Research Report on Market of Formula Milk Powder for Infants in China

 Published On: Apr, 2016 |    No of Pages: 154 |  Published By: Beijing Orient Agribusiness Consultant Ltd | Format: PDF
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In terms of the current dairy products with large commercial scale and profitability, infant formula milk powder is undoubted focus and hotpoint of industrial competition. According to the preliminary estimation of BOABC, currently the sale gross profit margin of foreign-funded infant formula milk powder brands represented by Mead Johnson and Dumex has reached 60%, and that of domestic infant formula milk powder brands represented by Yili, Beingmate, Shengyuan and Yashili has also reached 40-60%, which far exceeds 25% average gross profit margin of the entire dairy production industry, and attracts a large number of milk processing enterprises to turn to produce infant formula products, meanwhile, the capital outside the industry also saw the tremendous profits of the product, and has made strong capital penetration to the product. In recent years, infant formula milk powder companies have got listed in and outside China, and have obtained a wealth of capital, so they have made the formula milk powder to become one of the products with the highest investment value.

At present, the entire market size of China's infant formula milk powder is almost RMBY 60 billion, there are a hundred of production and processing enterprises with business license issued by the state, the whole market is obviously divided into high end and mid & low end, brand concentration is higher in the markets with different grades. With the increasing monitoring efforts of Chinese government on the whole dairy processing industry including infant formula milk powder companies, the brand concentration of infant formula milk powder market is expected to continue to increase.

This report carries on a comprehensive and detailed analysis by six aspects including China’s supply of raw material milk and milk-based raw materials, China’s related policies on infant formula milk powder industry, China's infant formula milk powder market, major competitors and respective market shares of China's infant formula milk powder market, China's development trend of infant formula milk powder, and threats and opportunities that infant formula milk powder market are facing. The data in this report includes the relevant official data of China, the data provided by dairy enterprises, data from terminal market research institutions as well as those that BOABC accumulated through years of cooperation with the industry. The data is authoritative, objective and forward-looking.

BOABC is a domestic well-known professional agricultural consulting company, and has strong R & D strength and excellent market research team, over the years, it has provided services for Chinese relevant government departments, international organizations, multinational companies, domestic well-known companies, boasting a good reputation. BOABC has attached great importance to China's dairy industry development, its main R & D personnel are the members of the related dairy policy "think tank"of the Chinese government, have a deep understanding on the China's whole industrial chain of dairy industry, and have maintained a good relationship with Dairy Association of China, China Dairy Industry Association and local related associations, also have a good cooperative relationship with domestic well-known dairy companies (such as Yili, Mengniu, Bright and Sanyuan, etc.) and foreign-funded companies (Nestle/Wyeth, Dumex, Mead Johnson, etc.). The report shall provide valuable reference for domestic and foreign dairy enterprises, raw materials and ingredients suppliers infant formula milk powder, equipment suppliers, investment and financing institutions to understand, know and research Chinese infant formula milk powder market, and expand Chinese infant formula milk powder market.

Main Conclusions 10
1. Analysis of China’s Dairy Product Processing 14
1.1 Classification of Dairy Products in China 14
1.2 Production of Milk Powder 15
1.2.1 WMP 16
1.2.2 SMP 17
1.2.3 Modified Milk Powder 19
1.2.4 Infant Formula Milk Powder 19
1.3 Production Regional Distribution of Infant Formula Milk Powder 19
1.4 Management Policies of Production and Sales of Infant Formula Milk Powder in China 20
1.5 Prediction on Production Capacity of China’s Dairy Processing Industry in Future 5 Years 39
2 Analysis of China’s Infant Milk Powder Import 42
2. 1 Overview of Dairy-based Raw Materials Import 42
2.1.2 SMP 42
2.1.3 WMP 43
2.1.4 Whey Powder and Demineralized Whey Powder 45
2.1.5 Lactalbumin and Whey Protein Concentrate (WPC) 47
2.1.6 Lactose 49
2.1.7 Milk Fats 50
2.2 Original Infant Formula Milk Powder for Retail 52
2.2.1 Import Volume & Import Price (CIF) 52
2.2.2 Origins of Infant Formula Milk Powder Import 53
Infant formulae import channels away from the law and regulations in China 55
2.2.3 Imports of Other Formula Food for Infants & Young Children 59
3. Overview of China’s Market of Infant/young Child’s Formula Milk Powder 60
3.1 Overview 60
3.1.1 Analysis of Market Consumption Characteristics of Infant Formula Milk Powder 60
3.1.2 Production and Layout of Infant/young Child’s Milk Powder 63
3.1.3 Market Capacity and Distribution of Infant Formula Milk Powder 65
3.1.4 Growth Rate of Infant Formula Milk Powder Market 69
3.2 Marketing Analysis of China’s Infant Formula Milk Powder 70
3.2.1 Marketing Channel of Infant Formula Milk Powder 70
3.2.2 Promotion Model of Infant Formula Milk Powder 70
3.2.3 Comparative Analysis of Different Marketing Model Procedures 71
3.3 Market Price Analysis of China’s Infant Formula Milk Powder 73
3.3.1 Overview 73
3.3.2 Infant Milk Power Price Comparative Analysis of Domestic and International Brands 74
3.4 Analysis of Different Infant Formula Milk Powder Markets in China 75
3.4.1 I Phase I Infant Formula Milk Powder (for 0-6-month-old infants) 75
3.4.2 Phase II Infant Formula Milk Powder (For 7-12 months) 78
3.4.3 Phase III Infant Formula Milk Powder (for 1-3 years-old children) 80
3.4.4 Phase IV Formula Milk Powder (for 4-6 years-old children) 83
3. 4.5 Pregnant Women and Lactating Women Formula Milk Powder Market 83
Market Characteristics 83
Market Size 84
3.4.6 Infant Formula Rice Cereal 84
3.4.6 Analysis of Selling Points of China’s Infant Formula Milk Powder 87
3.4.7 Analysis of Packaging of China’s Infant Formula Milk Powder Products 89
3.5 Consumption Demand Potential Analysis of Infant Formula Milk Powder Market in China 93
3.5.1 Analysis of Consumption Demand Status of Infant Formula Milk Powder 93
3.5.2 Analysis of Infant Formula Milk Powder Consumption Demand Trend in Future 3-5 Years 94
4. Analysis on Main Players (TOP10) of Infant Formula Milk Powder of China 96
4.1 Chinese Infant Formula Milk Powder Producing Enterprises and Regional Distribution 96
4.2 Market Shares of Infant Formula Milk Powder Brands and the Change Features 98
4.3 Analysis on Top 10 Players 100
4.3.1 Inner Mongolia Yili Industrial Group Co., Ltd 100
4.3.2 Zhejiang Beingmate Technology Industry & Trade Co., Ltd 107
4.3.3 Dumex Baby Food Co. Ltd 113
4.3.4 Mead Johnson Nutrition (China) Co. Ltd 117
4.3.5 Wyeth Nutritional (China) Co., Ltd 121
4.3.6 Biostime Inc. (Guangzhou) 123
4.3.7 Synutra Nutritional Co., Ltd 127
4.3.8 Abbott (China) Co., Ltd 134
4.3.9 Ausnutria Dairy (China) Co., Ltd 138
4.3.10 Nestle (China) Co., Ltd 142
5. Development Trend of Chinese Infant Formula Milk Powder Market 147
5. 1 Technical Level of Products 147
5. 2 Pricing 147
5. 3 Market Brand Concentration 147
5. 4 Market Structure 148
5. 5 Enterprise Competition 148
5. 6 Marketing Mode 149
6. Analysis on Threats & Opportunities of Chinese Infant Formula Milk Powder Industry 151
6. 1 Analysis on Substitution of Chinese Breast-milk to Infant Formula Milk Powder 151
6.1.1 Breast-milk Value Analysis 151
6.1.2 Analysis on Reasons for More and More Choices for Infant Formula Milk Powder 151
6.2 Analysis of Opportunities for Chinese Infant Formula Powder Industry 154
Annexes 156
Annex I: Balance Sheet of Supply and Demand of Raw Milk in China, 2011-2015 156
Annex II: List of General Situation of Infant Milk Powder Manufacturers with Annual Output of above 5000 tons, 2014 157
Annex III: List of General Situation of Top 10 Infant Milk Powder Manufacturers, 2014 158
Annex IV: List of Enterprises Regaining Infant Formula Milk Powder Production License, as of October 31, 2015 159
Annex V: List of Leading Importers of Infant Forumla Food(HS1901.1000)(with a volume of above 1000 tons), 2015 170

FIGURES AND TABLES
Figure 1.1 Structure of Dairy Products in China, by Output,2014 14
Figure 1.2 Structure of Dairy Products in China, by Output,2014 15
Figure 1.3 Milk Powder Production of China, 2010-2014 15
Figure 1.4 WMP Production of China, 2005-2014 16
Figure 1.4 SMP Production of China, 2005-2014 18
Figure 2.1 China SMP Import Volume & Price, by Month, 2010-2015 43
Figure 2.2 China Import Origins of SMP, by Volume, 2015 43
Figure 2.3 China WMP Import Volume & Price, by Month, 2010-2015 44
Figure 2.5 Import Volume & Price of Whey Products of China, by Month, 2010-2015 45
Figure 2.6 China’s Import Structure of Whey and Modified Whey Products, 2015 46
Figure 2.7 China Lactalbumin & WPC Import Volume & Price, 2010-2015 47
Figure 2.8 China Products Structure of Lactalbumin & WPC, 2015 48
Figure 2.9 China Import Origins of Lactalbumin & WPC, 2015 48
Figure 2.10 China Lactose Import Volume & Price, 2010-2015 49
Figure 2.11 China Import Origins of Lactose, 2015 50
Figure 2.12 China Milk Fats Import Volume & Price, by Month, 2010-2015 51
Figure 2.13 China Import Origins of Milk Fats, 2015 51
Figure 2.14 Imports of Original Infant Formula Milk Powder for Retail in China, by Month, 2000-2015 52
Figure 2.15 China Import Origins of Infant Formula Milk Powder for Retail, 2015 53
Figure 3.1 China Infant Formula Milk Powder Output, 2005-2014 64
Figure 3.2 China Production Layout of Infant Formula Milk Powder, 2014 65
Figure 3.3 Regional Distribution of Urban Infant Population and Infant Milk Powder Market Capacity (By Consumption Volume) in China’s Different Provinces and Regions, 2014 66
Figure 3.4 Flow of Infant Formula Milk Powder Promotion Model 71
Figure 3.5 Comparison of Infant Milk Power Price of Domestic and International Brands, 2010-2014 75
Figure 3.7 Factors influencing the consumers’ purchase of infant formula milk powder 88
Figure 3.8 Judge Standards of Consumers on Quality of Infant Formula Milk Powder after ""the Melamine Scandal"" 88
Figure 3.9 Demand Changes on Infant Formula Milk Powder Before and After the Melamine Scandal 89
Figure 5-1 Market Share of Famous Infant/young Child’s Formula Milk Powder Brands, by Sales Value,2010-2012 99
Figure 4.2 Market Share Change of Beingmate Infant Milk Powder, by Sales Value, 2010-2014 113
Figure 4.28 Market Share Change of Synutra Infant Milk Powder, by Sales Value, 2010-2014 134
Table 6.1 Feeding of infants in different months 152
Table 6.2 Percentage of Interviewees Heard of the International Code of Marketing of Breast Milk Substitutes( short for “Code”) or the Administrative Methods on Sales of Breast Milk Substitutes (short for “Methods”) 153

Table 1.1 Balance Sheet of Supply and Demand of WMP in China, 2010-2015 17
Table 1.2 Balance Sheet of Supply and Demand of SMP in China, 2010-2015 18
Table 1-2 Sensory Requirements 26
Table 1-3 Indexes for Protein, Fat and Carbohydrate 27
Table 1-4 Vitamin Index 27
Table 1-5 Mineral Index 28
Table 1-6 Optional Components Index 28
Table 1-7 Other Indexes 28
Table 1-8 Contaminant Limit (calculated based on powdery products) 29
Table 1-9 Mycotoxin Limit (based on powdery products) 29
Table 1-10 Microbial Limit 29
Table 1-11 Urease Activity Index 29
Table 1-12 Sensory Requirements 31
Table 1-13 Protein, Fat and Carbohydrate Indexes 32
Table1-14 Vitamin Index 32
Table 1-15 Mineral Index 32
Table 1-16 Optional Components 33
Table 1-17 Other Indexes 33
Table 1-19 Mycotoxin Limit (based on powdery products) 33
Table 1-20 Microbial Limit 33
Table 1-21 Urease Activity Index 34
Table 1-22 Sensory Requirements 36
Table 1-23 Basic Nutrition Index 36
Table 1-24 Optional Nutrition Constituent Indexes 37
Table 1-25 Limit for Carbohydrate Addition 37
Table 1-26 Other Indexes 37
Table 1-27 Contaminant Limit 38
Table 1-28 Mycotoxin Limit 38
Table 1-29 Microbial Limit 38
Table 1-30 Urease Activity Index 38
Table 1-31 Comparison between Output of China's Major Dairy Products and Their Capacity Utilization, 2014 41
Table 2.1 China’s Milk-based Raw Material Import, by Volume, 2010-2015 42
Table 2.2 China Import Origins of Whey Products, 2010-2015 46
Table 2.3 Import Prices (CIF) of Infant Formula Milk Powder from Different Origins, by Month, 2010-2015 54
Table 2.4 List of “Restriction Policy” of Foreign Infant Formula 55
Table 2.5, Price Difference of Foreign Milk Powder between China and Foreign Countries 56
Table 2.6 Main World-famous Original Infant Formula in China’s Mainland Market Now 56
Table 3.1 Urban Market Capacity of Infant Milk Powder in China’s Different Provinces and Regions, 2014 66
Table 3.2 Market Capacity of Babies 0-3 Years in Cities of Line I, Line II and Line III, 2014 67
Table 3.3 Comparison of Infant Formula Milk Powder Marketing Channel Composition of Some Famous Brand Enterprises, 2014 70
Table 3.4 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase I, First half of 2015 75
Table 3.5 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase II, First half of 2015 78
Table 3.6 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase III, First half of 2015 81
Table 3.7 Retail Terminal Market Price online Comparison of Well-known Domestic and Intl’ Brands of Infant Formula Rice Cereal Phase I, II and III, First half of 2015 84
Table 3.8 Infant Formula Milk Powder Consumption Level Per Capita of China’s Urban and Rural Babies, 2005-2014 93
Table 4.1 Infant Formula Milk Powder Enterprises in the “Blacklist” of the Melamine Scandal in 2008 96
Table 4.2 Regional Distribution of Enterprises Regaining Infant Formula Milk Powder Production License, as of October 31, 2015 97
Table 4.3 Registration Reference on Yili Group 101
Table 4.4 Top 10 Leading Shareholders & Stock Distribution of Yili Group 101
Table 4.5 Total Profit of Yili, 1st Three Quarters of 2015 102
Table 4.6 Raw Milk Procurement Scale and Prices of Synutra Dairy, 2010-2014 103
Table 4.7 Main Product Series of Yili Group 104
Table 4.8 Output of Main Products of Yili Group, 2010-2014 104
Table 4.9 Registration Reference on Beingmate 108
Table 4.10 Total Number of Shareholders and Shareholdings of Top 10 Circulation Shareholders of Beingmate, by 2015 108
Table 4.11 Financial Situation of Beingmate, 2010-2015 110
Table 4.12 Production, Sales & Stocks of Main Products of Beingmate, 2014-2015 111
Table 4.13 Beingmate Infant/young Child Formula Milk Powder Related Production 112
Table 4.14 Registration materials of Dumex Baby Food Co. Ltd 114
Table 4.16 Product Output List of Dumex Baby Food Co. Ltd, 2010-2014 115
Tabel 4.17 Promotion of Technology and Products of Dumex in China 116
Table 4.18 Main Product Output of Mead Johnson,2010-2014 118
Table 4.19 Registration materials of Qingdao Shengyuan Dairy Co., Ltd 127
Table 4.20 Shareholders of Synutra Dairy Possessing more than Shares of 5%, 2015 128
Table 4.21 Financial Statement of Synutra Int’l, 2014-2015 129
Table 4.22 Financial Statement of Synutra Int’l, 2010-2015 129
Table 4.23 Raw Milk Procurement Scale and Prices of Synutra Dairy, 2010-2014 129
Table 4.24 Main Product List of Synutra Dairy 130
Table 4.25 Output of Main Products of Syrutra Dairy, 2010-2014 130
Table 4.26 Related Infant Formula Milk Powder Production Equipment List of Syrutra Dairy 131
Tabel 4.27 Process of Technology R&D and Popularization and Application of Synutra, 2001-2015 132
Table 4.29 Retail Price of Infant Formula Milk Powder Brands of Abbott in the first half of 2013 137
Tabel 2.30 Main Shareholders of Ausnutria Dairy (China), by the end of 2010 139
Table 4.31 Financial Situation of Ausnutria Dairy, 2010-2014 140
Table 4.30 Main Product List of Ausnutria Dairy 140
Table 4.31 Main Product Output List of Ausnutria Dairy, 2010-2014 141
Table 4.32 Output of Main Products of Nestle (China), 2010-2014 145
Table 6.3 Percentage of Interviewees Understanding of the International Code of Marketing of Breast Milk Substitutes( short for “Code”) or the Administrative Methods on Sales of Breast Milk Substitutes (short for “Methods”) 153
Table 6.4 Use of Breast-milk Substitutes of infants in parturition and in hospital 154

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