The Baby Food Market in the UK, 2019

Summary

"The Baby Food Market in the UK, 2019", is an analytical report by which provides extensive and highly detailed current and future market trends in the UK market.

There is growing concern among parents about health and quality, as well as convenience. Manufacturers have responded by developing organic and homemade-style foods, and reduced salt/sugar baby foods, as well as more convenient pack formats and a broadening range of snacks. Although GDP per capita is relatively high, income inequality means that budgets are squeezed for low income families, resulting in a polarization of prices.

Consumption is down in all categories except finger foods. However, sector value has risen in real terms due to higher prices for milks and the trend towards higher priced finger foods. Baby food for the older age range has also been a growth segment.

There is limited production of baby food: most infant formulae are imported from Ireland, where both Danone and Nestlé have major plants. Although for many years contested primarily by three multinational players (Danone, Heinz, and Nestlé), in 2016 Ella’s Kitchen, rose to second place. Forecasts are dependent on the number of births, which are expected to continue to decline gradually. Uncertainty is higher than usual due to the unpredictable nature of changes that will arise from Brexit. Unit prices are likely to continue to increase due to the lower value of the pound, but the possible imposition of tariffs will also have a significant impact, as companies import not only many finished products but also many ingredients from the European Union.

What else does this report offer?

- Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry.
- Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors.
- Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands.
- Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel.
- Future projections considering various trends which are likely to affect the industry.

Scope

- There is growing concern among parents about health and quality, as well as convenience, and manufacturers are undertaking active marketing to meet these concerns. This includes the development of organic and homemade-style foods, and reduced salt/sugar baby foods, as well as more convenient pack formats and a broadening range of snack foods.
- Consumption is down in all categories, with the exception of finger foods. However, the value of the sector has risen both in absolute and in real terms, largely due to the higher unit prices of milks, as well as the trend towards higher priced finger foods.
- Infant formula dominates, accounting for 57% of value sales and 44% of volume. Breastfeeding rates remain relatively low, and manufacturers have succeeded in selling more milk for older babies, as well as more premium products, fueling growth.
- Most infant formulae sold on the market are imported from Ireland, where both Danone (Cow & Gate, Aptamil) and Nestlé (SMA) have major plants.
- Exports of baby food rose in volume up to 2014, but fell back slightly in 2015 before picking up again.
- Danone remains the clear leader with a share of 51% of total value sales. It leads in the milks category and is in second place in cereals and wet meals.

Reasons to buy

- Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
- Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
- Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
- Investigates which categories are performing the best and how this is changing market dynamics.