How dairy is responding to consumer prioritization of health and wellness

Health is a top priority for consumers globally. NielsenIQ analysts recently declared health and wellness to be “the single most powerful consumer force” and, while the COVID-19 crisis has eased and economic pressures have intensified since then, surveys show it remains an essential spending category in the vast majority of households.​

When NielsenIQ polled global consumers in 2021, almost half of people said they make proactive health and wellness choices on a regular basis.¹​ The focus on health is affecting what consumers expect from food and beverage companies. More than 70% of consumers said companies have a big role to play in the availability of healthy food for all. Almost two-thirds of people prefer to buy from companies with strong health mandates across their whole product portfolios. Yili is investing in a global health ecosystem to meet consumer expectations.

The persistent consumer focus on health is matched by the ongoing importance of the indicator to the United Nations’ Sustainable Development Goals (SDGs).²​ Measures of human health underpin many of the 169 targets that the UN set across its 17 SDGs.

Against that backdrop, executives are prioritizing health and other criteria covered by the SDGs. A 2022 survey of CEOs found that 82% of US leaders see environmental, social, and corporate governance as a value driver for their businesses.³​ To succeed, businesses need to both do good and be seen to be doing good, meaning the focus on health and other SDGs must be accompanied by transparency.

The demand for transparency is intertwined with the focus on health. The survey found 89% of people consider general nutrition facts when making purchases, and 80% value other information such as details of a company’s certifications and its trade, animal welfare and labor practices. 

The results showed that consumers want to know where their food comes from and how it gets made. Consumers have continued to demand supply chain transparency as their buying habits have changed, notably through the shift from physical to online purchases. The move to online sales makes it easier for consumers to find information about products – and learn if a company has opaque business practices.

Building a global health ecosystem

Yili, Asia’s top dairy producer, is building a global health ecosystem that aligns with what matters most to today’s consumers. The global industrial chain features high-quality pastures, 15 R&D centers, and 75 production bases, through which Yili works with 2,000 partners in 39 countries across six continents, and a cross-Pacific “dairy bridge” that connects Oceania Dairy, Westland Milk Products, and partner dairy farms in New Zealand. Through the ecosystem, Yili is addressing key health challenges such as lactose intolerance among Asian consumers.

Consumers have visibility into the operation. Yili opened its facilities to the public in 2005, turning the locations into industrial tourism sites for people interested in dairy production and quality management processes and establishing the company at the forefront of the push for greater transparency. On January 3, Yili has established an “Online Tour: Networking Yili’s Global Value Chain” platform to present its high-quality pastures, production bases, and innovation centers to global customers via live streaming, short videos, and virtual reality scenes. On New Year’s Eve 2022, Yili also rolled out a 15-hour live stream on social media to showcase memorable celebrations and countdown moments in ten regions around the world.

Through the online platform, Yili is showcasing its pursuit of “100% dedicated, 100% safety, 100% healthy” products and opening a new chapter in its ongoing push to connect with consumers. After years of connecting physically with consumers by letting people into its facilities, the company is now forming virtual relationships to enable it to interact with global consumers regardless of physical distance.

The move into the virtual realm comes as Yili continues to globalize. Yili’s milk powder ,liquid milk, cheese, butter, and ice cream products have already entered over 60 markets. Products such as AMBROSIAL yogurt, Youngfun, Kabrita, Joyday and Cremo have also seen increasing market shares overseas, and have played important roles in supporting the development of local dairy industries. Now, consumers in all of those markets can see into the innovation centers and supply chain that deliver the products and learn how Yili’s focus aligns with their own commitment to health.

References​

1. ​An inside look into the global consumer health and wellness revolution​. NielsenIQ (2021).
2. ​The 17 goals​. United Nations, Department of Economic and Social Affairs.
3. ​Rogers, K.; Doucette, J. How consumer companies can help deliver a sustainable future​. (2022).