Organic Packaged Food in China

PROSPECTS

Key players enter organic baby food at the end of the review period

Organic baby food continued to witness dynamic growth in current value terms in 2018 thanks to the entry of new players and new products. Ever since the melamine milk formula scandal back in 2008 consumers have shown a growing interest in the products they give to their children and as China’s middle class has grown this has translated into growing demand for organic options.

Premiumisation seen within organic milk

The Chinese government is investing significant sums in promoting the consumption of dairy milk in the country, with it seen as supporting good health, especially among children. Within dairy milk there has been a growing focus on the quality of the production and this has resulted in increased demand for organic milk among those consumers that can afford it.

Internet retailing helps drive growth

Internet retailing is allowing consumers to access a wider selection of organic packaged food, and cross-border platforms are becoming a key source for consumers to purchase imported organic products. For example, Nestlé setup a cross-border e-commerce business in January 2018 to gain access to more parents in bonded zones that are looking for organic baby food.

COMPETITIVE LANDSCAPE

Mengniu acquires Shengmu

At the end of 2018 leading Chinese dairy producer Inner Mongolia Mengniu Dairy Industry (Group) Co Ltd acquired a 51% stake in local organic dairy producer Inner Mongolia Shengmu Organic Milk Co Ltd for USD43.5 million.

Eleva holds strong lead with trusted range

Abbott Nutrition International (China) built up a strong lead in organic milk formula over the review period with it accounting for almost half of all value sales in 2018. The company has successfully established a trusting relationship with consumers with its focus on turning organic milk into powder directly in order to preserve its freshness and purity.

British entrepreneur finds success with Little Freddie brand

Little Freddie Productions Ltd continued to see dynamic growth in organic baby food in 2018 having only entered the category in 2015. The company, which leads organic prepared baby food through its eponymous brand, was founded by British entrepreneur Pierce Buck and is one of the small number of baby food ranges in China that do not contain any additives, with it also having the EU’s organic certification.

Files are delivered directly into your account within a few minutes of purchase.