Arla eyes premium portfolio growth

Arla Foods, the world's largest organic dairy producer, is sharpening its focus on innovation, premium nutrition and localized product development, as the company marked its eighth consecutive appearance at the China International Import Expo that took place in Shanghai from Wednesday to Monday.

The Danish dairy cooperative unveiled Cocio coconut-flavored chocolate milk, Arla fresh cheese herbs and spices, and Arla fresh cheese light plain, expanding its premium portfolio as Chinese consumers show increasing demand for high-quality, nutritious products.

"CIIE is not only a vital platform for global trade, but also a strategic gateway that deepens our engagement with Chinese consumers and partners," said Harrison Cheng, vice-president and head of China at Arla Foods. "We remain confident in the long-term prospects of the Chinese market, where rising demand for high-quality nutrition presents significant growth opportunities."

Its pillar segment, the infant nutrition unit, has seen its Arla Baby & Me products perform robustly in China, said the company, which is prioritizing its organic development and further enhancing its A2 milk-based formulas to improve absorption and compatibility with the nutritional needs of young children.

The company said the Arla brand is expanding both cross-border and domestic distribution channels to increase the reach of its early life nutrition products in China.

Early next year, Arla plans to launch an upgraded Baby & Me line with six core human milk oligosaccharides via cross-border channels, supporting infant nutritional health. In physical retail, the Baby& Me organic line will continue to be upgraded with pure organic ingredients, scientific formulas and patented technologies, to meet the ongoing demand for premium infant dairy products and strengthen Arla's leadership in the market.

The company's Cocio chocolate milk products remain a consumer favorite due to their clean-label formula and caramelized flavor. The new coconut flavor, debuting globally at CIIE, reflects the company's strategy to tailor innovation to evolving Chinese tastes.

Its cheese business is also expanding, with upgraded flavors, refreshed packaging and a focus on balancing indulgence and nutrition to meet shifting consumer preferences.

Arla said it will continue to use CIIE as a platform to showcase innovation, expand distribution and invest in research and development in China.

"China represents a strategically important market within Arla's global growth agenda, particularly in early life nutrition," said Frede Juulsen, head of early life nutrition at Arla. "With strong R&D capabilities and a resilient supply chain, we're well-positioned to meet the evolving needs of Chinese families."

This year, the Arla kitchen returned to CIIE and featured an open, wraparound layout integrated with a welcoming lounge area to foster deeper visitor engagement. The highly respected Michelin-level chef Rembrandt Van Der Laan was invited to create a selection of exclusive dishes showcasing its cream cheese and butter products.

The latest data released at the forum during the 8th CIIE vividly demonstrated the robust vitality and premiumization trend of China's dairy market, China Times reported.

From January to September, China imported 2.01 million metric tons of dairy products, valued at $9.35 billion, representing year-on-year increases of 3.5 percent and 14.8 percent, respectively. High-end categories such as infant formula, butter and cheese led the growth, with imported infant formula reaching 162,000 tons, up 6.7 percent year-on-year. The data also underscore the opportunities for foreign dairy producers to further tap into China's evolving market.