New Outlet for Second Elimination of Infant Formula Industry (II)

Date: 2020-Jul-13 Source:CHINA BUSINESS NEWS View: 801

The last link of foods for special medical purpose to be opened

 

Some domestic dairy companies choose to expand the market of the foods for special medical purpose with higher technology which is considered to be a blue ocean field with better growth prospects and fewer entrants.

 

Foods for special medical purpose refer to formula foods specially prepared to meet the special requirements of nutrients or diet for people with restricted eating, digestive and absorption disorders, metabolic disorders or specific disease, including those suitable for 0 to 12 months infant formulas for special medical purpose and people over 1 year old. At present, strict registration and approval management is implemented for foods for special medical purposes in China.

 

By the end of May this year, a total of 51 domestic products have been approved for entry. It is worth noting that the business of foods for special medical purpose has always been one of the key businesses of foreign dairy companies.

 

The outside is optimistic about the industry of foods for special medical purpose, mainly the long-term growth of its market. On the one hand, there is a rigid demand for foods for special medical purpose in the domestic market. For example, in the field of the milk powder for special medical purpose, some infants and young children must eat the milk powder for special medical purpose instead of common milk powder due to rare diseases or their own defects. On the other hand, as the role of nutritional support in disease treatment is recognized by clinical treatment and the public, the market of foods for special medical purpose will also gradually mature, which is also in line with the general direction from treatment to prevention in the outline of Health China 2030.

 

According to data from China Nutrition and Health Food Association, the domestic market for foods for special medical purpose is about 2.7 billion to 3 billion Yuan in 2019. It is expected to maintain double-digit growth and gradually expand to 20 billion Yuan in the future.

 

Although the market for foods for special medical purpose is confronting with opportunities, milk powder companies still face a higher threshold to enter the field of foods for special medical purpose.

 

According to the introduction, the traditional technology of infant formula is relatively mature, but due to different types of diseases involved by foods for special medical purpose, their nutritional requirements are also very different, making a lot of basic research and medical data analysis required for companies. Meanwhile, a number of literature and knowledge reserves need to be done in the research and development process. Moreover, the milk powder for special medical purpose also puts forward higher requirements on the production process of dairy companies. For example, in traditional infant formula products, milk powder is mainly used to embed fat particles to form a stable powder, but in the products for special medical purpose, some products need to be lactose-free, which requires special processes. It is much more difficult than the production of infant formula.

 

It is worth noting that although the market prospects of foods for special medical purpose are broad, there are still some problems in the development of the industry at this stage.

 

In the sale process, according to regulations, consumers should not blindly use the products for special medical purpose, but should use them scientifically under the guidance of doctors or clinical nutritionists. However, currently the products for special medical purpose have not entered the national medical directory, so doctors cannot prescribe or make medical advice. They can only recommend products orally.

 

This situation also led to the disconnection of foods for special medical purpose in the final marketing link, which not only limited the development speed of the market, but also may cause misunderstandings between doctors and patients--the doctors have some concerns when recommending the products for special medical purpose to patients as well as the patients are also worried about being cheated. In addition, the clinicians' awareness of foods for special medical purpose and recognition of nutritional treatment also need to be improved.

 

It is reported that China Nutrition and Health Food Association is also promoting related work now, hoping to promote the inclusion of the products for special medical purpose in the medical directory, or to launch legal and compliant diagnosis and treatment programs to change the situation of irregular application of foods for special medical purpose.

Last week, we talk about that the infant formula industry is ushering in the second round of adjustments after formula registration. Please click New Outlet for Second Elimination of Infant Formula Industry for more details.