One of our clients is in the baby food products industry and contacted Daxue Consulting to conduct comprehensive market research about the China baby food market analysis. They were interested in gaining a better understanding of this market, including the latest market trends, the size of the market, the major players, and possible future opportunities.
China baby food market analysis: The market opportunity
Since the late 1970s, strict measures in the world’s most populous country have restricted most couples to only a single child, with fines for violators and even forced abortions. But concerns over an aging population, gender imbalances, and a shrinking workforce pushed authorities to end the restriction and allow all couples a second child. That is why during 2016, there was a registered peak of 17.5 million births. This boom has had a significant impact on the baby food industry, especially on standard milk formula, which is intended for infants.
According to China’s National Bureau of Statistics, 30% of urban household expenditure is spent on children. Much of this spending is concentrated on what babies and small children eat, wear, and use every day. Baby food products represent an important voice of expenditure for Chinese parents, which nowadays are demanding more and more pre-prepared food products, which are convenient and adapted to busy lifestyles.
Our client wanted to understand the Chinese baby food market better. They were looking to get general information about the market and gain in-depth knowledge of the Chinese baby food end-consumers.
We helped them to answer questions like:
- What are the current market trends?
- Who are the main companies operating in the Chinese market (at the national and regional level)?
- What is the typical purchasing path for baby food in China?
What we did
To provide the best service to our client, we decided to divide our research into three steps using various methodologies. We first opened with a Market overview, which consisted of a Desk Research and In-depth interviews. Then we performed a Consumer analysis. Finally, all of our conclusions were then brought together in the final analysis.
- Market Overview: We firstly executed a Desk research to gain a clear picture of the Chinese baby food market, identifying and analyzing the market trends, the market drivers, the regional and national market players and the different end-consumer profiles in China.
- In-depth interviews: These were performed to obtain extensive knowledge of the Chinese consumers and market players. After screening and recruiting qualified contacts to interview, and also recruiting and briefing the project assistants to interview respondents, we conducted a total of 3 to 5 qualitative interviews of infant formula market professionals in China.
Daxue Consulting pays specific attention to the development of its market insiders’ network. In-depth interviews in China are often conducted at the beginning of a large research project when it is necessary to narrow the focus of the research and gain an insight into individual evaluations of specific material. Moreover, in a country where data reliability and transparency are major issues for market researchers, gaining first-hands insights from the most knowledgeable professionals is a key leverage to better understand market situations and opportunities.
- Consumer analysis: We conducted an Online survey to gain an understanding of the Chinese infant formula end-consumers. This information gave us insight into the attitudes of the local consumers from a quantitative perspective, allowed us to identify the preferred distribution channels, and helped us understand the perceptions and behaviors linked to the buying decision process. After creating the questionnaire, and adapting it to Chinese culture and the online survey platform, we administrated it through a panel of more than 300 successful questionnaires.
Our online market research service in China is tailored for every particular research need. Information delivered by our online market survey can help you identify trends which will place you ahead of the competition and assist you with making the right decisions to get better results.
- Final Analysis: using the information gathered in the previous steps, we had a market assessment that aimed to determine and analyze the market challenges and opportunities.
We advised our client to focus on the baby food online market. The convenience of the online store not only allows consumers an easier method to choose products, but the boom can also attract more Chinese consumers and help the baby related products market as well. Online consumption has gradually become a major source for Chinese consumers, and it’s reasonable to predict that if the upward trend keeps its current pace, the sales of infant formula will continue growing in the future.
To know more about China Baby Food Market Analysis, please don’t hesitate to contact us.
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