Purchasing Food And Drink For Children - China - December 2019

OVERVIEW
What you need to know
Covered in this report
Excluded
EXECUTIVE SUMMARY
The market 
The consumer
Freshness and nutritional value are essential parts of children’s diets
Figure 1: Food usage, July 2019
Bodily development and physical health are valued the most
Figure 2: Consumption purpose, July 2019
Blurring line between online and offline retail channels
Figure 3: Purchase channels, July 2019
Children’s dairy products luring more parents
Figure 4: Category penetration, July 2019
Satisfying children’s palates and parents’ pursuit for premium quality
Figure 5: Children’s foods and drinks purchase factors, July 2019
Parents act as nutritionists for their children 
Figure 6: General attitudes, July 2019
What we think
ISSUES AND INSIGHTS
Premiumisation is the key to sustain a shrinking market
The facts
The implications
Figure 7: Children’s drinks with added probiotics
Figure 8: Children’s foods with added probiotics, prebiotics, or postbiotics
Permissible indulgence will keep unhealthy food and drink on the table
The facts
The implications
Highlighting nutritional value and daily intake advice to help parents fight off overweight and obesity
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Childhood obesity encouraging changes in policies and companies
L/N/R and ‘plus’ factors are embraced by global market
Science finding ways to conquer health epidemics
MARKET FACTORS
Slowdown in growth of child population
Figure 9: Population and growth rate of children aged 5-14 in China, 2011-18
Figure 10: Birth, death, and natural increase rates per 1,000 people, China, 2008-2018
Childhood obesity population ranks no.1 in the world
Government promoting healthier lifestyle choices
COMPETITIVE STRATEGIES
Adding ‘fun’ and ‘local’ elements to keep consumers engaged
Figure 11: Oreo and The Palace Museum Food Shop’s collaboration jukebox, 2019
Figure 12: Limited-edition flavours of Oreo and The Palace Museum Food Shop’s collaboration, 2019
Leveraging social media to showcase product value
Figure 13: Milkana adventure cheese box for Tmall Single’s Day Festival, 2018
Offline exposure building connection with families
Figure 14: Want Want at a Halloween market in Taiwan, 2019
Advance R&D bringing ‘unhealthy’ nostalgic snacks back into the spotlight
Figure 15: Nestle’s low sugar Milkybar Wowsomes
WHO’S INNOVATING?
Global: designing products around children’s daily activities
Figure 16: Children’s drinks with added electrolytes, global
Global: accentuated naturalness through fruits and herbs
Figure 17: Children’s juice drinks with real fruits and herbs
Global: whisking superfoods into the ‘unhealthy’
Figure 18: Children’s drinks and snacks with a healthy twist
Figure 19: Sugar-free lollipops by Dr. John’s
THE CONSUMER – WHAT YOU NEED TO KNOW
Consumption driven by children’s bodily development
Luring consumers through widening flavours and adding effective nutrients 
Concern for children’s healthy dietary habits encouraging parents to engage more
FOOD USAGE 
Health awareness guiding choice of foods
Figure 20: Food usage, July 2019
Flavourful snacks as treats implying nutrition stigma
More young parents born in the 1990s tend to feed children healthy foods on a daily basis
Figure 21: Food usage, those who choose to feed kids once a day or more, by generation, July 2019
CONSUMPTION PURPOSE
Nutrition balancing and immunity building are the top reasons
Figure 22: Consumption purpose, July 2019
Younger and older parents have different priorities
Figure 23: Consumption purpose, ranks by age group, July 2019
Identical purpose for feeding across city tiers
Figure 24: Consumption purpose, by city tier, July 2019
PURCHASE CHANNELS
Comprehensive shopping channels attract the majority
Figure 25: Purchase channels, July 2019
Parents born in the 1990s favour online shopping channels
Figure 26: Purchase channels, by generation, July 2019
CATEGORY PENETRATION
Blurred line in choosing children-specific foods and drinks
Figure 27: Category penetration, July 2019
Protein, probiotics, calcium trigger younger parents
Figure 28: Category penetration, dairy products, by generation, July 2019
Younger parents tend to believe products designed just for kids could meet needs
Figure 29: Category penetration, by generation, July 2019
CHILDREN’S FOOD AND DRINK PURCHASE FACTORS
Winning hearts with intriguing flavours and desirable nutrients
Figure 30: Children’s foods and drinks purchase factors, July 2019
Three generations weigh up decision factors differently
Figure 31: Children’s foods and drinks purchase factors, by generation, July 2019
Parents’ standards driven by premium quality and functionality 
GENERAL ATTITUDES
Striving to shape healthy dietary habits for children
Figure 32: General attitudes, July 2019
Lenient feeding philosophy indicates sizable market for nostalgic products
Parents in their 20s might be more prone to purchasing ‘unhealthy’ food and drink for children
Figure 33: General attitudes, by age group, July 2019
More medium and high household income families keep an eye on children’s diet
Figure 34: General attitudes, by monthly household income, July 2019
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations