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Oatly Battles Low Awareness Of Nondairy Milk As It Prepares To Enter Chinese Market

May 29, 2019: 12:00 AM EST
Swedish oat drink manufacturer Oatly hopes to build a foothold in the Chinese beverage market, where studies show most Chinese consumers are at least a little lactose intolerant. There are no official statistics, but research has shown that lactose intolerance affects around 30 percent of Chinese children, and 92 percent of adults. The brand launched in Hong Kong in 2016, where it is sold in supermarkets, Starbucks, Pacific Coffee outlets, and independent cafes. It has opened an office in China to prepare for a launch there. The Chinese government strongly supports the dairy industry and encourages milk production, but dairy alternatives have been growing. Oatly wants to make a splash in the nondairy milk category, but first has to tackle its branding and the low awareness of dairy alternatives. Ninety-six percent of consumers in Hong Kong, for example, only think of cow's milk when they see the Chinese character for milk. Only two percent think of plant-based milk.
Richard Whitehead , "Oatly has sights set on great march into China", Dairy Reporter, May 29, 2019, © William Reed Business Media Ltd
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