Core Insights - The consumption structure of dairy products in China is undergoing significant changes, with a focus on quality and functional products [1][2] - The implementation of revised food safety standards for sterilized milk is pushing companies to enhance their milk source and production processes [1][2] Industry Trends - The inspection pass rate for fresh milk is projected to reach 99.96% in 2024, with key quality indicators surpassing those of imported products [1] - Functional dairy products, such as high-protein, low-fat, and zero-sugar options, are experiencing annual growth rates of 8% to 10%, significantly outpacing traditional dairy products [1] - A large portion of urban and rural residents, 63%, have not yet developed a daily milk consumption habit, indicating potential market growth opportunities [1] Company Strategies - Leading companies are responding to market demands by increasing the proportion of their own pastures and upgrading production lines [1] - Smaller dairy enterprises are either collaborating with large-scale pastures or shifting towards segments like reconstituted milk, which allows the use of reconstituted milk [1] - The introduction of new products, such as high-end infant formula with colostrum, is aimed at building competitive advantages through unique raw materials [2] Regulatory Impact - The new food safety standards define a "quality red line" for the dairy industry, promoting a shift from scale expansion to quality enhancement [2] - The collaboration among enterprises, the industry, and consumers is expected to drive the healthy development of the industry while meeting consumer demands [2]