The industry pattern is clear: the strong and the strong play the weak and the weak leave the field

Our reporter Yang Xiaojing

Recently, the State Administration for Market Regulation announced the first batch of registration lists for the registration of secondary formula of milk powder, including two formula series and six formula products

It is understood that at present, Yili and Junlebao have made market plans for the new national standard products, and other domestic and foreign milk powder leading brands are also preparing for the registration of secondary formula

Industry insiders believe that since then, China's dairy industry will enter the era of competition between the strong and the strong, and the market will accelerate to focus on leading companies with technological and product advantages

First mover advantage

On March 18, 2021, the National Health and Medical Commission issued a new national standard for infant formula food series, which provided a standard basis for secondary formula registration

The early approval of Yili and Junlebao also brought certain first-mover advantages to the two companies

Yili also said that compared with the old national standard, the new national standard poses a greater challenge to every brand in the industry

At the same time, the new national standard products will also help enterprises to restore prices to the greatest extent, "acting as a price stabilizer

In this regard, the industry has also agreed

Feihe believes that the milk powder industry will enter a new pattern of benign development, with product quality and industry standardization constantly improving; the production, R&D, operation and testing capabilities of the company will continue to improve, further enhancing the quality and international competitiveness of domestic milk powder

Further concentration of the market

At the same time, the listing of new national standard products will speed up the elimination of old national standard products

It is understood that in August 2017, the first batch of registration lists for the first milk powder formula registration was released, including a total of 89 formula products, including domestic milk powder brands Feihe, Yili, Junlebao, Beingmate and foreign milk powder brands Wyeth, Meisu Jia Er, Mead Johnson,

Relevant data show that before the implementation of the formula registration system, 108 domestic milk powder manufacturers had more than 2,300 formulas

"In the past five years, about 70% of domestic infant milk powder brands have been eliminated

It is understood that in February of this year, Mead Johnson Goat Milk Co.

"In a short period of time, this will be a trend, because foreign brands face delays in formula registration due to various reasons, so they must speed up the registration of domestic factories to launch new national standard products as soon as possible.

　　In addition, SMEs themselves will also face the cost pressure of formula registration

　　"Compared with the rapid increase in the market concentration after the first milk formula registration system, the market share of the top ten leading companies has reached 80% during the second formula registration system, which will enter the market among leading companies.
game
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" Song Liang said
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　　In fact, based on the experience of the first formula registration and market feedback, the promotion of the second formula registration will be more mature and rational, and put forward higher requirements for the enterprise's product strength, service, research and development and other capabilities
.

　　"The new national standard superimposes the registration of secondary formulas.
The country has stricter supervision on the infant milk powder industry, and the industry's entry threshold is tightened.
The market will accelerate the concentration of leading companies with technical advantages and product advantages
.
Whether it is for the protection of consumer interests, or From the perspective of industry supervision, it is more beneficial
.
" Song Liang predicted, "After the completion of the secondary registration system, the overall quality of China's infant formula powder will be significantly improved compared to the international one, showing a significant generational difference
.
"

"China Food News" (04 edition on March 15, 2022)

　　(Editor-in-charge: Yang Xiaojing)