China Baby Food and Drink Industry Trend, Growth, Research Report 2014

Vegetables, organic ingredients, and minimising packaging size to control nutritional intake could be the springboard for baby food producers to expand penetration among younger parents.

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Table of Content

Introduction

Definition
Methodology
Abbreviations

Executive Summary

The market
Figure 1: Total China retail value sales of baby food and drinks, 2009-19
Companies, brands and innovations
Figure 2: Leading companies’ market shares in the China retail baby food and drink market, by value, 2013
Growing up milk and baby formula
Baby cereals top new launches in 2013
Vegetable-based and organic claims carried by 53% of launches
The consumer
Simultaneous usage between packaged and home-cooked baby food
Figure 3: Baby food usage (including packaged and homemade baby food) in the last three months, March 2014
Baby formula milk powder outperformed other packaged products
Figure 4: Frequency of eating baby food (including packaged and homemade baby food) in the last three months, March 2014
Major challenges – Food safety concerns and age of baby
Figure 5: Reasons for not using packaged baby food in the last three months, March 2014
Scope to boost no additives and natural ingredients
Figure 6: Factors influencing packaged baby food choice, March 2014
Strengthen immunity, brain and bone development tap into packaged baby food to advance
Figure 7: Interest in benefits from packaged baby food, March 2014
Mistrust in professional endorsements
Figure 8: Attitudes towards baby food, March 2014
Engaging with online forum
Figure 9: Baby food purchase, behaviour and usage. March 2014
What we think

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Issues and Insights

Vegetable and organic claims hold the key to healthy market growth
The facts
The implications
How to reach homemade baby food users?
The facts
The implications
How to draw new users to the baby food and drink market?
The facts
The implications
Using premiumisation to fine-tune loyalty among affluent mums
The facts
The implications

Trend Application

Trend: Minimize Me
Trend: Influentials
Trend: Extend my Brand

Market Size and Forecast

Key points
Chinese baby food and drink market continues to grow at a steady pace
Figure 10: Total China retail value and volume sales of baby food and drinks, 2009-19
Market forecast
Figure 11: Total China retail value sales of baby food and drinks, 2009-19
Figure 12: Total China retail market volume of baby food and drinks, 2009-19
Forecast methodology
Market drivers
Ageing population drives the easing of the one-child policy
Sustainable growth in urbanisation and employment awakens the importance of healthy lifestyle
Figure 13: Annual growth in rural and urban household income, China, 2009-13
The potential new consumer class – Young migrant workers
Environmental and food safety concerns drive premium baby food products
Market barriers
Ongoing mistrust – Strong competition from homemade baby food
Tighter regulations on infant formula milk
Challenges for domestic companies – Price fixing by foreign players has lowered average retail prices
Grandparents can be a major resistance to manufactured baby food and drink products
Multiple economic factors could depress baby food consumption

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