Emerging Benefits from Two-Child Policy Boost PRC Goat Milk Powder Market; Ausnutria Dairy Expected to Grow with Precise Strategies

Friday, 31 March 2017, 13:15 HKT/SGT

HONG KONG, Mar 31, 2017 - (ACN Newswire) - In recent years, as a new rising milk powder category, the popularity of goat milk powder has been increasing in the PRC market. Consumers, media and industry experts speak highly of goat milk powder. Before 2013, goat milk powder only accounted for a mere 2% in the PRC milk powder market. As more and more well-known dairy enterprises entered into the goat milk powder business, goat milk powder becomes well recognized by consumers and this sector keeps booming.

Song Liang, an expert of the industry, estimated that there is a big room for the growth of goat milk powder sector in the future. By 2020, the entire milk powder market in the PRC will reach RMB100 billion, while the goat milk powder market will also rise from RMB5 billion currently to RMB15-20 billion, with a CARG of 30%. By that time, the market share of goat milk powder will reach approximately 20%.

Enterprises with well-established goat milk powder business also enjoyed a significant growth in recent years. In March, the listed dairy companies have announced their 2016 annual results one after another. As an enterprise with leading position of imported goat milk powder in the PRC, Ausnutria Dairy (1717.HK) has announced its revenue in 2016 reached RMB2.74 billion, representing a year-on-year increase of 30.3%. Ausnutria Dairy's goat milk-based brand Kabrita continues to maintain its leading position in the imported goat milk-based infant formula sector in the PRC. In 2016, sale of Kabrita increased by approximately 43.9%, accounting for approximately 29.1% of its total revenue. Kabrita has also become one of Ausnutria Dairy's key profit contributors and growth drivers.

Kabrita, originated from the Netherlands, entered the PRC market in 2011. In just five years, Kabrita has gained recognition by consumers and grows rapidly to the NO.1 imported goat milk powder brand in the PRC. In October 2016, with its well-established brand reputation, strong competitiveness of the products and excellent services which are widely recognized by clients and consumers, Kabrita was listed among the top 10 most influential brands for infant formula in the PRC at the CBME AWARDS, which is considered as the Oscars in the children, baby and maternity industry in the PRC.

It is worth mentioning that with its well-established upstream supply chain, Ausnutria Dairy stands out from the listed dairy companies. Taking its goat milk-based infant formula as an example, Ausnutria Dairy' has its own factories in the Netherlands, together with the secured milk collection and raw materials, a reliable and stable supply is ensured. According to Ausnutria Dairy's 2016 annual results, the factories are under expansion to increase production capacities in order to meet the increasing market demands in the PRC and across the globe.

Moreover, the favorable policies in the PRC are also driving the development of the industry. In light of the relaxation of the one-child policy, more families consider for a second child. According to the data as announced by the National Bureau of Statistics of the PRC, the number of newborn in the PRC increased by 7.9% from 16.55 million for 2015 to 17.86 million for 2016. As the number of newborn is increasing and the Chinese families are seeking for high quality milk powder, the demand of infant formula, especially the superior goat milk powder, will continue to increase in future.

Topic: Press release summary Sectors: Exchanges & Software, Food & Beverage
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