Liquid Milk Formula Poised to Capture Market Share in China
2018-11-12 09:38 Monday
Over the past several years, sales of formulated milk have experienced noticeable growth in the Chinese market. The latest report from the Mintel Global New Products Database shows that the number of liquid milk formula product launches in China was third only behind South Korea and Thailand in the Asia Pacific region in 2017. At current growth rates, new liquid milk formula products in the Asia Pacific region will soon surpass those in Europe.
With the newly-implemented two-child policy and a large population, China has become the world's largest market for infant formula. However, only 1% of dairy products on the Chinese market are liquid milk formula. Therefore, the sector has considerable room for growth.
According to Mintel's report, more than 50% of Chinese parents are willing to purchase infant formula milk, and an inclination toward portable, ready-to-drink milk. With the quickening pace of modern life, consumers are increasingly turning to liquid milk formula for its convenience. The report concluded that the demand for formula milk will continue to rise for the foreseeable future.
As a new product type in the Chinese market, liquid milk formula has its most promise in the high-end market. Many domestic and foreign brands alike have begun to introduce high-end liquid milk formula, to take advantage of market trends.
Two leading consumer concerns in China for liquid milk formula, are sterilization and temperature, as many parents still heat liquid milk formula before feeding it to their children. To relieve these concerns, formula producers can match their products with sterilized nozzles.
When promoting their products, brands would be well-advised to emphasize the advantages of consuming liquid milk formula. In the case of travel, for example, liquid milk formula is markedly more convenient than infant formula powder. Similar advantages are apparent for nighttime feedings, when tired parents are desperate for a ready-on-hand solution.