CITIC Securities: Optimistic about domestically produced dairy products entering a high-growth stage of deep processing categories.

CITIC Securities pointed out that the development of deep processing categories in the domestic dairy industry has entered a new stage from "drinking milk" to "eating milk," with the industry accelerating the layout of production capacity. By leveraging low milk prices and downstream cost reduction and efficiency improvement demands, the industry is promoting the localization substitution of dairy products deep processing brands and raw materials. The scale of deep processing demand on the B side is expected to exceed 26 billion yuan, with the prosperity of baking, ready-to-drink beverages, and Western fast food driving sustained high growth in B-side demand. With advantages such as product cost-effectiveness, local supply chains, and market services, domestic brands are optimistic about entering a high-growth stage in the deep processing category.