Reference Message Network reported on June 20 that according to a report from the French Les Echos website on June 17, at least 1500 yuan RMB subsidy will be given for each newborn child. In China, Feihe Group, the leading domestic infant formula giant, is no longer satisfied with merely selling powdered milk products to families. Since April, this industry leader has begun offering rewards to pregnant families.
Feihe Group is expected to invest approximately 150 million euros in this plan (1 euro is equivalent to about 8.27 yuan RMB - our note). This powdered milk giant is doing so both to support its own market and respond to national policies. The current Chinese government is making every effort to boost birth rates.
The report stated that Feihe Group is one of the leading enterprises in the Chinese infant formula industry. It is rapidly rising in a market long dominated by foreign brands. Over the past five years, under the government's promotion of industrial upgrading, Chinese brands have successfully regained market dominance.
According to Euromonitor International data, in 2020, Chinese infant formula companies surpassed foreign competitors for the first time, capturing 53% of the market share. Data from Bain Company shows that Feihe, as the largest domestic infant formula brand in China, has held the top position in the industry for five consecutive years with a market share of 17%. This dairy giant, founded in 1962 and listed in Hong Kong, achieved revenue of 20.75 billion yuan RMB last year, an increase of 6%, with net profit reaching 3.65 billion yuan RMB, up by 11%.
Media data shows that another domestic giant, Yili, ranks second in market share, followed by Danone, Nestlé, and FrieslandCampina Group from the Netherlands.
A European dairy professional based in Asia confirmed: "Nowadays, Chinese domestic brands fully control the mass powdered milk market, while foreign enterprises focus on high-end niche segments and medical formula powdered milk. Nowadays, only a few enterprises remain in this market, whereas during its heyday, there were over 200 enterprises. At that time, major dairy giants from Europe, the United States, Australia, and New Zealand all vied to enter the Chinese market."
The report stated that the strong return of China's powdered milk giants marks a true reversal in the industry. In recent years, Chinese dairy enterprises have heavily invested in building factories, improving distribution networks, and strengthening research and development efforts to create products that meet local needs. Their prices are much lower than those of imported brands.
Currently, Feihe Group's factories in China and Canada can produce 360,000 tons of powdered milk (including infant and adult powdered milk) annually. A European industry insider smiled and said: "The standards of Chinese dairy factories are rarely seen even in Europe! The cleanliness is so high that you could eat off the floor."
The report stated that at the same time, the Chinese government and industry authorities are implementing increasingly strict hygiene standards, causing many small dairy enterprises to exit the market. All dairy enterprises must comply with the new national standards.
China's new standards impose strict limitations on the nutritional components of modified powdered milk for preschool children: protein content in every 100 grams of powdered milk must not be less than 16.5 grams, and standards for vitamins A, D, and calcium, iron, zinc, etc., are set. (Translated/compiled by Liu Zhuo)

On May 5, consumers selected dairy products at a supermarket in Xinle City, Shijiazhuang, Hebei Province. (Xinhua News Agency)
Original article: https://www.toutiao.com/article/7517845680405283363/
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