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DAIRY GLOBAL INSIGHT SERIES: YOGURT AND DIGESTIBILITY

Digestibility is the key to unlocking the rich potential


of the Chinese yogurt market
An in-depth consumer survey reveals that Chinese consumers are embracing yogurt for its
healthy properties, but future development of the market hinges on exploiting probiotic
benefits and offering an increased variety of lactose-free products for those who seek yogurt
with greater digestibility

China: A new frontier in consumer-driven dairy innovation


In an era in which health benefits, clean labels and free-from foods are valued by
consumers around the world, yogurt is going from strength-to-strength. Nowhere is this
seen more clearly than in China. From parents wanting protein- and calcium-rich foods for
their growing children to men and women watching their weight, Chinese consumers are
embracing yogurt as a healthful and nutritious addition to their diets and the industry is
responding with a range of options to suit their needs. For yogurt manufacturers seeking to
maximize the opportunity represented by Chinas emerging passion for yogurt, it is
becoming increasingly clear that understanding the importance these consumers place on
gut health and digestibility is vital.
As many as 95% of Chinese people
are lactose intolerant 1

Dairy consumption in China is rarely discussed without the topic of lactose intolerance being
brought to the table. While it is true that as many as 95% of Chinese1 people are intolerant
to the sugar found in dairy foods, yogurts lower levels of lactose compared to milk may
make it a good choice for those seeking the health benefits of dairy while being mindful of
the potential burden of lactose. Levels
of lactose in yogurt vary depending on
the amount of milk powder or other
lactose-containing ingredients added,
and stirred yogurts with 3.56%
lactose are available, as well as
specially formulated lactose-free
options.
In addition, the positive benefits of
probiotics are key in driving many
consumers yogurt purchasing
behaviors.
1

Lactose Free Dairy Booms New Nutrition Business. Available at: https://www.newnutrition.com/nnbOutput/downloadFile/3114 Accessed November 2014

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By understanding the digestibility factors contributing to consumer decision making,


manufacturers have opportunities to further capitalize on yogurts rich stash of beneficial
microbes, overcome perception barriers to additional yogurt consumption and find new
ways to navigate this vibrant market which has the potential to become the biggest in the
world.
Based on a consumer perception survey undertaken in six diverse markets including China,
this paper is the third of a set of global insight reports focusing on yogurt. It forms part of
the DSM Global Insight Series an investigation into consumers perceptions and attitudes
around food, taste and behavior that aims to help the food industry improve its
processes and deliver healthy, tasty and attractive products to consumers.
Rising yogurt consumption in China outstrips other markets
Dairy demand in China is growing and, after milk and flavored milk drinks, it is yogurt that is
leading growth.2 Consumer survey findings reveal that, while demand for yogurt has
increased around the world over the past three years, this increase has been highest in
China. Sixty-seven percent of Chinese consumers surveyed are eating more yogurt than they
were three years ago compared to just half in the other countries surveyed (Brazil, France,
Poland, Turkey, and USA). A number of factors are believed to have contributed to Chinas
growing desire for yogurt, including the increase in consumers disposable income as well as
their increasing focus on food quality and health benefits. Yogurts protein content and
calcium richness are especially appealing for certain sectors of the Chinese population,
including growing children, those managing their weight and older, health-conscious
individuals.
67% of Chinese consumers surveyed are eating
more yogurt than they were three years ago
compared to just half in the other countries surveyed

Drinking yogurt is more common than spoonable yogurt in China and this snack which
can be eaten on the go and is often packed with probiotics is contributing to growth of
the market. In fact, yogurt already accounts for almost 18% of fluid milk products drunk in
China.3 Ambient yogurt drinks (which dont require refrigeration) grew by 110% in 2013 and
further growth is expected.4
Ambient yogurt drinks (which dont require refrigeration)
grew by 110% in 2013 and further growth is expected4

Business Week. Available at: http://www.businessweek.com/articles/2014-03-26/chinas-growing-hunger-foryogurt-hits-global-supplies. Accessed November 2014


3
USDA Foreign Agricultural Service GAIN Report. Available at: http://gain.fas.usda.gov/Recent-GAINPublications/Dairy-and-Products-Annual_Beijing_China-Peoples-Republic-of_12-23-2013.pdf. Accessed
November 2014
4
Canadean. Available at: http://www.canadean.com/news/yoghurt-drinks-on-the-rise-in-china. Accessed
November 2014.

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48%

USA

60%

Turkey
50%

Poland
29%

France

67%

China
61%

Brazil
53%

Total
0%

10%

20%

30%

40%

50%

60%

70%

Figure 1: Percentage of survey respondents who are consuming more yogurt than compared to
three years ago.
Daniel Geng, Business Development Manager Cultures at DSM Food Specialties in China comments: The
majority of Chinese adults and children (post-weaning) suffer a deficiency of lactase, the enzyme needed to
break down the lactose in milk and the common trigger for lactose intolerance. Using yogurt as a means to
introduce dairy into the diets of billions of Asians has been a very successful strategy since its the most easily
digestible dairy product. In China, you have significant population growth and urbanization and at the same
time the government is supporting the drive for increased dairy consumption for school children. Combine this
with increasing disposable income and exposure to the highly marketed benefits of yogurt and its easy to see
why more and more Chinese consumers are demanding this healthy, nutritious food. Consumption habits have
shifted too, and a significant portion of the market is now on the go which makes yogurt drinks in particular
convenient for busy lives. Seen as healthier than other beverages, this segment is growing fast and we can
expect to see a steady rise over the next five years.

Digestive benefits are driving demand


As well as consuming more yogurt, Chinese people are embracing the
opportunities that rising income and increasingly accessible retail outlets
offer to trade up to yogurt products that offer better quality and more
functional benefits.5
Our survey revealed that 76% of Chinese yogurt fans opt to eat the food
because they believe it is beneficial to gastro-intestinal health. This
compares to an average of just 48% for the other markets surveyed
(Brazil, France, Poland, Turkey and USA). But this focus on gut health is
5

Mintel Yogurt China November 2013

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doing more than just inspiring consumers to choose yogurt over other foods: it is driving the
type of yogurt they buy. When Chinese consumers are on the hunt for yogurt, probiotics are
top of mind 83% report actively looking for probiotics when shopping for yogurt compared
to 50% or less in other markets.

90%

83%

80%
70%
60%
50%

48%

48%

47%

51%
42%

40%
30%

18%

20%
10%
0%
Total

Brazil

China

France

Poland

Turkey

USA

Figure 2: Percentage of survey respondents who are actively looking for probiotics in their yogurt
Insight: Traditional Chinese approaches to medicine emphasize the importance of balance, harmony and
healing from within. Probiotics which often offer to support a healthy and balanced gut may chime with this
and be seen to provide a new way to be proactive about health.

but digestibility perception limits consumption for some


In spite of the enthusiasm of a significant proportion of Chinese consumers for the gastrointestinal benefits of yogurt, others remain concerned about its digestibility. Of those
consuming the same amount of yogurt or less than they were three years ago, 41% report
that they would increase their consumption if it was easier to digest. Turkey, where 23% of
consumers falling into the same group say that making yogurt easier to digest would inspire
them to eat more of the food, is the only other market surveyed in which perceptions about
digestibility are a significant barrier. In other markets, only an average of 11% gave this
answer.
In China the focus on yogurt digestibility is most
pronounced among older consumers

In China, this focus on digestibility was most pronounced in older consumers: 51% of the
over fifties eating the same amount or less yogurt compared to three years ago said better
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digestibility would boost consumption compared to just 28% of those aged 2535 and 40%
of those aged between 36 and 50. This suggests that identifying and tackling the factors that
challenge the digestibility of yogurt for some Chinese consumers could unlock new areas of
potential in this growing market, especially amongst older people. Providing new options for
people with lactose tolerance issues is one strategy for doing this.
Insight: With the rise in popularity of yogurt in China, opportunities abound for manufacturers to provide products
which overcome barriers to consumption by addressing perceptions about digestibility. Concerns about lactose
intolerance may be addressed through lactose-free options that deliver all the nutritional benefits of standard
yogurt but free consumers from their digestibility concerns.

Unlocking the potential of lactose-free preferences


As many as 75% of the worlds population lose their lactase enzyme after weaning6 meaning
that they dont produce enough of the enzyme lactase to digest the amount of lactose they
consume. Growing awareness of lactose intolerance has led to a rise in demand for lactosefree products. In China, one in three (34%) survey respondents reported buying lactose-free
dairy, in spite of the fact that only 5% identified themselves as lactose intolerant. This
preference for lactose-free may be explained by that fact that 60% of Chinese consumers
perceive lactose-free yogurt to be healthier than regular yogurt. This sentiment is
significantly stronger in China than in other markets.
Merel Roes, Global Marketing Manager at DSM Food Specialties comments: "Lactose can be
difficult to digest and many people experience digestive discomfort after consuming dairy
products, even when they are not diagnosed as lactose intolerant. Others are simply trying to
keep their overall carbohydrate intake in check so want to keep their sugar consumption to a
minimum. Using lactase enzyme promotes the digestibility so consumers don't miss out on the
foods they love. There is a dual benefit too as lactase enhances the natural sweetness of milk,
so manufacturers can reduce the amount of added sugar, making an all-round healthier
product."

Insight: Lactose-free dairy products arent just for those with a diagnosis. Lactose-free options have broad
appeal to health-conscious Chinese consumers.

One size doesnt fit all in the opportunity-rich lactose-free yogurt space
In China, 81% of consumers who are buying lactose-free dairy are eating more yogurt than
they were three years ago, making them key customers for yogurt manufacturers. This is a
greater number than compared to lactose-free consumers in the other markets surveyed
(Brazil, France, Poland, Turkey and the USA), where an average of 67% say they are eating
more yogurt than they did three years ago.

Hertzler SR, et al. How much lactose is low lactose? J Am Dietetic Assoc. 1996;96:2436.

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Echoing the focus of lactose-free yogurt buyers on health, 57% of these consumers report
boosting their yogurt consumption with probiotic options, compared to 23% for plain yogurt
which was the next most popular option.
But not all lactose-free consumers in China are eating more yogurt: 20% report that their
consumption of the food has fallen or remained the same over the past three years.
Identifying the reasons behind this drop off of yogurt eating in these customers as well as
getting to grips with the factors that would inspire all lactose-free dairy customers to eat
more yogurt is important for manufacturers entering the lactose-free arena.
20% of Chinese lactose-free yogurt consumers eating the same
amount/less yogurt than three years ago would increase consumption if
more lactose-free options were available

If presented with more lactose-free options, 20% of lactose-free dairy consumers in China
would eat more yogurt (among those eating the same amount or less yogurt than three
years ago). Interestingly, 29% of this group would eat more yogurt if it was lower in fat and
28% would do so if there were more tastes/flavors available. But the survey reveals that, for
lactose-free dairy consumers in China who are consuming less yogurt than they were three
years ago, the top factor that would get
them eating more would be a yogurt that is
easier to digest. This sentiment is consistent
with consumers across the globe as one in
four (25%) of lactose-free consumers would
eat more yogurt if it were easier to digest.
This ranks within the top three motivators to
consuming more yogurt which may help to
explain why many lactose-free dairy
products are labeled as easy to digest.

Meanwhile, among lactose-intolerant consumers in China eating the same amount or less
compared to three years ago, 38% would be tempted to up their yogurt consumption if
there were more lactose-free options available. Interestingly, younger consumers in China
may be more prepared than their older counterparts to pay more for the digestibility
benefits of lactose free yogurt: 38% of those aged 2535 would pay a premium of between
10% and 50% for a lactose-free yogurt compared to 29% of those aged 3650 and 22% of
those aged over 50.
Daniel Geng, Business Development Manager Cultures at DSM Food Specialties in China comments: As
lactose intolerance is widespread in Asia, lactose-free and low-lactose dairy will be increasingly popular in
China. Whilst no and low lactose variants are niche right now the market is growing fast. We see big potential
in consumers aged 55 and older as those consumers are increasingly mindful of their health and are starting to
turn to yogurt to prevent gut and bone diseases. However, the health benefits of yogurt are still widely
unknown in China which means brands need to educate consumers more particularly on yogurts role for bone
health. Digestive health is still the most popular health claim; however, I would expect to see new products
with other functional benefits such as brain and immunity along with greater segmentation. The challenge for

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marketers will be increasing consumption from a few times a week to daily and maybe given intolerance issues
this is where lactose-free will play a bigger role.

Insight: There is room for expansion in the number of lactose-free yogurt options available to consumers.
Combining greater digestibility with additional functional benefits could deliver products that drive increased
consumer demand.

Survey overview
In May 2014, DSM conducted an international perception survey on yogurt amongst 6,221
men and women (age brackets: 2535; 3650; 50+) in Brazil, China, France, Poland, Turkey
as well as the USA. The survey was carried out online from 24 April to 15 May, 2014. Results
are reported at the 95% confidence level with a margin of error of = + / 3 %
For more information, contact us now:
Info.food@dsm.com l www.dsm.com/food

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