France-based Danone, the renown producer of Evian water and Activia yogurt, is expected to report an increase in its 3rd quarter sales from €6.83 billion (US$7.87 billion) a year ago to €6.87 billion (US$ US$7.92 billion) this year.
Danone is optimistic of its growth in the China market due to sizeable opportunity for its medical-nutrition portfolio, in tandem with growing health and wellness trend in China. The government’s Healthy China 2030 initiative, amid the country’s aging population and regulatory change, will bring accelerated growth for this nutrition segment.
Danone has recently expanded its medical nutrition factory in the city of Wuxi, in eastern China, a sign of its growing market confidence. In addition, demand for infant milk formula also remains strong, and the specialized nutrition category overall is Danone’s key growth engine.
While China is growing, the US market seems to be under pressure, with the yogurt segment remains challenging while creamer and plant-based products saw sales declining. Danone products are losing market share in the US, with an analyst recently commenting that its products have lower shelf lives than local competitors.
In Europe, the company’s market share is also under pressure.
