Foreign infant formula brands make inroads into China

A mother is feeding her baby.[Photo: VCG]

China's booming infant formula market has caught the attention of many overseas dairy producers.

It's set to be one of the key targets for overseas companies taking part in the first China International Import Expo, which will be held in Shanghai next month. 

With more than 40,000 babies born each day in China, there is an enormous demand for high-quality milk powder and baby formula. 

And as family incomes have grown, it's increasingly common for families with young children to buy imported milk powder. 

According to a report by the Beijing Intelligence Research Group, 296,000 tons of infant formula were imported into China last year, a 25 percent increase on imports in 2016. 

Many consumers prefer imported dairy products, because of their reputation for quality. 

"I have been buying infant formula from the United States ever since my baby was born. It was recommended to me by friends. I think the quality is very good, and the taste is the best my family has ever had, and my baby is very healthy now. We don't care that much about the price. Even though it's two or three times the price of the domestic brands, we still think it's worth the price."

According to a seller at one of Beijing's well-known supermarket chains, price is not the only thing that consumers care about.

"Over the past few years, more and more customers come to the imported infant formula area, and ask about the products on display. When they compare the different products, they mainly focus on the product guarantees, the qualifications of the manufacturers, the source of the raw materials, and the manufacturing process. Price isn't something that bothers them much. Generally speaking, brands from the Netherlands and New Zealand are among the most popular," says the seller. 

Stephen Jacobi is the executive director of the New Zealand China Council. He said dairy companies from New Zealand will be heavily represented at the first China International Import Expo, as they are eyeing China's burgeoning dairy market, which is worth an estimated 20 billion U.S. dollars a year, and is continuing to grow.

"It's a mark of China's openness to the rest of the world and I think our companies have got to take up this opportunity and demonstrate the way they can meet consumer's needs in China."

Over the past few years, government officials from China and New Zealand have been negotiating a modernized Free Trade Agreement, which demonstrates the willingness of the two sides to support moves towards greater trade liberalization in support of globalization.