China Baby Food Market Analysis
The China Baby Food Market was valued at US$16.99 billion in 2023 and is projected to exceed US$27.28 billion by 2030, with an expected CAGR of 7.00% from 2024 to 2030, according to Renub Research.
Baby food is specially formulated to closely mimic the composition of breast milk, the ideal standard for infant nutrition. The industry offers a wide variety of products designed to meet the changing needs of infants and young children during their crucial development stages. These products typically include fruits, vegetables, grains, and proteins that are carefully prepared for easy digestion and are suitable for sensitive palates. In China, baby food holds significant cultural importance, blending modern practices with traditional values.
According to the China National Bureau of Statistics, parents in China allocate 30% to 50% of their household income to raising their children, with a substantial portion of that expenditure going towards feeding infants and young kids.
Growth Opportunities in the China Baby Food Market
Economic Growth and Urbanization
China’s rapid economic expansion has led to increased disposable incomes, encouraging parents to invest more in premium baby food to provide the best nutrition for their children. The country’s swift urbanization has also driven lifestyle changes, with convenience becoming a top priority in the baby food sector.
The World Bank forecasts a 5.2% growth rate for China in 2023. The government report from the 14th National People’s Congress noted that the income gap between urban and rural residents is narrowing. In 2023, the per capita disposable income in China rose by 6.1%, with rural income growing by 8.4%. As of 2022, 64% of the Chinese population lived in urban areas.
Changing Consumer Preferences
Feeding practices and attitudes toward baby nutrition differ significantly between Western and Chinese cultures, influenced by various cultural and behavioral factors. Recently, Western customs have started to shape the infant feeding habits of Chinese mothers. While rice cereal has historically dominated sales, brands are now shifting their focus toward snacks and fruit purees, reflecting the growing demand for convenient feeding solutions. The trend toward organic and premium products is also driving growth in the baby food market.
Younger mothers are increasingly open to providing ready-to-eat purees, such as those from brands like Little Freddie and Ella’s Kitchen. Nielsen data from 2020 indicates that young parents in China are particularly interested in baby food products that are organic, additive-free, and all-natural.
Rise of Social Media
Influencer marketing has proven effective for baby food brands in China. Collaborating with powerful social media influencers (KOLs) is a key strategy to enhance brand visibility and drive sales in the baby food market.
According to research by CBNdata in 2021, 79% of young mothers spend significant time online, seeking advice on parenting, health, and baby food, as well as shopping for their children. Danyang Li, known as “Nicomama,” is a prominent parenting influencer in China, with over 40 million followers across platforms like Douyin, Xiaohongshu, and Weibo. Her recommendations are highly regarded, and she has authored six best-selling books.
Weibo, a widely used social media platform in China, reported 530 million monthly active users by the end of Q1 2021, with approximately 80% of users between the ages of 23 and 39. Many Chinese women utilize Weibo for information during significant life events such as pregnancy and early motherhood. Over 1.5 million brands, including those offering infant formula, have verified accounts on the platform.
China Baby Food Industry Overview
The Chinese baby food market features major players such as China Feihe Limited, China Mengniu Dairy Company Limited, Health and Happiness (H & H) International Holding Limited, China Modern Dairy Holdings Limited, Yashili International Holdings Ltd, and the a2 Milk Company.
- China Feihe Limited: In January 2021, Feihe’s patent application for a unique medical-use goat milk powder was approved. The company plans to expand its retail channels and product offerings. In September 2020, Feihe aimed to acquire YuanShengTai Dairy Farm Ltd. to ensure a consistent supply of fresh milk and enhance quality control.
- China Mengniu Dairy Company Limited: In June 2023, Mengniu launched the world’s first fully intelligent dairy factory in Ningxia, which is also the largest facility producing only liquid milk.
- Health and Happiness (H & H) International Holding Limited: In May 2023, H&H announced that its Biostime infant formula series, including Biostime Pi-Star and Biostime Organic Milk, successfully passed new national standards in China, adding to their range of high-quality products.
- Yashili International Holdings Ltd: In May 2022, Yashili was anticipated to sell Dumex to Danone. The company also engaged in community service by distributing nutritional products to vulnerable groups during its “Yashili – Reeborne” campaign.
- The a2 Milk Company: In January 2023, a2 Milk Company began constructing a new renewable electricity-powered steam boiler at its Mataura Valley Milk location. This initiative aims to enhance its capacity for producing premium, emission-free baby formula. In June 2023, a2 Milk’s manufacturing partner received necessary approvals for selling infant formula in China, facilitating compliance with new regulations and boosting sales.
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Products – Market breakup from 3 viewpoints:
1. Prepared Baby Food
2. Dried Baby Food
3. Milk Formula
4. Others
Distribution – Market breakup from 3 viewpoints:
1. Specialized Stores
2. E-commerce
3. Supermarkets
All companies have been covered from 3 viewpoints:
• Overview
• Recent Developments
• Revenue
Company Analysis:
1. China feihe limited
2. China Mengniu Dairy Company Limited
3. Health and Happiness (H & H) International Holding Limited
4. Yashili International holdings ltd
5. China Modern Dairy Holdings Limited
6. the a2 Milk Company
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