With the gradual implementation of the New Deal of milk powder, infant formula milk powder is facing a new change, more and more brands began to aim at the high-end market. Children's milk powder, adult milk powder and other sub-areas has become a hot spot for many manufacturers.
Dairy experts believe that with the introduction of milk powder New Deal, the number of milk powder brand began to reduce, more and more enterprises aimed at high-end and market segments. Last year, high-end milk powder growth rate is up to 40%, is expected to accounted for about 70 to 80% market share in the next 3 to 5 years. High-end sub-products all goat milk powder and organic milk powder will be with the average annual growth of more than 30% during the next three or five years, and is expected to reach 10 billion yuan in the next four to five years.
Children milk powder has become a new growth point of the market
AC Nielsen data show that in 2016 the entire milk powder industry sales scale is more than 70 billion, in which children milk powder accounted for about 6-10% of the share.
Expert said that goat milk powder market is rapidly develop, during the next 5 to 6 years, China's goat milk powder market will with a development of 2 to 3 times. Its market capacity could up to 15 billion to 18 billion yuan, accounting for 10-12% of the total market. Although the current share of children's goat milk powder market is not large, the market growth rate is rapid, the development space of the future market is of great potential.
High-end market growth rapidly with the release of milk powder New Deal
The same as goat milk powder, last year the entire high-end milk powder go into an unprecedented growth rate. Except high-end milk powder, the other milk powder did not growth and decline.
Research report shows that influenced by overseas purchasing and e-commerce and channel rectification and other factors, the high price of milk powder will generally be down, dealers and stores’ profits will be challenged and declined. But prices of the high-end and ultra-high-end are difficult to be shaken, 2016 annual sales were 20% and 28% increased, while the other decline nearly 40%.
Expert said that Chinese consumers are still love the imported milk powder. Especially milk from Europe and Australia has always been recognized by consumers. In 2016, the amount of small package imported milk powder is 2213,000 tons, in which Netherlands, Ireland, Germany, France, Denmark, accounted for nearly 70%. This situation will last for a certain time.
A number of experts believe that milk powder category structure has been changed or adjusted. Low-end market share is decreasing, the proportion of high-end category is in the increase. Last year, the growth rate of high-end milk is nearly 40%, in the next 3 to 5 years, the high-end products will accounted for about 70 to 80% in the market.
Transformation to the segments market is trend
In addition to rapid growth of high-end milk market, the segments market is viewed as prospect by the major companies.
Expert said before January 1, 2018, the Chinese goat milk powder market will have nearly 200 brands in the market circulation. Currently, 100% full goat milk powder is kind of goods that lack of resources but hit in market. At present such products in the market is about 15 brands. With the generous investment on the goat milk source, market resources would be expanded. It is expected that pure goat milk powder will have a leap in the next 2 to 3 years.
Experts predict that the current children's milk powder only accounted for 6-10% in the milk market of 70 billion tons. The market scale will enlarge continually in the future.