2021 blue book on maternal and infant industry development From PricewaterhouseCoopers & MCI

The following is the 2021 blue book on maternal and infant industry development From PricewaterhouseCoopers & MCI recommended by recordtrend.com. And this article belongs to the classification: PWC, Life data, research report.

In 2020, China’s birth population will be 12 million, the lowest in 43 years since reform and opening up. Over the past 10 years, the birth population has mostly remained above 15 million, while the birth population will decline sharply in 2020, which has aroused widespread discussion in the society and concerns about the future domestic population structure. At the same time, people in the maternal and infant industry directly related to it also expressed concern that this will not only affect the long-term development of the country in the future, but also immediately affect the development of the current domestic maternal and infant market. Under the guidance of China eugenics Association, PricewaterhouseCoopers and Boao de rice maternal and Infant Industry Research Institute released the blue book on maternal and infant industry development (hereinafter referred to as the blue book) at the recent Boao global maternal and infant industry development forum 2021, which aims to explore the impact and new opportunities of the decline of birth population and the three child policy for the industry.

Industry Overview

Maternal and infant industry is an industry to meet the needs of pregnant women and infants aged 0 to 6, such as clothing, food, housing, transportation, play, education and so on. Maternal and infant industry involves many industries, such as commodity production, retail, life service, education, entertainment, medical treatment and so on. According to different commodity forms, the maternal and infant industry can be divided into two sections: “products” and “services”. Among them, the product section mainly includes food (such as milk powder, baby complementary food, etc.), FMCG (such as diapers, toiletries, etc.), durable goods (such as toys, baby lathe), children’s clothing and maternal goods; The service section runs through the whole process of pregnancy preparation, pregnancy and postpartum, covering education, medical treatment and other aspects. Consumers have different needs at different stages, and the products and services they consume are very different. At present, some new products and service tracks are being opened in China, and new products, services and competitors are pouring in, which makes the whole mother and baby market full of vitality and opens new incremental market space for the mother and baby market.

Main products and services of maternal and infant industry

According to the analysis of the blue book, the main group of mother and child consumption is women aged 20 to 34. From the perspective of fertility rate, 25-29 years old is the main force at present, so the post-90s and post-95s are the main target customers of the mother and child market; However, with the liberalization of the two child and three child policy, after 85, it entered the mother and baby market again and became an important member of the mother and baby consumer group. At the same time, Post-00 women also play an important market role. In 2020, the first batch of Post-00 women have reached the age of 20. According to China’s marriage law, the first batch of Post-00 women have met the legal minimum marriage age. As early as 2019, the data survey of relevant departments showed that one in every 100 women after 00 had childbearing experience. After 00, they are gradually becoming a member of the fertility army. In the future, accelerating the entry after 00 will become an explosive force of mother and child consumption.

The market scale continues to expand

From 2010 to 2020, China’s maternal and infant market has maintained rapid growth. From 2010 to 2018, the growth rate of China’s maternal and infant market was accelerating. In 2010, the market scale was only about 1 trillion, while by 2018, the domestic maternal and infant market scale had exceeded 3 trillion. In the past eight years, the maternal and infant industry has maintained rapid growth, with an annual compound growth rate (CAGR) of 15.16%. From 2018 to 2021, the decline in the number of newborns led to the suspension of the high growth trend of the maternal and infant market, but the overall scale is still expanding. In 2020, the scale of the domestic maternal and infant market has exceeded 4 trillion, of which the product and service markets account for about half.

Market scale of domestic maternal and infant industry

In the future, the maternal and infant market still has great growth space. In recent years, the post-85s and post-90s have ushered in the childbearing period under the two child and three child policy, and the post-95s have also reached the golden age of childbearing. Among the age composition of the mother group, the post-95s have the fastest growth. In 2021, the post-90s and post-00s accounted for 53.9% of the proportion of mothers and infants. As the post-90s and post-00s gradually enter the mother and baby consumption market, the changes in their consumption concept and parenting style have also brought new development opportunities for the mother and baby industry. The mother and baby market is developing towards high quality and refinement. According to the prediction of market organization data, the industry scale of maternal and infant market is expected to reach 7 trillion yuan by 2024.

Segment growth track

The maternal and infant industry covers the clothing, food, housing, transportation, use, play, education and other aspects of pregnant women and infants. Products and services also show a variety of market segments according to consumer needs. The larger market segments of products include milk powder, diapers, infant clothing, infant food (supplementary food and Nutrition), etc. these products are consumed frequently and belong to non durable products, It is a relatively large expenditure in the expenses of childcare families at present. The large-scale market segments in the service include early childhood education, confinement club, postpartum repair, etc. The following will focus on several relatively mature and fast-growing market segments.

Infant formula: high end and price increase will become a trend

Infant formula milk powder is the most important infant food, and its development in China can be described as twists and turns. Before 2008, the market had begun to take shape, more and more consumers were fed with milk powder, the consumption increased rapidly, and a group of earlier leading enterprises were cultivated. However, the “trust crisis” in 2008 hit the whole market, and the consumption dropped sharply. Foreign brands took advantage of the situation to quickly enter the market and established a strong trust foundation, but still failed to change the overall downturn. Until the second child policy was liberalized in 2016, the infant formula market showed a short-term recovery. At the same time, after a series of milk powder safety incidents, the national regulatory authorities and domestic milk powder enterprises have actively reflected, and made great efforts in industry management norms and their own operation and management.

Infant formula milk powder will develop to high-end, with the trend of long-term price increase. On the supply side, the brand marketing, milk source guarantee, strict quality control and formula upgrading of high-end and ultra-high-end milk powder all promote the rise of costs, which in turn boost the rise of prices. On the consumer side, with the improvement of people’s consumption ability and the transformation of mother and child consumer groups to younger groups, young consumer groups have brand and quality awareness and are willing to pay a higher premium for large brand and high-quality milk powder. The consensus of supply and consumption on quality and price will bring new opportunities for the development of high-end, ultra-high-end milk powder and special sub categories.

Baby care products: the penetration rate of pull-up pants has increased and domestic brands have risen

According to Euromonitor data, the market scale of China’s baby hygiene products in 2020 was 70.339 billion yuan. Baby care products mainly include baby diapers, baby pull-up pants and baby diapers, of which baby pull-up pants belong to the category with the highest end and highest unit price. Among baby care products, diapers are the segment category with the largest market share.

The growth of diaper market slows down, and there is still room for a significant increase in the penetration rate of pull pants. According to the statistics of the household paper Committee, the market scale of domestic baby diapers in 2019 was 49.9 billion yuan, a year-on-year decrease of 10.15%, and the market scale declined. The market penetration rate of baby diapers in China has reached 85.44%, the market tends to be saturated, and the stage of rapid growth has come to an end. However, the market penetration rate of its sub category of pull-up pants is only 14.56%, which still has great room for improvement. Compared with traditional diapers, Lala pants have more advantages, such as large urine absorption, convenient action, convenient wearing and taking off, elastic and comfortable, but the cost and price are also higher. In China’s Baby Diaper Market, the market share of pull-up pants is significantly lower than that of Japan (67.34%) and the United States (21.58%), which still has great room for improvement, and the market share has been growing rapidly since 2021.

At present, many domestic diaper brands have spent a lot of time and energy on production technology, raw material selection and product design, and have developed diapers that are more comfortable and safe for babies, and have entered the fourth generation, while many foreign brands still stay in the third generation. Consumers’ trust in domestic diaper brands is also getting higher and higher. In recent years, with the rapid rise and development of new retail channels, domestic brands will continue to erode the foreign brand market in the future competition, and the market share of foreign brands may continue to decline.

Maternity and childbirth Center: differentiated service and increase of customer unit price

The confinement center is a place to provide postpartum services for pregnant women, including providing a series of nursing and rehabilitation plans for pregnant women, and providing guidance on postpartum recovery, newborn care, parenting knowledge, etc. in addition, the confinement center can also provide other specific supporting services according to the personal needs of pregnant women until the whole service cycle is completed. After several years of development, China’s yuezi center has gradually established a complete service system, and began to expand throughout the country through direct operation and franchise mode, and even sink to low-level cities.

Yuezi center focuses on service, and the reputation formed by high-quality service will become the core competitiveness. There are many kinds of services provided by yuezi center, which need to be professional and have a strong sense of customer experience. Therefore, through high-quality service, a strong word-of-mouth effect will be formed in the mother infant circle, which will bring new traffic and a steady stream of customers. At the same time, it will also greatly reduce the cost of getting customers. In the future, yuezi center will enhance its competitive advantage through differentiated services and drive the increase of customer unit price. China’s yuezi center industry is still in the early stage of industrial development. Compared with other segments, it has a short development time and is not mature enough. At present, the market capacity has not been fully released, and there will be more space in the future.

Major factors affecting the future of the industry

Promotion of consumption upgrading

Since the reform and opening up, China’s economy has entered a stage of rapid development, GDP has increased rapidly, and the per capita disposable income of residents has also increased, providing a stronger consumption capacity for the mother and baby industry. Meanwhile, according to the data of the National Bureau of statistics, the urbanization rate has been increasing since the reform and opening up, from 17.98% in 1978 to 60.60% in 2020. With the continuous increase of urban resident population and the continuous increase of urban residents’ disposable income, residents’ consumption ability is becoming stronger and stronger. For the maternal and infant industry, the consumer economic base is growing, and the range and price of products that can be consumed are expanding.

Changes in consumer groups

According to the current fertility rate at different ages in China, from the perspective of the main childbearing age from 20 to 34, the post-90s and post-95s are now in childbearing age, and the post-85s are stepping up the birth of a second child. After 1985, it was in the primary stage of wealth accumulation, with certain economic strength and strong consumption ability; The post-90s have gradually entered a period of rapid income growth, and the consumption level has also risen; After 95, the marginal change of income after work is obvious, and the consumption intention is significant. This group is an important target customer of maternal and infant products and services. Compared with previous generations, these three age groups have some new characteristics in terms of education level, consumption concept and access to information compared with previous generations:

Lower sensitivity to price and pay more attention to the quality of goods and consumption experience;

Gradually formed brand awareness, some consumers have high loyalty to the brand;

The concept of scientific pregnancy preparation and scientific parenting is becoming more and more popular, and more attention is paid to pregnancy preparation, infant nutrition and education;

More willing to share experience and exchange, and the spread of product reputation has accelerated.

At the same time, the change of family structure also has a significant impact on the mother and child industry. Compared with the positive pyramid structure of “many children and many grandchildren” in the past (one couple has multiple children, and multiple children have multiple children), China’s modern family has formed a “4 + 2 + 1” inverted pyramid structure (a family composed of four elderly people, two parents and one child). The overall consumption capacity of the modern inverted pyramid family has been greatly improved, Each family can and is willing to invest more money in childbirth.

Progress of high and new technology

Technological progress is the core driving force for many high-tech enterprises, and it is also affecting the mother and child industry. In recent years, the development of smart phones, Internet of things, robots and other technologies is actually imperceptibly changing the mother and baby market.

Technological progress brings new products and new markets. When high technology collides with the mother and baby industry, emerging products and markets such as early education robots and home surveillance cameras arise. The reason why technological progress can obtain a good market share in the maternal and infant market is mainly because it meets the market that the maternal and infant market can not meet or can not meet well when the technology is backward.

Technological progress changes marketing and sales channels. In addition to product innovation, technological progress is also changing the marketing mode and sales channel of mother and baby market. The emergence of wechat, short video, live e-commerce and various social applications has changed people’s way of entertainment, information acquisition and consumption. The mother and baby market has also joined this wave of change.

Overweight of fertility policy

From the perspective of national policies, encouraging fertility has become an important policy support direction of the country, and the government is also gradually implementing relevant supporting policies. In the future, it is expected that the central government, governments at all levels and government departments will continue to increase the policy of supporting two and three children until the domestic fertility level can support the long-term balanced development of the domestic population. During this period, industries that increase the cost of birth, maintenance and education and are not conducive to fertility may face policy pressure, while industries that can promote the benign improvement of fertility level, such as childcare, maternal and child health services, may receive more policy support.

Decline in birth

On the macro level, the decline of the birth population will have an adverse impact on the consumption of mothers and infants. Many products will decrease with the decrease of the number of newborns. However, careful discrimination will find that although the macro data has strong guiding significance for the general trend of the industry, it is different for specific industries and enterprises.

For mature and growing industries, the impact of macro population change is different. For mature industries, the product penetration rate is high, and most users in the market have used the product, and the market scale is closely related to the number of mother and baby population; The penetration rate of the growing industry is low, and many new users have not used the target products. Even if the total number of mothers and infants decreases, the absolute market still has a lot to explore. For example, early education robot, home monitoring, etc. For industries with low market concentration, the impact of macro population change is also small. For example, there is no national chain in the market of yuezi center. Even now, the larger yuezi centers are only in Beijing, Shanghai, Guangzhou, Shenzhen and other first and second tier cities, and the number of stores is small. The target customer group is only high-end people. There is no yuezi center covering the national market in a real sense, and the largest number of middle-end There are no well-known brands in the middle and low-end market.

summary

Although the maternal and infant industry is facing many uncertain and even negative effects, such as the declining birth population, the improvement of breastfeeding rate and the maturity of some segments, the domestic maternal and infant market is still full of risks and opportunities.

From the perspective of national policies, industries that do not comply with relevant national fertility policies and subdivided industries that have transitioned from growth to maturity or even recession will face the situation of shrinking market scale and intensifying competition, and their operation is bound to be more difficult in the future. Industries that comply with relevant national fertility policies will receive greater policy support and be in a good development environment.

From the perspective of consumer demand, the current products and services are richer than in the past, and the needs of consumers have been unprecedentedly met. However, investors and businesses will find that many needs such as confinement center and postpartum care have not been effectively met, and for the satisfied needs, with the increase of per capita income Factors such as the change of consumption concept will also give birth to the demand for consumption upgrading.

From the perspective of product and service supply, scientific and technological progress, model innovation and refinement of product and service are the general direction of product and service development in the future, because these can provide consumers with more and better choices, so as to open up a new market or replace old products.

The structural adjustment of subdivided mature tracks, the differentiated innovation of new tracks, and new consumers, products, services and competitors all make the mother and baby market full of vitality and open up new market space.

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