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Infant Milk Powder Boosts Online Dairy Sales in China

2018-11-29 14:11 Thursday

The annual growth rate of online sales of Chinese dairy products in the first quarter of 2018 fell to 45.2%, the lowest figure since the first quarter of 2016, according to a report released by Syntun, a data analytics firm in China.

Chinese dairy products

The report analyzed the market performance of liquid milk, infant and adult milk powder sold online in China in the first quarter of 2018.

The data comes from China's largest B2C e-commerce platforms, including JD, Suning, Tmall and Amazon.

JDcom and Tmall are the clear market leaders for B2C e-commerce in China.

B2C e-commerce

Other e-commerce platforms lag far behind, with third place Suning accounting for only 1.1% of total sales.

Infant milk powder and liquid milk are the main product categories forces driving online dairy sales in China. In the first quarter of 2018, the online market share for infant milk powder and liquid milk products was 57.5% and 32.1%, respectively.

The remaining 10.4% of the market was occupied by adult milk powder, which has experienced rapid annual growth rate of 120%.

Top-selling Liquid Milk Products

Top-selling Liquid Milk Products

Chinese products accounted for most of the ten best-selling liquid milk products in the first quarter of 2018.

Yili had the top selling product, but competitor Mengniu has more products in the top ten, including those ranked second, third, eighth and tenth.

Yili and Mengniu account for a combined 40% of the liquid milk market.

Other brands on the list include Brightdairy, Weidendorf, Anchor and Devondale. The combined online market share of above-listed foreign brands sits at only 5.6%.

The market share of high-end pure milk fell by 5.4%, whereas the share of other liquid milk products increased, including normal-temperature yogurt, milk beverages and flavored milk.

Top-selling Infant Formula Products

Top-selling Infant Formula Products

Unlike with liquid milk, foreign brands account for the majority of the infant milk powder market, holding a market share of 63.3%.

Friso golden infant formula 3-section is the best-selling product, followed by A2 platinum milk powder 3-section, and the Wyeth illuma 3-section.

Among those, Friso's milk powder is the most economical, with a price of 190.1 RMB/kg, whereas A2 and Wyeth milk powders exceed 300 RMB/kg.

Among the ten best-selling products, nine are powdered milk for eight-month-old infants.

Aptamil has the highest market share at 14.3 %, followed by  Wyeth and Friso, at 11.8% and 9.9% respectively.

Only two Chinese brands, Yili and Feihe, made the list.

The share of infant milk powder sold through cross-border e-commerce rose to 36.7%, 13% more than the previous year.

Top-selling Adult Milk Powder Products

Top-selling Adult Milk Powder Products

The Australian brand Devondale dominates the adult milk powder sales list, with four of the top selling products.

Another Australian brand, Maxigenes, is also popular with Chinese consumers, and has products ranked second, fifth and eighth on the list.

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