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Dairy Sector Strategies to Offset Paradoxical Decline in Birth Rate after Reform of One Child Policy

After China reformed its one child policy there has been a paradoxical decline in the number of births which is the leading cause of stagnant growth in China’s infant formula sector. The stagnation and emerging challenges have precipitated another mass exodus of SMEs from the infant food sector. Infant formula manufactures can offset this decline by focusing on branding and product diversification, differentiation and innovation.

Children-Baby-Maternity Expo (short for CBME), the world’s foremost maternal & child industry exhibition, just concluded on July 27th in Shanghai. Despite thousands of attendees, one of the most notable takeaways from the event was a glaring decline in the number of exhibitors compared to the previous year, particularly a lack of infant formula enterprises [1]. Liu Lei, the founder of “Milk powder Think Tank”, explained that the dearth of exhibitors can be attributed to the withdrawal of hundreds of SMEs from the market due to regulatory pressures, increasing competition and diminishing margins.

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