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Baby milk formula is now a big business in Asia. The United Kingdom goods giant Reckitt Benckiser is betting that it will continue to grow in the next coming years. This is also the reason why they gave in to Mead Johnson's bid of $16.7 billion just for the supply of milk in the region.

China's decision to tussle its one-child policy is one of the reasons being implied for the change of demand in the milk industry. This move in ousting the long existing population control policy in the region is also being perceived as a device to tap into consumer-oriented businesses like that of Reckitt and Mead Johnson, as reported by BBC.

Due to China's growing concern over their aging population, couples are now allowed to have two children, instead of the usual one. This lead to a rising 7.9 percent increase in the number of newborns in the country, equivalent to 17.86 million on 2015, the highest ever birth rate this century. This means that with two children, consumers will also require twice the number of infant milk, disinfectant wipes, and even dishwashing liquids. An increase in demand for baby clothing and medicines are also expected to rise.

Other Asian countries like Indonesia and Vietnam have shown a rapid increase in industrialization. This would open more job opportunities even for nursing mothers, which in the end will be led to decide in replacing breastfeeding with formula feeding.

Bellamy also reported as record huge growth and profits in their Australia-made infant milk formula. Revenues went up to 83 percent from $13.6 million to $105.1 million, ABC Australia reports. This growth is also being linked to the recent increase in demand for baby formula and organic food products in Asian markets.

With China introducing a new generation of Chinese into their aging demographic and with the aim to boost the sales in commodity based-goods, a growth in the demand for milk formula and other baby related products are expected to rise further in the coming years.