Core Insights - The Chinese infant formula market is experiencing a phase of recovery, driven by a rebound in birth rates and changing consumer demands, particularly from Generation Z parents [1][2][4] - FrieslandCampina plans to increase investments in China to better align with local market needs and enhance product development [1][6] Market Trends - The sales decline in the infant formula segment has slowed, with a decrease from -5.9% in 2024 to -0.8% in Q1 2025, indicating a potential market stabilization [1][2] - The market for ultra-premium infant formula (retail price above 430 RMB/kg) has grown to account for 37% of the total market, up 4.2 percentage points from 2023 [4] Competitive Landscape - Major brands like Nestlé, Danone, and a2 Milk have also reported varying degrees of growth, reflecting a broader recovery in the market [2] - The competition has shifted from basic brand and price competition to a focus on refined nutrition and specialized research to achieve differentiation [5] Strategic Adjustments - FrieslandCampina is adjusting its strategy in China by focusing on core business areas and enhancing agility and cohesion within its operations [6] - The company plans to relocate product development and testing processes to China to accelerate innovation and better meet local consumer demands [6]