Haihe has partnered with Tianjin's traditional bakery, Xianghe Bobo Shop, to open five co-branded fresh milk stores in the city, using Haihe milk in baking pastries.

The company has also collaborated with the Tianjin Museum on culture-themed products and launched co-branded ice cream with the De Yun She Performance Group, known for xiangsheng performances. These collaborations have made their products iconic representations of Tianjin.

Looking ahead, Haihe Dairy plans to explore further collaborations with grilled fish brands to develop iced products and specialty milk beverages, Zou said.

"Our goal is to seamlessly integrate Haihe milk into various consumption scenarios," Zou said, adding that its products sport a playful image in order to better resonate with consumers.

Some dairy producers have chosen to innovate on taste rather than flavors.

Bai Xuedong, vice-president and co-founder of Blue Sea Dairy, said the company's focus on brand innovation is based on surprising Gen Z consumers with changes to taste.

He cited an example of its product "Haomanzu", which means "satisfied" in Chinese, a yogurt incorporating whole strawberries and grapes, differentiating it from other freeze-dried fruit yogurts on the market.

"You have to delight your consumers with something challenging, yet unexpected," said Bai.

But a change of flavor in dairy products is easily copied by competitors, she added. So, Blue Sea Dairy chose to innovate on taste, providing a deliciously luxurious experience of an entire fruit-in-yogurt product, said Bai.

The company stocks 50 metric tons of seasonal fruits a year in advance, 48 hours from picking and processing to stocking, he said.

Another player, New Raspberry Co Ltd, has also made strides in product innovation by making yogurt a replacement for meals.

Zhang Xingshi, general manager of the company, said it was inspired by the popular fruit oatmeal trend to develop its Chewy Yogurt product.

Combining yogurt with grains and freeze-dried fruits, New Raspberry has positioned yogurt as a potential meal replacement, catering to both necessity and frequent use.

Under the concept of "everything can be chewy" and light eating, New Raspberry launched mini packs of room-temperature chewy yogurt products. These 50-gram packs, containing 10 grams of grains, meet children's pre-meal dessert needs, creating new consumption scenarios, he said.

How to help Chinese consumers eat more natural cheese is what French dairy enterprise Lactalis prioritized in its work in China.

Alexandre Pasquet, general manager of Lactalis North Asia, said Chinese consumers are increasingly focusing on functional and natural dairy products. Lactalis International's leading brands include President, Lactel and Kraft.

While European children start consuming natural cheese early to meet nutritional needs, similar trends are emerging in China, Pasquet said.