NETHERLANDS – Chinese dairy giant Yili Group remains among the global top five dairy companies with a turnover of US$18.2 billion while also firmly holding onto its top leadership position in Asia for the ninth consecutive year, the 2022 Global Dairy Top 20 Report by Rabobank has revealed.
Yili also achieved the highest growth rate of 31.7% among the top 20 to drastically reduce the margins between the top four while making it challenging for the rest of those on the ranking to catch up by maintaining strong momentum.
This year, the Rabobank Report highlights that there has been even more intense competition across the industry in terms of remaining economically stable and profitable.
Due to its acquisition of Ausnutria Dairy and strong domestic sales growth, the Dutch multinational banking and financial services company says Yili has become Asia’s first dairy producer to exceed RMB 100 billion (US$14.85billion) in turnover.
In addition, the parent brand Yili and subsidiary brand Satine, AMBPOMIAL all broke the record of RMB 20 billion (US$2.97billion) in annual sales.
Innovation has helped the Chinese dairy giant to maintain its market leadership in its long-standing core liquid milk and ice cream businesses.
As a result, the milk powder, especially the Jinlingguan brand which topped the milk powder segment regarding its growth rate, and cheese businesses are also emerging rapidly, with the company’s retail sales of cheese products increasing 6.3% YoY in market share.
Contribution to entire industry
In addition to rapid growth, Yili topping is attributed to its contribution to the industry by promoting win-win collaborations across the industrial chain, global operations, and sustainable development facilitating development across the entire industry.
In China, the newly launched Yili Future Intelligence and Health Valley hailed as the “Dairy Silicon Valley”, houses the world’s largest production bases in terms of its production capacity, featuring the highest level of digitization and the most advanced technologies in the industry.
This year, Yili took the lead in China’s food industry by releasing its Plan for a Net-Zero Carbon Future and Roadmap to A Net-Zero Carbon Future.
In addition to establishing China’s first net-zero carbon food factory, Yili has launched China’s first net-zero carbon dairy product series, including milk, yogurt, organic milk powder, and ice cream.
Growth strategy
Through its acceleration of building out a global network in major markets, Yili achieved an 8% growth in its overseas revenue, with its products covering over 60 countries and regions across five continents.
In Indonesia, Rabobank notes the growth that is targeting SEA consumers from Yili’s first self-built ice cream production base, put into production has formed a “dual center” for the other center located in Thailand.
By upgrading the production system and doubling the capacity of its Hokitika butter plant, the Dutch bank projects more growth in revenue from the dairy giant considering that its subsidiary Westland has also effectively expanded the market share for Westgold butter.
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