Industry Overview - The infant formula market is trending towards ultra-premium products, with overall channel growth of 2.3% year-on-year in the first four months of 2025, while offline sales declined by 1.4% and online sales increased by 12.3% [1] - The ultra-premium+ segment grew by 13.3% year-on-year, while the ultra-premium segment declined by 4.8%, high-end segment down by 14.6%, mid-high-end up by 2%, and mid-low-end up by 2.7% [1] - The market share of ultra-premium+ reached 33.2%, ultra-premium at 31.2%, high-end at 24.2%, mid-high-end at 8.6%, and mid-low-end at 2.7% [1] - The infant formula market is entering a phase of stock adjustment, with offline sales expected to decline by 9.8% in 2024, alongside a 9.4% drop in sales volume and a 0.3% decrease in average price [1] Company Performance - Feihe achieved revenue of 20.75 billion yuan in 2024, a year-on-year increase of 6%, with net profit of 3.57 billion yuan, up 5.3% [2] - Revenue from infant formula reached 19.06 billion yuan, growing by 6.6%, with ultra-premium product sales (Star Feifan Zhuorui) increasing by over 60% to 6.7 billion yuan, while the classic Star Feifan series saw a decline [2] - Since 2017, Feihe has focused on ultra-premium products, increasing the share of ultra-premium products in its infant formula from 22% in 2016 to 75% in 2024 [2] Foreign Brands Performance - Foreign brands focusing on the ultra-premium segment are also experiencing growth, with Danone reporting significant market share gains in China [3] - Danone expressed satisfaction with the performance of its ultra-premium Aptamil series, while FrieslandCampina's core brand, Friso, maintained double-digit growth in China [3] - Nestlé's infant formula business in China achieved high single-digit growth in 2024, with Wyeth's business recovering from previous declines, becoming the largest contributor to growth in the China region [3] - Overall, the reduction in newborn numbers has made ultra-premium positioning the most important strategy for major infant formula players [3]
越来越贵的婴配粉：超高端市场已成主流