China is the second largest baby food and infant formula market in the world and largest in Asia, which constitute of baby food such as- Dry baby food (cereals, bottled baby food), ready-to-eat baby food (canned baby food and snacks for one year and above babies) and baby juices; and infant formula milk segment. Domestic infant formula market had undergone a period of major transition from high demand for milk powder in the domestic as well as in international markets to sudden fall in retail sales from 2008 to 2010. The domestic milk formula market is facing many challenges from foreign brands and had witnessed a continuous fall in demand in recent past.
A continuous rise in consumer spending on China baby food and infant formula industry has been observed, led by surging working women population, rising per capita disposable income and entry of foreign players. Infant formula milk powder, cereals and bottled baby food constitute the major percentage of the total industry demand. Rising number of working mothers has a big role in surging demand for formula milk. Baby formula demand is expected to grow at a steady rate due to low birth rate in the country. The driving factor for this segment will be growing number of foreign workers. Falling birth rate has become a concern for the government which is low from the US and even from developing countries such as India. In coming years, it may cause a demographic problem and may affect baby food and baby goods industry.
* In terms of retail sales by volume, baby food and baby formula milk market had crossed 400 (‘000) tones mark and reached 422 (‘000) tones in 2010 from 385 (‘000) tones in the previous year.
* The China baby food and infant formula milk market retail sales by value was recorded at USD 3,281 million in 2007 whereas in 2009, the segment grew by 20.44%, comparatively lower than previous year results. By 2016, industry is expected to record revenue of USD ~ million to grow at 16.57% CAGR in the next five years.
* Consumer spending on baby food was recorded 0.12% of GDP in 2011 compared to 0.10% in the previous year.
* In China, infant formula has recorded usual growth in volume sales of 14.08% in 2011 relative to the growth of 14.09% and 15.97% in 2010 and 2009 respectively.
* Baby food is a rapidly expanding segment which accounted for 30.05% market share in baby food and baby formula market Baby food market grew by 18.27% CAGR in last five years to USD ~ million in 2011. Revenues generated from baby food products is expected to reach USD ~ million at CAGR 20.43% from 2012-2016.
* Dried baby food market dominates the Chinese baby food industry driven by rising cereals demand which account for 89.62% of the total dried baby food market.
* Baby cereals market is growing at a constant rate year on year from USD 782.10 million in 2007 to USD ~ million in 2011 at a CAGR 18.40%.
* Bottled baby food account for only 8.61% of the total baby food (excluding milk formula) market in value terms.
For more information kindly visit :
China Baby Food and Infant Formula Market Research Report Outlook to 2016
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