China Pushes For Consolidation Of Domestic Infant Formula Market

China's government is pushing for a consolidation of the country's infant formula industry by reducing the number of domestic manufacturers to 3–5 companies with revenues of more than CNY 50 billion by 2018. Citing sources in the Ministry of Industry and Information Technology, the China Securities Journal reported the government is supporting merger and acquisition deals in the sector, aiming for the top 10 domestic brands to grab an 80 percent share of infant formula sales in the country. Chinese consumer confidence in locally manufactured infant formula was seriously affected by the 2008 scandal involving melamine-contaminated products.