Core Viewpoint - The domestic infant formula market is experiencing a transformation, with potential growth driven by improved fertility support policies and increasing consumer willingness to spend on high-quality products [2][4][29]. Market Performance - From January to July 2023, the offline infant formula market saw a sales decline of 2.1% year-on-year, with a volume drop of 3.4%, while the average price increased by 1.3% [2]. - The ultra-premium segment of the infant formula market grew by 13.3% year-on-year from January to April 2023, while the high-end and premium segments experienced declines of 14.6% and 4.8%, respectively [2]. Policy Support - The national childcare subsidy program, effective from January 1, 2025, will provide families with 3,600 yuan per year for each child until they reach three years old, which is expected to boost the birth rate and, consequently, the infant formula market [6]. - The implementation of free preschool education will reduce family childcare costs, estimated to save households 20 billion yuan in the upcoming semester [6]. Opportunities for Domestic Brands - Domestic brands, particularly leading companies like Feihe, are well-positioned to benefit from the market dynamics, as they are perceived to have comparable quality to foreign brands, especially in the high-end market [4][12]. - Feihe reported a revenue of 9.15 billion yuan and a net profit of 1.03 billion yuan in the first half of 2025, maintaining its position as the market leader in both sales and market share [4]. Technological and Quality Advancements - Feihe has established a robust product ecosystem, focusing on innovative research and development, including collaborations with prestigious institutions to enhance product quality [12][15]. - The company has developed advanced manufacturing capabilities, utilizing AI technology for quality control and supply chain efficiency [14]. International Expansion - Feihe's Canadian factory has begun producing infant formula, addressing local supply shortages and expanding its market presence in North America [21][24]. - The company is also targeting Southeast Asian markets, starting with the Philippines, and plans to replicate its success in other countries like Vietnam and Indonesia [24][26]. Product Diversification - Feihe is expanding its product range to include adult nutrition and innovative dairy products, receiving multiple awards for its new offerings [26][27]. Conclusion - The domestic infant formula market is at a critical transformation stage, with opportunities for growth driven by policy support, consumer trends, and the capabilities of leading brands like Feihe [29].
国产婴配粉，打开新空间