Infant Milk companies set to benefit greatly from China’s growing birth rate

Infant milk companies in China are set to benefit from an improvement in birth rates in the country, according to a Barclays report.

Mainland China saw its birth rate rose 6% in 2024 after years of declines, making the outlook for the Chinese infant milk formula “the best we have seen for a decade”, according to Barclays.

This positive prospect was confirmed by Danone, a major infant milk supplier, when it mentioned that the uptick in births will feed into stage 1-3 formula growth over the next few years. Danone has also started to notice signs of stabilization in this category.