Analysis of Global Organic Milk Powder Market
2018-09-21 09:27 Friday
Organic milk refers to a number of milk products from livestock raised according to organic farming methods. Increased consumer awareness in China of the benefits of organic dairy, and a surge in demand for overseas infant formula brands, have led to unprecedented growth in the organic milk powder market.
Dairy expert Wang Dingmian estimated that the market value of organic milk powder in China is projected to exceed 10 billion RMB within 2-3 years. However, he cautioned that regulation of organic milk powder products is still incomplete, which has resulted in a proliferation of counterfeit products on the market.
Wang suggested that more investment is needed for infrastructure and product development, noting that product quality and safety should be the primary concerns for producers.
Ausnutria’s organic milk powder products have attracted interest from hundreds of distributors in the Chinese market. Despite the high prices (428-468 RMB/can), Ausnutria is confident that its products will be successful in China, due to the strong demand for quality organic milk powder.
Other prominent dairy brands such as Nestle, Wissun, MeadJohnson, and FrieslandCampina have entered the organic milk powder market in China as well, with the expectation that their products will be well-received.
Sales of organic milk powder increased from 1.82 billion RMB to 3.92 billion RMB from 2016 to 2018, an annual growth rate of 47%. Sales in 2019 are projected to exceed 5.7 billion RMB, when overseas purchases from Chinese consumers are taken into account.
Regulatory oversight of registration for organic milk powder has become increasingly strict in recent years, as evidenced by the 3% approval rate. Currently, Abbott’s brand Eleva has achieved market dominance, followed by Wyeth and Healthy Times.
Ausnutria’s Chairman acknowledged that Ausnutria devised a 10-year development strategy for China in 2015, and that organic milk products are an important component of its success.
Ausnutria’s Vice President has also suggested that the company will launch organic dairy products in China and Australia simultaneously, focusing on the high-level consumers in mid and lower-tier cities.
China’s promising organic milk market can look to the successful European market, fully developed with comprehensive regulatory oversight, as a roadmap for its future.
To ensure product safety and consumer confidence, producers should work closely with government agencies with regard to policymaking, infrastructure construction, and product quality,