How Health Claims Impact the Price of Infant Milk Formula in Asia Pacific

September 2021

As we enter the tail end of COVID outbreak, parents were noticeably more concerned about the ingredients of infant milk formula. While a lot of the products boast that they provide various types of health benefits, it is unsure what attributes were the most common, and if the product was priced up because of the attribute. This study uses our price extraction tool to find the most common attribute, as well as price distribution of various infant milk formula product.

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Overview of Asia Pacific (APAC) milk formula market distribution
Constant premiumisation despite economic uncertainties brought by COVID-19
China and Taiwan top the average median price
Analytical framework to analyse opportunities in IMF in APAC
Probiotics are the most popular health claims in IMF in APAC
Prebiotics is rising on top of probiotics as another premiumisation tool
Brain, bone, immunity and digestive health as key functionalities
Increasing interest in multifunctionality, especially with brain health
Vitamins are the most featured fortification, followed by omega-3s
No/low fat and sugar claims are a must-have for success in APAC IMF
Parents tends to believe avoiding sugar and fat lead to healthy children
Wide penetration of food safety claims, with organic being the most popular
Geographic origin claims see unique importance in China
Hong Kong, Australia and New Zealand products leads in China
Rapid SKU expansion and premiumisation of HA IMF products…
…sophisticated positioning and early prevention purposes drives new products
“No GMO” claim led by South Korea but traction is getting loose
Conclusion
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