Table of Contents
Overview
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- What you need to know
- Covered in this report
- Definitions
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- Figure 1: Definition of low/mid/high MHI groups, by city tier
Executive Summary
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- The market
- Growth momentum expected to continue
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- Figure 2: Retail market value and volume of baby supplementary food, China, 2014-18
- Figure 3: Best- and worst-case forecast of retail baby supplementary food market, by value, China, 2013-23
- Product innovations lead segment growth
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- Figure 4: Volume share of baby supplementary food segments, China, 2017
- Companies and brands
- Nestlé gains greater share of a fragmented market
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- Figure 5: Leading companies’ share of retail baby supplementary food market, China, 2016 and 2017
- Aggressive expansion of portfolio
- Product innovation to address more than feeding needs
- The consumer
- Manufactured baby food catching up with homemade
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- Figure 6: Baby food penetration, China, June 2018
- Snacks struggle with low consumption frequency
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- Figure 7: Consumption frequency of baby supplementary food, China, June 2018
- Physical stores face challenge from online retailers
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- Figure 8: Purchasing channels, China, June 2018
- Stronger presence of international brands
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- Figure 9: Brand penetration, China, June 2018
- Trusting experience from close relationship
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- Figure 10: Purchase influencers, China, June 2017 & June 2018
- What we think
Issues and Insights
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- Meet competition from international brands by introducing local recipes
- The facts
- The implications
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- Figure 11: Baby supplementary food with typical Chinese ingredients, China, 2017-18
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- Figure 12: Alete’s Discovery range, Germany, 2017
- Homemade brands can bring dynamics to the market
- The facts
- The implications
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- Figure 13: Examples of sharing the manufacturing process of homemade baby supplementary food on digital platforms
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- Figure 14: Examples of handmade baby supplementary food products
- Support busy parents with better care
- The facts
- The implications
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- Figure 15: Examples of brands communication featuring supporting busy parents
- Figure 16: Examples of baby supplementary food with clear instructions
The Market – What You Need to Know
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- Robust growth expected to continue
- Digital platforms building offline presence
- Segment growth driven by product innovations
Market Size and Forecast
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- Market value welcoming robust growth
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- Figure 17: Retail market value and volume of baby supplementary food, China, 2014-18
- Figure 18: Best- and worst-case forecast of retail baby supplementary food market, by value, China, 2013-23
- Alleviated safety concerns ensure volume growth
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- Figure 19: Best- and worst-case forecast of retail baby supplementary food market, by volume, China, 2012-23
Market Factors
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- Regulation from authorities likely to easy safety concerns
- Digital platforms moving towards omni-channels
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- Figure 20: Digital platforms moving offline
- Parents having second thoughts on having more children
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- Figure 21: Planning to have more children by age & age of youngest child, China, Jan & June 2018
- Postponed age of pregnancy
Market Segmentation
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- Yet to tap potential of fruit-based food
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- Figure 22: Volume share of baby supplementary food segments, China, 2017
- Figure 23: New launches by sub-category by country, Jan 2017 –Oct 2018
- Baby cereals explore new varieties
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- Figure 24: Ingredients used in baby cereals, China, 2014-18
- Figure 25: Examples of baby millet cereals, China, 2017-18
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- Figure 26: Baby cereals containing multiple grains
- Baby snacks are driving category growth
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- Figure 27: New launches of baby food and drink (excluding infant formula and growing-up milk), 2012-17
Key Players – What You Need to Know
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- Nestlé gains greater share through active digital moves
- International brands bet on organic offerings
- Products to assist baby development
Market Share
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- More fragmented and competitive market
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- Figure 28: Leading companies’ share of retail baby supplementary food market, China, 2016 and 2017
- Active digital moves help Nestlé gain more share
- Local brands look to expand portfolio
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- Figure 29: Eastwes new products, China
- Figure 30: Fang Guang new products, China
Competitive Strategies
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- International brands bet on organic offerings
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- Figure 31: New launches claiming organic among baby supplementary food, China, 2015-18
- Figure 32: Launches of organic baby supplementary food from international brands, China, 2018
- Adopting professional image online
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- Figure 33: Example of brands launching professional papers on digital platforms, China
Who’s Innovating?
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- Meal supplements in the form of condiments and doses
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- Figure 34: Examples of meal supplements in the form of condiments
- Connecting with baby growth milestones
- Designed for self-feeding training
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- Figure 35: Examples of baby supplementary food designed for self-feeding
- Designed to soothe pain of teething
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- Figure 36: Examples of baby food products related to relieve teething pain
- Designed to celebrate achievements
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- Figure 37: Engnice Baby Awarding Biscuits
- Baby specialties entering more categories
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- Figure 38: Examples of new baby special products
The Consumer – What You Need to Know
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- Proper meals overtaking snacking
- Specialist stores and online generalists serve babies at different stages
- Trusting experience from close relationship
- Willing to update knowledge on baby feeding
Baby Supplementary Food Penetration
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- Packaged food catching up with homemade
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- Figure 39: Baby supplementary food penetration, China, June 2018
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- Figure 40: Baby supplementary food penetration, by age of youngest child, China, June 2018
- Opportunities to encourage early introduction
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- Figure 41: Repertoire of baby supplementary food penetration, China, June 2018
- Figure 42: Infant peanut introduction kit, US
- Purees and juice more welcomed in tier one cities
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- Figure 43: Selected baby food penetration, by city tiers, China, June 2018
- Figure 44: Purchase channel of parents who feed their babies packaged puree and juice, China, June 2018
Consumption Frequency
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- Proper meals over snacking
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- Figure 45: Baby supplementary food consumed once a day or more, China, 2017 June vs 2018 June
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- Figure 46: New launches of unflavoured/plain baby staple, China, 2016-2018
- Babies in extended families eat less packaged food
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- Figure 47: Baby supplementary food consumed once a day or more, by living condition, China, June 2018
Purchase Channels
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- Brick-and-mortar stores’ narrow victory
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- Figure 48: Purchase channels, China, June 2018
- High earners more willing to try emerging channels
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- Figure 49: Purchase channels, by income, China, June 2018
- Dynamic shift between specialist stores and online generalists
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- Figure 50: Top two channels from which consumers have bought baby products, China, January & June 2018
- Figure 51: Top two channels from which consumers have bought baby products, by age of youngest child, China, June 2018
Brand Penetration
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- International brands catching up
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- Figure 52: Brand penetration, China, June 2018
- Figure 53: New launches of baby supplementary food in China, by country of manufacture, 2013-17
- More brand-switching among high earners and parents with higher education
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- Figure 54: Repertoire of brand penetration, by education and monthly household income, China, June 2018
- From prudent experimenters to trusting laissez-faire
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- Figure 55: Brand penetration, by repertoire of categories consumed, China, June 2018
Purchase Influencers
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- Greater power of digital touchpoints
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- Figure 56: Purchase influencers, China, June 2017 & June 2018
- Grandparents have a say on feeding their grandchildren
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- Figure 57: Percentage of purchase decision affected by older generation, by age of youngest child China, June 2018
- Trusting peers
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- Figure 58: Percentage of purchase decision affected by experienced peer parents, by age of youngest child and education, China, June 2018
Facts in Feeding Baby Supplementary Food
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- Rational choices made regarding product choice
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- Figure 59: Attitudes towards origin and price of baby supplementary food, China, June 2018
- Comprehensive catalogue helps maintain brand loyalty
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- Figure 60: Attitudes towards selecting baby supplementary food, China, June 2018
- Packaging: practicality doesn’t suffice, appearance also matters
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- Figure 61: Attitudes towards packaging of baby supplementary food, China, June 2018
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- Figure 62: Examples of baby supplementary food with standout packaging
- Baby feeding: a topic that needs refreshing all the time
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- Figure 63: Attitudes towards feeding baby supplementary food, China, June 2018
Meet the Mintropolitans
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- Seeking up-to-date information
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- Figure 64: Purchase influencers, by consumer classifications, China, June 2018
- Hands-on and demand for diversity
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- Figure 65: Attitudes towards baby feeding, by consumer classifications, China, June 2018
- Attracted to premiumisation with organic claims
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- Figure 66: Attitudes towards product selection, by consumer classifications, China, June 2018
Appendix – Market Size and Forecast
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- Figure 67: Value sales of China’s baby supplementary food retail market, 2013-23
- Figure 68: Volume sales of China’s baby supplementary food retail market, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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