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The Baby Food Market in China 2017

The Baby Food Market in China 2017

Summary

Market for baby food rose by 23% between 2010 and 2016 to reach 396,000 tons, but fell for the first time in recent years in 2016. Although the market is still underdeveloped, it has benefited from greater consumer spending power, the rising levels of urbanization, and increased numbers of working women. At just 21.8kg - of which 18.7kg consisted of milks in 2016 -per capita consumption remains low by international standards. Sales reached CNY82.1 Billion (US$12.4 Billion) in 2016, 78% up on the 2010 level but slightly down on 2015.

Consumption increased in all sectors except drinks, although in value terms baby milks made the greatest gains, rising by 79% between 2010 and 2016. Sales have been boosted by the swing towards premium and super-premium products, as well as by rising per capita consumption up to 2015. Baby milks continue to dominate the market, accounting for over 92% of value and 86% of volume sales. Much of the remainder is made up of cereals & dry meals, which account for 4-5% of value and 7% of volume. Wet meals claim 2-3% of value sales, with finger foods and drinks together taking less than 1% of value sales.

The majority of milks are now imported, due to strong consumer preference for imported products, but most cereals, meals, and other products are produced locally. Imports of milks and cereals have risen strongly in recent years. In 2016, imports reached 225,000 tons, almost four times the 2010 level, and were valued at US$3.1 Billion. Imports of baby meals are much lower, reflecting the smaller size of the market. The Netherlands, Ireland, and New Zealand are the largest importers of infant formula. Exports remain low at present.

Distribution channels for baby food have changed dramatically over the past few years. The largest single channel for baby food is now specialist mother & baby stores (46%), while online sales account for a further 33%. Bricks & mortar food and general retailers now take only 21%. Online sales consist of C2C and B2C channels. The latter is now expanding more rapidly as all the major manufacturers have their own online stores, often selling directly imported products, while C2C sales are declining. Regulatory changes have accelerated this trend.

China has the world's second largest baby population and low per capita consumption, meaning, in theory, the untapped potential remains vast. Despite the one-child policy ending, the high cost of child-rearing and the lower number of women of childbearing age will restrain increases in births. On the other hand, once regulatory changes have concluded, sales should be boosted by the expansion of distribution and by rising incomes.

The report The Baby Food Market in China 2017 provides extensive and highly detailed current and future market trends in the Chinese market.

In particular, this report provides the following analysis -

  • Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry.
  • Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors.
  • Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands.
  • Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel.
  • Future projections considering various trends which are likely to affect the industry.
Companies mentioned in this report: Nestlé (China) Ltd, Danone, Mead Johnson Nutrition Co Ltd, Abbott (Guangzhou) Nutritionals Ltd, Inner Mongolia Yili Industrial Group Co Ltd, FrieslandCampina China, Biostime Inc, Feihe International Inc, Hangzhou Beingmate Group, Synutra International Inc/Sheng Yuan, Heinz (China) Investment Co Ltd China, Mengniu, Yashili Group Co Ltd, Shanghai Fangguang Foods Company, Eastwes Nutriment Co Ltd, Ausnutria Dairy (China) Company Ltd, Beijing Sanyuan Foods Co Ltd, Bright Dairy, China Huishan Dairy Holdings Company Ltd, Heilongjiang Wondersun Dairy Co Ltd, Hong Kong Wissun Group.

Scope
  • Consumption of baby food in China rose by 23% since 2010 in terms of volume. Market value rose by 78% between 2010 and 2016.
  • The bulk of baby food sales continue to occur in the major cities, although increasingly affluent consumers are emerging in second-, third-, and even fourth-tier cities, as well as the better-off parts of the rural community.
  • The Chinese infant formula market is the world’s largest; now well ahead of both the US and the total market in Western Europe.
  • The market is highly fragmented with a large number of foreign and local manufacturers active.
  • The majority of milks are now imported, due to strong consumer preference for imported products, but most cereals, meals, and other products are produced locally.
  • The major distribution channels for baby food have changed dramatically over the past few years. The largest single channel for baby food is now specialist mother & baby stores (46%), while online sales account for a further 33%. Bricks & mortar food and general retailers now take only 21%.
  • Overall retail sales are forecast to rise by 51% between 2016 and 2022, while volume sales will increase by 26%.
Reasons to buy
  • Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
  • Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
  • Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
  • Investigates which categories are performing the best and how this is changing market dynamics.


  • Introduction
    • Executive Summary
    • Definitions: Market Sectors
    • Definitions: Terminology
  • Background to the Market
    • Births - Live Birth Rates: China's "one-child policy," scrapped in January 2016, has not led to as large an increase in births as many expected
    • Births - Live Birth Rates: The number of births in 2016 increased to just over 18 million, up from 16.6 million in 2015
      • Table Birth & Population Trends, 2006-2016
    • Births - Birth Rates by Region: Birth rates in remote, rural areas tend to be higher than in other areas as there has been less centralized pressure for birth control
      • Table Live Births by Province, 2011-2015
    • Births - Birth Rates by Region: The three most populous provinces - Guangdong, Shandong, and Henan - each accounted for 8% of all births in 2015
      • Table Live Births by province, 2011-2015
    • The Consumer - Living Standards: There are no signs of urbanization slowing
      • Table Rural/Urban Population Breakdown, 2010-2016
    • The Consumer - Living Standards: Urban and rural per capita incomes have both risen over the past decade, but rural incomes remain well down on urban levels
      • Table Annual Per Capita Disposable Income, 2006-2016
    • The Consumer - Living Standards: Income levels are highest among both the urban and rural populations of Shanghai and Beijing
      • Table Population & Income, Urban & Rural, 2013 & 2015
    • The Consumer - Living Standards: The lowest income levels are found among rural provinces
      • Table Population & Income, Urban & Rural, 2013 & 2015
    • The Consumer - Living Standards: Residents in urban areas of China spend much higher sums on food than their counterparts in the rural community
      • Table Annual Food Expenditure, 2010-2015, C¥
    • The Consumer - Living Standards: Food expenditure is largest in the big cities, where prices tend to be relatively high, and disposable income is greatest
      • Table Food Expenditure by Province, 2013 & 2015
    • The Consumer - Living Standards: Food expenditure levels among rural residents stood at an average of 48% of the urban levels in 2015
      • Table Food Expenditure by Province, 2013 & 2015
    • The Consumer - Living Standards: Of the urban population, 57% fell into the upper middle class/affluent income groups in 2012
      • Table Breakdown of Urban Population by Income Group, 2012
    • The Consumer - Living Standards: Ownership of durable consumer goods and access to the Internet are both rising fast
      • Table Ownership of Durable Consumer Goods 1990-2015
      • Table Internet Usage, 2010-2016
    • The Consumer - Regional Profile: East Coast
      • Table Population & Income Profile, East Coast, 2004 & 2015
    • The Consumer - Regional Profile: North East China
      • Table Population & Income Profile, North East China, 2004 & 2015
    • The Consumer - Regional Profile: Central China
      • Table Population & Income Profile, Central China, 2004 & 2015
    • The Consumer - Regional Profile: West China
      • Table Population & Income Profile, West China, 2004 & 2015
    • Socio-demographic Trends - Family Structure: The number of marriages has grown rapidly, but there is a tendency for women to marry at a later age
      • Table Trends in Marriages & Divorces, 1985-2015
    • Socio-demographic Trends - Births by Age of Mother: The average age of giving birth remains quite young by international standards
      • Table Births by Age of Mother, 2015
    • Working Women - Female Employment: Female employment is widespread, standing at 63% in 2016
      • Table Female Labor Force Participation, 2010-2016
    • Working Women - Legislation: The abandonment of the one-child policy has gone hand-in-hand with longer maternity leave
      • Table Maternity Leave, by Province, 2016
    • Working Women - Legislation: Mothers have a right to an extra hour's break daily for breastfeeding, but facilities are often inadequate
    • Regulations - Labeling: Stricter rules governing product names, product information, and product claims are being introduced
    • Regulations - Food Safety: Safety has remained the number one issue among Chinese parents
      • Table Key Purchasing Criteria for Infant Formula, 2013
    • Regulations - Food Safety: Initial regulations to tighten laws on infant formula safety were introduced in 2009, but have since been revised
    • Regulations - Food Safety: The 2015 Food Safety Law came into effect from October 1, 2015
    • Regulations - Food Safety: The Infant formula registration deadline is now January 1, 2018
    • Regulations - Food Safety: Tighter regulation of Cross-Border e-Commerce (CBEC) was abandoned in March 2017
    • Regulations - Food Safety: Requirements for Special Infant Formula and for Complementary Foods are also being tightened
    • Regulations - Marketing: Despite rules that forbid baby milk companies from targeting mothers, breaches remain frequent
    • Regulations - Marketing: On September 1, 2015 a new stricter Advertisement Law came into effect
    • Regulations - Marketing: Although many of the provisions of the WHO Code of Marketing of Breast-milk Substitutes are in place, breaches are widespread
    • Breastfeeding Trends - Promotion: In 2012, the Ministry of Health announced a target of increasing the exclusive breastfeeding rate at six months to 50% by 2020
    • Breastfeeding Trends - Prevalence: Although most babies are breastfed to some extent, exclusive breastfeeding rates are well below the government's 50% target
      • Table Exclusive Breastfeeding Rates, 1998-2014
      • Table Breastfeeding Duration: Age at Which Breastfeeding Stopped, 2011
    • Breastfeeding Trends - Prevalence: Babies born in rural areas are much more likely to be breastfed than urban babies
      • Table Exclusive Breastfeeding Rates by Location, 1997-2009
      • Table Breastfeeding Rates at Discharge, Zhejiang Province, 2004-2005
    • Breastfeeding Trends - Prevalence: A 2013 study in Hunan indicated that 79% of mothers breastfed at some time
      • Table Breastfeeding Rates in Hunan Province, 2013
    • Breastfeeding Trends - Prevalence: Breastfeeding rates drop off, particularly in the cities, where exclusive breastfeeding is also much lower
      • Table Breastfeeding Rates by Age of Baby, Zhejiang Province, %, 2004-2005
    • Breastfeeding Trends - Prevalence: Consumption of commercial baby food is greatest in the major cities, where incomes are better and more women have jobs
  • Market Overview
    • Market Overview: Sales of baby food rose by 78% between 2010 and 2016 to C¥82.1 billion (US$12.4 billion), equivalent to 396,045 tons
    • Market Overview: While growth has been rapid, per capita consumption levels remain low by international standards
    • Market Overview: All sectors of the baby food market, except drinks, experienced an increase in consumption during the survey period
      • Table Market Size, 2016 & Growth Rates, 2010-2016
    • Manufacturer Shares: The market is highly fragmented with a large number of foreign and local manufacturers active; the former are increasing
      • Table Baby Food: Manufacturer Shares, Value, %, 2011-2016
    • Manufacturer Shares: In volume terms, domestic suppliers are stronger, and companies with a presence beyond milks are more prominent than in value
      • Table Baby Food: Manufacturer Shares, Volume, %, 2011-2016
    • Manufacturer Shares: The majority of leading players gain their position in the overall market through their presence in the dominant milks sector
      • Table Baby Food: Manufacturer Shares by Sector, %, 2016
    • Manufacturer Shares: Nestlé is the only major company to have a presence in all sectors
    • The Future: Overall retail sales are forecast to rise by 51% to C¥124 billion between 2016 and 2022, while volume sales will increase by 26%
      • Table Projected Market Size, 2022, &Growth Rates, 2016-2022
  • Sector Analysis
    • Sector Analysis: Baby Milks
    • Baby Milks Sector Trends: The Chinese infant formula market is the world's largest
    • Baby Milks Sector Trends: Overall consumption of baby milks has risen by 24% over the past six years
    • Baby Milks Sector Trends: The last three years have seen a clear slow-down in market development
    • Baby Milks Per Capita Trends: In 2016, per capita consumption of baby milks amounted to 18.7kg
    • Baby Milks - Regional Profile: In rural China, per capita consumption is below average, but the strongest growth is in smaller cities, towns, and even rural areas
      • Table Sales of Infant Formula by Region, Value, 2014 & 2015
      • Table Penetration of Infant Formula by Region, Value, 2014 & 2015
    • Baby Milks Segmentation: Growing-up milks, targeted at 1-3 year olds, have seen very strong growth
    • Baby Milks Segmentation: A market for specialist formulae has been virtually nonexistent in China, but is now beginning to emerge
    • Baby Milks Segmentation: A market for organic formulae is beginning to develop
    • Baby Milks Segmentation: Super-premium and premium products account for over 40% of value sales
      • Table Market Segmentation by Price Positioning, Value & Volume %, 2013-2016
    • Baby Milks Segmentation: Super-premium products accounted for nearly 20% of milk sales in baby stores in 2014
      • Table Market Segmentation by Price Positioning & Retail Channel, by Value, 2013 & 2014
    • Baby Milks Segmentation: In 2013, the NDRC's price-fixing investigation saw a sharp drop in prices
      • Table Price Reductions Announced in July, 2013
    • Baby Milks Segmentation: From April 2015 onwards the Chinese market saw the advent of C¥99 infant formula
    • Baby Milks Segmentation: Most manufacturers have products across a broad range of prices
      • Table Brands by Price Positioning, 2017
    • Baby Milks Segmentation: The most expensive brands retailed at over C¥500 (US$70) per kg in 2017; super-premium products retail at over C¥400 (US$56) per kg
      • Table Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: Premium products retail at C¥300-C¥400 (US$42-US$56) per kg
      • Table Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: The highest number of brands are marketed in the midpriced sector
      • Table Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: The mid-priced sector comprises products costing C¥200- C¥300 (US$28-US$42) per kg
      • Table Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: Mid-priced products include many Gold products from international brands, as well as many local products
      • Table Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: Low-priced products cost less than C¥200 (US$28) per kg. A very small number of products retail for under C¥115 (US$16) per kg
      • Table Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: Many factors impact the price of baby milks
      • Table Baby Milks: Prices by Type of Packaging, 2017
    • Baby Milks Segmentation: Cans account for almost three-quarters of all packs of baby milks on sale
      • Table Baby Milks: Packaging by Type & by City, 2017
    • Baby Milks Segmentation: The most popular size for baby milk is 900g, which accounted for over twice as many facings as 800g or 400g packs
      • Table Baby Milks: Packaging by Size & by City, 2017
    • Baby Milks Manufacturer Shares: Although the market is becoming more concentrated, there remain many small suppliers in addition to the leading companies
    • Baby Milks Manufacturer Shares: Multinationals dominate the market, with the top four taking nearly half the market in value terms
      • Table Baby Milks: Manufacturer Shares, Value, 2010-2016
    • Baby Milks Manufacturer Shares: Despite the power of the leading multinationals, the baby milks sector continues to support a very large number of manufacturers
      • Table Baby Milks: Manufacturer Shares, Volume, 2010-2016
    • Baby Milks Manufacturer Shares: Nestlé continues to lead the market, following its acquisition of the Wyeth business, while Danone regained second place in 2016
    • Baby Milks Manufacturer Shares : Mead Johnson has slipped to third place after a difficult few years, and Abbott is also struggling
    • Baby Milks Manufacturer Shares: The leading domestic supplier is Inner Mongolia Yili; FrieslandCampina is now in sixth place, slightly ahead of Feihe and Biostime
    • Baby Milks Manufacturer Shares: Hangzhou Beingmate and Synutra complete the top 10
    • Baby Milks Manufacturer Shares: A plethora of other manufacturers each hold small shares, including many local companies and suppliers from Australasia and Asia
    • Baby Milks Manufacturer Shares: A plethora of other manufacturers each hold small shares, including many companies from Europe
    • Baby Milks Manufacturer Shares: The market potential has attracted many new entrants in the last five years
    • Baby Milks Manufacturer Shares: Manufacturers have varying strengths in the different distribution channels
      • Table Baby Milks: Manufacturer Shares by Distribution Channel, Value %, 2013
    • Baby Milks Manufacturer Shares: Data by province illustrates wide disparities in manufacturer shares
      • Table Market Shares in Selected Provinces, % of Value Sales, 2014
    • Baby Milks Manufacturer Shares: In tier one and two cities, international products achieve much higher levels of penetration than their domestic counterparts
      • Table Market Shares in Third, Fourth and Fifth Tier Cities, % of Value Sales, 2014
    • Baby Milks Brands: The market has become increasingly fragmented, but legislation to limit companies to three brand families will change this
    • Baby Milks Brands: The leading brands include S-26, Illuma, the Enfa range, Nutrilon, and Aptamil
    • Baby Milks Brands: Similac and Yili Pro-Kido also play a significant role
    • Baby Milks Brands: Beingmate, Friso, and Biostime are also significant brands
    • Baby Milks Brands: Other prominent brands include Synutra Super, Yashily, Firmus, and AstroBaby
    • Baby Milks Brands: Many companies in the Australasia region have launched their brands on the Chinese market
    • Baby Milks Brands: Brand rankings vary by channel and by stage
      • Table Leading Brands in Online Shopping Sites, by Stage, 2014
    • Sector Analysis: Baby Cereals & Dry Meals
    • Baby Cereals & Dry Meals Sector Trends: Cereals & dry meals make up the second largest sector, but at C¥3.6 billion sales are dwarfed by milks
    • Baby Cereals & Dry Meals Per Capita Trends: Per capita consumption is low in international terms, at 1.6kg in 2016
    • Baby Cereals & Dry Meals Segmentation: Cereals have failed to make much progress in recent years, with all growth coming from the dried meals segment
    • Baby Cereals & Dry Meals Segmentation: Prices range from US$15-US$50 for cereals/rice meals
      • Table Cereals & Dry Rice Meals: Price Positioning, 2017
    • Baby Cereals & Dry Meals Segmentation: Prices range from US$7-US$30 per kg for dry noodles/pasta
      • Table Dry Noodles/Pasta Meals: Price Positioning, 2017
    • Baby Cereals & Dry Meals Segmentation: Boxes remain the most prevalent form of packaging, but cans and tubs are gaining ground
      • Table Baby Cereals & Dry Meals: Packaging by Type & by City, 2017
    • Baby Cereals & Dry Meals Segmentation: Many pack sizes are available, but the vast majority of products fall into the 180g-408g range
      • Table Baby Cereals & Dry Meals: Packaging by Size & by City, 2017
    • Baby Cereals & Dry Meals Manufacturers: The two leading players remain international companies - Heinz and Nestlé
      • Table Baby Cereals & Dry Meals: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Baby Cereals & Dry Meals Manufacturers & Brands: Heinz is currently the market leader in both volume and value terms, followed by Nestlé
    • Baby Cereals & Dry Meals Manufacturers & Brands: A large number of other local and overseas players are also active in the market
    • Sector Analysis: Baby Meals
    • Baby Meals Sector Trends: Wet meals are still of only minor importance in the baby food market in China, but in volume terms this is the fastest-growing sector
    • Baby Meals Per Capita Trends: Intake is equivalent to only 11 typical-sized jars per baby per year
    • Baby Meals Segmentation: Sweet varieties have been gaining in availability and popularity, aided by the recent advent of pouch meals
      • Table Wet Meals: Store Facings by Type & City, 2017
    • Baby Meals Segmentation: A large price range exists, depending on the distribution channel, the packaging format, and the brand
      • Table Savory Wet Meals: Price Positioning, 2017
    • Baby Meals Segmentation: Imported organic products typically retail at four or more times the price of locally produced non-organic sweet meals
      • Table Sweet Wet Meals: Price Positioning, 2017
    • Baby Meals Segmentation: Pouches have now overtaken jars as the most popular form of packaging in Beijing
      • Table Wet Meals: Packaging by Type & by City, 2017
    • Baby Meals Segmentation: Packs of 113g and 120g account for 60% of facings
      • Table Wet Meals: Packaging by Size & by City, 2017
    • Baby Meals Manufacturer Shares: Despite changes to the competitive structure, Heinz continues to hold almost two-thirds of volume sales
      • Table Baby Meals: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Baby Meals Manufacturers & Brands: Heinz dominates, with Nestlé, Fangguang, Hipp, and Hain Celestial among the most significant of the others
    • Sector Analysis: Baby Finger Foods
    • Baby Finger Foods Sector Trends: The sector has been rising steadily, increasing by 51% in value over the 2010-2016 period
    • Baby Finger Foods Per Capita Trends: Purchases of finger foods are low, with consumption concentrated among affluent consumers in the higher tier cities
    • Baby Finger Foods Segmentation: The bulk of the market consists of rusks/biscuits, but Western-style snacks are increasingly available
      • Table Finger Foods: Packaging by Type & by City, 2017
    • Baby Finger Foods Segmentation: Packs of 110g or less account for 80% of facings
      • Table Finger Foods: Packaging by Size & by City, 2017
    • Baby Finger Foods Segmentation: Rusks and biscuits retail at a much lower price than Western-style snacks
      • Table Finger Foods: Price Positioning, 2017
    • Baby Finger Foods Segmentation: Snacks retail at twice the price of biscuits and rusks
      • Table Finger Foods: Price Positioning, 2017
    • Baby Finger Foods Manufacturer Shares: New entrants and local players are challenging Heinz's dominance
      • Table Finger Foods: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Baby Finger Foods Manufacturers & Brands: Heinz remains in the lead, but other brands are proliferating
    • Sector Analysis: Baby Drinks
    • Baby Drinks Sector Trends: The baby drinks sector is the smallest sector of the baby food market, and is shrinking
    • Baby Drinks Per Capita Trends: In 2016, per capita intake of baby drinks stood at just 139ml, less than two standard bottles per baby
    • Baby Drinks Segmentation: The drinks sector comprises mainly fruit juices, packaged in 118ml bottles
      • Table Baby Drinks: Price Positioning, 2017
    • Baby Drinks Manufacturer Shares: Heinz has a dominant position in the baby drinks sector, taking an 85% share
      • Table Baby Drinks: Manufacturer Shares, Value, %, 2010-2016
    • Sector Analysis: Other Baby Food
    • Other Baby Food: There is also an unquantified market for traditional Chinese foods designed to enhance babies' health and intelligence
  • Production and Trade
    • Production: Only one-third of infant formula is now produced locally, and imports of other baby food are growing too
      • Table Domestic/Imported Baby Food, by Sector, % of Facings, 2013-2017
    • Production: The government is changing the structure of the domestic industry, to enable it to compete by allowing only the fittest companies to survive
    • Production: A drastic fall in the number of manufacturers and brands is expected in 2017 and 2018
    • Production: Nearly half of local manufacturers of infant formula are located in just two provinces, Heilongjiang and Shaanxi
      • Table Number of Infant Formula Manufacturers with CNCA Approval, by Region, 2014
    • Production: Most of the major domestic producers received CNCA approval in July 2014
    • Production: Dumex and Wyeth received CNCA approval in July 2014
    • Production: Abbott and Mead Johnson received CNCA approval in July 2014
    • Production: An additional 10 local companies received CNCA approval in November 2014
    • Production: The most recent government registration process (2015/16) further reduced the number of overseas companies able to sell infant formula in China
    • Production: Companies from Europe, the Americas, Asia, and Australasia have gained CNCA approval
    • Production: Several companies have been suspended from the market
    • Production: The extent of capacity expansions, even if not run at full capacity, has given rise to concerns about overcapacity in the infant formula market
      • Table Number of Manufacturers Registered to Sell Infant Formula, 2016
      • Table Infant Formula Production Expansion by Chinese Companies, Coming on Stream 2014-2016
    • Imports: Import tariffs were lowered in 2016, while a tax was imposed on crossborder e-commerce
    • Imports: By 2016, imports of milks and cereals had reached 225,273 tons, more than trebling since 2010
    • Imports: Imports of baby meals rose sharply in 2015 and 2016; the UK is dominant, accounting for over one-third of import volume
    • Exports: Although exports of milks and cereals have grown very rapidly in the last five years, they remain low
    • Exports: Exports of baby meals have fluctuated significantly
  • Company Profiles
    • Industry Structure: Baby food manufacturers operating in China are mostly involved in only one or two sectors
    • Industry Structure: Multinationals quickly took advantage of the government's encouragement of foreign investment by setting up local production
    • Industry Structure: International partnerships have become an increasing feature of the baby milks industry
    • Industry Structure: Chinese companies are also investing in their own overseas production plants
    • Industry Structure: Although some mergers and acquisitions have taken place between Chinese companies, the pace appears to be slow
    • Company Profiles: The importance of the milks sector within the total market means that dominance and trends here dictate overall positions
    • Company Profiles: Nestlé (China) Ltd
      • Table Market shares, 2016
    • Company Profiles: Danone
      • Table Market shares, 2016
    • Company Profiles: Mead Johnson Nutrition Co Ltd
      • Table Market shares, 2016
      • Table Mead Johnson: Sales in China & Hong Kong, 2010-2016
    • Company Profiles: Abbott (Guangzhou) Nutritionals Ltd
      • Table Market shares, 2016
    • Company Profiles: Inner Mongolia Yili Industrial Group Co Ltd
      • Table Market shares, 2016
      • Table Inner Mongolia Yili: Sales and Profit, 2010-2016
    • Company Profiles: FrieslandCampina China
      • Table Market shares, 2016
    • Company Profiles: Biostime Inc
      • Table Market shares, 2016
      • Table Biostime: Financial Highlights, C¥ Million, 2010-2016
      • Table Biostime: Breakdown of Turnover, 2013-2016
    • Company Profiles: Feihe International Inc
      • Table Market shares, 2016
      • Table Feihe: Financial Highlights, 2010-2016
      • Table Feihe: Breakdown of Sales by Product Type, 2010-2012
      • Table Feihe: Breakdown of Sales of Infant Milk Powder, First Nine Months 2013
    • Company Profiles: Hangzhou Beingmate Group
      • Table Market shares, 2016
      • Table Beingmate: Net Income and Profit, C¥ Million, 2012-2016
    • Company Profiles: Synutra International Inc/Sheng Yuan
      • Table Market shares, 2016
      • Table Synutra: Revenue & Profit Trends, 2010-2017
      • Table Synutra: Breakdown of Sales, US$ Million, 2010-2016
      • Table Synutra: Sales of Nutritional Food (Powdered Formula & Food) by Brand, 2015 & 2016
    • Company Profiles: Heinz (China) Investment Co Ltd China
      • Table Market shares, 2016
    • Company Profiles: Mengniu, Yashili Group Co Ltd
      • Table Market shares, 2016
      • Table Mengniu: Breakdown of Sales by Product Type, C¥ Million, 2010-2016
      • Table Yashili: Financial Highlights, 2010-2016
      • Table Yashili: Breakdown of Sales by Product Type, 2010-2016
      • Table Yashili: Breakdown of Sales of Infant Formulae by Location, 2009-2015
    • Company Profiles: Shanghai Fangguang Foods Company
      • Table Market shares, 2016
    • Company Profiles: Eastwes Nutriment Co Ltd
      • Table Market shares, 2016
    • Company Profiles: Other Manufacturers
  • Distribution
    • Retail Structure: Modern grocery outlets increased their share of packaged food sales to 41.8% in 2016
      • Table Packaged Food Sales by Channel, C¥ Billion, 2011-2016
    • Baby Food Retailing: There has been a seismic shift in the distribution of baby food away from grocery stores towards mother & baby stores and online sales
      • Table Sales of Baby Food by Outlet Type, 2010-2016
    • Baby Food Retailing: Lower prices and wider product ranges are the main factors behind the success of baby goods specialists and online purchasing
    • Baby Food Retailing: Online retailing is of even greater importance for infant formula sales than in the baby food market as a whole
      • Table Sales of Infant Formulae by Outlet Type, 2010-2016
    • Baby Food Retailing: Manufacturers are focusing on expanding their activity in the baby store and online channels
  • Economic Background
    • Economic Background: Annual GDP growth has slowed down to just below 6%
      • Table Economic Indicators, 2010-2017
    • Key Macroeconomic Forecasts: Lower growth rates are expected in the next five years
      • Table Key Macro-Economic Forecasts 2016-2022
    • Demographic Background: China has 13 cities with populations of over 10 million
      • Table Population of Largest Cities, 2010
  • Prospects and Forecasts
    • Birth and Population Projections: The cost of raising a child and a falling number of women of childbearing age will counter the effect of ending the one-child policy
      • Table Births by Birth Order, Million Births, 2013-2015
    • Birth and Population Projections: GlobalData forecasts that the number of births will rise in 2017 but then begin a gentle decline
      • Table Birth & Population Projections, 2010-2022
    • Forecast Overview: The baby nutrition market remains underdeveloped by international standards, and long-term prospects for the market remain good
    • Future Trends: Many factors, including higher family incomes, suggest very positive future growth
    • Future Trends: The changing and uncertain regulatory environment is casting a shadow over 2017 and 2018
    • Future Trends: Baby milks are expected to see a rise of over 50% in retail sales between 2016 and 2022
    • Future Trends: Milks and cereals will continue to dominate, with other baby food products accounting for only 7% of retail sales
  • Appendix
    • Appendix - The Baby Population: The infant population (0-3 years) is expected to rise up to 2018 but then begin a slow decline
      • Table Baby Population, Number of Babies (`000), 2006-2022
    • Appendix - Breastfeeding Prevalence: Geographical Variation in Breastfeeding Rates before Discharge
      • Table Geographical Variation in Breastfeeding Rates before Discharge
    • Appendix - Breastfeeding Prevalence: Geographical Variation in Breastfeeding Rates at One Month
      • Table Geographical Variation in Breastfeeding Rates at One Month
    • Appendix - Breastfeeding Prevalence: Geographical Variation in Breastfeeding Rates at Two Months
      • Table Geographical Variation in Breastfeeding Rates at Two Month
    • Appendix - Breastfeeding Prevalence: Geographical Variation in Breastfeeding Rates at Three Months
      • Table Geographical Variation in Breastfeeding Rates at Three Month
    • Appendix - Breastfeeding Prevalence: Geographical Variation in Breastfeeding Rates at Four Months
      • Table Geographical Variation in Breastfeeding Rates at Four Month
    • Appendix - Market Value: At current prices, the baby food market rose by 78% to C¥82.1 billion between 2010 and 2016
      • Table Baby Food: Market Value, Current Prices, 2010-2016
    • Appendix - Market Value: In constant price terms, sales increased by 51% over the 2010-2016 period
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: The Chinese baby food market was worth US$12.4 billion in 2016
      • Table Baby Food: Market Value, US$ Million, 2010-2016
    • Appendix - Market Volume: Consumption of baby food stood at 396,045 tons in 2016, 23% higher than in 2010
      • Table Baby Food: Market Volume, Tons, 2010-2016
    • Appendix - Per Capita Expenditure: Per capita expenditure on baby food rose by 56% between 2010 and 2016, to C¥4,522 in 2016
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Growth in the baby milks sector has outpaced all other sectors
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Average per capita expenditure stood at US$681 in 2016
      • Table Baby Food: Per Capita Expenditure, US$ Dollars Prices, 2010-2016
    • Appendix - Per Capita Consumption: Of the total 21.8kg of baby food consumed per baby in 2016, 18.7kg was baby milks
      • Table Baby Food: Per Capita Consumption, Grams, 2010-2016
    • Appendix - Milks Sector Trends: Value sales rose by 79% between 2010 and 2016, while consumption is up by 24%
      • Table Baby Milks: Sector Trends, 2010-2016
    • Appendix - Milks Segmentation: Growing-up milks is the largest segment and is driving sales
      • Table Baby Milks: Market Segmentation, Value and Volume, 2010-2016
    • Appendix - Milks: Many manufacturers supply a range of brands and formulations at different price points
      • Table Baby Milks: Brand Price Analysis, 2017
    • Appendix - Cereals & Dry Meals Sector Trends: After declining in 2010, sales of cereals have begun to pick up
      • Table Baby Cereals & Dry Meals: Sector Trends, 2010-2016
    • Appendix - Meals Sector Trends: Consumption of baby meals rose by over 50% between 2009 and 2015
      • Table Baby Meals: Sector Trends, 2010-2016
    • Appendix - Finger Foods Sector Trends: The finger foods sector is small but buoyant
      • Table Baby Finger Foods: Sector Trends, 2010-2016
    • Appendix - Drinks Sector Trends: The drinks sector grew by 20% in volume terms between 2009 and 2015, but fell back in 2016
      • Table Baby Drinks: Sector Trends, 2010-2016
    • Appendix - Imports: Imports of milks and cereals more than trebled between 2010 and 2016
      • Table Milks & Cereals: Import Trends, 2010-2016
    • Appendix - Imports: The Netherlands has become China's main supplier of milks and cereals, followed by Ireland, New Zealand, and Germany
      • Table Imports of Milks & Cereals by Country of Origin, % Volume, 2010-2016
    • Appendix - Imports: The Netherlands and Ireland together account for over 50% of import value, with New Zealand and Germany each taking 11%
      • Table Imports of Milks & Cereals by Country of Origin, % Value, 2010-2016
    • Appendix - Imports: Most meals are domestically produced and imports are low, though increasing
      • Table Baby Meals: Import Trends, Volume Tons, 2010-2016
      • Table Baby Meals: Import Trends, Value US$ '000, 2010-2016
    • Appendix - Imports: The UK was the most significant supplier of baby meals imports in 2016, followed by the US and Spain
      • Table Imports of Baby Meals by Country of Origin, % Volume, 2010-2016
    • Appendix - Imports: The bulk of baby meals imports originate in Western Europe and the US
      • Table Imports of Baby Meals by Country of Origin, % Value, 2010-2016
    • Appendix - Exports: Exports of milks and cereals from China are very low, but have been rising steadily
      • Table Milks & Cereals: Export Trends, 2009-2015
    • Appendix - Exports: The vast majority of exports of milks and cereals are destined for Hong Kong
      • Table Exports of Milks & Cereals by Country of Destination, Volume and Value 2009-2015
    • Appendix - Exports: China is a net exporter of baby meals, although the volume dropped sharply in 2014 and recovered only slightly in 2015
      • Table Baby Meals: Export Trends, Volume Tons, 2009-2015
      • Table Baby Meals: Export Trends, Value US$ '000, 2009-2015
    • Appendix - Exports: Meals are exported to a range of countries in the Middle East, Australasia, and beyond
      • Table Exports of Baby Meals by Country of Destination, Volume & Value, 2010-2015
    • Appendix - Value Forecasts: The value of the baby food market is forecast to rise to C¥124 billion by 2022
      • Table Baby Food: Market Value Forecasts, Current Prices, 2016-2022
    • Appendix - Value Forecasts: In constant price terms, the value of the market will increase by 32% between 2016 and 2022
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2016-2022
    • Appendix - Value Forecasts: All sectors except drinks will show growth, led by milks, and the market will increase by 51% in total
      • Table Baby Food: Market Value Forecasts, US$ Million, 2016-2022
    • Appendix - Volume Forecasts: Consumption will rise by over a quarter, with milks continuing to dominate sales
      • Table Baby Food: Market Volume Forecasts, Tons, 2016-2022
    • Appendix - Per Capita Forecasts: Spend-per-baby on baby food will increase to C¥7,286 by 2022
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
    • Appendix - Per Capita Forecasts: In constant price terms, average expenditure will rise by 41%
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure will increase by 61% between 2016 and 2022
      • Table Baby Food: Per Capita Expenditure, US$ Dollars, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita consumption will rise to 29.4kg in 2022, an increase of 35% over 2016
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Appendix - Storechecks: Storechecks were conducted in Beijing and Shanghai in March 2017
      • Table Baby Food: Products Facings by Type & by City
    • Summary Methodology

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