Growing number of parents are opting for safe and natural products. Hence, organic infant formula sales continues to be on the list of high-end infant product sales in China.
Several multinational companies are promoting their products via e-commerce platform following the recent resurgence in sales. Hipp, Nestle and its subunit Wyeth are joining the fad that’s ultimately help their business.
Hipp is looking to further expand its presence in the e-commerce market. It has witnessed an annual growth of about 20% in China and is technically the biggest organic food producer globally in terms of sales revenue.
HiPP Pediatric Nutrition range has been developed by specialists, based on the most up-to-date scientific knowledge for over 40 years. Its organic products are considerably above the requirements by law in the choice of raw products for the production of pediatric nutrition range. Their product is also recommended by Greenpeace.
Hipp said the organic farms of the company do not use chemical fertilizers and pesticides, and they artificially remove weeds and pests using the natural ecological chain.
Stephan Hipp, global managing director and 4th generation heir of Hipp revealed that they have seen a huge growth in their instant formula products meant for babies 12 to 36 months. They see this market as a big chance for them to grow. They are confident that they can deliver consumer demands with high quality.
Almost 11% growth rate increase was scored by the infant formula market last year. 47% of which are organic formula products according to Euromonitor International.
Moreover, due to the good returns Hipp has had last year, it has donated $1.4 million to China Soong Ching Ling Foundation whose advocacy includes launching maternal and child care educational classes nationwide including training more pediatricians in Western China.
Meanwhile, Nestle launched its first organic full cream milk powder under the Nido brand last year. It was launched in China on a trial basis through various cross border e-commerce channels. Nido has been produced in Switzerland since 1944.
Head of Nestle’s research and development unit in China, Robert Reniero, reveals that the positive response towards high quality organic milk powder is expected to change the demand of Chinese consumers. Hence, Nestle is ready to meet such demand.
A recent survey by Nielsen Consulting, almost 45% of Chinese consumers are for natural, sustainable and organic products regardless of how higher the price is compared to the normal ones.
Moreover, Wyeth has introduced Illuma which has increased the sales of organic infant and maternity products. Mead Johnson on the other hand introduced its grass-fed Enfagrow to Chinese consumers last September.