China: Powering Global Growth as the Largest Engine
China’s GDP growth rate of +4.9% year-on-year in the third quarter of 2023 after the economy started on a recovery path in the third quarter of 2023, and the Chinese Academy of Sciences forecasts that China’s economic growth rate could reach +5.3% in 2024. [Reference: (China) National Bureau of Statistics (NBS)]
China’s Economy in the Coming Year: Opportunities Outweigh Challenges, Favourable Conditions Prevail
A recent report released by UBS (2024) argues that China is shifting from an investment-driven growth model to high-quality growth driven by domestic demand. Against this backdrop, the green economy, mass consumption and high technology will become the new drivers of China’s economic growth.
Incremental Boost: China Expected to Contribute Over 30% to Global Economic Growth Next Year
Steven Barnett, the IMF’s chief representative in China, said that family consumption and the green transition will be the main drivers of China’s economic growth in 2024. According to the new forecast, China will likewise contribute about one-third of global growth by 2024.
China’s Maternal and Infant Market Booms on Rising Incomes and Evolving Preferences
China’s maternal and infant market has been experiencing remarkable growth in recent years, driven by factors such as rising disposable incomes, evolving consumer preferences, and increased awareness of child health and safety. With its vast population and a growing middle class, China has become a lucrative market for baby and children’s products.
The Chinese maternal and infant market has witnessed robust growth, with an increasing emphasis on quality and safety standards. The market is expected to continue expanding, driven by factors such as urbanization, changing lifestyles, and government initiatives to support family planning and child welfare. Mother and baby market size will exceed 5 trillion by 2023. Chinese consumers are increasingly seeking high-quality, premium products for their babies and children. There is a growing demand for organic, eco-friendly, and innovative products that prioritize safety and wellness. (Trendinsight, 2023）
Maternal and Infant Nutrition Market Shows Strong Potential for Growth:
Analysis of the retail sales distribution in the mother and baby category reveals that the mother and baby channel and e-commerce platforms are the primary channels accounting for the largest share of mother and baby nutrition product sales. Furthermore, the online growth rate surpasses that of offline channels. According to JD Health data, the number of users engaging in transactions within the maternal and infant nutrition category grew by 59% year-on-year in the first half of 2023. Currently, China’s nutrition market remains characterized by a ‘big and scattered’ landscape, with the concentration of leading brands significantly lower compared to mature categories such as milk powder and nappies. Within the infant nutrition segment, vitamins and minerals, probiotics, and DHA represent more mature categories in terms of consumer mindset and market volume. ( 2023 Mother and Baby Nutrition Industry Trends White Paper, 2023)