In an effort to further regain consumer confidence, China’s State Food & Drug Administration is enacting a new range of standards and quality regulations on the country’s infant formula industry. Formula producers will be required to assume product liability for their product’s safety, ensure traceability, implement a re-call system, and register their product packaging with local administrators. China’s infant formula market reached US$12.68 billion in total sales in 2012. Because of product safety failures in recent years by domestic companies, foreign infant formula producers have gained significant market share with foreign companies accounting for half of the top ten sellers and with Mead Johnson holding the largest market share at 14.1%. The Chinese government has stated that there will be a two year grace period given for domestic companies to comply with the new regulations.
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