Archive · 26 Jan 2026
China's Low Birth Rate Impacts Formula Milk Suppliers
China's birth rate has fallen to its lowest level since 1949, which has caused some formula milk suppliers to lose value in the stock market.
However, companies with premium brands and international recognition, like a2 Milk Co., Nestle SA, and Danone SA, are still doing well in China.
Even though there are fewer babies, parents are willing to pay more for high-quality formula.
China's middle class prefers these international brands, and the market for premium formula is growing.
Despite the drop in birth rates, these companies still have opportunities to grow, especially in the more expensive segments of the market.
China's birth rate in 2025 fell to the lowest since at least 1949, impacting formula milk suppliers.
a2 Milk Co. saw its stock plunge 14% after the birth rate news, despite its bullishness on China.
Premium brands dominate China's infant formula market, with international brands holding strong appeal.
Imports of formula from New Zealand, the second-largest supplier after the Netherlands, have increased despite the drop in birth rates.
Parents in China are willing to pay more for high-quality formula, offering growth prospects for premium brands.
- Who
- a2 Milk Co., Nestle SA, Danone SA, Chinese dairy companies
- What
- Impact of China's low birth rate on formula milk suppliers
- When
- 2025
- Where
- China
- Why
- China's birth rate fell to the lowest since at least 1949, affecting formula milk suppliers
- Company
- a2 Milk Co.
- Stock Impact
- Plunged 14% after birth rate news
- Market Share
- Premium brands dominate China's infant formula market
- Imports from New Zealand
- 64 million kg in 2025
- Premium Brands Market Share
- More than three-quarters of China's infant formula market
- Super-Premium Category Growth
- Grew while other segments flattened or fell
- Top Five Infant Formulas
- Three supplied by foreign companies
- Chinese Milk Production
- May be peaking according to USDA