Table of Contents
Overview
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- What you need to know
- Products covered in this Report
- Definitions
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- Figure 1: Mintel’s definition of different income groups, China
Executive Summary
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- The market
- Price war in 2016 had negative influence on market value
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- Figure 2: Best- and worst-case value sales forecast of IMF market volume, China, 2011-21
- Figure 3: Best- and worst-case value sales forecast of IMF market value, China, 2011-21
- The Netherlands and Ireland take up 51% of the imported market
- Second child policy will drive new births, but moderately
- High-end and niche products have great potential
- Key players
- Reshuffle of the industry results in a more concentrated market
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- Figure 4: Leading companies’ value share in IMF market, China, 2015-16
- Some local brands are actively taking share
- Specialised mother and baby care stores as major channel
- Dads are actively taking part in raising babies
- Live stream may help increase brands’ credibility
- The consumer
- IMF is an important supplement even during breastfeeding
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- Figure 5: Frequency of using breast milk/IMF, by year, China, 2014 vs 2016
- Breastfeeding may not last long
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- Figure 6: Frequency of using breast milk/IMF, by age of child, China, December 2016
- Having a second child will influence mums’ brand selection
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- Figure 7: Penetration of IMF brands, China, December 2016
- Organic is widely embraced, no longer a “niche” idea
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- Figure 8: Consumption of niche products, China, December 2016
- Brands need to develop new claims to promote goat IMF
- Tangible benefits help expand user group
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- Figure 9: Triggers for using niche products, by product, China, December 2016
- Building a supportive image to target temporary breastfeeding mums
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- Figure 10: Attitudes towards breast milk, China, December 2016
- China’s milk source is gradually gaining its reputation back
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- Figure 11: Perception of countries of milk source, by country, China, December 2016
- What we think
Issues and Insights
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- Respond to the rising breastfeeding trend by targeting pregnant/lactating mums
- The facts
- The implications
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- Figure 12: Niche products for pregnant and breastfeeding female, China, Vietnam and Indonesia, 2016-17
- Figure 13: Products with low/reduced fat claim, China, 2015-16
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- Figure 14: Product claiming to “Leave mum beautiful”, Vietnam, 2016
- How can brands appeal to inexperienced mums?
- The facts
- The implications
- Leverage the impact of milk source
- The facts
- The implications
The Market – What You Need to Know
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- Slight decline in 2016 because of price war
- Premium lines as major players’ priority
- Second child policy and breastfeeding trend affecting the market
Market Size and Forecast
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- Price war in 2016 had negative influence on market value
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- Figure 15: Total retail market value and volume of IMF, China, 2011-16
- Figure 16: Best- and worst-case value sales forecast of IMF market volume, China, 2011-21
- Premium lines will gain momentum after 2018
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- Figure 17: Best- and worst-case value sales forecast of IMF market value, China, 2011-21
- The Netherlands and Ireland take up 51% of the imported market
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- Figure 18: Leading countries’ volume share of imported IMF in China, 2016
- Figure 19: Product imported from Denmark, China, 2016
Market Factors
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- Second child policy will drive new births, but moderately
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- Figure 20: New births in China, 2005-16
- Figure 21: Fertility rate of first and second birth, by age, China, 2005 and 2015
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- Figure 22: Population of women of child bearing age
- Backing up products with solid proof to survive strict regulations
- Growing breastfeeding trend may reduce market volume in the long run
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- Figure 23: Breastfeeding trends, by child’s age, China, 2014 vs 2016
- High-end and niche products have great potential
- Goat IMF
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- Figure 24: Proportion of newly launched goat IMF products containing goat’s whey protein, China and Australia, 2016
- Liquid IMF
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- Figure 25: New launches of IMF products, by format, China, UK and USA, 2016
- Figure 26: Liquid IMF sold with accessories, Hong Kong and UK, 2016
Key Players – What You Need to Know
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- Reshuffle of the industry leading to concentrated market
- Local brands reversing negative image from years-ago scandal
- Specialised mother and baby care stores as major channel
Market Share
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- More concentrated market ahead after industry reshuffle
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- Figure 27: Leading companies’ value share in IMF market, China, 2015-16
- Leading companies gained share moderately
- Some local brands are gradually earning consumers’ confidence back
- IMF brands look for opportunity in adult health business
- More players jump in
Competitive Strategies
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- Overthrow of channels demands brands’ change of strategy
- International brands should pay more attention to lower tier market
- Dads are actively taking part in raising babies
- Comply with the breastfeeding trend
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- Figure 28: Products claim to be designed for combination feeding, UK and Vietnam, 2016-17
Who’s Innovating?
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- The clean label trend is spotted in IMF as in other food categories
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- Figure 29: Select claims of IMF products, China, 2015-16
- Convenient variants serve as point of attraction
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- Figure 30: Proportion of products with convenience claim, china, UK, Germany and Malaysia, 2016
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- Figure 31: Products retail in small package, China and Japan, 2016
- Flavoured formula powder for mums
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- Figure 32: Flavoured formula milk developed for pregnant and breastfeeding women, Indonesia, Vietnam and Philippines, 2016
- Live stream may help increase brands’ credibility
The Consumer – What You Need to Know
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- IMF balancing life after six months of breastfeeding
- Having a second child will influence mums’ brand selection
- Niche products seeing expansion, but in need of tangible benefits
- IMF as supplement to breast milk
- Solid proof needed for backing up milk sources
Usage Frequency
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- IMF is an important supplement even during breastfeeding
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- Figure 33: Frequency of using breast milk/IMF, by year, China, 2014 vs 2016
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- Figure 34: Frequency of using IMF, China, by mums who breastfeed at different frequency level, December 2016
- Breastfeeding may not last long
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- Figure 35: Frequency of using breast milk/IMF, by age of child, China, December 2016
- Figure 36: Frequency of using breast milk/IMF, by tier and age of child, China, December 2016
Brand Penetration
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- Nestlé is winning thanks to Wyeth and Illuma
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- Figure 37: Penetration of IMF brands, China, December 2016
- Having a second child will influence mums’ brand selection
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- Figure 38: Penetration of IMF brands, by number of children, China, December 2016
- Foreign and local brands are embraced by different regions
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- Figure 39: Penetration of select brands, by city, China, December 2016
Consumption of Niche Products
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- Organic is widely embraced, no longer a “niche” idea
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- Figure 40: Consumption of niche products, China, December 2016
- Brands need to develop new claims to promote goat IMF
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- Figure 41: Consumption of niche products, by monthly household income and age of youngest child, China, December 2016
- Promoting products involving new tech requires more education
Triggers for Using Niche Products
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- Tangible benefits help expand user group
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- Figure 42: Triggers for using niche products, by product, China, December 2016
- Low pricing strategy won’t work on young mums when going niche
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- Figure 43: Triggers for using niche products, by product and age, China, December 2016
Attitudes towards Breast Milk
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- Building a supportive image helps attract temporary breastfeeding mums
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- Figure 44: Attitudes towards breast milk, China, December 2016
- IMF can be positioned as supplement to breast milk
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- Figure 45: Attitudes towards breast milk, China, December 2016
- Figure 46: Attitudes towards breast milk, by age, China, December 2016
- Polarised attitudes among tier one cities
Perception of Countries of Milk Source
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- China’s milk source is gradually gaining its reputation back
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- Figure 47: Perception of countries of milk source, by country, China, December 2016
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- Figure 48: The “fresh” claim on Feihe’s official website, China, 2017
- Young mums expect solid proof of product benefits
- Diverse opinion among tier one consumers
- Economic conditions and educational level make a difference
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- Figure 49: Perception of China as milk source, by monthly household income, China, December 2016
- Milk source does have a say in brand selection
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- Figure 50: Perception of China as milk source, by brand consumption, China, December 2016
Meet the Mintropolitans
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- Organic and goat IMF are more welcomed by MinTs
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- Figure 51: Consumption of niche products, China, December 2016
- MinTs embraces IMF as a complement to breastmilk
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- Figure 52: Attitudes towards breast milk, China, December 2016
- MinTs have critical thinking regarding milk sources
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- Figure 53: Select perception of milk source, by country and consumer classification, China, December 2016
Appendix – Market Size and Forecast
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- Figure 54: Value sales of China’s IMF market, 2011-21
- Figure 55: Volume sales of China’s IMF market, 2011-21
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Appendix – Methodology, Definition, and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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