China’s maternal and infant care market is expected to experience significant growth, driven by the increasing consumption power of new parents. According to a report from Guosen Securities, the overall maternal and infant care market in China grew at a rate of 16.9 percent in 2020 and maintained the same growth rate in 2021, indicating stable sales performance. The market was valued at 32 billion yuan ($4.6 billion) in 2021 and is predicted to surpass 50 billion yuan by 2025, according to data from Shanghai Ourui Supply Chain Management Co Ltd.
The post-’90s generation has emerged as the driving force behind maternal and infant consumption, with meticulous childcare needs that are increasing rapidly, says Zhang Xiaojun, founder and CEO of domestic maternal and infant care brand Dexter. Population shifts and economic development are also laying a solid foundation for the market’s growth. The number of infants between 0 and 6 years old stands at 140 million, according to the National Bureau of Statistics, generating huge demand.
Currently, China’s overall maternal and infant care market is split equally between domestic and international brands. Domestic brands’ market share rose from 18 percent in 2016 to 20 percent in 2020, reflecting changing consumer tastes and preferences. New-generation parents have confidence in homegrown brands and their national strength, as opposed to the era when foreign brands such as Johnson & Johnson entered the Chinese market and created a natural trust in international brands for people in their 60s, says Shi Hai, an analyst at online finance media jiediancj.com.
Innovation and brand differentiation will be the key factors that drive the market’s high-quality development, according to industry experts. The future competition will be in brand differentiation, and the innovation of products will be a significant driving force for market development, said Shi. The diversification of channels is also an important trend for future market development. In the future, enterprises should pay more attention to diversified distribution channels, explore new business models, and increase sales and market share.