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Baby Food in China

China baby food market: Mead Johnson the leading player during 2012


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2014-03-12 22:51:01 - Baby Food in China - a new market research report on companiesandmarkets.com

Mead Johnson (Guangzhou) is expected to retain its leading position in the China baby food market in 2012. The company registered good retail value share growth between 2009 and 2012. It benefits from wide distribution coverage and marketing activities. Mead Johnson (Guangzhou) was able to promote a safer image, given that the products of one of its main competitors, Abbott, were reported to contain less nutritious ingredients. There were reports in 2012 that milk formula by Mead Johnson and Abbott, among others, contained vanillin. Mead Johnson appears to have received an apology from the authorities for this erroneous report.

2012 is the Chinese Year of the Dragon. In ancient times, the dragon was a symbol reserved for the Chinese emperor, signifying

 

 

wealth and high social status. Many Chinese parents believe that having a baby in the Year of the Dragon will bring them strength and good luck. According to official estimates, China expects a 5% increase in the number of babies born in 2012. The baby boom has had a significant impact on baby food, especially on standard milk formula, which is intended for new born babies.

Baby food is estimated to witness robust sales growth in the forecast period, due to continued urbanisation and double-digit birth rates in China. However, the birth rate in China is slowing down, in line with the world trend. Thus, as lower birth rate is the main reason for the predicted slowdown in retail volume growth of milk formula, and therefore baby food overall, compared to the review period.

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