Table of Contents
Introduction
-
- Definition
- Report structure
- Methodology
- Abbreviations
Executive Summary
-
- The market
-
- Figure 1: Total China retail sales of baby food and growth rate, by value and volume, 2008-13 (est)
-
- Figure 2: Total China retail volume sales of baby food, 2008-18 (000’s tonnes)
- Figure 3: Total China retail value sales of baby food, 2008-18
-
- Figure 4: Baby food value sales (RMB Bn) and share, by segment, 2012
- Companies and brands
-
- Figure 5: Leading companies’ market shares in the China retail baby food market, by value, 2010-12
- The consumer
- Baby food usage and consumption frequency
-
- Figure 6: Baby food usage and frequency, April 2013
- Brand penetration and loyalty
-
- Figure 7: Baby food brand penetration and loyalty, April 2013
- Popular features of baby food products
-
- Figure 8: Popular features of baby food products, April 2013
- Channels of purchasing baby food
-
- Figure 9: Channels of purchasing baby food, April 2013
- Attitudes towards baby food
-
- Figure 10: Attitudes towards baby food, April 2013
- Key trends
- The anticipated rising trend of breastfeeding in China brings both challenges and opportunities for baby food manufacturers
- Innovation can boost the supplementary baby food market
- Domestic baby formula companies are working hard to improve product quality and rebuild consumer trust
- What we think
The Market
-
- Key points
- Market size and forecast
- China has become the world’s largest baby food market
-
- Figure 11: Total China retail volume and value sales of baby food, 2008-13 (est)
-
- Figure 12: Average annual baby food consumption, by volume, by country, Global, 2011
- Growth will continue but at a slower pace
-
- Figure 13: Total China retail volume sales of baby food, 2008-18
- Figure 14: Total China retail value sales of baby food, 2008-18
-
- Figure 15: Total China retail volume sales of baby food, by segment 2008-18
- Figure 16: Total China retail value sales of baby food, by segment, 2008-18
- Market drivers
- Urbanisation, working mums, rising incomes and extended length of usage of baby food
- Premiumisation on the back of food scare
- Market barriers
- The baby food category is overshadowed by the uncertainty surrounding the government policies towards breastfeeding and baby formula manufacturers
- Market segmentation
- By product types
-
- Figure 17: Share of the baby food market by product segment, by value, by country, 2011
-
- Figure 18: Value of the China retail baby food market, by segment, 2008-12
- By price tiers
-
- Figure 19: Representative brands in the China retail baby formula segment, by price tier, 2013
-
- Figure 20: Representative brands in the China retail infant cereal segment, by price tier, 2013
Companies and Brands
-
- Key points
- Company share
-
- Figure 21: Leading companies’ market shares in the China retail baby food market, by value, 2010 -12
- Company trends
- Women’s hospitals have become the most effective channels for new baby recruitment
- Domestic baby formula manufacturers are scrambling to secure high quality raw milk supply overseas
- The focus of product innovation has shifted onto supplementary baby food
-
- Figure 22: Share of new product launches within the China baby food market, by segment, 2009-13*
- Smaller baby food companies are leveraging the online distribution channels to drive growth
- Companies
- International companies
- Nestlé S.A.
- Mead Johnson
- Danone
- Heinz
- Domestic companies
- Yili
- Beingmate
- Mengniu
- Biostime
The Consumer – Usage of Baby Food
-
- Key points
- Chinese babies are fed a wide variety of foods
-
- Figure 23: Types of baby food used in the last 12 months, April 2013
- Food safety is the main concern when deciding what to feed the babies
-
- Figure 24: Reasons for not using baby food/snacks/drinks or supplementary food in the last 12 months, April 2013
- Opportunities for driving consumption frequency of supplementary baby food
-
- Figure 25: Frequency of usage of baby food, by type, April 2013
- Target consumer analysis
-
- Figure 26: Types of baby food used, by household income and age of child, top 8 baby food segments, April 2013
The Consumer – Brand Penetration and Loyalty
-
- Key points
- International brands are more popular among Chinese consumers
-
- Figure 27: Brands of baby foods purchased in the last 12 months, April 2013
- Target consumer analysis
-
- Figure 28: Brands of baby foods purchased in the last 12 months, by city, April 2013
-
- Figure 29: Brands of baby foods purchased in the last 12 months, by city, April 2013
-
- Figure 30: Brands of baby foods purchased/purchased most often in the last 12 months, April 2013
-
- Figure 31: Brands of baby foods purchased most often in the last 12 months, by household income and city, April 2013
The Consumer – Popular Features of Baby Food Products
-
- Key points
- Boosting immunity, being nutritionally close to breast milk and having natural ingredients are top purchase drivers
-
- Figure 32: Factors considered important when buying baby food, April 2013
- Target consumer analysis
-
- Figure 33: Factors considered important when buying baby food (Rank 1), by household income, child age and city tier, April 2013
The Consumer – Channels for Buying Baby Food Products
-
- Key points
- Traditional brick and mortar stores are still most popular
-
- Figure 34: Venues of purchasing baby foods, April 2013
- Target consumer analysis
-
- Figure 35: Venues of purchasing baby foods, by age of mother and household income, April 2013
-
- Figure 36: Venues of purchasing baby foods, by age of baby and city, April 2013
The Consumer – Attitude Towards Baby Food
-
- Key points
- Healthiness is most important
- Product reviews and recommendations guiding mothers’ purchasing decisions
- Mothers prefer imported baby food mainly for safety and quality reasons
-
- Figure 37: Attitudes towards baby foods, April 2013
- Target consumer analysis
-
- Figure 38: Healthiness and nutrition related attitudes towards baby foods, by household income, age of child and city tier, April 2013
-
- Figure 39: Source of product information related attitudes to baby foods, by household income, age of child and city tier, April 2013
-
- Figure 40: Product origin (imported vs local) related attitudes to baby foods, by household income and city tier, April 2013
Key Issue – Reacting to the Rising Rate of Breastfeeding in China
-
- Key points
- Infant stage (0-6 months) baby formula will give way to breastfeeding
- Safety issues intensify Chinese mothers’ concerns over baby formula
- The breastfeeding rate is low in China…
- …but health workers and the government are fighting back
- Food safety and the promotion of breastfeeding will hit the formula market
- Baby accessories manufacturers have helped make breastfeeding more convenient
-
- Figure 41: Philips electronic breast milk pump (left); Medela electronic breast milk pump (middle); Medela ice bag for preserving breast milk (right)
- Insufficient breast milk production also leads some to turn to formula
- Traditional Chinese Medicine is used to promote lactation
- Herbal tea could provide an affordable and convenient alternative
-
- Figure 42: Hipp Natal instant herbal tea for breastfeeding women
- Formula milk for lactating mothers could have a role to play
-
- Figure 43: Powdered milk formula for pregnant and lactating women
-
- Figure 44: Ibu chocolate flavoured milk powder for lactating mothers
- Formula makers could extend the product range to make up for the future loss from the infant formula segment
- Baby formula for toddlers between the age of one and three enjoys strong popularity among Chinese consumers
- There is opportunity for formula makers to compete in the liquid formula milk segment for kids
-
- Figure 45: Mengniu Future Star growing up liquid milk for kids three years and above
- What does it mean?
Key Issue – Innovation Can Boost the Supplementary Baby Food Market
-
- Key points
- The supplementary baby food market is about to take off in China
- Supplementary foods can struggle to find shelf space…
- …but online retailers offer hope to manufacturers
-
- Figure 46: How Heinz advocate the advantage of its baby cereal products over scratch cooking on its official online store
- Product innovation can bring incremental business to supplementary manufacturers
- New flavours
-
- Figure 47: Original taste Lactobacillus nutrient rice flour produced by Eastwes Company in China
- New functionalities
-
- Figure 48: Original taste Lactobacillus nutrient rice flour produced by Eastwes Company in China
- New sub-categories
-
- Figure 49: Baby soy sauce produced by Sweet Wheat Company
- Premium quality
-
- Figure 50: Organic Rice Milk Powder produced by Topfer, Imported to China
- More scope to emphasise convenience
-
- Figure 51: Share of new product launches of supplementary baby foods in China, the US and Japan, by claim, 2010 -13*
- Packaging innovations can increase convenience
- On-the-go packaging
-
- Figure 52: Sieved Sweet Potato for Babies Aged 5 Months to Toddlers produced by Wakodo Company in Japan
- Resealable pouches for dry baby foods
-
- Figure 53: Tasty Smooth Oatmeal produced by Baby Gourmet Company in Canada
- Microwaveable packaging
-
- Figure 54: Pear Compote produced by Alpina Productos Alimenticios Company in Colombia
- What does it mean?
Key Issue – How Can Domestic Formula Companies Rebuild Trust?
-
- Key points
- The new baby formula regulation puts emphasis on quality improvement
- The standards for the authorisation of baby formula companies and products are going to be raised
- Production process management to be required for baby formula companies
- High standards to be set on baby formula quality inspections
- The new regulations bring hope to domestic baby formula companies
- Domestic firms are focussing on quality and brand-building…
- …but they will struggle to capitalise on the Fonterra scare
-
- Figure 55: Preference for local or international brands, March 2012
- In-depth co-operation with overseas milk suppliers/formula makers
- Acquiring foreign milk firms to take full control of overseas milk sources
- Building baby formula production factories overseas
- Unique and relevant product advantage helps build premium equity
-
- Figure 56: Factors considered important when buying baby food, April 2013
- “Immunity-boosting” is the key purchase driver
-
- Figure 57: How Biostime highlights the “LPN immunity factors” on its product packaging
- Natural ingredients can be exploited to drive premium perceptions
- Capitalising on local knowledge and heritage
- What does it mean?
Appendix – Usage of Baby Food
-
-
- Figure 58: Frequency of serving baby food, April 2013
- Figure 59: Frequency of serving baby food, April 2013 (continued)
-
- Figure 60: Highest frequency of serving formula milk powder, by demographics, April 2013
- Figure 61: Next highest frequency of serving formula milk powder, by demographics, April 2013
-
- Figure 62: Highest frequency of serving goats milk powder, by demographics, April 2013
- Figure 63: Next highest frequency of serving goats milk powder, by demographics, April 2013
-
- Figure 64: Highest frequency of serving special formula milk powder, by demographics, April 2013
- Figure 65: Next highest frequency of serving special formula milk powder, by demographics, April 2013
-
- Figure 66: Highest frequency of serving kids ready-to-drink milk, by demographics, April 2013
- Figure 67: Next highest frequency of serving kids ready-to-drink milk, by demographics, April 2013
-
- Figure 68: Highest frequency of serving cereals, by demographics, April 2013
- Figure 69: Next highest frequency of serving cereals, by demographics, April 2013
-
- Figure 70: Highest frequency of serving fruit/vegetable/meat purees, by demographics, April 2013
- Figure 71: Next highest frequency of serving fruit/vegetable/meat purees foods, by demographics, April 2013
-
- Figure 72: Highest frequency of serving noodles, by demographics, April 2013
- Figure 73: Next highest frequency of serving noodles, by demographics, April 2013
-
- Figure 74: Highest frequency of serving baby snacks, by demographics, April 2013
- Figure 75: Next highest frequency of serving baby snacks, by demographics, April 2013
-
- Figure 76: Highest frequency of serving fruit juice, by demographics, April 2013
- Figure 77: Next highest frequency of serving fruit juice, by demographics, April 2013
-
- Figure 78: Highest frequency of serving dairy drinks, by demographics, April 2013
- Figure 79: Next highest frequency of serving dairy drinks, by demographics, April 2013
-
- Figure 80: Highest frequency of serving colostrum milk powder, gel tablets, by demographics, April 2013
- Figure 81: Next highest frequency of serving colostrum milk powder, gel tablets, by demographics, April 2013
-
- Figure 82: Highest frequency of serving multinutrient (eg DHA/fish oil/algal oil/vitamins gel/tablets/liquid), by demographics, April 2013
- Figure 83: Next highest frequency of serving multinutrient (eg DHA/fish oil/algal oil/vitamins gel/tablets/liquid), by demographics, April 2013
-
Appendix – Reasons of Not Using Baby Food/Snacks/Drinks or Supplementary Food in the Last 12 months
-
-
- Figure 84: Reasons for not using baby food/snacks/drinks or supplementary food in the last 12 months, April 2013
- Figure 85: Most popular reasons for not using baby/kid’s drinks in the last 12 months, by demographics, April 2013
- Figure 86: Next most popular reasons for not using baby/kid’s drinks in the last 12 months, by demographics, April 2013
-
- Figure 87: Most popular reasons for not using baby/kid’s supplementary food in the last 12 months, by demographics, April 2013
- Figure 88: Next most popular reasons for not using baby/kid’s supplementary food in the last 12 months, by demographics, April 2013
-
Appendix – Brand Penetration and Loyalty
-
-
- Figure 89: Brands of baby foods purchased in the last 12 months, April 2013
- Figure 90: Most popular brands of baby foods purchased in the last 12 months, by demographics, April 2013
-
- Figure 91: Next most popular brands of baby foods purchased in the last 12 months, by demographics, April 2013
- Figure 92: Other brands of baby foods purchased in the last 12 months, by demographics, April 2013
-
- Figure 93: Brands of baby foods most often purchased in the last 12 months, April 2013
- Figure 94: Most popular brands of baby foods most often purchased in the last 12 months, by demographics, April 2013
-
- Figure 95: Next most popular brands of baby foods most often purchased in the last 12 months, by demographics, April 2013
- Figure 96: Other brands of baby foods most often purchased in the last 12 months, by demographics, April 2013
-
Appendix – Popular Features of Baby Food Products
-
-
- Figure 97: Appealing elements of baby foods, April 2013
- Figure 98: Most popular appealing elements of baby foods-rank 1, by demographics, April 2013
-
- Figure 99: Next most popular appealing elements of baby foods-rank 1, by demographics, April 2013
- Figure 100: Most popular appealing elements of baby foods-rank 2, by demographics, April 2013
-
- Figure 101: Next most popular appealing elements of baby foods – rank 2, by demographics, April 2013
- Figure 102: Most popular appealing elements of baby foods – rank 3, by demographics, April 2013
-
- Figure 103: Next most popular appealing elements of baby foods – rank 3, by demographics, April 2013
-
Appendix – Channels of Buying Baby Food Products
-
-
- Figure 104: Venues of purchasing baby foods, April 2013
- Figure 105: Most popular venues for purchasing baby foods, by demographics, April 2013
-
- Figure 106: Next most popular venues for purchasing baby foods, by demographics, April 2013
-
Appendix – Attitudes towards Baby Food
-
-
- Figure 107: Attitudes to baby foods, April 2013
- Figure 108: Most popular attitudes to baby foods, by demographics, April 2013
-
- Figure 109: Next most popular attitudes to baby foods, by demographics, April 2013
- Figure 110: Other attitudes to baby foods, by demographics, April 2013
-
Back to top