HiPP, world's No. 1 organic baby food brand, expands market presence in Hong Kong, sets sights on Greater China

• With a 125-year history and a legacy of sustainable farming since the 1950s, HiPP’s fourth-generation CEO is excited about its growing presence in Hong Kong
• The top organic formula brand in Hong Kong holds a 59% market share and is developing tailored formulas for infants and babies in the Greater China region

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Globally, the popularity of organic milk formula is on the rise as health-conscious parents choose it for its clear advantages. With optimum nutrition and being free from toxins such as rBST/hormones and genetically modified organisms (GMOs), it offers a safe and beneficial choice for babies without compromising their endocrine system.

HiPP, Europe’s leading organic formula milk brand and Germany’s No. 1 baby food brand, is seeing a rise in market share in Hong Kong and Greater China. Local parents are increasingly appreciating the advantages of organic baby food, which can help reduce allergy risks and promote a stronger immune system. By avoiding harmful chemicals like herbicides, pesticides, GMOs, and preservatives, HiPP offers babies a safe and healthy option.

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Under the leadership of its owner and CEO, Mr Stefan Hipp, HiPP maintains its legacy of sustainable farming and unwavering dedication to organic farming and production. This ensures that HiPP’s products provide pure and natural nutrition, free from chemicals and artificial additives.

HiPP, world’s No. 1 organic baby food brand, expands market presence in Hong Kong, sets sights on Greater China

An organic agriculturist by profession, Mr Hipp emphasises the importance of healthy soil and pure ingredients for natural nutrition.

“Only 1.5 per cent of the world’s farmland is suitable for organic farming,” he explains. “When cows are injected with hormones, they are unable to produce organic milk for a certain period of time. As a result, finding uncontaminated sources of organic milk becomes exceedingly rare and valuable.”

HiPP’s formula milk is made from organic sources known for their premium quality and rich macro and micronutrients. Its products adhere to the nutritional standards set by the EU, the WHO, and local authorities.

“For 125 years, our family business has consistently prioritised sustainable development. We support the well-being of our planet through organic farming practices,” he says. “Organic means natural, which is an indisputable advantage of our brand.”

In the 1950s, Mr George Hipp, the grandson of Mr Joseph Hipp and the grandfather of Stefan, started cultivating fruits and vegetables without using chemicals. This was remarkable, considering that chemical farming was at its peak then.

“He was deeply committed to maintaining an organic approach, which has remained a core value for the company to this day,” says the fourth-generation owner of HiPP.

In practice, HiPP cultivates all organic raw materials entirely naturally, without chemical or synthetic pesticides, insecticides, or fertilisers.

Contract farmers maintain crop and soil health by employing green manure and intelligent crop rotation practices. They also rely on birds and beneficial insects to assist with pest control. This approach leads to smaller yet more sustainable harvests, which have positive effects on the climate, groundwater, and overall ingredient quality.

HiPP formula undergoes up to 500 quality controls before it is canned, ensuring the highest quality and safety standards. The labs in Germany have the remarkable ability to detect over 1,200 residues with incredible precision, akin to finding a grain of salt in a 50m swimming pool.

In Europe, organic food is considered a top priority for safety, health, and quality. Parents choose organic food for their children due to its premium quality. Consumers appreciate the safety, health benefits, and enhanced taste of organic food.

In Hong Kong, HiPP has also earned a special place in the hearts of consumers and healthcare professionals as the leading brand for organic infant formula.

With a market share of 59 per cent, HiPP has consistently held its position as the leading choice for organic formula in Hong Kong for years. This figure puts HiPP significantly ahead of other organic brands, with five times as much market share.

Meanwhile, in Germany, HiPP Group commanded a 43 per cent market share and a 35 per cent market share in Europe for organic infant milk formula (IMF) and organic infant milk formula, respectively, in 2023.

Note a : Based on the market share of MNC brands, source: Euromonitor Europe Organic Dairy Products and Alternatives Top 10 (West & East).

Note b : Based on total brand calculation under company, source: NielsenIQ RMS data, Value Sales in Euro for baby nutrition in 2022 for Germany, Total Grocery + Drugstores + e-commerce (Copyright ©2023, NielsenIQ).

Note c : Based on organic formula brands in HK, source: Euromonitor Hong Kong organic dairy product Retail Value RSP 2022, excluding non-dairy brands.

HiPP is not only a market leader in the local retail market but is also the only organic infant milk formula brand in Hong Kong that major private hospitals, obstetrics, and gynaecology clinics approve.

In 2021, the Chinese government relaxed the country’s family planning policy, allowing families to have up to three children. In the same year, the National Health Commission updated infant formula standards to better meet the nutritional needs of infants and young children.

HiPP is taking strategic advantage of these policy changes to progress in registering new infant formula milk powder in mainland China. Building on the success in Hong Kong, the company sees it as a stepping stone for the Greater China region.

Like Hong Kong, HiPP has already developed formulas tailored to the specific needs of local Chinese babies based on scientific research and age-specific considerations.

Since entering the Chinese market in 2011, HiPP has won over Chinese consumers by consistently delivering exceptional quality organic baby and infant food products, including formula milk, rice cereal, fruit puree, vegetable puree, fruit juice, and complete meals.

On November 22, 2023, Chancellor Olaf Scholz of Germany led a delegation of 12 prominent German companies during his visit to China to meet with President Xi Jinping. Among the delegation was HiPP, the sole representative of the food industry, which is indicative of HiPP’s sterling reputation in Germany and Europe.

“Asia, particularly Greater China, is a significant market for HiPP. We are fully dedicated to meeting the requirements and regulations of the Greater China region, ensuring that our organic products meet the most stringent standards,” says Mr Hipp.

“Our vision for Greater China is to be the leading brand in organic baby food, offering parents the safest, and the most nutritious, high-quality and reliable products.”

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

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