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Birth Subsidies in China: A New Boost for the Dairy Industry?

ZISK

These measures have already triggered reactions in the stock market: shares of infant formula companies like Feihe and Beingmate rose by up to 10% in the days following the announcement, according to Bloomberg.


Global experience shows that the growth of the child population is a key driver of dairy demand, from infant formulas to fresh products. However, studies warn that factors such as the cost of living and social barriers limit the real impact of these subsidies.


In Japan, despite offering financial incentives since the 1990s, the birth rate continues to decline, standing at 1.26 children per woman in 2022, according to the Japanese Ministry of Health.


By Valeria Hamann

March 17, 2025

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