Table of Contents
Executive Summary
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- The market
- Baby nutrition market continue steady growth
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- Figure 2: Retail value sales forecast of the baby nutrition market*(Billion RMB), China, 2020-25
- IMF dominates; baby supplementary foods gaining share
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- Figure 3: Retail value sales share of baby nutrition, by market segments, China, 2015-2020 (est)
- IMF retail value sales forecasted to increase amid premiumisation
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- Figure 4: Retail value sales forecast of infant milk formula (Billion RMB), China, 2020-25
- Growth momentum of baby supplementary food expected to be faster than IMF
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- Figure 5: Retail value sales forecast of baby supplementary foods* (Billion RMB), China, 2020-25
- Baby health supplements share benefits under the big immunity and gut health management concept
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- Figure 6: Retail value sales forecast of baby health supplements* (Billion RMB), China, 2020-25
- Future outlook considering the impact of COVID-19
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- Figure 7: Short-, medium- and long-term impact of COVID-19 on baby nutrition, China, December 2020
- Companies and brands
- IMF: leading domestic brands grabbing larger share
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- Figure 8: Leading companies’ value share in IMF market, China, 2018-19
- Baby supplementary food: Nestlé gains greater share through Gerber, and big snack brands join the game
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- Figure 9: Leading companies’ value share in baby supplementary food market, China, 2018-19
- International IMF brands centre around R&D, while domestic brands eyeing on channel expansion
- Fast-growing snack brands extend into baby supplementary food market
- Health supplement brands exploring new demographic
- The consumer
- Most concerned with physical developmental issues
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- Figure 10: Health and feeding issues, July 2020
- Parents seek functional food with fortified nutrition from a variety of categories
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- Figure 11: Consumption frequency, July 2020
- Functional benefits outweigh feeding training purpose, but cognitive development bridges the two
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- Figure 12: Product functions in supplementary foods/snacks, July 2020
- Knowledge gap exists for special functioning ingredients (especially A2 β-casein, MFGM and HMO)
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- Figure 13: Knowledge of ingredients in IMF, July 2020
- Online information channels carry most weight
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- Figure 14: Information channels, July 2020
- Special IMF is given greater attention
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- Figure 15: Select attitudes towards IMF, July 2020
- Ingredient quality of meat brings concerns to meat based baby supplementary food
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- Figure 16: Attitudes towards baby supplementary foods/snacks, July 2020
- What we think
Issues and Insights
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- Building on gaps for special functioning IMF ingredients
- The facts
- The implications
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- Figure 17: Examples of IMF and growing up milk that link key ingredients with more specific health benefits, Global, 2018-19
- Figure 18: Examples of A2-based IMF, China, 2018-19
- Decoding parents’ demand for cognitive development
- The facts
- The implications
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- Figure 19: Examples of baby food featuring innovative textures and fun shapes to develop kids intelligence, China and Overseas, 2019-20
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- Figure 20: Examples of baby food featuring innovative aroma, textures, and fun elements to develop kids intelligence, China and Overseas, 2015-19
- Baby health supplements could tap into snack based format
- The facts
- The implications
The Market – What You Need to Know
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- The category continues steady growth
- Continued low breastfeeding rate has limited impact on IMF
- Baby supplementary food and baby health supplements are fastest growing segments
Market Size and Forecast
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- Mintel’s forecast
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- Figure 21: Retail value sales forecast of the baby nutrition market*(Billion RMB), China, 2020-25
- Future outlook considering the impact of COVID-19
- COVID-19 brings opportunities for domestic IMF brands to increase product value perceptions
- Impact of COVID-19
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- Figure 22: Short-, medium- and long-term impact of COVID-19 on baby nutrition, China, December 2020
Market Factors
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- Number of newborns continues to experience negative growth
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- Figure 23: Birth rate, China, 2010-19
- Figure 24: Women in childbearing age*, China, 2014-19
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- Figure 25: Population of second-birth, China, 2016-19
- Continued low breastfeeding rate has limited impact on IMF
- Quality issues can weaken consumer trust towards baby supplementary food
- Special functions drive IMF value increase, whereas natural and convenience boost usage penetration of baby supplementary food
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- Figure 26: Top claims for baby milk and food launches, China, November 2015-October 2020
Market Segmentation
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- Baby supplementary foods gaining share
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- Figure 27: Retail value sales share of baby nutrition, by market segments, China, 2015-20 (est)
- Infant milk formula (IMF)
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- Figure 28: Retail value sales forecast of infant milk formula (Billion RMB), China, 2020-25
- Baby supplementary foods
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- Figure 29: Retail value sales share of baby supplementary foods*, by market segments, China, 2015-20
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- Figure 30: Retail value sales forecast of baby supplementary foods* (Billion RMB), China, 2020-25
- Baby health supplements
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- Figure 31: Sales value and growth rate of baby nutrition, by segment, China, 2018-20
- Figure 32: Retail value sales forecast of baby health supplements* (Billion RMB), China, 2020-25
Key Players – What You Need to Know
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- IMF: leading domestic brands grabbing larger share
- Baby supplementary food: Nestlé gains greater share through Gerber, and big snack brands join the game
- A2 protein becomes hotspot for IMF players
- Sophisticated baby food brands offer more than just organic ingredients
- Supplement brands utilise new demographic and joint force to grow business
Market Share
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- Leading domestic brands grabbing larger share in infant milk formula (IMF)
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- Figure 33: Leading companies’ value share in IMF market, China, 2018-19
- Fragmented and competitive market in baby supplementary food
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- Figure 34: Leading companies’ value share in baby supplementary food market, China, 2018-19
Competitive Strategies
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- Infant milk formula (IMF)
- International brands continue to centre around additional health benefits (with special focus on cognitive development)
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- Figure 35: Top growing health claims in IMF and growing up milk, China, November 2017-October 2020
- Domestic big brands focusing on distribution channel expansion
- A2 protein becomes a hotspot
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- Figure 36: IMF that uses A2 milk as a base in the formula, China, 2018-19
- Supporting breastfeeding to maintain brand awareness
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- Figure 37: “Feeding with Love in One Square Metre” initiative, China, 2018
- Baby supplementary food
- Brands not traditionally related to baby nutrition join the game
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- Figure 38: Baby supplementary food products by Three Squirrels and Want Want, China, 2020
- Sophisticated baby food brands offer more than just organic ingredients to stand out
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- Figure 39: Baby food launches with an organic claim, China, November 2015-October 2020
- Figure 40: Organic-claimed baby food launches using gourmet recipes, China, 2020
- Supplement brands utilise new demographic and join forces to grow business
Who’s Innovating?
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- Infant milk formula (IMF) innovation to watch
- Continue to fill in the need for special formula milk
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- Figure 41: Share of selected claims in IMF and growing milk (1-4 years), China, Nov 2017 - Oct 2020
- Figure 42: Examples of IMF products with additional health benefits, China and Overseas, 2018-20
- Baby supplementary food innovation to watch
- Immunity claims start to emerge in baby snack categories since 2020
- Innovations promote added benefits as advantage over handmade
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- Figure 43: Examples of baby supplementary food designed for homemaking occasions, Overseas, 2019
- A gap remains in reduced sugar varieties between China and other APAC countries
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- Figure 44: Shares of new baby supplementary food launches with “minus” China, Nov 2017 – Oct 2020
- Figure 45: Examples of baby supplementary food featuring “no/reduced sugar” claim, Japan, 2014-19
- Packaging innovation to watch
- Innovations around convenience ramp up
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- Figure 46: Top growing convenience claims in baby foods (including IMF and growing up milk), China, November 2017 - October 2020
- Figure 47: Examples of baby food products featuring convenience packaging, Global, 2019
- Practice babies’ related abilities as new ways to cognitive development
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- Figure 48: Examples of baby food products featuring key skill development, China and Global, 2011-19
- Using technology to achieve smart parenting
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- Figure 49: Examples of brands using technology to achieve smart parenting, China, 2019-2020
The Consumer – What You Need to Know
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- Physical development issues worry parents most
- Parents seek functional food with fortified nutrition from a variety of categories
- Cognitive development via key motor skill practice are welcomed by affluent parents
- Knowledge gap exists for special functioning ingredients (especially A2 β-casein, MFGM and HMO)
Health and feeding issues
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- Physical development issues are the main harassment
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- Figure 50: Health and feeding issues, July 2020
- Poor appetite and growth issues are more likely to occur at 6-12 months
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- Figure 51: Health and feeding issues (poor appetite, height/weight/head circumference lags behind, sparse hair), by age of youngest child, July 2020
- Immunity and gut health receive more attention after 12 months
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- Figure 52: Health and feeding issues (catching a cold/fever easily, gassiness/bloating, constipation), by age of youngest child, July 2020
- The problem with allergies: lacking knowledge and product variety
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- Figure 53: Else Plant-Based Complete Toddler Nutrition, Israel, 2020
Consumption frequency
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- Parents seek diversified feeding options for their kids
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- Figure 54: Consumption frequency, July 2020
- 6 months - the prime age for most categories
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- Figure 55: Consumption frequency, by age of youngest child, July 2020
- Detailed physical developmental benefits in Infant milk formula (IMF) are desirable
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- Figure 56: Consumers who feed their babies IMF more than once a day, by select health and feeding issues, July 2020
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- Figure 57: Top functional claims in IMF and growing up milks (1-4 years), China, November 2015-October 2020
- Barriers to meat-based supplementary foods: concerns about meat quality
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- Figure 58: General attitude (I have concerns about the meat quality in baby supplementary foods), by consumers who have not fed their babies aged 0-3 with meat/fish floss and sausage in the last 3 months, July 2020
Product functions in supplementary foods/snacks
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- Functional benefits overweigh feeding training needs
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- Figure 59: Product functions in supplementary foods/snacks, July 2020
- Immunity playing central role in baby supplementary foods and snacks
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- Figure 60: Product functions in supplementary foods/snacks (improving immunity), by parents who have fed their babies aged 0-3 with supplementary foods/snacks once and more than once a day, July 2020
- Cognitive development combined with special feeding training are welcomed by high income earners
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- Figure 61: Select product functions in supplementary foods/snacks, by monthly household income, July 2020
Knowledge of ingredients in IMF
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- DHA, lactoferrin and lutein continue to be the most recognised IMF ingredients
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- Figure 62: Knowledge of ingredients in IMF, July 2020
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- Figure 63: Select health and feeding issues, by select ingredients that consumers have heard of it and know its function, July 2020
- Gaps exist for brands to fulfil in special functioning ingredients (A2 β-casein, MFGM, HMO)
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- Figure 64: Gaps between IMF and growing up milk (1-4 years) launches with selected ingredients and consumers knowledge of such ingredients, China, 2020
- IMF ingredient knowledge are related to education and income levels
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- Figure 65: Knowledge of ingredients in IMF (have heard of and know its function), by household income level, July 2020
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- Figure 66: Respondents who have heard of ingredients but don’t know the functions, by household income level, July 2020
Information channels
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- Online channels carry most weight
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- Figure 67: Information channels, July 2020
- High income earners obtain knowledge from multiple channels
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- Figure 68: Information channels, household income level, July 2020
General attitudes
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- Attitudes towards infant milk formula
- Chinese parents are evolving towards rational IMF usage
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- Figure 69: Select attitudes towards IMF, July 2020
- Special IMF is given greater attention
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- Figure 70: Select attitudes towards IMF, July 2020
- Attitudes towards baby supplementary foods/snacks
- Parents are switching from brands to brands
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- Figure 71: Attitudes towards baby supplementary foods/snacks, July 2020
- Ingredients quality of meat brings concerns to them
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- Figure 72: Attitudes towards the quality of ingredients in meat-based supplementary foods/snacks and homemade supplementary foods, July 2020
Meet the Mintropolitans
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- Wide range of information sources boosts understanding and uptake
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- Figure 73: Information channels, by consumer classification, July 2020
- More interested in specialised IMF
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- Figure 74: General attitudes (infant milk formula related), by consumer classification, July 2020
- Higher expectation for cognitive benefits
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- Figure 75: Product functions in supplementary foods/snacks, by consumer classification, July 2020
Appendix – Market Size and Forecast
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- Figure 76: Retail value sales of the baby nutrition market (Billion RMB), China, 2015-25
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Appendix – Methodology and Abbreviations
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- Consumer Research Methodology
- Abbreviations
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