China Baby Nutrition Market Report 2020
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Report Summary
Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Baby Nutrition China market, including the behaviours, preferences and habits of the consumer.
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What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Covered in this report
Despite a continued shrinking number of newborns, the total baby nutrition market has still achieved positive growth. Wider usage of supplementary foods to offer health functional benefits (ie baby snacks), as well as baby health supplements due to increasing awareness of immunity and gut health management have helped to bolster growth in the market. Buoyed by COVID-19 resulting in a temporary decrease in the volume of imported infant milk formula (IMF) products, this has created favourable market condition for domestic IMF enterprises to increase brand awareness via strong quality assurance.
Expert analysis from a specialist in the field
Written by Catherine Liu, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Although continuing to face a declining birth rate, the total baby nutrition market still maintains steady growth, mostly driven by premiumisation in IMF as well as increasing penetration of baby supplementary foods and baby health supplements. Opportunities lie in interactive marketing education for cutting-edge IMF formulae, category expansion to offer various functional baby supplementary foods (eg a mix of both new formula and sensorial stimulation), as well as supplement innovations driven by snack-like format needs.
Catherine Liu
Food & Drink Analyst
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- Report scope
- Definitions
- Figure 1: Mintel’s definition of different income groups, China
- What you need to know
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Executive Summary
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- The market
- Baby nutrition market continue steady growth
- Figure 2: Retail value sales forecast of the baby nutrition market*(Billion RMB), China, 2020-25
- IMF dominates; baby supplementary foods gaining share
- 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
- 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
- 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
- Figure 6: Retail value sales forecast of baby health supplements* (Billion RMB), China, 2020-25
- Future outlook considering the impact of COVID-19
- 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
- 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
- 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
- Figure 10: Health and feeding issues, July 2020
- Parents seek functional food with fortified nutrition from a variety of categories
- Figure 11: Consumption frequency, July 2020
- Functional benefits outweigh feeding training purpose, but cognitive development bridges the two
- Figure 12: Product functions in supplementary foods/snacks, July 2020
- Knowledge gap exists for special functioning ingredients (especially A2 β-casein, MFGM and HMO)
- Figure 13: Knowledge of ingredients in IMF, July 2020
- Online information channels carry most weight
- Figure 14: Information channels, July 2020
- Special IMF is given greater attention
- Figure 15: Select attitudes towards IMF, July 2020
- Ingredient quality of meat brings concerns to meat based baby supplementary food
- Figure 16: Attitudes towards baby supplementary foods/snacks, July 2020
- What we think
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Issues and Insights
- Building on gaps for special functioning IMF ingredients
- The facts
- The implications
- 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
- 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
- Building on gaps for special functioning IMF ingredients
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The Market – What You Need to Know
- 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
- The category continues steady growth
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Market Size and Forecast
- Mintel’s forecast
- 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
- Figure 22: Short-, medium- and long-term impact of COVID-19 on baby nutrition, China, December 2020
- Mintel’s forecast
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Market Factors
- Number of newborns continues to experience negative growth
- 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
- Figure 26: Top claims for baby milk and food launches, China, November 2015-October 2020
- Number of newborns continues to experience negative growth
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Market Segmentation
- Baby supplementary foods gaining share
- 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
- 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
- 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
- Baby supplementary foods gaining share
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Key Players – What You Need to Know
- 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
- IMF: leading domestic brands grabbing larger share
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Market Share
- Leading domestic brands grabbing larger share in infant milk formula (IMF)
- Figure 33: Leading companies’ value share in IMF market, China, 2018-19
- Fragmented and competitive market in baby supplementary food
- Figure 34: Leading companies’ value share in baby supplementary food market, China, 2018-19
- Leading domestic brands grabbing larger share in infant milk formula (IMF)
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Competitive Strategies
- Infant milk formula (IMF)
- International brands continue to centre around additional health benefits (with special focus on cognitive development)
- 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
- Figure 36: IMF that uses A2 milk as a base in the formula, China, 2018-19
- Supporting breastfeeding to maintain brand awareness
- 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
- 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
- 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
- Infant milk formula (IMF)
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Who’s Innovating?
- Infant milk formula (IMF) innovation to watch
- Continue to fill in the need for special formula milk
- 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
- 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
- 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
- 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
- Figure 48: Examples of baby food products featuring key skill development, China and Global, 2011-19
- Using technology to achieve smart parenting
- Figure 49: Examples of brands using technology to achieve smart parenting, China, 2019-2020
- Infant milk formula (IMF) innovation to watch
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The Consumer – What You Need to Know
- 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)
- Physical development issues worry parents most
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Health and feeding issues
- Physical development issues are the main harassment
- Figure 50: Health and feeding issues, July 2020
- Poor appetite and growth issues are more likely to occur at 6-12 months
- 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
- 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
- Figure 53: Else Plant-Based Complete Toddler Nutrition, Israel, 2020
- Physical development issues are the main harassment
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Consumption frequency
- Parents seek diversified feeding options for their kids
- 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
- 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
- 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
- Parents seek diversified feeding options for their kids
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Product functions in supplementary foods/snacks
- Functional benefits overweigh feeding training needs
- Figure 59: Product functions in supplementary foods/snacks, July 2020
- Immunity playing central role in baby supplementary foods and snacks
- 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
- Figure 61: Select product functions in supplementary foods/snacks, by monthly household income, July 2020
- Functional benefits overweigh feeding training needs
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Knowledge of ingredients in IMF
- DHA, lactoferrin and lutein continue to be the most recognised IMF ingredients
- 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)
- 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
- 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
- DHA, lactoferrin and lutein continue to be the most recognised IMF ingredients
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Information channels
- Online channels carry most weight
- Figure 67: Information channels, July 2020
- High income earners obtain knowledge from multiple channels
- Figure 68: Information channels, household income level, July 2020
- Online channels carry most weight
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General attitudes
- Attitudes towards infant milk formula
- Chinese parents are evolving towards rational IMF usage
- Figure 69: Select attitudes towards IMF, July 2020
- Special IMF is given greater attention
- Figure 70: Select attitudes towards IMF, July 2020
- Attitudes towards baby supplementary foods/snacks
- Parents are switching from brands to brands
- Figure 71: Attitudes towards baby supplementary foods/snacks, July 2020
- Ingredients quality of meat brings concerns to them
- Figure 72: Attitudes towards the quality of ingredients in meat-based supplementary foods/snacks and homemade supplementary foods, July 2020
- Attitudes towards infant milk formula
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Meet the Mintropolitans
- Wide range of information sources boosts understanding and uptake
- Figure 73: Information channels, by consumer classification, July 2020
- More interested in specialised IMF
- Figure 74: General attitudes (infant milk formula related), by consumer classification, July 2020
- Higher expectation for cognitive benefits
- Figure 75: Product functions in supplementary foods/snacks, by consumer classification, July 2020
- Wide range of information sources boosts understanding and uptake
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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
- Consumer Research Methodology
- Abbreviations
- Consumer Research Methodology
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