Market Research Logo

Baby Food in the US

Baby Food in the US

TRENDS

For a number of years, the US fertility rate has seen a consistent overall downwards trajectory, recently reaching an unprecedented low rate, according to the Centers for Disease Control. The CDC’s most recent study on births nationally, which analyses 2016 figures, notes that the US general fertility rate declined to 62 births per 1,000 women aged 15-44 in 2016; a figure which was down 1% from 2015, and down 11% from 2007. Whilst the US population has continued to grow at a steady pace annually, two significant factors nonetheless combined to help suppress the birth rate to historic lows: declining rates of teen pregnancy and delayed marriage and motherhood. The CDC’s report attributes much of the decline in the birth rate to these factors. The report points out that the birth rate for teenagers between the ages of 15 and 19 declined by 9% in 2016 to 20.3 births per 1,000 women; a drastic decline of 51% since 2007.

COMPETITIVE LANDSCAPE

Accounting for a combined 55% share of value sales in baby food in the US in 2017, Abbott Laboratories and Mead Johnson Nutrition continued to lead baby food, maintaining their grip on the top two spots, which these companies have consistently held for many years. With a portfolio that includes well-known brands Similac, PediaSure, Alimentum and Isomil, Abbott witnessed current value growth of 2% in 2017, helping the company to grow its leading share of baby food from 29% in 2016 to 30% in 2017. Mead Johnson Nutrition, the owner of Enfamil and Enfagrow, posted current value growth of 1% in 2017, and the company held onto its second place within baby food with a value share of 25%. The primary brands from both of these companies, Abbott’s Similac and Mead Johnson’s Enfamil, remained the top two baby food brands, with strong competition between the two. Similac held onto the top spot it regained in 2016, seeing 3% value growth in 2017 to achieve a 22% value share, whilst Enfamil, just behind, held onto a 21% value share.

PROSPECTS

Over the forecast period, baby food is projected to continue to face challenges and obstacles to growth, with many companies struggling to achieve significant sales gains and largely experiencing continued stagnant or declining growth for their brands. The category is projected to record a negligible value CAGR at constant 2017 prices over the forecast period, in line with the review period performance. Sales of USD7.1 billion are expected in 2022; a marginal improvement over the value sales of USD7.0 billion in 2017. Volume sales are expected to continue declining. As is currently the case, where future growth does occur, it is likely to stem primarily from premium speciality products, whose higher price points will create value growth opportunities despite volume challenges. Including comparatively more expensive products such as baby rusks and teething biscuits, other baby food is expected to embody this dynamic, with a projected value CAGR of 3% over the forecast period at constant 2017 prices.


Baby Food in the US - Category analysis
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
CATEGORY DATA
Table 1 Sales of Baby Food by Category: Volume 2012-2017
Table 2 Sales of Baby Food by Category: Value 2012-2017
Table 3 Sales of Baby Food by Category: % Volume Growth 2012-2017
Table 4 Sales of Baby Food by Category: % Value Growth 2012-2017
Table 5 NBO Company Shares of Baby Food: % Value 2013-2017
Table 6 LBN Brand Shares of Baby Food: % Value 2014-2017
Table 7 Distribution of Baby Food by Format: % Value 2012-2017
Table 8 Forecast Sales of Baby Food by Category: Volume 2017-2022
Table 9 Forecast Sales of Baby Food by Category: Value 2017-2022
Table 10 Forecast Sales of Baby Food by Category: % Volume Growth 2017-2022
Table 11 Forecast Sales of Baby Food by Category: % Value Growth 2017-2022
Baby Food in the US - Company Profiles
Packaged Food in the US - Industry Overview
EXECUTIVE SUMMARY
Packaged food faces new challenges
Trade agreements top of mind as political climate creates uncertainty
Slow growth spurs merger and acquisition activity
E-Commerce explodes as consumers prioritise convenience
Despite obstacles to growth, opportunities still remain
KEY TRENDS AND DEVELOPMENTS
Shifting political and trade policies fuel economic uncertainty
Outlook
Convenience trends impacting demand
Outlook
Merger and acquisition activity intensifies amidst challenges
Outlook
Product reformulations increasingly seen as avenues for growth
Outlook
FOODSERVICE: KEY TRENDS AND DEVELOPMENTS
Headlines
Trends: Sales to Foodservice
Trends: Consumer Foodservice
Prospects
Category Data
Table 12 Foodservice Sales of Packaged Food by Category: Volume 2012-2017
Table 13 Foodservice Sales of Packaged Food by Category: % Volume Growth 2012-2017
Table 14 Forecast Foodservice Sales of Packaged Food by Category: Volume 2017-2022
Table 15 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2017-2022
MARKET DATA
Table 16 Sales of Packaged Food by Category: Volume 2012-2017
Table 17 Sales of Packaged Food by Category: Value 2012-2017
Table 18 Sales of Packaged Food by Category: % Volume Growth 2012-2017
Table 19 Sales of Packaged Food by Category: % Value Growth 2012-2017
Table 20 GBO Company Shares of Packaged Food: % Value 2013-2017
Table 21 NBO Company Shares of Packaged Food: % Value 2013-2017
Table 22 LBN Brand Shares of Packaged Food: % Value 2014-2017
Table 23 Penetration of Private Label by Category: % Value 2012-2017
Table 24 Distribution of Packaged Food by Format: % Value 2012-2017
Table 25 Distribution of Packaged Food by Format and Category: % Value 2017
Table 26 Forecast Sales of Packaged Food by Category: Volume 2017-2022
Table 27 Forecast Sales of Packaged Food by Category: Value 2017-2022
Table 28 Forecast Sales of Packaged Food by Category: % Volume Growth 2017-2022
Table 29 Forecast Sales of Packaged Food by Category: % Value Growth 2017-2022
SOURCES
Summary 1 Research Sources

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report