Analysis of the Market Position and Competitive Strategy of Junlebao's Low-Temperature Business

According to the latest market data, Junlebao’s ‘Yuexianhuo’ and ‘Jianchun’ have indeed achieved leading positions in their respective segments. Yuexianhuo holds approximately 24% of the high-end fresh milk market, while Jianchun ranks first in the low-temperature yogurt segment. To maintain and expand this advantage, strategic layout from multiple dimensions is required.

According to data from the Frost & Sullivan report, Junlebao holds an overall 14.5% share of China’s low-temperature liquid milk market, ranking second nationwide; its low-temperature yogurt market share is 17.2%, also ranking second. In 2024, Junlebao’s low-temperature yogurt revenue grew by 12.57% and fresh milk revenue by 44.54%, far outperforming the industry average. In the first three quarters of 2025, the fresh milk business continued to surge by 40.65%, demonstrating strong growth momentum [1].

From the perspective of the competitive landscape, the low-temperature yogurt market has relatively high concentration, with Mengniu and Yili holding approximately 23% and 13% of the market share respectively, while Junlebao has established a differentiated advantage in the healthy yogurt niche track with its Jianchun brand. In the low-temperature fresh milk segment, although the market size is still relatively limited (accounting for only 4.42% of the liquid milk market), the growth rate is significant. In the third quarter of 2025, the sales of low-temperature pure milk increased by 19.68% year-on-year [2].

Junlebao should continue to strengthen its technological leadership. The INF 0.09-second ultra-instant sterilization technology adopted by Yuexianhuo is one of its core competitive strengths, which extends the shelf life to 19 days while retaining more active nutrients. It is recommended that the company further increase R&D investment and seek breakthroughs in the following areas: development of functional yogurt (such as for segmented needs like intestinal health, immune regulation, sugar control and fat loss), in-depth development of high-end milk sources like Jersey milk, and a customized product matrix for specific groups (such as children, the elderly, and sports people) [1].

The cold chain is a key bottleneck restricting the development of low-temperature dairy products. Currently, the penetration rate of low-temperature fresh milk is less than 45%, and the cold chain infrastructure in third- and fourth-tier cities and rural markets is relatively weak. Junlebao should seize the opportunity of IPO fundraising to focus on expanding production facilities: the Tianchang, Anhui factory serves as the main supply base for the Yangtze River Delta, and the expansion project of the Jiangmen, Guangdong factory targets the Pearl River Delta market. These layouts will effectively improve regional coverage efficiency [1]. At the same time, it should deepen cooperation with professional cold chain logistics enterprises, explore the application of intelligent temperature control monitoring systems, and ensure that products are in a constant temperature environment of 2-6°C throughout the entire process.

Junlebao currently covers approximately 2,200 districts and counties in mainland China, accounting for 77% of the country’s county-level administrative regions, and this channel network is its core asset. In the future, it should adopt a dual-track strategy of “deep cultivation + expansion”: on the one hand, improve the single-store sales capacity of existing outlets, optimize product display efficiency, and strengthen market penetration in advantageous regions such as East China, Central China, and South China; on the other hand, actively develop emerging channels, including new retail formats such as freshly made coffee and tea chain stores, bakeries, membership supermarkets (such as Sam’s Club, Hema), and instant delivery platforms (such as Dingdong Maicai, Meituan Flash Purchase) to reach a wider consumer group [2].

Consumers’ awareness of low-temperature dairy products still needs to be cultivated. In first- and second-tier cities, consumers have a high acceptance of low-temperature fresh milk and low-temperature yogurt, but in sinking markets, the consumption inertia of traditional room-temperature milk is still strong. Junlebao should strengthen the dissemination of core value propositions such as “freshness”, “active nutrition”, and “health”, and carry out consumer education through content marketing, KOL cooperation, factory visits, etc., to enhance brand awareness and loyalty. At the same time, it can learn from the functional upgrading experience of Japan’s Meiji yogurt (such as functional products like LB81 and LG21) and integrate more health concepts into product innovation [3].

Facing the continuous efforts of competitors such as Mengniu (Mengniu Fresh), Yili (Golden Classic Fresh Milk), Bright Dairy (Fresh Pasture), and New Dairy (24-Hour Fresh Milk), Junlebao needs to build a more solid moat. It is recommended to strengthen differentiated advantages in the following aspects: deepen the advantage of self-sufficiency rate of milk sources (the current 66% self-sufficiency rate is already leading in the industry) to ensure the stability of high-quality raw material supply; build a full-chain traceability system from “pasture to table” to strengthen the “fresh” brand mindset; explore scenario marketing such as pasture tourism and parent-child experiences to strengthen the emotional connection between the brand and consumers.

It should be noted that the industry still faces certain challenges. In 2024, the median revenue growth rate of listed dairy enterprises was -8.86%, and all dairy enterprises with revenue over 10 billion RMB recorded negative growth, putting overall pressure on the industry [1]. At the same time, factors such as high cold chain costs, the strong rise of regional dairy enterprises, and the long consumer cultivation cycle may pose pressure on Junlebao’s market expansion. It is recommended that while maintaining high-speed growth, the company focus on profitability construction and cash flow management to ensure sustainable and healthy development.

The success of Junlebao’s low-temperature twin brands stems from precise product positioning, leading technological innovation, and profound channel accumulation. Looking forward, the company should adhere to the trinity strategy of “technological leadership + channel deep cultivation + brand strengthening”. While continuing to consolidate existing advantages, it should actively develop emerging channels and sinking markets, and continuously expand brand influence through product innovation and consumer education. In 2024, the scale of China’s dairy market reached 653.5 billion RMB, with per capita consumption of only 40.5 kg, less than one-third of the global average, so the market potential is still huge [1]. In this continuously expanding market, Junlebao is expected to gain more development dividends with its comprehensive competitive advantages.

[1] Sina Finance - “Third Player in the Dairy Industry” Junlebao IPO: Low-Temperature Business Maintains Strong Growth, “Jianchun” and “Yuexianhuo” Serve as Key Growth Engines (https://finance.sina.com.cn/stock/observe/2026-01-20/doc-inhhyfur6019369.shtml)

[2] Xinhua News Agency Finance - Multiple Listed Dairy Enterprises Actively Build New Engines for Future Growth (http://jjckb.xinhuanet.com/20251225/7adc88bda9844c0f85c457aa2e933622/c.html)

[3] Huaan Securities Research Report - Strengthen Low-Temperature Value Leadership, Focus on Internal Cultivation for Accumulated Development (https://pdf.dfcfw.com/pdf/H3_AP202511171782882233_1.pdf)