code below to join the group. Those who join will also receive the latest industry analysis report. When adding friends, note "Soy Milk Discussion".