In the post-formula registration era, milk powder companies increase technological innovation

In 2019, with the end of the transition period of the new policy on infant milk powder, many small and medium-sized milk powder products withdrew from the market, and enterprises entered a new round of competition. How can enterprises continue to make efforts to stand out in the market competition has become a hot topic in the industry. Recently, at the 2019 China Dairy Summit Forum, a number of milk powder companies and experts said that in the post-formula registration era, under the premise that safety is no longer a problem, consumers have higher requirements for milk powder quality, increased formula research and development efforts, and product upgrades have become the consensus of milk powder companies.

 

　　Data show that in 2018, the sales of infant formula milk powder in our country reached 222.10 billion yuan, an increase of 18.6% year-on-year. It is expected that by 2020, the market size will continue to expand to 2955.1 billion yuan. In this regard, many industry insiders said that they are optimistic about the development of the infant formula industry in 2019. "The scale of the infant formula industry will still grow to a certain extent." Bu Qiu, general manager of Four Seasons Nanshan, believes that although the scale of the industry will not grow much, the feeding rate of milk powder for children over 6 months is still popular, and the scale of the infant formula industry will increase to a certain extent. At the same time, the concentration of the industry will further increase, and leading enterprises will increase investment in brand promotion and Product Research & Development.

 

　　To break through in the new situation, dairy enterprises need to make efforts towards high quality and high service. Yang Chunyan, general manager of Shengyuan Group Youbo Branch, believes that after the implementation of the formula milk powder registration system, market competition has intensified. Whether it is domestic brands or foreign brands, they are putting more energy on brand marketing, formula research and development and breast milk research. This reflects the return of enterprises in channel layout, product quality and market expansion. "After enterprises return to quality and service, consumers will no longer pay just because of discounts and promotions, but look at different communication paths, word-of-mouth, evaluation, trial and promotion, and generate trust before buying." Yang Chunyan said that under this industry structure, the future development of enterprises will continue to focus on product quality.

 

　　Liu Jianguang, director of research and development of Junlebao milk powder, expressed the same view. "The threshold has been raised, and everyone is facing equal competitors." He believes that the quality of milk powder can be assured now, and the competition is shifting from market-driven to technology-driven. Take breast milk research as an example, companies with strong scientific strength, clinical trials and data accumulation have a greater market advantage.

 

　　Regarding the industry situation in 2019, Zhang Liang, director of quality management of Feihe Dairy, believes that through the joint efforts of domestic milk powder companies, the confidence in the development of domestic milk powder has been significantly restored. But "development" is still the key word of the milk powder industry in 2019, which requires milk powder companies to further increase their R & D and innovation capabilities and dig deeper into their internal strength.

 

　　In fact, the current industry has shown new characteristics, especially in formula research and development, such as lactoferrin milk powder, OPO milk powder, probiotics and other unique formulas, as well as ultra-high-end, organic, goat milk and other strong growth, forming a new growth point in the market.

 

　　The foundation of children's health and early development is nutrition, and early nutritional input determines the quality and health level in later life. At the meeting, Jiang Jingxiong, executive vice chairperson of the Pediatric Nutrition Professional Committee of the China Eugenics Association, said that the state has strict regulations: Where the scope of application covers 0-6 months infant formula foods, no edible flavors may be added; Vanillin, ethyl vanillin, and vanilla bean extract can be used in larger infant and toddler formula foods, but the maximum amount is limited.

 

　　Jiang Jingxiong suggested that companies should adopt higher standards in product formulation, which was unanimously agreed by the participating companies. The new focus of the industry provides more opportunities for domestic milk powder companies and provides an opportunity to reshape the industry landscape. In the future, only companies with more advantages in Product Research & Development and innovation can truly enjoy the industry dividend.