China has officially promulgated the regulations on the registration system of the recipe for infant formula milk powder products, which are set to come into effect on October 1, 2016.

The new rules will raise the industry entry threshold, tackle the current chaotic rang of brands and formula, and lead to brand concentration.

Currently, there are 103 infant formula powder manufacturing enterprises in China with nearly 2,000 formulas. Some individual enterprises even have 180 formula brands circulating in the Chinese markets.

Under the new regulations, each manufacturer will be allowed to produce no more than 3 formula series and 9 product formulas.

This means over two thirds of the current existing milk powder formulas in the market will be eliminated, and around a quarter of milk powder companies are expected to go out of business.

The action aims to reduce the perceived malicious competition and build up high-quality domestic brands in China by optimizing the production capacity of enterprises to better meet the demands of market.

When applying for the registration, each dairy enterprise must provide a sample of specification, which indicates its authentic origin and avoid using ambiguous and exaggerated information.

Experts are expecting the "strictest ever" regulations concerning registration of infant formula products will treat domestic and imported brands alike, give the manufacturers more rights to speak out, and also stabilize formula prices.