Aindrias Moynihan (Cork North West, Fianna Fail)
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94. To ask the Minister for Enterprise, Trade and Employment if he is aware of the impact of the falling birth-rate in China and the impact of this on the infant milk formula industry in Ireland; and if he will make a statement on the matter. [22028/23]

Neale Richmond (Dublin Rathdown, Fine Gael)
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Deputy my officials have informed me that China reported in January 2023 that its population had fallen for the first time in 60 years. The country's strict one-child policy which was implemented from 1980 to 2015 to respond to high levels of population growth has been indicated as a reason for the decline.

The decline in birth rate whilst significant is only one factor impacting on the supply of international infant formula brands into China. The introduction of complex national operating standards coupled with intense competition from domestic Chinese infant formula manufacturers who have regained consumers’ trust, have significantly inhibited international companies to service this market.

According to Euromonitor, Chinese brands have rapidly gained market share in recent years, with Feihe taking 20%, up from 12% in 2019, of the market based on retail sales and Yili the other leading local brand taking 14% in 2022. This compares to a substantial fall in market share for imported brands such as Danone, Nestle and Abbott.

An analysis of the market by Bord Bia in 2022 concluded that there remains a strong market for premium grade infant formula in China for Irish suppliers, both as an ingredient as well as finished product. However, manufacturers will need more in-depth customer engagement with stronger scientific proof points to serve a changing and more informed customer segment.