Baby Food, Drinks and Milk - UK

Published by: Mintel International Group Ltd.

Published: Nov. 1, 2007

Table of Contents

Issues in the Market

Key themes

Definition

Market in Brief

Baby food market experiences strong growth

Balance shifts to milk and finger foods

NPD growth with new brands

Heinz is in decline

Baby meals are finding favour

Internal Market Environment

Key Points

Breastfeeding rates on the rise

Figure 1: Initial breast feeding rate in England and Wales, 1980-2005

Figure 2: UK Breastfeeding rates, by age of child, 1990-2005

Clever kids are breastfed

Solid food is introduced later

Figure 3: Age at introduction of solid food, 1995-2005

Childhood obesity

Figure 4: Current and projected levels of obesity among UK children by age and gender, 2003 and 2010

Healthy eating influences choices

Figure 5: Agreement with selected lifestyle statements, 2003-07

Salt becomes focus of attention

Parents willing to pay more

Figure 6: Agreement with selected lifestyle statements, 2003-07

Broader Market Environment

Key Points

Birth rates

Figure 7: Number of live births and fertility rate in England and Wales, 2002-12

Fertility rate boosted by immigration

Figure 8: Average number of children per woman, 1996-2006

…and older mothers

Figure 9: Average age of women at childbirth, UK, 2002-06

Healthy Start gives greater choice to low-income parents

Growth in PDI expected to continue

Figure 10: PDI and consumer expenditure, at constant 2002 prices, 2002-12

Demographic and labour force trends

NICE to promote breast feeding

Greater focus on nutrition could encourage breastfeeding

Competitive Context

Key Points

Fair competition

Tough competition with cereals

Figure 11: UK retail volume and value sales of hot cereal, 2002-07

Baby drinks lose their juice

Figure 12: UK retail sales of juice drinks, by target age group, 2001-06

…but demands on parental budgets are many

Figure 13: Sales of other baby care products by type, 2001-06

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Key Points

Baby food market enjoys renewed growth

Figure 17: UK retail sales of baby food, milk and drink, by volume and value, 2002-07

What’s in store for the market?

The future of the market

Market value continues to grow healthily

Figure 18: Forecast of UK retail value sales of baby food, milk and drinks, by product type, 2007-12

Figure 19: Forecast of UK retail volume sales of baby food, milk and drinks, 2007-12

Value driven by product premiumisation

Factors used in the forecast

Segment Performance

Key Points

Meals dominate baby food sales

Figure 20: UK retail volume sales of baby food, milk and drink, by product type, by volume, 2002-07

Figure 21: UK retail value sales of baby food, milk and drink, by product type, by value, 2002-07

Organic foods take increasing share

Figure 22: Total UK retail sales of organic baby food, milk and drink, 2002-07

Future trends

Segment Performance - Baby Meals

Baby meals enjoy healthy growth

Figure 23: UK retail value sales of baby meals, by type, 2002-07

Wet meals benefit from greater segmentation

Halal meals attract new consumers

Pots and trays replace jars and cans

Figure 24: UK retail value sales of wet baby meals, by type, 2002-07

10 month+ meals are most dynamic

Frozen meals remain niche sector

Cereals enjoy organic growth

Biscuits and snacks drive finger food sales

Figure 25: UK retail value sales of baby finger foods, by type, 2002-07

Segment Performance - Baby Milks and Drinks

Milks receive boost from Healthy Start

Figure 26: UK retail value sales of baby milks, by type, 2002-07

First- and second-stage powders benefit most

Baby drinks stagnate

Figure 27: UK retail value sales of baby drinks, by type, 2002-07

Market Share

Key Points

Leading manufacturers loosen their grip

Figure 28: Estimated manufacturer/brand shares in the UK baby food, milk and drink market, by value, 2004-07

Big brands lead the way

Figure 29: Estimated manufacturer/brand shares in the UK baby food, milk and drink market, by sector, 2007

Cow & Gate and Heinz scale back organic activities

Figure 30: Estimated manufacturer/brand shares in the UK organic baby food, milk and drink market, by value, 2004-07

Companies and Products

Heinz (www.heinzbaby.com)

HiPP (www.HiPP.co.uk)

Nutricia (www.cowandgate.co.uk)

Organix (www.organix.com)

Plum Baby (www.plum-baby.co.uk)

SMA Nutrition (www.smanutrition.co.uk)

Future contenders in the market

Other brands

Babylicious (www.babylicious.co.uk)

Ella’s Kitchen (www.ellaskitchen.co.uk)

Annabel Karmel (www.annabelkarmel.com)

Little Dish (www.littledish.co.uk)

Mumtaz (www.mumtaz.co.uk)

Brand Communication and Promotion

Key Points

Advertising restrictions set to tighten further?

Main media spend continues to rise

Figure 31: Main monitored media advertising expenditure on baby food, milk and drink, 2003-07*

TV is key advertising medium

Cow & Gate dominates advertising spend

Figure 32: Main monitored media advertising expenditure on baby food, milk and drink, by top-spending brands, 2004-07

Pressing the emotional buttons

…and educating too

Maintaining a clear identity

Celebrities play important role

Asda targets new parents

Channels to Market

Key Points

Grocery multiples take rising share

Figure 46: UK retail sales of baby food and drink, by type of outlet, 2002-07

Healthy Start scheme offers opportunity for smaller outlets

The Consumer - Usage

Key Points

Are breastfeeding initiatives having an effect?

Figure 47: Usage of baby milk in the last 12 months, 2003-07

Usage of meals continues to grow

Figure 48: Usage of baby or junior foods, cereals, rusks, yoghurt and fromage frais in the last 12 months, 2003-07

Appendix

Advertising data

Abbreviations

Internal market environment

Figure 54: Initial breast feeding rate by age of mother in England and Wales, 2000 and 2005

Broader market environment

Figure 55: Trends and projections in UK population (‘000s), by age group, 2002-12

Figure 56: UK workforce in employment by gender, 2002-12

Figure 57: Agreement with selected lifestyle statements, by demographic sub-group, 2007

Figure 58: Agreement with selected lifestyle statements, by demographic sub-group, 2007

The consumer - usage: Detailed demographics

Figure 59: Usage of baby milk in the last 12 months, by demographic sub-group, 2007

Figure 60: Usage of baby or junior foods, cereals, rusks, yoghurt and fromage frais in the last 12 months, by demographic sub-group, 2007

Figure 61: Age of child/children, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007

Figure 62: Attitudes towards baby foods, milk and drink, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007

Figure 63: Attitudes towards baby foods, milk and drink, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007

Figure 64: Attitudes towards baby foods, milk and drink, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007

Figure 65: Age of child/children by key attitudes towards baby foods, milk and drink, August 2007

Further analysis: Detailed demographics

Figure 66: Cluster groups for baby food, drink and milk, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007

Figure 67: Attitude clusters by age of child/children

Figure 68: Cluster groups by attitudes to baby food, drink and milk

Abstract

Since Mintel last reported on the baby food, drink and milk market in 2005, the market has become increasingly dynamic, with several new players attracted by healthy rates of growth.

Sales value is expected to increase by at least 19.6%, to reach £392 million. Growth has been driven by increased sales of meals and finger foods due to expansion of purchasers.

The baby milk sector has benefited from an increase in sales generated by the Healthy Start scheme which has seen the distribution of milks to low-income families transferred from NHS clinics to the retail sector.

Healthy eating and convenience will drive future growth as manufacturers target busy working parents who are increasingly aware of the importance of good nutrition, and are keen to assuage any guilt they may feel about not feeding their offspring home-cooked meals prepared from scratch.

This report includes products manufactured specifically for babies and infants aged primarily under 2 years, although manufacturers are targeting older infants with commercial products.

The report covers

• Milks, including liquid ready-to-feed (RTF) products
• Meals (wet and dry)
• Baby drinks
• Finger foods, including organic products in all sectors
• Finger foods include rusks, ”extruded snacks”, baby rice cakes, biscuits and fruit snacks.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.