Plant-based baby formula brand Else Nutrition enters China via e-commerce distributor Baozun

08 Jun 2022 --- Plant-based pediatric nutrition company Else Nutrition will begin selling its products in China in Q3 of this year through a partnership with Baozun, a key e-commerce solutions provider in the country. China’s infant formula market is projected to grow at a CAGR of 8%, from US$30 Billion in 2021 to US$40 Billion by 2025, according to the Israeli company.

Else highlights that the global infant formula market accounted for approximately US$77 billion in 2021. The market is expected to grow and reach around 110 billion by 2026, when China will remain the market leader with about 40% of the global market share.

“Selling our innovative plant-based clean pediatric nutrition products in China is a key milestone in the company’s strategic plan to become a player in the global infant nutrition market. Following our recent growth in North America, we are on track for expansion globally,” remarks Hamutal Yitzhak, the CEO and co-founder of Else.

“We are happy to help fulfill the increasing demand in China for a dairy and soy-free pediatric nutrition alternative, especially considering the very high rate of lactose intolerant population in China of about 22.4%, the additional suspected lactose intolerant population of about 25%, and the proportion of infants and toddlers under 2 years who claim to experience allergic symptoms is as high as 40.9% (3.7 million infants/toddlers).”

The average annual growth rate of the Chinese plant-based milk industry is expected to remain above 20% in the next few years (Credit: Else Nutrition).Gaining direct access to mainland China
With Baozun’s e-commerce, end-to-end solutions, the company would have direct access to retail buyers in China, starting in Q3 2022, through a wide range of online shopping platforms such as Tmall, JD.com, Kuaishou and WeChat Mini programs, among many others.

Another indicator of the need for plant-based alternatives is Chinese consumers’ rising awareness of health and sustainability, which has led to the increasing consumption of plant-based milk, especially among Gen Z and Gen Y consumers.

The average annual growth rate of the Chinese plant-based milk industry is expected to remain above 20% in the next few years, and the market size is expected to reach 300 billion Yuan (US$45 billion) by 2025, highlights Yitzhak.

The holding company, Else Nutrition Holdings Inc., is a publicly traded company listed on the Toronto Stock Exchange under the trading symbol BABY and is quoted on the US OTC Markets QX board under the trading symbol BABYF and on the Frankfurt Exchange under the symbol 0YL.

Plant-based infant nutrition category evolution
Innova Market Insights’ trend for 2021 “Plant-Forward” reveals the growing mainstream appeal for a plant-based diet is driving expansion to more market categories and regions.

Furthermore, the market researcher’s data shows that the clean label industry is rising with an average annual growth of 7% between 2015 to 2019. The top market category for clean label food and beverages is baby and toddler products. These experienced a 5% CAGR increase between 2015 and 2019.

In line with its clean label revolution, infant nutrition is further evolving to meet a variety of targeted needs, ranging from allergies to anxiety.

Else Nutrition introduced its plant-based baby cereal, Else Super Cereal, for e-markets last April. The product is intended for infants aged six months and older. The cereal contains gluten-free carbohydrates in addition to all nine essential amino acids and more than 20 essential vitamins and minerals. 

Last summer, NutritionInsight spoke to CEO Yitzhak, about the company’s launch of a plant-based protein shake for children as an alternative to cow milk. This product line follows Else’s original toddler plant-based nourishment formula launched last year.

Edited by Benjamin Ferrer