China's fast growing and profitable infant formula market has been attractive not only to Chinese producers, but also overseas players who are either selling infant formula directly competing with Chinese counterparts, or supplying raw materials or dairy ingredients to Chinese producers.

1. China Infant Formula Market: Feeding Frenzy is Ongoing
China's fast growing and profitable infant formula market has been attractive not only to
Chinese producers, but also overseas players who are either sellers or raw materials suppliers.
According to insiders, Chinese infant formula market is estimated to grow at a CAGR of nearly
14% during 2014-2016, while the market size will expand to hundreds of billions of RMB.
However, the numerous scandals involving a lot of local producers in this industry ever since
the melamine in 2008, a food-safety crisis in China where six babies died and hundreds of
thousands were sickened after drinking infant formula tainted with chemicals like melamine,
have devastated Chinese consumers’ confidence in local brands, forcing Chinese government
to step up supervision and examination to this industry with a series of policies and measures
released in the past several years and entry threshold greatly elevated. Under increasingly
stringent requirements, a lot of small players have been forced out of the market, and leading
local producers have been consolidating their positions. The number of infant formula
producers has reduced to 82 as of June 2014 from 128 in 2013. The industry consolidation is
expected to continue, according to China Food and Drug Administration's target, by the end of
Dec. 2018, the government will foster 3-5 large enterprise groups, while the market share of
top 10 domestic brands will be raised to 65%, and the number of domestic enterprises should
be reduced to 50.
Accordingly, it is worth close follow-up of infant formula processors in China’s market. To help
those who are interested in China's infant formula market to quickly obtain a comprehensive
understanding of Chinese infant formula producers, CCM has conducted this study China
Infant Formula Manufacturers 2014, by focusing on the following aspects:
- Company basic information, including company name, locations, year of foundation and/or
listing, etc.
- Company stockholders
- Market positioning in price and regional coverage terms
- Key products/brands
- Strategic partnerships with overseas companies
- Procurement of dairy ingredients
CCM conducted extensive survey to the infant formula producers in this study, in order to
figure out their dairy procurement situation, such as the products they purchase, the key
decision-makers for procurement, the key indexes in their supplier evaluation system, and
their satisfaction with current suppliers, etc.
For more information, please visit:
http://www.cnchemicals.com/Product/Report/2488/china-infant-formula-manufacturers-2014-e
dition-1