Development Trend of China's Dairy Industry in 2022
01 Industry concentration continues to increase
In recent years, the government has intensively issued industry-related policies and regulations to guide the standardized development of the industry and improve the industry concentration and the competitiveness of domestic brands. After the implementation of the registration system, companies that have not obtained formula registration will be eliminated from the market, and the number of infant milk powder brands will be greatly reduced.
Enterprises with a large number of original formulas must significantly reduce their product series and formulas. The original idea of relying on multiple formula strategies to boost sales and sales will be transformed into focusing on R&D and production of high-end and high-margin core single products. Large enterprises will also strive for excellence and comprehensively improve product quality, thereby driving industry concentration to increase.
02 The development potential of the sinking market is huge
Since 2016, my country's infant milk powder formula registration system has been implemented. Some non-brand milk powder companies that have passed OEM and OEM production have been cleared from the market, and many companies will withdraw from the market. my country's infant milk powder market is expected to free up 25% of the market share.
Compared with first- and second-tier cities, third- to fifth-tier cities have lower living costs, and the pace of work and life is slower. The willingness of young families to have a second child is significantly higher than that of first- and second-tier cities. In addition, parents pay more attention to the nutrition and health of infants and young children. , Young parents have a strong ability to bear the price of infant milk powder. Therefore, the milk powder market in the sinking markets such as third- to fifth-tier cities, county towns and rural areas has great development potential and broad development space.
03 Diversified development of sales channels
With the development of my country's network technology and the transformation of people's consumption patterns, consumers are increasingly shopping online. At the same time, with the rapid development of offline professional channels, the proportion of consumers purchasing products through professional channels such as mother and baby stores has also increased. Increasingly, my country's milk powder companies are no longer limited to a single sales channel, and the proportion of adopting a combination of online and offline models has increased year by year, and sales methods and channels have gradually diversified.
04 Modulated milk powder has become a new growth point in the milk powder industry
My country is moving from a mild aging stage to a moderate aging stage, and the "silver economy" is expected to become a new outlet in the future.
At the same time, with the improvement of living standards and health awareness of Chinese residents, people's awareness and demand for nutritional intake have been continuously improved, and products have also been upgraded from simple nutritional supplements to formula and functionalization to meet the needs of children, adults and other groups. Modulated milk powder has become a new growth point for the milk powder industry in the future.
