Table of Contents
Overview
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- What you need to know
- Products/ themes covered in this Report
Executive Summary
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- The Market
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- Figure 1: Total China retail volume sales of infant milk formula, 2010-20
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- Figure 2: Total China retail value sales of infant milk formula, 2010-20
- Companies and Brands
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- Figure 3: Value share of leading companies in infant milk formula market, 2013-15
- The Consumer
- Mums show stronger preference for international brands
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- Figure 4: Purchased brands, January 2016
- 34% of mums only buy one IMF brand
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- Figure 5: Repertoire analysis of purchased brands, January 2016
- Mums like IMF products which are easier to absorb and similar to breast milk
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- Figure 6: Product preference, January 2016
- Quality-related reasons are top drivers for product switch behaviour
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- Figure 7: Product switch, January 2016
- Significant differences exist regarding ingredient awareness
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- Figure 8: Ingredient awareness, January 2016
- More education is needed for Chinese mums
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- Figure 9: Ingredient function, January 2016
- Health benefits and nutritional values are perceived as most attractive advantages of organic IMF products
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- Figure 10: Advantage of organic infant milk formula, January 2016
- What we think
Issues and Insights
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- Have IMF products been over-marketed in China?
- The facts
- The implications
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- Figure 11: Selected product claims in the China IMF product launch, 2012-15
- How to promote organic IMF products to Chinese consumers?
- The facts
- The implications
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- Figure 12: Organic infant milk formula launched by Plum, US, 2016
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- Figure 13: Organic infant milk formula launched by Modilac Bio, France, 2015
- “Mimic breast milk” is a future trend for IMF products
- The facts
- The implications
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- Figure 14: Baby personal care product and infant milk formula which use “ingredients found in breast milk” as selling point, Thailand and US, 2013-16
- Figure 15: IMF product which emphasises OPO’s benefits on its packaging, China, 2015
The Market – What You Need to Know
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- The value growth rate of IMF market keeps slowing down
- The pending regulations may reshuffle the IMF industry
Market Size and Forecast
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- Market growth rate keeps slowing down
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- Figure 16: Total China retail market value of infant milk formula, 2010-15
- Flat growth rate in the next five years
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- Figure 17: Total China retail volume sales of infant milk formula, 2010-20
- Figure 18: Total China retail value sales of infant milk formula, 2010-20
Market Factors
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- The relaxation of the one-child policy and urbanisation save IMF market
- Online retailing offers more choices for mums living in low tier cities
- Negative news of IMF products destroys consumers’ confidence
- New import tax sets barrier for imported IMF products
- The upcoming regulations will reshuffle the IMF industry
Key Players – What You Need to Know
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- International companies still lead the market
- More players enter super-premium segment
- OPO ingredient is ready to take off
Market Share
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- International companies still lead the market
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- Figure 19: Value share of leading companies in infant milk formula market, 2013-15
Competitive Strategies
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- Danone stops selling IMF products under Karicare brand in China
- More players tap into super-premium segment
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- Figure 20: Super-premium product introduced by Yashili and Arla, 2016
Who’s Innovating?
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- OPO ingredient is rising
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- Figure 21: Newly launched infant milk formula with the OPO ingredient, China, 2011-15
- Nestlé promotes its BabyNes machine in China
- New technologies may bring a revolution for IMF industry
The Consumer – What You Need to Know
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- 34% of mums only buy one IMF brand
- Mums like IMF products which are easier to absorb and similar to breast milk
- Quality-related reasons are key drivers for consumers’ product switch behaviour
- Consumers have limited knowledge about IMF ingredients
- Health benefits and nutritional values are perceived as most attractive factors of organic IMF products
Purchased Brands
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- International brands tend to attract more consumers
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- Figure 22: Purchased brands, January 2016
- A third of mums only buy one IMF brand
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- Figure 23: Repertoire analysis of purchased brands, January 2016
- Mums with higher income and education background are more likely to purchase different brands
Product Preference
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- Mums show strong preference for products which are easier to absorb and similar to breast milk
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- Figure 24: Product preference, January 2016
- International certifications win more trust
- Appealing product features for high earners
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- Figure 25: Product preference, by household income, January 2016
Product Switch
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- Quality-related reasons are top drivers for product switch behaviour
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- Figure 26: Product switch, January 2016
- Word of mouth matters
- Multi-brand users are most likely to be influenced by word of mouth
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- Figure 27: Product switch, by repertoire of purchased brands, January 2016
- Price has limited influence for consumers’ product switch behaviour
- Leverage free tasting to enter growing up milk segment
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- Figure 28: Product switch, by age of youngest baby, January 2016
Ingredient Awareness
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- Significant differences exist regarding ingredient knowledge
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- Figure 29: Ingredient awareness, January 2016
- Older mums have better knowledge about ingredients
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- Figure 30: Mums who have not heard of selected ingredients, by age, January 2016
- Mums’ knowledge changes with babies’ age
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- Figure 31: Mums who have heard of selected ingredients and know about their functions, by age of youngest baby, January 2016
Ingredient Function
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- Chinese mums need more education about ingredient benefits
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- Figure 32: Ingredient function, January 2016
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- Figure 33: Newly launched infant milk formula with selected ingredients, China, 2011-15
- Highlight ingredient benefits depending on mum’s actual needs
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- Figure 34: Ingredient function, by age of youngest baby, January 2016
Advantage of Organic Infant Milk Formula
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- Health benefits and nutritional values are perceived as the most attractive product advantages
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- Figure 35: Advantage of organic infant milk formula, January 2016
- Organic claim gives safety assurance
- High earners believe that organic products are more premium
Appendix – Market Size and Forecast
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- Figure 36: Retail value sales of infant milk formula, 2010-20
- Figure 37: Retail volume sales of infant milk formula, 2010-20
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Appendix – Methodology and Definitions
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- Methodology
- Fan chart forecast
- Abbreviations
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