Maternity and childcare product industry in China - statistics & facts
To address the country's aging population and declining fertility rate, China officially ended its three-decade-long One-Child Policy in 2016. Under the revised family planning law, couples were allowed to have two children. The rule was loosened further in 2021 when it became possible to have three children. The policy change, however, did not result in a continuous increase in births. After spurring to around 13.6 in 2016, the average newborn number per 1,000 inhabitants in China continued to decrease and hit an all-time low in 2022. As China's birth rate falls and disposable incomes rise, the country’s maternity and childcare product market has faced many challenges but also opportunities.
From imported to locally made
China's maternity and childcare products market has steadily grown in the past few years as a result of rising household incomes and a change in parenting concepts among the younger generation. Young parents in China, especially the middle class, are willing to spend a fortune on the next generation's well-being and education.
After the egregious baby formula contamination scandal in 2008, international baby food and milk formula brands saw a boost in demand in China. However, with government support to increase favorability for local milk formulas, the market share of domestic milk formula brands has risen considerably in recent years. In 2021, Chinese baby formula brand Feihe ranked first in terms of market share among all infant milk formula brands, indicating the revitalization of the country’s baby formula industry. In addition, domestic diaper brands were also the preferred choice of Chinese consumers.
Chinese parents of today can afford not only necessities such as infant food, diapers, and clothing, but also nutrition supplements, hygiene products, and intellectual toys for their children. Over the past few years, several new market segments and trends have emerged in China, including organic baby care products, organic infant formulas, and infant complementary foods.
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Research expert covering e-commerce and FMCG in Greater China