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China Baby Food Market - Forecasts from 2022 to 2027

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  • 94 Pages
  • May 2022
  • Region: China
  • Knowledge Sourcing Intelligence LLP
  • ID: 5602482
Baby food is essentially specialized nutrition with a well-balanced composition aimed as closely as possible at matching breast milk. The baby food industry currently offers a diverse range of products in an attempt to meet the changing demands of babies and young children in their formative years. These foods are given to babies between the age of four to six months and two years. Growing nutrition knowledge, an increase in structured retail marketing, urbanization, and a considerable increase in the number of working mothers, are all factors driving the baby food market forward in China. The market for infant food in the country is divided into four categories: type, product type, and distribution channel.

Baby food products are in demand in China due to the growing nutrition awareness, increased urbanization, and rising e-commerce sales.

The China baby food industry is being driven by the rising number of malnutrition instances and health concerns for babies' overall growth. Parents have boosted their spending as the economy has improved. They are willing to spend money on high-quality, pricey things for children's health. It has also propelled the demand for organic food as it is produced from pesticide-free fruits and vegetables, as well as meat from animals that haven't been given antibiotics or growth hormones. It's free of artificial flavors, preservatives, and colors. Due to these reasons, major players are investing in this market. For instance, in May 2021, Nestlé opened a factory in China to produce pouched baby food as part of a round of investment in the country's east. The world's largest food company has begun producing organic puree items for sale in China under its international baby-food brand Gerber at a factory in Laixi, Shandong province.

As the number of working women grows, so does the demand for packaged baby food, fueled by concerns about the nutritional value of baby food. Women made up 43.7 percent of the overall labor force in 2019, according to the World Bank Databank. The number of working women in the country will rise as a result of government legislation promoting greater gender equality in the workplace. In 2019, for example, China implemented legislation to strengthen women's employment protections.

The market for baby food will be boosted further by the country's decreasing child mortality rate and increasing urbanization rate. According to the United Nations' World Population Prospects, China's infant mortality rate is 8.996 deaths per 1000 live births in 2021, down 3.22 percent from 2020. According to the World Bank, China's urban population in 2020 was 861,289,359, up 2.18 percent from 2019. Moreover, the increase in disposable income and e-commerce in the country is also expected to raise the demand for baby food. Personal disposable income in China increased to 43834 Yuan in 2020 from 42359 Yuan in 2019, as per the National Bureau of Statistics of China. According to NBS data, China's online retail sales increased 17.4% year on year to approximately 10.38 trillion Yuan in the first ten months of 2020.

Government initiatives will further drive the growth of the country's baby food market.

From 2021 through 2025, the National Health Commission (NHC) released a new action plan for improving child health. By 2025, the death rates of newborn babies, infants, and children under the age of five will be maintained below 3.1, 5.2, and 6.6 per thousand, respectively, according to the action plan. In addition, the rate of growth retardation among children under the age of five will be kept to less than 5%. The strategy focuses on seven major areas. Newborn protection, congenital disability prevention, healthcare, and early childhood development services are among them. Furthermore, in August 2021, China's national legislature, the National People's Congress (NPC), formally supported the three-child policy, signaling a major policy shift to address the country's rising demographic crisis. Moreover, the government offers special loans to couples who want to start a family. For instance, the administration of Jilin province has granted married couples "marriage and birth consumer loans" worth up to 200,000 Yuan.

Declining marriages, high cost of living, and the unbalanced male to female ratio in the country are likely to act as restraints for market growth.

According to information from the recently released China Statistical Yearbook 2021, the number of marriage registrations in China has been declining for seven years and reached a 17-year low last year. According to data issued by the Ministry of Civil Affairs, 5.87 million couples married in China in the first three quarters of 2021, a modest decrease from the same period last year. Marriage and childbirth are inextricably intertwined in China. Thus, a drop in marriage registration is sure to have a detrimental influence on the country's birth rate and, as a result, on the baby food market. Another critical factor is the imbalanced male-to-female population ratio. According to China's seventh National Census, men outweigh women by 34.9 million. There are 17.52 million more men in their twenties than women of marriageable age among them. Furthermore, the high cost of living, which includes soaring house prices, is a significant barrier for young people who wish to marry and start a family. According to the National Bureau of Statistics, the unemployment rate for individuals aged 16 to 24 was 13.1 percent in February 2021, significantly higher than the national urban unemployment rate of 5.5 percent.

COVID-19 Insights

The COVID-19 pandemic positively impacted the market for baby food in China. Despite the imposition of lockdowns, leading companies in the baby food sector have seen a surge in demand throughout the COVID-19 period. Parents are becoming increasingly worried about their children's health and are investing more in organic and healthier vitamins and foods. For instance, as per the a2 Milk Company, sales of its Chinese label a2 platinum nutrition increased by 100 percent to $146.7 million.

Market Segmentation:

By Type

  • Organic Baby Food
  • Non-Organic Baby Food

By Product Type

  • Dried Baby Food
  • Milk Formula
  • Prepared Baby Food
  • Others

By Distribution Channel

  • Online
  • Offline
Frequently Asked Questions about the Chinese Baby Food Market

What is the estimated value of the Chinese Baby Food Market?

The Chinese Baby Food Market was estimated to be valued at $2.94 billion in 2020.

What is the growth rate of the Chinese Baby Food Market?

The growth rate of the Chinese Baby Food Market is 8.0%, with an estimated value of $5.05 billion by 2027.

What is the forecasted size of the Chinese Baby Food Market?

The Chinese Baby Food Market is estimated to be worth $5.05 billion by 2027.

Who are the key companies in the Chinese Baby Food Market?

Key companies in the Chinese Baby Food Market include Bellamy's Organic, Danone China, DANA DAIRY GROUP, Abbott, Nestle China, a2 Milk Company, Reckitt, Blackmores and Yashili International holdings ltd.

Table of Contents

1.1. Market Definition
1.2. Market Segmentation
2.1. Research Data
2.2. Assumptions
3.1. Research Highlights
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5.1. Introduction
5.2. Organic Baby Food
5.3. Non-Organic Baby Food
6.1. Introduction
6.2. Dried Baby Food
6.3. Milk Formula
6.4. Prepared Baby Food
6.5. Others
7.1. Introduction
7.2. Online
7.3. Offline
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9.1. Bellamy's Organic
9.2. Danone China
9.4. Abbott
9.5. Nestle China
9.6. a2 Milk Company
9.7. Reckitt
9.8. Blackmores
9.9. China Feihe limited
9.10. Yashili International holdings ltd
9.11. China Mengniu Dairy Company Limited

Companies Mentioned

  • Bellamy's Organic
  • Danone China
  • Abbott
  • Nestle China
  • a2 Milk Company
  • Reckitt
  • Blackmores
  • China Feihe limited
  • Yashili International holdings ltd
  • China Mengniu Dairy Company Limited