On May 29, Heilongjiang Wondersun Dairy
Co., Ltd. (Wondersun) announced the official launch of its new high-end product
Zhicai infant formula milk powder. According to the information disclosed by
Wondersun, the infant formula milk powder launched this time will benefit
babies with A2 beta-casein and alpha-lactalbumin, and it also contains special
ingredients to enhance nutrient absorption.
Since the beginning of 2022, Ausnutria and
Beingmate have successively launched several new A2 dairy products. As of
Wondersun’s launch of its new A2 dairy product, at least three milk powder
companies have launched A2 dairy products in the first half of this year alone,
which indicates that the dairy industry believes that current customers highly
value A2 milk powder. However, some experts opine that as more companies
produce A2 dairy products and as competition grows, companies may choose to make
cuts during the manufacturing of their products, and high-end products may fall
in quality.
Wondersun first entered the A2 dairy market
in August 2020, launching a fresh milk product along with Xinchun Nutritious
Milk Powder, Anli Cong Jingyue Maternity Milk Powder, and A2 Zhuge Xiaojiang's
children's growth formula milk powder. In September 2021, Wonderson launched
the A2 dairy product Jingmei organic milk powder. In 2021, Wondersun’s revenue
exceeded the RMB 5 billion (USD 750 million) mark for the first time. At the
same time, its total revenue increased by 19%, and its profit increased by 12%,
achieving a historic breakthrough.
Dairy companies focus on A2 products to
target lactose intolerant customers
Before A2 dairy products were introduced
into the Chinese market, the industry's perception of milk protein was that its
main components were whey protein and casein, the former accounting for 20% and
the latter accounting for 80%. The casein in milk is mostly beta-casein, which
accounts for about 30% of the total milk protein and is the main source of the amino
acids present in milk. Furthermore, beta-casein can be divided into two
variants, A1 beta-casein and A2 beta-casein.
When A1 beta-casein protein is present in
milk, it prolongs the digestion of milk proteins and may induce an inflammatory
immune response, causing symptoms such as indigestion, diarrhea and bloating in
infants; these symptoms are often referred to as lactose intolerance. On the
contrary, A2 beta-casein is more stable and compatible with the human digestive
system, and it does not easily cause discomfort to the body.
Wondersun first A2 dairy company in
China
Based on this scientific knowledge, Dr.
Corran McLachlan registered A2 dairy company in New Zealand in the year 2000
and screened diary cows for those that only secreted A2 beta-casein through DNA
detection technology. At first, the company mainly produced A2 milk. In 2013,
the company developed an A2 infant milk powder formula and launched it in
Australia and New Zealand.
Also in 2013, A2 dairy products entered the
Chinese mainland market with the help of the company CSFA Holdings Shanghai Co.,
Ltd, which began to sell A2 infant formula to Chinese consumers. Since then,
with the surge in international e-commerce businesses, the Chinese market has
become the largest overseas market for A2 infant milk powder.
Statistics show that in fiscal year 2019,
the revenue of A2 dairy products in the Chinese market increased by 73.6% to NZD
405 million (USD 256 million). During 2020, business from China accounted for
nearly half of the total sales of New Zealand A2 infant milk powder business's
total sales.
For more information, please check our Dairy Products China News.
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