Table of Contents

Executive Summary. 1

1. Overview of Infant/young Child’s Formula Milk Powder in China. 5

1.1 Market Overview.. 5
1.1.1 Analysis of Market Consumption Characteristics of Infant Formula Milk Powder. 5
1.1.2 Production and Layout of Infant/young Child’s Milk Powder. 7
1.1.3 Market Capacity and Distribution of Infant Formula Milk Powder. 10
1.1.4 Growth Rate of Infant Formula Milk Powder Market. 13
1.2 Standard of Infant/young Child’s Formula Milk Powder. 14
1.4.6 Impact of New National Safety Standards on Chinese Infant Formula Powder Market and Tendency  14
1.3  Marketing Analysis of China’s Infant Formula Milk Powder. 29
1.3.1 Marketing Channel of Infant Formula Milk Powder. 29
1.3.2 Promotion Model of Infant Formula Milk Powder. 29
1.3.3 Comparative Analysis of Different Marketing Model Procedures. 30
1.4  Market Price Analysis of China’s Infant Formula Milk Powder. 31
1.4.1 Overview.. 31
1.4.2 Infant Milk Power Price Comparative Analysis of Domestic and International Brands. 33
1.5  Analysis of Different Infant Formula Milk Powder Markets in China. 34
1.5.1 I Phase I Infant Formula Milk Powder (for 0-6-month-old infants) 34
1.5.2 Phase II Infant Formula Milk Powder (For 7-12 months) 37
1.5.3 Phase III Infant Formula Milk Powder (for 1-3 years-old children) 39
1.5.4 Phase IV Formula Milk Powder (for 4-6 years-old children) 42
1.5.5 Pregnant Women and Lactating Women Formula Milk Powder Market. 42
1.5.6 Analysis of Selling Points of China’s Infant Formula Milk Powder. 43
1.5.7 Analysis of Packaging of China’s Infant Formula Milk Powder Products. 45
1.6 Consumption Demand Potential Analysis of Infant Formula Milk Powder Market in China. 48
1.6.1 Analysis of Consumption Demand Status of Infant Formula Milk Powder. 48
1.6.2 Analysis of Infant Formula Milk Powder Consumption Demand Trend in Future 3-5 Years  49

2. Analysis of Main Market Players of Infant/young Child’s Formula Milk Powder in China. 51

2.1  Chinese Infant Formula Milk Powder Producing Enterprises and Regional Distribution. 51
2.2 Market Shares of Infant Formula Milk Powder Brands and the Change Features. 53
2.3 Analysis on Top 8 Players. 54
2.3.1 Inner Mongolia Yili Industrial Group Co., Ltd. 54
2.3.2 Zhejiang Beingmate Technology Industry & Trade Co., Ltd. 59
2.3.3 Synutra Nutritional Co., Ltd. 64
2.3.4 Heilongjiang Wondersun Dairy Co., Ltd. 69
2.3.5 Heilongjiang Feihe Dairy Co., Ltd. 71
2.3.6 Guangdong Yashili Group Co., Ltd. 74
2.3.7 Dumex Baby Food Co. Ltd. 76
2.3.8 Nestle (China) Co., Ltd. 78

3. Analysis of D40, D70 and D90 Application in Infant/young Child’s Formula Milk Powder in China. 82

3.1 Overview of the Application of Deminerized Whey in Infant/young Child’s Formula Milk Powder in China  82
3.3.1 Overview of Whey Products Used for Infant Formula Milk Powder. 82
3.3.2 Supply Volume. 82
3.3.3 Marketing Channels. 83
3.2 Main Manufacturers of D40, D70 and D90 in China and Their Demands. 84
3.3.1 Main Manufacturers of Infant/young Child’s Formula Milk Powder. 84
3.3.2 Main Manufacturers’ Demand of D40, D70 and D90. 85
3.4 Import Volume and Price of D40, D70 and D90 from Different Countries in 2012. 86
3.4.1 Main Origins of Import. 86
3.4.2 Import Volume and Price. 86
3.5 Import Volume, Price and Market Share of D40, D70 & D90 by Major Importers in 2012. 88
3.6 Proportion of D40, D70 & D90 in Phrase I, II, III and IV Formula Milk Powder. 90
3.7 Forecast of Growing Potential of D40, D70 & D90 Application in Infant/young Child’s Formula Milk Powder, 2013-2015  91

Appendixes. 93
Appendix 1: Balance Sheet of Milk in China, 2011-2013. 93
Appendix 2: Balance Sheet of WMP in China, 2011-2013. 93
Appendix 3: Balance Sheet of SMP in China, 2011-2013. 94
Annexes. 95
Annex 1：Main Importers of SMP (annual imports of over 500 tons) in China, 2012. 95
Annex 2：Top 50 Importers of WMP in China, 2012. 99
Annex 3：Importers with import volume of 1,000 tons of Whey and Modified Whey, 2012. 102
Annex 4：Importer of Lactalbumin （including more than two kinds of Whey Protein Concentrates, with annual import volume of 100 tons）, 2012. 116
Annex 5：Importer (with import volume of 500 tons) of Anhydrous Lactose, 2012. 120
 
 
CONTENTS OF FIGURES & TABLES
Figure 1.1 China Infant Formula Milk Powder Output, 1999-2012. 13
Figure 1.2 China Production Layout of Infant Formula Milk Powder, 2012. 14
Figure 1.3 Regional Distribution of Urban Infant Population and Infant Milk Powder Market Capacity (By Consumption Volume) in China’s Different Provinces and Regions, 2012. 16
Figure1.4 Flow of Infant Formula Milk Powder Promotion Model 35
Figure1.5 Comparison of Infant Milk Power Price of Domestic and International Brands, 2010-2013  38
Figure 1.6 Factors influencing the consumers’ purchase of infant formula milk powder 48
Figure 1.7 Judge Standards of Consumers on Quality of Infant Formula Milk Powder after "the Melamine Scandal"  49
Figure 1.8 Demand Changes on Infant Formula Milk Powder Before and After the Melamine Scandal 49
Figure 2.1 Market Share of Famous Infant/young Child’s Formula Milk Powder Brands, by Sales Value，2010-2012  59
Figure 2.2 Market Share Change of Beingmate Infant Milk Powder, by Sales Value, 2008-2012  69
Figure 2.3 Market Share Change of Synutra Infant Milk Powder, by Sales Value, 2008-2012. 74
Figure 3.1 Application of Deminerized Whey Powder in the Infants Formula Milk Powder in China, by quantity, 2012  87

Table 1.1 Urban Market Capacity of Infant Milk Powder in China’s Different Provinces and Regions, 2012  17
Table 1.2 Market Capacity of Babies 0-3 Years in Cities of Line I, Line II and Line III, 2012. 18
Table 1.3 Sensory Requirements 21
Table 1.4 Indexes for Protein, Fat and Carbohydrate. 22
Table 1.5 Vitamin Index. 22
Table 1.6 Mineral Index. 23
Table 1.7 Optional Components Index. 23
Table 1.8 Other Indexes 24
Table 1.9 Contaminant Limit (calculated based on powdery products) 24
Table 1.10 Mycotoxin Limit (based on powdery products) 24
Table 1.11 Microbial Limit 24
Table 1.12 Urease Activity Index. 25
Table 1.13 Sensory Requirements 26
Table 1.14 Protein, Fat and Carbohydrate Indexes 27
Table 1.15 Vitamin Index. 27
Table 1.16 Mineral Index. 27
Table 1.17 Optional Components 28
Table 1.18 Other Indexes 28
Table 1.19 Mycotoxin Limit (based on powdery products) 28
Table 1.20 Microbial Limit 29
Table 1.21 Urease Activity Index. 29
Table 1.22 Sensory Requirements 31
Table 1.23 Basic Nutrition Index. 31
Table 1.24 Optional Nutrition Constituent Indexes 32
Table 1.25 Limit for Carbohydrate Addition. 32
Table 1.26 Other Indexes 32
Table 1.27 Contaminant Limit 33
Table 1.28 Mycotoxin Limit 33
Table 1.29 Microbial Limit 33
Table 1.30 Urease Activity Index. 33
Table 1.31 Comparison of Infant Formula Milk Powder Marketing Channel Composition of Some Famous Brand Enterprises, 2012. 35
Table 1.32 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase I, First half of 2013. 40
Table 1.33 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase II, First half of 2013. 43
Table 1.34 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase III, First half of 2013. 45
Table 1.35 Infant Formula Milk Powder Consumption Level Per Capita of China’s Urban and Rural Babies, 2003-2012  54
Table 2.1 Infant Formula Milk Powder Enterprises in the “Blacklist” of the Melamine Scandal in 2008  57
Table 2.2 Regional Distribution of Enterprises Regaining Infant Formula Milk Powder Production License, as of March 31, 2011  58
Table 2.3 Registration Reference on Yili Group. 61
Table 2.4 Top 10 Leading Shareholders & Stock Distribution of Yili Group. 62
Table 2.5 Total Profit of Yili Group, 2012. 62
Table 2.6 Main Product Series of Yili Group. 63
Table 2.7 Output of Main Products of Yili Group, 2008-2011. 63
Table 2.8 Raw Milk Procurement Scale and Prices of Yili Group, 2008-2012. 64
Table 2.9 Registration Reference on Beingmate. 66
Table 2.10 Total Number of Shareholders and Shareholdings of Top 10 Circulation Shareholders of Beingmate, by 2012  66
Table 2.11 Financial Situation of Beingmate, 2008-2012. 68
Table 2.12 Production, Sales & Stocks of Main Products of Beingmate, 2011-2012. 69
Table 2.13 Registration materials of Qingdao Shengyuan Dairy Co., Ltd. 71
Table 2.14 Shareholders of Synutra Dairy Possessing more than Shares of 5%, 2012. 72
Table 2.15 Financial Statement of Synutra Int’l, 2008-2012. 72
Table 2.16 Main Product List of Synutra Dairy. 73
Table 2.17 Output of Main Products of Syrutra Dairy, 2005-2011. 73
Table 2.18 Raw Milk Procurement Scale and Prices of Synutra Dairy, 2007-2012. 74
Table 2.19 Output of Main Products of Wondersun Dairy, 2008-2012. 76
Table 2.20 Raw Milk Procurement Scale and Prices of Wondersun Dairy 2008-2012. 77
Table 2.21 Financial Statement of Firmus Int’l, 2009-2012. 78
Table 2.22 Output of Main Products of Feihe Dairy, 2008-2012. 79
Table 2.23 Raw Milk Procurement Scale and Prices of Feihe Dairy 2008-2012. 79
Table 2.24 Output of Main Products of Yashili Group, 2008-2012. 81
Table 2.25 Registration materials of Dumex Baby Food Co. Ltd. 82
Table 2.26 Product Output List of Dumex Baby Food Co. Ltd, 2007-2011. 83
Table 2.27 Output of Main Products of Nestle (China), 2010-2012. 86
Table 2.28 Raw Milk Procurement Scale and Prices of Nestle (China), 2010-2012. 87
Table 3.1 Output of Main Manufacturers of Infant Formula Milk Powder in China, 2012. 90
Table 3.2 Infant Formula Milk Powder Manufacturers with annual over 1,000 tons in China, 2011  90
Table 3.3 Main Manufacturers & Demand of D40, D70 & D90 in China, 2012. 91
Table 3.4 China Imports of D40, D70 & D 90, by Volume, by Country, 2012. 93
Table 3.5 China Import of D40, by Volume, by Value, by Country, 2012. 93
Table 3.6 China Import of D70, by Volume, by Value, by Country, 2012. 94
Table 3.7 China Import of D90, by Volume, by Value, by Country, 2012. 94
Table 3.8 Import Volume & Price of D40 of Leading Importers in China, 2012. 95
Table 3.9 Import Volume & Price of D70 of Leading Importers in China, 2012. 95
Table 3.10 Import Volume & Price of D90 of Leading Importers in China, 2012. 96
Table 3.11 Proportion of D40 in Phase I, Phase II, Phase III & Phase IV, Respectively, 2010-2012  96
Table 3.12 Proportion of D70 in Phase I, Phase II, Phase III & Phase IV, Respectively, 2010-2012  97
Table 3.13 Proportion of D90 in Phase I, Phase II, Phase III & Phase IV,, Respectively, 2010-2012  97

 

Executive Summary

• During the period from 2000 to 2012, the average growth rate of China’s infant formula production reached 7.85%. In 2008, the production was up to 520 thousand tons, but under the impact of melamine incident, SanLu Group Co., Ltd. went bankrupt and closed down, the production of infant formula declined to about 500 thousand tons in 2009, and in 2010, the production started to recover to some extent. However, the import volume through gray channels increased rapidly in 2011 and 2012, under the impact of which, the production of domestic milk power declined slightly, reaching 490 thousand tons in 2012.
• Currently, the production of infant formula in China mainly concentrates in northern major milk producing areas and coastal developed zones. In 2012, the production of infant formula in Heilongjiang, Inner Mongolia, Shanghai and Guangdong occupied 70% of national total production, and the proportion of Heilongjiang was more than one third.
• According to BOABC’s estimation, the actual consumption of China’s infant formula was about 570 thousand tons in 2012, while the actual supply reached 650 thousand tons. In actual consumption, the market capacity of cities and towns in China was 450 thousand tons, while the market capacity of villages was 120 thousand tons, accounting for 80% and 20% of China’s total consumption respectively.
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