Global dairy giants vie for China's high-end milk powder market

16:54, October 27, 2009      

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China's dairy market has recovered to 90 percent of the level before the 2008 milk scandal, according to information released by the National Development and Reform Commission.

Compared to the gloomy European dairy industry, influenced by the global financial crisis, China's dairy market has begun to gradually recover, making global diary giants compete for China's high-end milk powder market.

With the gradual market standardization following the 2008 milk scandal, China's dairy industry and milk powder market will embrace full recovery. It is estimated that the market size of China's baby formula milk powder will reach 300 billion yuan.

According to statistics form the China Dairy Association, China's high-end infant formula market has been growing rapidly, seeing an over 30% annual increase, second only to the U.S. and surpassing Japan. China is expected to be world's largest infant formula market in 2010.

Therefore, many foreign dairy giants turned to China to vie for the market.

Recently, Biolife New Zealand Ltd. and Switzerland SMG jointly launched its first high-end infant formula milk powder Natrapure.

Although there are many infant milk powder brands in China, few of the milk powder in them are original imported, said David Charles Swaffiled, senior official at Biolife New Zealand Ltd.

The Chinese infant milk powder market has been dominated by a handful of imported brands so the market opportunity is smaller, while the high-end infant formula market lacks a leading brand, and therefore it will become a competition focus for international diary giants, said Swaffiled.

By People's Daily Online
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