In 2021, the market size of China's complementary baby food shrank to about 60.5 billion yuan, impacted by the reduction of newborns. However, with the strengthening of market education, and the improvement of consumption habits and consumption levels, the complementary baby food market size is expected to reach 108.5 billion yuan in 2025.
Compared with the differences in consumers' habits, the consumption amount of complementary baby food and milk formula in the UK and U.S. are equivalent. But the complementary baby food in China is only one-seventh of milk formula. Although the consumers' demands are high, the penetration rate of complementary baby food in China is low. The Chinese market is still in the stage of development with great potential.
The complementary baby food market is dominated by international brands with a high concentration rate. International brands are well-known and their product quality is trusted by consumers. As there are only a few companies in China, a gap exists between Chinese and international companies in terms of brand promotion, technology and marketing development. Among the top 10 complementary baby food brands, 6 are international brands.
According to the data from Qianzhan research institute, the concentration ratio of the top 10 in China's complementary baby food industry is 45%. Due to the development of the industry, many new entrants occupied the market shares and led to the concentration ratio of China's complementary baby food decreasing by about 43% in 2020. With the promotion of Chinese brands, some companies began to impact the industry's position and concentration in 2021.