September 14, 2012

As Chinese consumers seek to buy safe baby food products in the wake of scandals there, South Korea's Maeil Dairy Industries Co. expects its shipments of powdered milk to China more than double this year.

The sales of Maeil Dairy's milk formula in China are expected to amount to US$14 million in 2012, compared to US$6.2 million a year earlier, the Maeil Dairy officials said Thursday (Sep 13). The figure is expected to further rise to about US$25 million next year.

The South Korean dairy products maker has been strengthening its presence in China by increasing awareness of its safety standards through increased local marketing.

A preference for Maeil Dairy milk powder products has increased among Chinese consumers, as the products include no substances sourced from China and they are produced under relatively strict safety standards, the officials said.

A baby boom in the current Year of the Dragon in the Chinese zodiac is also seen to have led to an increase in demand for imported infant formula. The Year of the Dragon is regarded as being auspicious to many Chinese parents.

China is the second-largest baby food and infant formula market in the world, after the US.

A continuous rise in consumer spending in China on the baby food and infant formula industry has been observed, led by a surge in the number of working mothers and rising per capita disposable income.

Domestic milk formula makers have faced many challenges from foreign brands, following fatal incidents involved tainted formula.

China has been roiled with a number of food safety scandals, including a case in 2008 in which at least six babies died and 300,000 were sickened from drinking milk formula contaminated with melamine, a chemical used in fertilisers and plastics.

The incident triggered nationwide concerns about safety of the country's baby foods.