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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. As demand has grown leading dairy producers have looked to introduce higher quality products and this initially gave a boost to organic milk which is seen as fresher and more nutritious than shelf stable milk.
Organic baby food continued to witness dynamic growth in current value terms in 2019 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.
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.
In 2019 Chinese dairy giant Inner Mongolia Mengniu Dairy Industry (Group) Co Ltd made an offer to acquire Australian infant nutrition firm Bellamy’s Organic, which offers organic milk formula in China. Subject to meeting the requirements laid down by the Australian government in November 2019, this acquisition would see Mengniu re-enter organic milk formula having previously sold its Junlebao brand.
Leading dairy giant Inner Mongolia Yili Industrial Group Co Ltd launched its Senna Mu line of organic milk formula in July 2019, with it sourcing its milk powder from Denmark, thereby receiving certification from both China and the EU. With consumers in China being particularly sensitive as to the quality and safety of the ingredients in milk formula, due to previous food safety scandals, points such as this can make a big difference.
Abbott Nutrition International (China) has built up a strong lead in organic milk formula, although it came under increasing pressure towards the end of the review period due to the entry of significant new players. 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.
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Overview: Discover the latest market trends and uncover sources of future market growth for the Organic Packaged Food industry in China with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
The Organic Packaged Food in China market research report includes:
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.