Core Insights - Yakult will close its first factory in Guangzhou on November 30, 2023, as part of a capacity optimization strategy due to declining demand for yogurt drinks and aging equipment [1] - The yogurt drink market in China has been experiencing a downturn since before the pandemic, with consumers increasingly favoring low-sugar or no-sugar options [2][3] - The competitive landscape has intensified, with various brands and new products, such as ready-to-drink tea, diverting consumer interest away from traditional yogurt drinks [2][3] Company Actions - The closure of the Guangzhou factory is not an isolated incident; Yakult previously announced the closure of its Shanghai factory in December 2024 to improve production efficiency and resource allocation [1] - Yakult has been in the Chinese market since 2002 and has expanded to 53 subsidiaries and 6 production bases over nearly two decades [1] Market Trends - The rise of professional probiotic supplements has provided consumers with more low-sugar or no-sugar alternatives, further impacting the demand for traditional yogurt drinks [3] - Major domestic dairy companies have also launched similar low-sugar products, increasing competition for Yakult [3] - The overall revenue for competitors like Junyao Health has shown modest growth, but profits have significantly declined, indicating broader challenges in the yogurt drink market [3]