A Race to the Top - Premiumization Trends
1 ) The most crucial trend in China's infant formula sector in 2019 was the trend towards premiumization, a trend that significantly shaped the product development strategies of companies and the purchasing preferences of consumers. For clarity, premium products are defined as products ranging in price from 330 RMB to 430 RMB, and anything over 430 RMB is considered an ultra-premium product. To give you some currency context that 330 to 450 + price range converts to prices ranging from 42 euro to +60 euro for a 900g tin of milk powder. Another way to consider premium products is by assessing the ingredients and raw materials used, which include cutting edge bioactives like OPO, pro- and prebiotics, lactoferrin. Differentiating the milk source by using goats milk, A2 milk (the A2 milk companies flagship product is affectionately called the "Hermes of milk powders" by Chinese consumers) or organic milk are further premium product development strategies being used to good effect.