In yet another illustration of the far-reaching effects of China’s demographic problem, Nestlé has announced intentions to dismantle one of its infant formula facilities, citing a dramatic decline in the country’s birth rate.
The largest food manufacturer in the world said barring a buyer, it will close its Wyeth Nutrition infant formula production in the Irish town of Askeaton by the first quarter of 2026. The factory only produces baby formula for sale to Asian markets.
The statement offers a fresh perspective on how Western businesses that sell goods and services in China may be impacted by the country’s population reduction. China’s economic development is already being hampered by an aging population, and authorities are concerned that a declining labor force might pose a danger.
“The number of newborn babies in China has declined sharply from some 18 million per year in 2016 to fewer than 9 million projected in 2023,” Nestlé said in a statement. “The market, which had previously been reliant on imported infant formula products, is also seeing rapid growth in locally produced products.”
What you should know about the financial performance of Nestlé
- The company’s sales growth in the first nine months of the year fell short of analysts’ estimates, sending its shares down more than 2%.
- Sales increased 7.8% year on year on a like-for-like or “organic” basis, which excludes the impact of acquisitions, currency rate fluctuations, and other changes. Prices increased by 8.4%.
- The news sheds new light on how China’s population drop may effect Western companies who sell goods and services in the nation. China’s economic development is already being hampered by an aging population, and leaders are concerned that a dwindling workforce may jeopardize the country’s economic and social stability.
- The news sheds new light on how China’s population drop may affect Western companies that sell goods and services in the nation. China’s economic development is already being hampered by an aging population, and leaders are concerned that a dwindling workforce may jeopardize the country’s economic and social stability.
Afro World News
