Junlebao, Abbott Successively Release Adult Milk Powder Products

Leveraging the concept of generational care, Junlebao released two adult milk powder products on March 5. Junlebao Xinyi lactoferrin milk powder focuses on strengthening the immunity of the whole family. In contrast, Junlebao Legal high fiber milk powder is marketed as a high protein supplement that promotes digestive health. 

Over the last year, Junlebao has accelerated its new product R&D and commercialization. In 2019 Junlebao launched an A2 protein milk powder called Zhizhen. Last week, it successfully rolled out the first organic infant formula called ULTREE. 

On March 6, Abbott launched one organic milk powder exclusively for pregnant and lactating women. This is Abbott’s first organic milk powder for mothers, and the launch of this product is seen as a move to cement Abbott’s leading position in China’s organic milk powder market.

Adult milk powder market situation and major segments

At present, China’s adult milk powder market is estiamted to be valued at between 6 billion to 8 billion yuan ^[1]. There have been no significant changes to market size, and the overall market size is still small in comparison to other milk powder segments. There is still a lack of awareness amongst consumers, and most adults only use milk powder as a nutritional supplement, rather than as a staple food. Various types of fortified liquid dairy products also occupy a similar market niche and are outperforming adult milk powder. 

However, as the overall growth of the infant formula market stagnates, an increasing number of dairy companies are focusing on the adult milk powder market to tap into more growth opportunities, especially during the novel coronavirus outbreak, which has seen increased interest in the immune-enhancing properties of dairy.

Milk powder for pregnant and lactating women

Currently, the market size of China's maternal milk powder is small at about 1 billion yuan ^[2]. According to data from the Institute of Maternal and Infant Research, the sales volume of milk powder for pregnant and lactating women in 2018 totaled about 260 million yuan, with a year-on-year growth rate of 31.22%.

Milk powder for the elderly

Currently, the market capacity of middle-aged and elderly milk powder is 4 billion yuan ^[3]. People over 60 account for 17.9% of China's population, and in six years, it will be a quarter, according to Kantar data. The continued aging of society is fertile ground for the future growth of the elderly milk powder segment. In 2018, the amount of adult milk powder purchased increased by 19%. High-end adult milk powder sales increased by 36%.

Foreign brands take preemptive opportunities 

Foreign brands are now targeting China’s adult milk powder market in greater numbers and with increased intensity. Australian brands Devondale, Maxigenes, Australian Dairies, and a2, have been popular in online channels thanks to Chinese Daigou.

Market data shows that Chinese adult milk powder consumers prefer foreign brands. According to online sales data, in the first quarter of 2019, Nestlé occupied that dominant market position accounting for 15%. Maxigenes and Devondale were in joint second place with 13% market share each, meaning the top 3 positions were all foreign brands. 

New releases of adult milk powder in the past one year

Given the potential of the adult milk powder market, a number of brands have rolled out products in the past year.

• On May 20, 2019, Danish brand Mille launched a new milk powder product for pregnant and lactating women.

• On August 25, 2019, Yashily of Mengniu launched four adult milk powder products designed for the elderly.

• On October 23, 2019, Nestlé launched an A2 adult milk powder.

• In November of 2019, Kabrita of Ausnutria launched a family nutrition goat milk powder series Yingjia and pregnant and lactating mother formula ExtraPure during the second CIIE (China International Import Expo).

Regulatory tips

In terms of market access, the threshold for adult milk powder is relatively low compared with infant formula because there is no need for formula registration and registration of overseas manufacturers.

Milk powder for students (6-15 years old)

Product reference is GB 19644 National Food Safety Standard Milk Powder and the labeling reference is GB 7718.

Milk powder for pregnant and lactating women

Milk powder catering to these groups is not special dietary food and falls under the category of milk powder in the national standard system. It is formulated milk powder that contains nutrition fortifiers and over 70% dairy solids. Standard for reference is GB 19644 National Food Safety Standard Milk Powder. As for labeling, standard for reference is GB 7718.

Milk powder for the elderly

Currently, standard for reference is GB 19644 National Food Safety Standard Milk Powder. In the future, General Standard of Food for Older Person would be the reference standard after it is approved and implemented. The labeling reference is GB 7718.

Adult milk powder classified as sports nutrition

Products refer to General Standard for Sports Nutrition Food (GB 24154-2015), and the labeling reference is GB 13432 Special Diet Food Label.