2022
0
China Infant Milk Formula Market Report 2022
2022-11-03T03:08:02+00:00
OX1100645
3695
157169
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Report
en_GB
“Rising China pride, the impact of COVID-19 and the new China IMF standards are likely to further improve preference for premium products launched by domestic brands, so international players need…

China Infant Milk Formula Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

“Rising China pride, the impact of COVID-19 and the new China IMF standards are likely to further improve preference for premium products launched by domestic brands, so international players need to step up their game to meet Chinese babies’ nutritional needs and develop resonance and rapport with moms.”
Catherine Liu, Senior Analyst

This Report looks at the following areas:

  • Retail market value and volumes of IMF, key drivers, barriers and future trends
  • The market competition landscape
  • New product trends and innovative marketing activities
  • IMF brand usage and usage of special formulas (eg organic, A2 milk, plant-based milk)
  • IMF purchase channels and information channels
  • Parent’s awareness and attitudes towards fortified nutrition
  • Parents’ evolved purchase behaviour and brand selection due to the impact of COVID

Table of Contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Retail volume and sales growth witnessing inevitable slowdown
              • Figure 1: Best- and worst-case volume sales forecast of infant milk formula, China, 2017-27 (est)
              • Figure 2: Best- and worst-case volume sales forecast of infant milk formula, China, 2017-27
            • Companies and brands
              • Chinese players lead while international players lose share
                • Figure 3: Market value share, by leading infant milk formula companies, China, 2020-21
              • Tapping into IMF growth opportunities in lower tier cities
                • Figure 4: IMF brand usage by city tier, 2022
              • Driving premiumisation via formula innovation & premium milk source
                • Figure 5: IMF products (including stages 1, 2 and 3) with organic claims, China, 2017-22
              • Smaller packs for trial an effective way of switching consumers
                • Figure 6: IMF (including stages 1, 2 and 3) with different package size, China, 2017-22
              • The consumer
                • Knowledge level about diversified types of special formulas is high
                  • Figure 7: Awareness and usage of special formula usage, 2022
                • Continue expanding to more specialised mother and baby care stores
                  • Figure 8: IMF purchase channel, 2022
                • Maximising the influential power of mother & baby communities
                  • Figure 9: Information channel to learn about baby nutrition, 2022
                • In the middle of an ingredients war and wanting more
                  • Figure 10: Awareness and preference towards fortified nutrition, 2022
                • New norm: switching brands more, stocking up more and paying more
                  • Figure 11: Impact of COVID on infant milk formula purchase, 2022
                  • Figure 12: Impact of COVID on infant milk formula purchase, 2022
                • What we think
                • Issues and Insights

                  • Upgrading the foundation of infant formula via “rare nature” milk source
                      • Figure 13: Examples of biodynamic IMF – Holle, China, 2022
                    • Getting dads involved and communicating household gender equality
                      • Figure 14: IMF brands with male celebrity endorsement, China, 2021-22
                    • Allergy-free/lactose-free is the new differentiation strategy
                      • Figure 15: IMF products (including stage 1, 2 and 3) with Low/No/Reduced Allergen and Low/No/Reduced Lactose claims, China, 2017-22
                      • Figure 16: Tmall IMF shopping festivals for babies with allergies or lactose intolerance (2021, 2022)
                  • Market Size and Forecast

                    • Decline in retail volume temporarily reversed thanks to burgeoning growing-up (stage 3) milk segment
                      • Figure 17: Retail volume sales of infant milk formula (000 tonnes), China, 2017-22(est)
                    • Retail volume is expected to decline in the long term
                      • Figure 18: Best- and worst-case volume sales forecast of infant milk formula, China, 2017-27 (est)
                    • Retail value enjoyed a healthy growth
                      • Figure 19: Retail value sales of infant milk formula (RMB bn), China, 2017-22(est)
                    • Retail value will remain stable
                      • Figure 20: Best- and worst-case volume sales forecast of infant milk formula, China, 2017-27
                  • Market Factors

                    • Number of newborns is expected to decline due to cultural evolution and the impact of COVID-19
                      • Figure 21: New births (million) and birth rate (%), China, 2015-20, China, 2011-21
                      • Figure 22: Plan to have more children, China, 2019-22
                    • Formulation innovation to keep up with diversified baby nutrition needs is supercharging IMF market
                      • Promise of milk source purity drives IMF premiumisation
                        • Figure 23: IMF products (including stage 1, 2 and 3) with organic claims, China, 2017-22
                      • Package downsizing is becoming a common premiumisation strategy
                        • Figure 24: IMF (including stage 1, 2 and 3) with different package size, China, 2017-22
                    • Market Share

                      • CR (concentration ratio) further increased
                        • Figure 25: Market value share, by leading infant milk formula companies, China, 2020-21
                      • Chinese players drive the flourishing of IMF
                      • Marketing Activities

                        • Building an emotional connection is appealing amid ingredients war
                          • Figure 26: Friso Prestige campaign, 2022
                        • Resonating with young moms via “being me before being a mom”
                          • Figure 27: Junlebao campaign, 2022
                        • Expressing product freshness through soft communication
                          • Figure 28: Feihe campaign, 2022
                        • Milk nanny addresses need to automatically and instantly make warm formula bottles
                          • Figure 29: Milk formula making devices available in China, 2022
                      • New Product Trends

                        • Growing-up milk for 1-3 years is accelerating fast
                          • Figure 30: Share of new IMF product launches by stage (including stage 1, 2, 3 and 4), China, 2017-22
                        • Focus more on nutritional fortification, less on functions
                          • Figure 31: On pack claims among IMF products (including stage 1, 2 and 3), China, 2017-22
                        • Organic is becoming the new favourite
                          • Figure 32: IMF products (including stage 1, 2 and 3) with organic claims, China, 2017-22
                          • Figure 33: Organic A2 milk IMF China, 2020-2022
                        • Trial packs are in demand
                          • Figure 34: IMF trial pack in sachet formats, 2020-2022
                        • Convenient tab/cube format, a desirable differentiation to drive premiumisation
                          • Figure 35: IMF in cubes/tabs available in China
                      • IMF Brand Usage

                        • Domestic brands dominate IMF market with Feihe No. 1
                          • Figure 36: IMF Brand Usage, 2022
                        • COVID-19 and lockdowns drove more parents to domestic brands
                          • Figure 37: IMF brand usage, 2022 vs 2021
                          • Figure 38: Covid impact on IMF purchase behaviours, 2022
                        • Junlebao is popular among younger parents
                          • Figure 39: IMF brand usage, by buyers’ age, 2022
                        • Feihe achieves mission impossible by expanding deeply into lower tier cities
                          • Figure 40: IMF brand usage, by city tier, 2022
                      • Usage of Special Formula

                        • Special formula is widely known
                          • Figure 41: Awareness and usage of special formula usage, 2022
                        • Awareness of special formulas is similar across city tiers
                          • Figure 42: Awareness of special formula usage, by city tier, 2022
                        • Organic formula has the highest trial conversion, followed by A2 milk
                          • Figure 43: Trial conversion (from awareness to ever trialled) of special formula usage, by city tier, 2022
                        • Trial conversion varies across age
                          • Figure 44: Trial conversion (from awareness to ever trialled) of special formula usage, by buyers’ age, 2022
                      • Fortified Nutrition Preference

                        • Fortified nutrients are well recognised
                          • Figure 45: Awareness and preference towards fortified nutrition, 2022
                          • Figure 46: Awareness and preference towards fortified nutrition, 2022 vs 2019
                        • DHA/ARA continues to be most preferred and its importance is ever increasing
                          • Figure 47: Perceived “the more, the better” among those who are aware, 2022 vs 2019
                        • Gen Z are less appreciative of fortified nutrition
                          • Figure 48: Perceived “the more, the better” among all parents, by buyers’ age, 2022
                      • Purchase Channel

                        • Specialised mother and baby care stores remain the top choice
                          • Figure 49: IMF purchase channel, 2022
                          • Figure 50: IMF purchase channel, 2022 vs 2018
                        • 85% of parents can be reached via top two purchase channels
                          • Figure 51: Information channel to learn about baby nutrition, by baby age, 2022
                        • Gen Z shifting towards emerging live streaming sites
                          • Figure 52: IMF purchase channel, by buyers’ age, 2022
                        • Tier 1 consumers are leading in specialised babycare shopping sites
                          • Figure 53: IMF purchase channel, by city tier, 2022
                      • Information Channel

                        • Four out of five parents can be reached via top two information channels
                          • Figure 54: Information channel to learn about baby nutrition, 2022
                          • Figure 55: Selected information channel to learn about baby nutrition, by baby age, 2022
                        • Gen Z parents tend to use fewer information channels
                          • Figure 56: Selected information channel to learn about baby nutrition, by buyers’ age, 2022
                          • Figure 57: Information channel to learn about baby nutrition, by age, 2022
                        • Popularity: store sales vs friends WOM
                          • Figure 58: Information channel to learn about baby nutrition, by city tier, 2022
                      • COVID Impact

                        • Lockdowns motivate people to stock up more and pay more
                          • Figure 59: Impact of COVID on infant milk formula purchase, 2022
                        • Supply issues trigger IMF brand switch
                          • Figure 60: Impact of COVID on infant milk formula purchase, 2022
                        • Domestic brands are more appealing than oversea brands
                          • Figure 61: Impact of COVID on infant milk formula purchase, 2022
                          • Figure 62: % agreement on the impact of COVID on infant milk formula brand selection, 2022
                      • Appendix – Market Size and Forecast

                          • Figure 63: Value sales of China’s infant milk formula retail market, 2017-27
                      • Appendix – Methodology and Abbreviations

                        • Methodology
                          • Abbreviations

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