Research Report on Market of Formula Milk Powder for Infants in China 2014

In terms of the current dairy products with large commercial scale and profitability, infant formula milk powder is undoubted focus and hotpoint of industrial competition. According to the preliminary estimation of BOABC, currently the sale gross profit margin of foreign-funded infant formula milk powder brands represented by Mead Johnson and Dumex has reached 60%, and that of domestic infant formula milk powder brands represented by Yili, Beingmate, Shengyuan and Yashili has also reached 40-60%, which far exceeds 25% average gross profit margin of the entire dairy production industry, and attracts a large number of milk processing enterprises to turn to produce infant formula products, meanwhile, the capital outside the industry also saw the tremendous profits of the product, and has made strong capital penetration to the product. In recent years, infant formula milk powder companies have got listed in and outside China, and have obtained a wealth of capital, so they have made the formula milk powder to become one of the products with the highest investment value.

CONTENTS
Main Conclusions.
1. Analysis of China’s Dairy Product Processing.
1.1 Classification of Dairy Products in China.
1.2 Production of Milk Powder
1.2.1 WMP.
1.2.2 SMP.
1.2.3 Modified Milk Powder
1.2.4 Infant Formula Milk Powder
1.3 Production Regional Distribution of Infant Formula Milk Powder
4 Management Policies of Production and Sales of Infant Formula Milk Powder in China.
1.4.1 Notices on Further Strengthening Infant Formula Milk Powder QS Safety Work Opinions 
1.4.2 Administration and Supervision Measures for the Inspection and Quarantine of Import & Export Dairy 
1.4.3 Announcements on the Requirements for Implementing “Administration and Supervision Measures for the Inspection and Quarantine of Import & Export Dairy”.
1.4.4 Notices on Further Strengthening Supervision of Infant Formula Milk Powder Production 
1.4.5 Notices on Further Standardizing the Publicity and Marketing of Breast-milk Substitutes 
        1.4.6 Announcements on Prohibiting Infant Formula Milk Powder Production in the Ways of Authorization, OEM and Subpackage.
        1.4.7 Notices on Carrying out Pilot Selling Work of Infant Formula Milk Powder in Drugstores
        1.4.8 Notices on Further Strengthening the Supervision of Infant Formula Milk Powder Selling
        1.4.9 Work Program on Promoting Annexation and Reorganization of Enterprises in Infant Formula Milk Powder Industry
        1.4.10 Rules for the Examination of Infant Formula Milk Powder Production Permit (2013 Version)
1.4.11 Influences of New Policies of Infant Formula Milk Powder on China’s Infant Formula Milk Powder Market
1.5 Prediction on Production Capacity of China’s Dairy Processing Industry in Future 5 Years.
2 Analysis of China’s Infant Milk Powder Import
2. 1 Overview of Dairy-based Raw Materials Import
2.1.2 SMP.
2.1.3 WMP.
2.1.4 Whey Powder and Demineralized Whey Powder
2.1.5 Lactalbumin and Whey Protein Concentrate (WPC)
2.1.6 Lactose.
2.1.7 Milk Fats.
2.2 Original Infant Formula Milk Powder for Retail
2.2.1 Import Volume & Import Price (CIF)
2.2.2 Origins of Infant Formula Milk Powder Import
2.2.3 Imports of Other Formula Food for Infants & Young Children.
3. Overview of China’s Market of Infant/young Child’s Formula Milk Powder
3.1 Overview..
3.1.1 Analysis of Market Consumption Characteristics of Infant Formula Milk Powder
3.1.2 Production and Layout of Infant/young Child’s Milk Powder
3.1.3 Market Capacity and Distribution of Infant Formula Milk Powder
3.1.4 Growth Rate of Infant Formula Milk Powder Market
3.2  Marketing Analysis of China’s Infant Formula Milk Powder
3.2.1 Marketing Channel of Infant Formula Milk Powder
3.2.2 Promotion Model of Infant Formula Milk Powder
3.2.3 Comparative Analysis of Different Marketing Model Procedures.
3.3  Market Price Analysis of China’s Infant Formula Milk Powder
3.3.1 Overview.
3.3.2 Infant Milk Power Price Comparative Analysis of Domestic and International Brands 
       3.3.3 Anti-dumping Investigation and Penalty on Some Famous Brands
3.4  Analysis of Different Infant Formula Milk Powder Markets in China.
3.4.1 I Phase I Infant Formula Milk Powder (for 0-6-month-old infants)
3.4.2 Phase II Infant Formula Milk Powder (For 7-12 months)
3.4.3 Phase III Infant Formula Milk Powder (for 1-3 years-old children)
3.4.4 Phase IV Formula Milk Powder (for 4-6 years-old children)
3. 4.5 Pregnant Women and Lactating Women Formula Milk Powder Market
3.4.6 Infant Formula Rice Cereal
3.4.6 Analysis of Selling Points of China’s Infant Formula Milk Powder
3.4.7 Analysis of Packaging of China’s Infant Formula Milk Powder Products.
3.5 Consumption Demand Potential Analysis of Infant Formula Milk Powder Market in China.
3.5.1 Analysis of Consumption Demand Status of Infant Formula Milk Powder
3.5.2 Analysis of Infant Formula Milk Powder Consumption Demand Trend in Future 3-5 Years 
4.  Analysis on Main Players (TOP10) of Infant Formula Milk Powder of China.
4.1  Chinese Infant Formula Milk Powder Producing Enterprises and Regional Distribution.
4.2 Market Shares of Infant Formula Milk Powder of Domestic Brands and Multinational Brands 
        4.2.1 National
        4.2.2 Modern Channel-- hypermarkets
        4.2.3 Baby Shop Channel in K/A Cities
4.3  Analysis on Top 10 Players.
4.3.1 Inner Mongolia Yili Industrial Group Co., Ltd.
4.3.2 Zhejiang Beingmate Technology Industry & Trade Co., Ltd.
4.3.3 Dumex Baby Food Co. Ltd.
4.3.4 Mead Johnson Nutrition (China) Co. Ltd.
4.3.5 Wyeth Nutritional (China) Co., Ltd.
4.3.6 Biostime Inc. (Guangzhou)
4.3.7 Synutra Nutritional Co., Ltd.
4.3.8 Abbott (China) Co., Ltd.
4.3.9 Yashili Group Co., Ltd.
4.3.10 Nestle (China) Co., Ltd.
5. Development Trend of Chinese Infant Formula Milk Powder Market
5. 1 Technical Level of Products.
5. 2 Pricing.
5. 3 Market Brand Concentration.
5. 4 Market Structure.
5. 5 Enterprise Competition.
5. 6 Marketing Mode.
6. Analysis on Threats & Opportunities of Chinese Infant Formula Milk Powder Industry 
6. 1 Analysis on Substitution of Chinese Breast-milk to Infant Formula Milk Powder
6.1.1 Breast-milk Value Analysis.
6.1.2 Analysis on Reasons for More and More Choices for Infant Formula Milk Powder
6.2 Analysis of Opportunities for Chinese Infant Formula Powder Industry.
Annexes.
Annex I: Balance Sheet of Supply and Demand of Raw Milk in China, 2012-2014.
Annex II: List of General Situation of Infant Milk Powder Manufacturers with Annual Output of above 5000 tons, 2012 
Annex III: List of General Situation of Top 10 Infant Milk Powder Manufacturers, 2013.
Annex IV: List of Enterprises Regaining Infant Formula Milk Powder Production License, as of March 31, 2011 
Annex V: List of Leading Importers of Infant Forumla Food（HS1901.1000）(with a volume of above 1000 tons), 2013 
 
FIGURES AND TABLES
Figure 1.1 Structure of Dairy Products in China, by Output，2013.
Figure 1.2 Structure of Dairy Products in China, by Output，2013.
Figure 1.3 Milk Powder Production of China, 2008-2013.
Figure 1.4 WMP Production of China, 1999-2013.
Figure 1.5 SMP Production of China, 1999-2013.
Figure 2.1 China SMP Import Volume & Price, by Month, 2000-2013.
Figure 2.2 China Import Origins of SMP, by Volume, 2013.
Figure 2.3 China WMP Import Volume & Price, by Month, 2003-2013.
Figure 2.4 Import Volume & Price of Whey Products of China, by Month, 2004-2013.
Figure 2.5 China’s Import Structure of Whey and Modified Whey Products, 2013.
Figure 2.6 China Lactalbumin & WPC Import Volume & Price, 2004-2013.
Figure 2.7 China Products Structure of Lactalbumin & WPC, 2013.
Figure 2.8 China Import Origins of Lactalbumin & WPC, 2013.
Figure 2.9 China Lactose Import Volume & Price, 2005-2013.
Figure 1.10 China Import Origins of Lactose, 2013.
Figure 2.11 China Milk Fats Import Volume & Price, by Month, 2004-2013.
Figure 2.12 China Import Origins of Milk Fats, 2013.
Figure 2.13 Imports of Original Infant Formula Milk Powder for Retail in China, by Month, 2000-2013 
Figure 2.14 China Import Origins of Infant Formula Milk Powder for Retail, 2013.
Figure 3.1 China Infant Formula Milk Powder Output, 1999-2013.
Figure 3.2 China Production Layout of Infant Formula Milk Powder, 2013.
Figure 3.3 Regional Distribution of Urban Infant Population and Infant Milk Powder Market Capacity (By Consumption Volume) in China’s Different Provinces and Regions, 2013.
Figure 3.4 Flow of Infant Formula Milk Powder Promotion Model
Figure 3.5 Comparison of Infant Milk Power Price of Domestic and International Brands, 2010-2013 
Figure 3.6 Factors influencing the consumers’ purchase of infant formula milk powder
Figure 3.7 Judge Standards of Consumers on Quality of Infant Formula Milk Powder after "the Melamine Scandal"
Figure 3.8 Demand Changes on Infant Formula Milk Powder Before and After the Melamine Scandal
Figure 4.1 Market Share of Famous Infant/young Child’s Formula Milk Powder Brands, by Sales Value，2010-2013 
Figure 4.2 Market Share Change of Beingmate Infant Milk Powder, by Sales Value, 2008-2013 
Figure 4.3 Market Share Change of Synutra Infant Milk Powder, by Sales Value, 2008-2013.
 
Table 1.1 Balance Sheet of Supply and Demand of WMP in China, 2012-2014.
Table 1.2 Balance Sheet of Supply and Demand of SMP in China, 2012-2014.
Table 1.3 Sensory Requirements.
Table 1.4 Indexes for Protein, Fat and Carbohydrate.
Table 1.5 Vitamin Index.
Table 1.6 Mineral Index.
Table 1.7 Optional Components Index.
Table 1.8 Other Indexes.
Table 1.9 Contaminant Limit (calculated based on powdery products)
Table 1.10 Mycotoxin Limit (based on powdery products)
Table 1.11 Microbial Limit
Table 1.12 Urease Activity Index.
Table 1.13 Sensory Requirements.
Table 1.14 Protein, Fat and Carbohydrate Indexes.
Table 1.15 Vitamin Index.
Table 1.16 Mineral Index.
Table 1.17 Optional Components.
Table 1.18 Other Indexes.
Table 1.19 Mycotoxin Limit (based on powdery products)
Table 1.20 Microbial Limit
Table 1.21 Urease Activity Index.
Table 1.22 Sensory Requirements.
Table 1.23 Basic Nutrition Index.
Table 1.24 Optional Nutrition Constituent Indexes.
Table 1.25 Limit for Carbohydrate Addition.
Table 1.26 Other Indexes.
Table 1.27 Contaminant Limit
Table 1.28 Mycotoxin Limit
Table 1.29 Microbial Limit
Table 1.30 Urease Activity Index.
Table 1.31 Comparison between Output of China's Major Dairy Products and Their Capacity Utilization, 2014 
Table 2.1 China’s Milk-based Raw Material Import, by Volume, 2011-2013.
Table 2.2 China Import Origins of Whey Products, 2011-2013.
Table 2.3 Import Prices (CIF) of Infant Formula Milk Powder from Different Origins, by Month, 2010-2013 
Table 2.4 List of “Restriction Policy” of Foreign Infant Formula.
Table 2.5, Price Difference of Foreign Milk Powder between China and Foreign Countries.
Table 2.6 Main World-famous Original Infant Formula in China’s Mainland Market
Table 3.1 Urban Market Capacity of Infant Milk Powder in China’s Different Provinces and Regions, 2013 
Table 3.2 Market Capacity of Babies 0-3 Years in Cities of Line I, Line II and Line III, 2013.
Table 3.3 Comparison of Infant Formula Milk Powder Marketing Channel Composition of Some Famous Brand Enterprises, 2013.
Table 3.4 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase I, Quarter 1 of 2014.
Table 3.5 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase II, Quarter 1 of 2014.
Table 3.6 Retail Terminal Market (online) Price Comparison of Domestic and Intl’ Brands of Infant Formula Milk Powder Phase III, Quarter 1 of 2014.
Table 3.7 Retail Terminal Market Price online Comparison of Well-known Domestic and Intl’ Brands of Infant Formula Rice Cereal Phase I, II and III, Quarter 1 of 2014.
Table 3.8 Infant Formula Milk Powder Consumption Level Per Capita of China’s Urban and Rural Babies, 2003-2012 
Table 4.1 List of Infant Formula Milk Powder Enterprises & Brands Suggested Officially in 2013 & 2014 
Table 4.2 Regional Distribution of Enterprises Regaining Infant Formula Milk Powder Production License, as of March 31, 2011 
Table 4.3 Registration Reference on Yili Group.
Table 4.4 Top 10 Leading Shareholders & Stock Distribution of Yili Group.
Table 4.5 Total Profit of Yili, 1st Three Quarters of 2013.
Table 4.6 Raw Milk Procurement Scale and Prices of Yili Group, 2010-2013.
Table 4.7 Main Product Series of Yili Group.
Table 4.8 Output of Main Products of Yili Group, 2008-2013.
Table 4.9 Registration Reference on Beingmate.
Table 4.10 Total Number of Shareholders and Shareholdings of Top 10 Circulation Shareholders of Beingmate, by 2013 
Table 4.11 Financial Situation of Beingmate, 2010-2013.
Table 4.12 Production, Sales & Stocks of Main Products of Beingmate, 2011-2013.
Table 4.13 Beingmate Infant/young Child Formula Milk Powder Related Production.
Table 4.14 Registration materials of Dumex Baby Food Co. Ltd.
Table 4.15 Product Output List of Dumex Baby Food Co. Ltd, 2010-2013.
Tabel 4.16 Promotion of Technology and Products of Dumex in China.
Table 4.17 Main Product Output of Mead Johnson，2010-2013.
Table 4.18 Registration materials of Synutra Dairy Co., Ltd.
Table 4.19 Shareholders of Synutra Dairy Possessing more than Shares of 5%, 2012.
Table 4.20 Financial Statement of Synutra Int’l, 2011-2013.
Table 4.21 Financial Statement of Synutra Int’l, 2008-2013.
Table 4.22 Raw Milk Procurement Scale and Prices of Synutra Dairy, 2010-2013.
Table 4.23 Main Product List of Synutra Dairy.
Table 4.24 Output of Main Products of Syrutra Dairy, 2010-2012.
Table 4.25 Related Infant Formula Milk Powder Production Equipment List of Syrutra Dairy.
Tabel 4.26 Process of Technology R&D and Popularization and Application of Synutra, 2011-2013 
Table 4.27 Retail Price of Infant Formula Milk Powder Brands of Abbott in the first half of 2013 
Tabel 4.28 Main Shareholders of Yashili Group, by the end of 2013.
Table 4.29 Financial Situation of Yashili Group, 2010-2013.
Table 4.30 Main Product List of Yashili Group.
Table 4.31 Main Product Output List of Yashili Group, 2010-2013.
Table 4.32 Output of Main Products of Nestle (China), 2010-2013.
Table 6.1 Feeding of infants in different months.
Table 6.2 Percentage of Interviewees Heard of the International Code of Marketing of Breast Milk Substitutes( short for “Code”) or the Administrative Methods on Sales of Breast Milk Substitutes (short for “Methods”)
Table 6.3  Percentage of Interviewees Understanding of the International Code of Marketing of Breast Milk Substitutes( short for “Code”) or the Administrative Methods on Sales of Breast Milk Substitutes (short for “Methods”)
Table 6.4 Use of Breast-milk Substitutes of infants in parturition and in hospital