Domestic milk powder market share first super milk powder

According to sources, China has submitted to the WTO the "Administrative Measures for Formulation of Infant Formula Milk Powder Formulation (Draft for Approval)". This means that in the future, domestically produced and imported powdered milk will be brought under the supervision of the registration system. Some analysis predicts that more than 2,000 product brands across the country will have one half of the market. It is worth noting that, due to factors such as online and offline discounts and regulatory tightening, the domestic market price of infant milk powder declined in 2015, and the industry also shuffled. The latest data show that as of last November, the domestic milk powder brand market share exceeded the foreign milk powder brand for the first time in seven years.

At the beginning of the year or push for registration supervision "New Deal"

Recently, it was reported that China has submitted to the WTO the “Administrative Measures for Formulation of Infant Formula Milk Powder Formulation (Draft for Approval)”. This means that in the future, domestically produced and imported powdered milk will be brought under the supervision of the registration system. China's milk powder industry will usher in a "big reshuffle."

Senior industry analyst Song Liang predicts that the “New Deal” is expected to be launched in early 2016, and will give companies about half a year of rectification. Meanwhile, formula registration of overseas companies will be conducted by linking China's national food and drug administration and relevant departments of the country where the production takes place. It is almost a year for the relevant authorities in China to formulate the registration of their own companies according to the Chinese formula registration requirements. "Under the influence of the 'New Deal', domestic capacity reduction and price war, by the second half of 2017, more than 2,000 product brands across the country will withdraw from the market and retain about 500-700 brands." Prices are also expected to drop again.

However, Song Liang believes that if the implementation of this round of policies is effective, China's infant milk powder industry will resume healthy development in 2017: product prices will remain stable for a long time and be in line with international standards, and the high-margin era will come to an end, but companies can obtain normal operating profits; Significantly reduced, market concentration further improved.

Homemade milk powder

In fact, online and offline discount promotions; cross-border e-commerce struck strongly; national regulatory policies tightened step by step... In 2015, the domestic infant milk powder market prices showed an overall decline, infant milk powder industry also appeared to have a big wash brand.

The data from the China National Business Information Center shows that the top five market share in the first 11 months of last year were Wyeth, Yili, Mead Johnson, Bein America and Feihe. The top five Chinese products have already occupied three seats. In the top ten, there are Synbiotics, Shengyuan, and Ashley, which made the domestic milk powder brand occupy a total of six seats. And in terms of market share, six domestic brands of milk powder accounted for 48.1% of the market share, while the market share of foreign milk powder brands was 39.9%.

Since 2008, foreign milk powder has been brave. In the domestic top 10 rankings of domestic milk powder brands in 2012, there were 6 foreign brands and 4 domestic brands. The domestic brand behind foreign brands was more obvious, but by 2014, the number of domestic brands entering the top 10 had equalized with the foreign milk powder brands. In 2015, the milk powder industry shuffled again. The number of domestically produced milk powder brands in terms of quantity and market share has exceeded that of foreign milk powder brands for the first time since 2008.

Up to 50% off the mainstream brand price war

In addition to changes in market share, the domestic market price of infant milk powder in 2015 showed an overall decline, and the performance of mainstream milk powder brands was affected by varying degrees.

Senior industry analyst Song Liang revealed that last year, infants and young children discounted sales of milk powder. Domestic brands disguised promotional price cuts, the highest decline in more than 50%; import brands also cut prices across the board, Wyeth, Abbott, Danone, Mead Johnson have joined the ranks of promotional price cuts, and some flagship brands cut prices by 30%. “In addition to the influence of cross-border e-commerce on the product price system, Abbott, Friesland, and Mead Johnson were all affected to varying degrees last year, and the price war has also contributed to the decline of Yashili and Beinma.”