Table of Contents
Executive Summary
-
- The market
- Value growth slowing down amid shrinking demand
-
- Figure 2: Best-and worst-case volume sales forecast of IMF market, China, 2013-23
- Figure 3: Best-and worst-case value sales forecast of IMF market, China, 2013-23
- Build technology strength to cope with ingredient shortage
- Lucrative yet challenging market for international players
- Companies and brands
- Leading brands gaining bigger share
- Expanded categories and distribution to grow business
- Innovation centres around additional health benefits
- The consumer
- Brand preference exists in different regions and generations
-
- Figure 4: Infant milk formula brand bought, December 2018
- Demand for more fortified nutrition
-
- Figure 5: Attitudes towards fortified nutrition, December 2018
- Finding the best fit is of top priority
-
- Figure 6: Purchase factors ranking, December 2018
- Premium and special formula IMF receive high interest
-
- Figure 7: Usage and interest in specific infant milk formula, December 2018
- Experience and authority win more trust
-
- Figure 8: Most trustworthy information source, December 2018
- Parents have yet to realize benefits of breast feeding
-
- Figure 9: Attitudes towards breastfeeding, December 2018
- What we think
Issues and Insights
-
- Strategy pivot in response to decreasing birth rate
- The facts
- The implications
-
- Figure 10: NPD of infant milk formula in China, by sub-category, 2016-18
- Figure 11: Mengniu’s Doraler goat infant milk powder for bigger babies and young children
- Special formula serving rising number of babies diagnosed with allergies
- The facts
- The implications
-
- Figure 12: Enfamil Nutramigen ready-to-use hypoallergenic infant formula, USA
- Solid control of upstream resources can help win the premium sectors
- The facts
- The implications
The Market – What You Need to Know
-
- Stagnant value growth despite shrinking volume demand
- Control over ingredient helps increase competitiveness
- Market regulation brings pros and cons
Market Size and Forecast
-
- Plummeting birth rate further brings down volume demand
-
- Figure 13: Best-and worst-case volume sales forecast of IMF market, China, 2013-23
- Market value expected to remain stable
-
- Figure 14: Best-and worst-case value sales forecast of IMF market, China, 2013-23
Market Factors
-
- Fewer newborns to be fed
- Ingredient shortages highlight need for manufacturing upgrade
- IMF market continues to face strict regulations
- Changing market dynamic for IMF imports
Key Players – What You Need to Know
-
- Game of big players
- Competitiveness through expansion or concentration
- Rising claims on digestive and eye health
Market Share
-
- More centralised market
-
- Figure 15: Leading companies’ value share in IMF market, China, 2017-18
- Leading players win with big sale items
- Brands perform well on ecommerce platforms
-
- Figure 16: Top 10 IMF brands on domestic ecommerce platforms* (based on value sales), China, 2018
-
- Figure 17: Top 10 IMF brands on cross-border ecommerce platforms* (based on value sales), China, 2018
Competitive Strategies
-
- Branching out to other categories
- 100% goat becomes selling point
-
- Figure 18: Goat IMF products claiming to use goat whey only
- Distribution channel focusing on expansion
Who’s Innovating?
-
- Additional benefits and fortified nutrition as highlighted claims
-
- Figure 19: Select claims of IMF products, China, 2016-18
- Figure 20: New IMF products with fortified nutrition or additional benefits, global, 2019
-
- Figure 21: Junlebao’s Lebo K2 growing-up milk formula for children
- Product innovation to watch
-
- Figure 22: Banner Dairy IMF stage 1 with milking date shown at can bottom
-
- Figure 23: Wyeth illuma’s HA partially hydrolysed whey formula
- Figure 24: Treasure of Plateau yak milk infant formula, China
The Consumer – What You Need to Know
-
- High interest in more fortified nutrition
- Quality and suitability high priorities
- Yearning for special formula and premium sectors
Brand Purchased
-
- International brands enjoy competitive edge in South and East regions
-
- Figure 25: Infant milk formula brand bought, December 2018
-
- Figure 26: Infant milk formula brand bought, by region, December 2018
- Domestic brands are winning younger parents
-
- Figure 27: Infant milk formula brand bought, by age, December 2018
- Danone gains the most loyalty
-
- Figure 28: Number of brands consumed by users of different brands, December 2018
-
- Figure 29: Tips on changing IMF brands
Attitudes towards Fortified Nutrition
-
- Longer list of fortified nutrition is preferred
-
- Figure 30: Attitudes towards fortified nutrition, December 2018
- More education and income further drives demand
-
- Figure 31: Percentage with “the more, the better” attitude, by education, December 2018
- HMO and casein have potential to prevail
Purchase Factors Ranking
-
- Calling for more targeted formula
-
- Figure 32: Purchase factors ranking, December 2018
- Post-1980s still obsessed with milk source
-
- Figure 33: First priority of choosing infant milk formula, by generation, December 2018
Interest in Specific Infant Milk Formula
-
- Premium IMF highly coveted
-
- Figure 34: Usage and interest in specific infant milk formula, December 2018
- Opportunity in formula transition to win over special-formula buyers
-
- Figure 35: Number of brands consumed, by users of special formula, December 2018
- Education on special formula required for older parents and lower tier markets
-
- Figure 36: Percentage of unaware of certain special formula, by age, December 2018
- Figure 37: Percentage of consumers having bought or interested in buying certain special formula, by city tier, December 2018
Most Trustworthy Information Source
-
- Value experience and authority
-
- Figure 38: Most trustworthy information source, December 2018
-
- Figure 39: Most trustworthy information source, by household income, December 2018
- Polarised opinions on celebrity endorsements
Attitudes towards Infant Milk Formula
-
- Breast feeding undervalued
-
- Figure 40: Attitudes towards breastfeeding, December 2018
- Local versions and official sales channels gain popularity
-
- Figure 41: Attitudes towards imported infant milk formula, December 2018
-
- Figure 42: Attitudes towards channels, by attitudes towards imported IMF, December 2018
Meet the Mintropolitans
-
- Not necessarily pioneers of latest baby feeding concepts
- More interested in special formula, liquid and capsule IMF
-
- Figure 43: Percentage of haven't bought but have interest to buy, by consumer classification, December 2018
- Authority earns more credit
-
- Figure 44: Most trustworthy information source, by consumer classification, December 2018
Appendix – Market Size and Forecast
-
-
- Figure 45: Total market volume of IMF, China, 2013-23
- Figure 46: Total market value of IMF, China, 2013-23
-
Appendix – Methodology and Abbreviations
-
- Methodology
- Fan chart forecast
- Abbreviations
Back to top