As China’s leading liquid dairy producer, Yili has already demonstrated its business plan to raw pet food. Its incubation program “one-on-one” enables a flexible and smart purchasing of pet food based on customized health assessment of each pet.
Through a meticulous analysis, this program can assign tailor-made pet food based on a variety of characteristics, including breed, age, physical condition, taste preference, and daily exercise rate. The product price range is also in the medium.
In 2025, China’s pet food market is expected to triple from 2020 and will reach CNY 150 billion., becoming the second largest market after the United States.
In relation to Yili’s ambition entering the pet food sector, the company indicated that it is looking for new growth potential in other sectors besides the dairy market. In the company’s 2021 annual financial report, it shows that its liquid dairy business ranked first with a revenue of nearly CNY 85 billion in the reporting period, up 11.54% year on year.
Within the category of dairy products, the company has a wide variety of products, such as milk power, cheese, beverages, and others. Therefore, the company sees the opportunity of entering the pet food market as an innovative approach to further expand its blueprint.