Recently, Xiaoxianyu, under the high-end fresh milk benchmark Shiny Meadow, made a splash with its unique 'green cat' image, capturing the attention of numerous fans and winning the MUSE Design Awards for its innovative packaging design and brand concept. When people are struck by such an unconventional visual and marvel at it, they can't help but ask: Is the 'conventional' chilled fresh milk, which has always been marked by 'cow and pasture imagery' and conveys the 'freshness' narrative, beginning a glamorous transformation?
The Track Has Been 'Racing' Forward Continuously Evolving and Advancing
The continuous growth in penetration and expansion of ambient white milk has driven the rapid development of China's milk industry over the past decade, gradually maturing consumers' understanding of milk. More importantly, the expansion of upstream pastures and the surge in dairy cow numbers have pushed dairy companies to seek new growth points, intensifying marketing efforts. Consumers have gradually come to recognize that chilled fresh milk offers more active nutritional value compared to ambient white milk. Meanwhile, the improving cold-chain logistics and distribution systems have continuously expanded the sales radius of chilled milk. Especially with the boost from the three-year pandemic, consumers have realized that chilled fresh milk can help improve immunity, propelling chilled fresh milk onto a path of rapid growth. Consequently, after 2018, dairy consumption began shifting toward low-temperature products, ushering in a new golden era for the chilled fresh milk category.
Data source: China Commercial Industry Research Institute; compiled by the author.
As a result, the chilled fresh milk track gradually became lively. The dairy giants (Mengniu and Yili), whose ambient white milk revenue typically accounts for over 80%, along with emerging dairy brands (Classy·K, Jane's), successively launched their own heavyweight chilled fresh milk brands and products starting from the end of 2018. For example, Mengniu launched Shiny Meadow fresh milk at the end of 2018, Yili launched Jindian fresh milk in early 2019, and even the century-old Swiss FMCG giant Nestlé entered the chilled fresh milk market at the end of 2022 with its 'A2 β-casein' fresh milk priced at 40 yuan/650ml (source: JD.com), making the track even hotter. At the same time, the lively chilled fresh milk segment has been continuously upgrading and differentiating, with competition becoming increasingly fierce and 'involutionary,' and various concepts emerging. From ordinary chilled fresh milk to ultra-pasteurized milk with high-temperature instantaneous sterilization to lock in freshness, and then to high-end subcategories such as desert organic fresh milk, A2 β-casein, grass-fed fresh milk, and Jersey organic fresh milk, the frequent advancements indicate the strategic orientation of many dairy companies to intensify efforts and stake claims in the chilled fresh milk track.
The Involution of Chilled Fresh Milk
When 'resource endowment' and 'technology and craftsmanship' are increasingly used as tools for 'freshness' competition, it's time for change. For a long time, dairy companies' efforts to compete for 'freshness' in the chilled fresh milk track have always revolved around pastures, milk sources, distance, time, and more advanced technology and craftsmanship to strengthen selling points such as safety, higher quality, and more active nutrients. For example, endorsements like 'golden milk source belt,' 'exclusive pastures,' 'desert organic pastures,' and 'purebred Jersey cattle' repeatedly tell consumers the story of 'those who have milk sources win the world.'
1. Increasingly Shorter Time: New Hope Dairy launched its '24-hour Pasteurized Fresh Milk' freshness strategy in 2011, emphasizing '7-day shelf life,' 'products are removed from shelves within 24 hours of production,' and 'no overnight milk,' which contributed significantly to New Hope's advancement to the top three in the chilled fresh milk segment. Since then, New Hope has continued to advance, launching 'Golden 24 Hours' and '24-Hour Platinum Ultra Milk,' emphasizing 'only selling milk from the same day' up to the present. Subsequently, Nanjing Weigang Dairy launched 'Zhichun 5-Hour Fresh Milk' in 2021 (from factory to consumer in just 5 hours), and Hema launched 'Daily Fresh Milk' (on shelves and removed the same day), conveying the concept of freshness through shorter times. Meanwhile, regional dairy companies across the country use the interpretation of 'fresh milk at your doorstep is fresher' to counter the strong appeal of leading companies' chilled fresh milk brands.
2. Increasingly Lower Pasteurization Temperatures: With the escalation of involution and fierce competition in the chilled fresh milk industry, lower pasteurization temperatures have also become a selling point that dairy companies are exploring for 'freshness.' Because lactoferrin in milk is very sensitive to temperature, the lower the pasteurization temperature, the more stable its content; conversely, at temperatures above 90°C, it essentially disappears. Therefore, many dairy companies have continuously innovated and broken through based on original pasteurization temperatures. For example, Bright Dairy's Youbei fresh milk reduced its pasteurization temperature from 85°C to 75°C, and Yantang Dairy and Tianyou Dairy also adopted 75°C. Later, Sanyuan launched fresh milk with an even lower 72°C pasteurization temperature, and New Hope also claimed that its 'Golden 24 Hours Fresh Milk' is also 72°C. Clearly, lower pasteurization temperatures have become another way for dairy companies to convey 'freshness.'
3. Increasingly Higher Content of Active Nutrients: A significant feature that distinguishes chilled fresh milk from ambient white milk is the presence of active substances such as lactoferrin, immunoglobulins, and vitamins. Especially in recent years, with companies' consumer education about low-temperature milk, consumers' attention to active nutrients in milk has increased. Therefore, Junlebao's 'Yuexianhuo,' Sanyuan's '72°C Fresh Milk,' Bright Dairy's 'Youbei Fresh Milk,' and Changfu's 'Pasteurized Fresh Milk' all indicate the content at supermarket terminals to highlight product advantages. Bright Dairy, with the slogan 'Not all milk contains immunoglobulins,' attempts to open a new era of high-end fresh milk rich in immunoglobulins. When dairy manufacturers become increasingly 'involutionary,' consumers also become increasingly 'picky,' and it's time for change.
The 'Change' Amidst Involution
When physical-level consumption memories become increasingly similar, how can we further strengthen consumers' taste experiences? Chilled fresh milk has a simple ingredient list and natural composition. Therefore, physical attributes such as taste and mouthfeel have become important characteristics for consumers' repurchase and pursuit. Ipsos monitoring data shows that over 78% of consumers pay more attention to pure taste, rich mouthfeel, and strong milk aroma in dairy products than before. As new chilled fresh milk products continue to enrich, these requirements and demands are increasing. To meet this demand, in recent years, more and more dairy brands in the market have begun to focus on efforts to create physical-level consumer memories for chilled fresh milk. For example, a large number of key words describing taste and mouthfeel, such as 'extra-rich,' 'aromatic,' and 'creamy,' frequently appear to counter negative consumer feedback like 'milk taste is getting weaker' and 'not fragrant enough.' However, as upstream milk source construction, high-quality feed selection, and technological advancements gradually converge the taste and mouthfeel of various products, dairy companies need to make further efforts to satisfy consumers' palates and create brand and product differentiation. This means transcending the basic functional attributes of chilled fresh milk consumption and instead providing consumers with emotional and sentimental value, creating higher product premiums.
1. From Basic Functional Attributes to Social and Psychological Pursuits
The dairy industry has always been regarded as an important barometer of growth in China's consumer goods sector, with its vast demand and huge market attracting and covering a wide range of Chinese consumer groups. While developing rapidly, it also reflects multiple psychological needs in the context of consumption upgrading. For example, the current mainstream young consumer group pursues a healthier lifestyle, with refined and reasonable dietary combinations and rich leisure sports, constantly seeking a better and more vibrant mental state. At the same time, after transcending basic functional consumption attributes, they are willing to pay higher premiums for sentiment and entertainment as a way to achieve relief and release. For example, Jane's, a new yogurt brand that has only been established for six years and has seen revenue soar to around 2 billion yuan, attributes its core success to deep insights into the target young consumer group, aligning with the clean label trend of 'delicious without burden' and 'raw milk, lactic acid bacteria, nothing else' to meet the consumption upgrading needs of an extremely healthy lifestyle. These 'extremes' are reflected in: extremely self-disciplined life, and extreme pursuit of sugar control, no additives, and high quality.
At the same time, Jane's interprets its brand concept and positioning of 'minimalism and love' with a pure and fresh style. Young people striving in a complex and ever-changing social environment often experience anxiety with no outlet, and instead yearn for the realm of 'pure heart, beautiful form' to be healed. We often say that in reality, life doesn't always become beautiful, but alternates and cycles between the two. These seemingly contradictory social and psychological pursuits are a true reflection of the life background and emotional volatility of contemporary consumer groups, especially young people. But this should also be the best time for chilled fresh milk to step out of its functional consumption attributes and embrace this psychological appeal.
2. Innovating and Creating Diversified Marketing Paths to Achieve Higher Premiums
There has long been a mainstream view in marketing management academia that 'the driving force of business development lies in continuous differentiation, so the most effective innovation for a brand is category innovation—products based on category innovation have more lasting vitality.' At the same time, combined with a marketing perspective focused on IP, using IP as a medium to precisely create viral topics and provide emotional value to consumers. For example, Yinlu Peanut Milk has traditionally had an older audience, basically over 35 years old. There is an urgent need to attract younger Gen Z users to become loyal fans of Yinlu Peanut Milk and establish emotional connections with them. In response to the recent rise of Chinese animation and the trend of two-dimensional culture moving from niche circles to mainstream aesthetics, young people find two-dimensional cute culture irresistible. In this era of universal anxiety, cute expressions can heal almost anything. Creating the 'Little Peanut' IP with contrast cuteness is like launching an IP entertainment marketing campaign that effectively reaches young people. Therefore, through subcategory innovation and IP-embedded marketing techniques, we can inject a spiritual brand soul into chilled fresh milk brands. The most direct market value manifestation is the emergence of premium effects. At the same time, it builds a brand moat for chilled fresh milk in its continuous evolution.
3. Linking Consumers Through Packaging Interpretation to Encourage Them to Pay High Premiums
Returning to the essence of packaging, it is the expression and release of brand propositions and concepts. Packaging changes have always been considered a barometer of brand evolution, playing a flexible role in transforming a brand's multiple identities and functions. Or, it can be said that packaging design conveys and drives product innovation, brand revitalization, and value creation. That is, completing the second definition of the glamorous transformation of chilled fresh milk through packaging changes. The chilled fresh milk category has always been 'conventional' in its pure functional consumption attributes such as 'resource endowment, technology and craftsmanship, and fresh nutrition.' Shifting to a value expression that is more about brand revitalization and personality and spiritual symbolism is the only reason consumers are willing to pay high premiums for products. For example, the bottle of 'Xiaoxianyu' mentioned at the beginning of the article abandons the usual 'cow' and instead innovatively uses a 'cat' image, based on insights into young consumer psychology and linking consumers through personalized spirit. Today's young people, while striving with vibrant lives, are often trapped under the heavy pressure of work and life. Feelings of frustration, anxiety, and boredom follow, and being accompanied by 'cats' becomes a way to heal oneself. At the same time, 'Xiaoxianyu' conveys the confession of loving oneself well through a healthy fresh milk choice with more protein and fewer calories. Therefore, innovation and renewal in packaging not only revitalizes the brand itself but also showcases the product's physical attributes and emotional value effects. It is worth mentioning that since its launch, Xiaoxianyu has been loved by young consumer groups at a price far higher than high-end chilled fresh milk, with obvious high premium effects.
Conclusion
In the continuous advancement of chilled fresh milk in the 'freshness' journey, dairy brands have exhausted all means, making progress in pastures, milk sources, technology, nutrition, and science, driving the industrialization of chilled fresh milk.
However, when the basic functional consumption attributes of the chilled fresh milk category have reached a certain height, the further leap to insights into the sentiments of different groups and generations, and multiple social psychological levels, should just be beginning. Amidst the 'involution' where the quality of chilled fresh milk products from various dairy companies is gradually becoming homogeneous, 'seeking change' should be the most common and frequent word in the dairy consumption field. Of course, accurately grasping the only unchanging connotation of the chilled fresh milk category—'freshness'—combined with the spiritual needs of different groups and generations, and providing emotional value solutions, is the soul of seeking change. I believe that chilled fresh milk can not only accompany China's consumer groups as they grow, but also look forward to dairy manufacturers drawing a continuously evolving marketing panorama on the 'freshness' journey of the chilled fresh milk track!
Author Bio: Wang Ying, with years of professional experience in marketing consulting, has served as a senior marketing consultant, consulting project manager, and consulting project director at Shanghai Lianzhi Zhida Marketing Consulting Group. She has accumulated rich industry and professional knowledge in the FMCG field (especially the dairy industry). During her career, she has provided marketing planning and marketing management consulting services to multiple clients.