Recently, iMedia Consulting released the “2024 Infant and Toddler Comprehensive Nutrition Formula Milk Consumption Demand Report.” The core points are extracted as follows:
01. Industry Overview:
The new national standard defines scientific nutrition, infant formula enters a new era of comprehensive nutritional balance.
The report shows that with the strict regulation and scientific optimization of the nutritional components of infant formula by the new national standard, consumers are no longer satisfied with the basic nutrition supply in infant formula, but increasingly focus on whether the milk powder can provide comprehensive and balanced nutritional supplementation.
Survey data shows a strong consumer demand (98.6%) in the infant formula market for comprehensive nutrition products – not only do they show a high willingness to buy such high-quality milk powder, but they are also willing to pay a premium for it (94.2%).
For milk powder producers, how to integrate more refined nutritional component analysis and more reasonable nutrient proportions into product development has become key to determining their competitiveness in the market.
Consumption upgrade drives demand for high-quality infant formula.
Data shows that from 1980-2023, national income and consumption levels have shown a continuous upward trend, with per capita disposable income reaching 39,218 yuan in 2023. The continuous increase in disposable income and per capita consumer spending provide foundational support for consumption upgrades.
With the increase in consumption ability and the shift in consumer attitudes, parents are increasingly inclined to choose comprehensive nutrition, scientifically formulated, naturally composed, and reputable products, and are willing to pay a premium for high-end infant formulas to ensure their children get the best start for growth.
02. Consumer Portrait:
The sinking market holds immense growth potential.
Survey data shows that in the consumer portrait distribution of the infant formula industry, a significant majority are female consumers, accounting for 72.6%; more than 40% of consumers have a monthly family income of 5001-10000 yuan; and more than 70% of consumers are distributed in third-tier cities and below.
There is a large consumer group in third-tier cities and below. With the development of the economy and the increase in the income level of residents, they have higher requirements for the quality and safety of infant formula and stronger consumption power, making the sinking market hold significant growth potential.
Product quality and nutritional diversity are prime considerations for consumers.
Survey data shows that consumers display multiple and comprehensive considerations when purchasing milk powder. The top three are high quality (59.4%), nutritional diversity (47.1%), and reputation (46.5%).
When choosing milk powder, consumers prioritize product safety and nutritional value while also making choices based on other consumers’ reviews and recommendations. This reflects the high importance consumers place on the quality and credibility of milk powder and their desire to ensure comprehensive and balanced nutrition for infants and toddlers.
Mid-to-high-end infant formula favored by consumers.
Survey data indicates that compared to 2023, consumers’ acceptance of the price of infant formula increased in 2024, with the proportion of purchases over 200 yuan/can higher than in 2023.
Taking an 800g/can of infant formula as an example, over 60% of consumers tend to choose mid-to-high-end products, with 41.2% opting for 200-299 yuan/can, and 20.1% for 300-399 yuan/can.
Offline purchases remain the main channel, but e-commerce develops rapidly.
Survey data reveals that consumers exhibit diverse characteristics in infant formula purchasing channels; offline purchasing is still the main channel, with a percentage of 60.4%; 24.2% of consumers buy infant formula through e-commerce platforms.
With the rapid development of e-commerce platforms and changing shopping habits, the proportion of online infant formula purchases is expected to continue growing. For mother and baby stores, offline new retail is an opportunity and trend as they can offer quick and convenient local delivery services to meet customers’ demands for timely access to milk powder.
Consumers prefer European sources of milk, domestic milk powder trustworthiness increases.
Survey data on preferences for the origin of milk sources ranks the Netherlands at the top with 62.7%, followed by Germany (53.9%) and New Zealand (45.1%), with China at 37.9%. When choosing infant formula, consumers have certain preferences for the origin, with Dutch milk being the first choice. The European region is known for its high-quality pastures and dairy production standards, and milk powder produced there is often considered to be of high quality.
Moreover, with the strengthening of high-quality milk source bases in China, milk powder produced in China is gradually gaining consumer trust.
Consumers focus on the comprehensive efficacy of infant formula products.
Survey data shows that 75.1% of consumers believe that milk powder with a scientific nutritional ratio can best support an infant’s comprehensive growth, with a whopping 95.2% of consumers asserting that the nutritional quality of infant formula is not based on the concentration of a specific ingredient, but on the comprehensiveness and balance of nutritional components.
Additionally, survey data shows that when purchasing infant formula, consumers focus on whether the product contains popular advanced nutritional elements such as lactoferrin, OPO, and nutrients like DHA and probiotics.
Most consumers are concerned with the formula’s self-protection and absorption capabilities, parents are highly attentive to the comprehensiveness of the formula’s effects, hoping products can provide balanced nutrition to support the all-around growth of infants and toddlers, including key areas such as physical development, brain development, and immune enhancement.
03. Future Trends
Increased industry concentration, companies speed up the layout in the field of advanced comprehensive nutrition infant formula.
Stricter industry regulation and intensified market competition are squeezing the living space of small and medium-sized brands and enterprises, which are gradually being acquired or phased out by larger brands, further increasing market concentration, driving brand development in the infant formula industry.
As parents’ demands for infant and toddler growth quality continue to rise, the sales scale of infant formula is steadily growing. At the same time, high-end comprehensive nutrition infant formula shows great market potential, and many infant formula companies are actively exploring this field to respond to future market changes.
Consumption awareness upgrading and transformation, high demand for comprehensive advanced nutrition infant formula.
As society and the economy develop, people have higher living quality standards. Many parents understand that infants and toddlers need various nutrients during their growth, and comprehensive high-grade nutritional formulas usually add more nutrients such as DHA, ARA, probiotics, and advanced nutritional elements, which help in the development of a child’s intelligence, vision, digestion, and more.
In the infant formula market, more and more parents prefer to choose comprehensive high-grade formulas to meet their children’s all-around growth needs.
