Baby Boom in China Helps Domestic Firms, Hold Opportunity for Western Companies
In a previous article, I talked about the infant formula industry in China. Rising disposable income and the desire to give their children the best of facilities among Chinese "baby boomers" -- those born during or after the 1980s -- are also triggering other baby-product sales.
A report by Euromonitor pointed out that the middle-class group in China will increase to 700 million by 2020 and account for 23 percent of the total population. The implementation of family planning policies in China has made young parents born during the '80s spend more on childrens products. Although the babies' and youngsters' products industry is still in its infancy, companies are now moving up the value chain to cash in on China's robust economic growth.
The tide started turning after 2005, with nearly 16-18 million new babies being born each year in China. The "fourth baby boom" was at its peak in
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