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The Baby Food Market in Ireland 2017

The Baby Food Market in Ireland 2017

Summary

The Baby Food Market in Ireland 2017, is an analytical report by GlobalData which provides extensive and highly detailed current and future market trends in the Irish market.

The Irish population and its baby food market are both small. Between 2010 and 2016 the number of births fell by over 14%. This, coupled with keen price competition, has led to a clear downturn in sales. Since 2010, retail sales have fallen by 10% and volumes by 19%. Consumption of all products fell, with drinks experiencing the greatest decline. Expenditure per capita rose by 5%, due mainly to significant unit price rises for wet meals and finger food.

The number of births is expected to continue to fall, producing a brake on sales growth. By 2022, GlobalData expects the total baby food market to fall by 4.5% in volume but to rise by 11.3% in value. Value growth will come largely from the trend towards more expensive products, such as pouches, with overall volume forecast to decline and no sectors, apart from finger foods, likely to increase in volume terms.

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
  • The Irish baby food market has undergone a steady decline due to falling birth numbers and shrinking per capita consumption.
  • The baby food market is dominated by baby milks, which accounted for 60% of value sales in 2016.
  • The top three manufacturers - Danone, Nestlé and Heinz -account for 85% of the overall market in terms of value.
  • Ireland is a major producer of infant formula, with proximity to a high quality milk supply a major advantage.
  • Imports of milks & cereals have been rising, with the vast majority of products sourced from the EU.
  • Grocery outlets are the main distribution channel for baby food in Ireland, accounting for more than 95% of sales, with broad product ranges making them a popular shopping destination.
  • Growth in value is expected to be highest in the case of wet meals, due to the continued swing towards pouches and finger foods, as a result of the trend towards more modern snacks.
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.


  • Introduction
    • Executive Summary
    • Definitions: Market Sectors
    • Definitions: Terminology
  • Background to the Market
    • Births - Live Birth Rates: Despite a steady decline in the number of births, the CBR remains high by Western European standards, at 13.78
      • Table Birth & Population Trends, 2006-2016
    • Births - Live Births by Region: Nearly 30% of births in 2015 occurred in Dublin County
      • Table Live Births by Area, 2009-2015
    • The Consumer: In the economic crisis, median incomes fell and the incidence of poverty rose, putting premium baby food beyond the reach of some
    • The Consumer: Growing demand for convenience food is counter-balanced by the need to economize
    • The Consumer: Concerns about healthy feeding for babies has influenced the types of products available
    • Socio-demographic Trends - Family Structure: More women are having babies outside marriage (37% of births in 2016 compared with 28% in 1998)
      • Table Marriage & Birth Trends, 2010-2016
    • Socio-demographic Trends - Number of Women of Child Bearing Age: The number of women in the peak childbearing group (30-39 years) has risen
      • Table Number of Women of Childbearing Age by Age Group, 2010 & 2016
    • Socio-demographic Trends - Births by Age of Mother: Over a third of all births occur to women aged 30-34, and a further 28% in 2015 to women aged 35- 39
      • Table Average Age of Mother by Marital Status, 2005-2015
      • Table Births by Age of Mother, 2010 & 2016
    • Working Women - Female Employment: Over the last few years the number of women in employment has once again begun to increase
      • Table Female Employment Trends, 2010-2016
    • Regulations: In 2009 the Ministry for Health and Children approved a Statutory Instrument tightening legislation governing the contents and labeling of baby milk
    • Regulations: Ireland has adopted the International Code of Marketing of Breast-milk Substitutes
    • Breastfeeding Trends - Promotion: The Irish Health Service Executive in 2016 launched the HSE Breastfeeding Action Plan 2016-2021
    • Breastfeeding Trends - Prevalence: Ireland has one of the lowest levels of breastfeeding in the developed world
      • Table Mothers Breastfeeding on Discharge from Hospital, 1999-2014
      • Table Breastfeeding at First Two Nurse Visits, 2014-2016
    • Breastfeeding Trends - Prevalence: Although breastfeeding initiation is already low, rates taper off very quickly, and at four months only 6-13% are still breastfeeding
      • Table Breastfeeding Rates in Three Health Boards, 1999
    • Breastfeeding Trends - Prevalence: There are many barriers to higher breastfeeding rates
  • Market Overview
    • Market Overview: The baby food market has undergone a steady decline due to falling birth numbers and shrinking per capita consumption
    • Market Overview: The total market in 2016 stood at -57.3 million (US$63.6 million), a fall of 10% since 2012, equivalent to a decline of 14% at constant prices
      • Table Market Size, 2016, &Growth Rates, 2010-2016
    • Manufacturer Shares: The market is highly concentrated: the top three manufacturers currently account for 85.3% of value and 81.5% of volume sales
      • Table Baby Food: Manufacturer Shares, Value %, 2010-2016
    • Manufacturer Shares: Danone's brands now lead all three major sectors
      • Table Baby Food: Manufacturer Shares by Sector, %, 2016
    • The Future: With the number of babies expected to continue to decline, the prospects for the market are muted
      • Table Projected Market Size, 2022, &Growth Rates, 2016-2022
  • Sector Analysis
    • Sector Analysis: Baby Milks
    • Milks Sector Trends: Volume sales have declined, depressed by lower per capita consumption in the face of restricted incomes, as well as the falling number of births
    • Milks Per Capita Trends: There has been a 4.6% decline in per capita consumption levels over the 2010-2016 period
    • Milks Segmentation: First-stage milks have been declining in importance due to the increasing popularity and availability of milks for older babies
    • Milks Segmentation: Liquid milks are growing in popularity and accounted for a quarter of value sales in 2016
      • Table Baby Milks: Segmentation - Powder & Liquid, Volume, 2010-2016
    • Milks Segmentation: Danone's Aptamil products are generally more expensive than the main Cow & Gate and SMA ranges
      • Table Powdered Baby Milks: Brand Price Positioning Analysis, 2017
    • Milks Segmentation: Liquid milks are much cheaper, retailing at -3--5 per liter, but a at dehydrated equivalent, liquid milks are more expensive than powdered milks
      • Table Liquid Baby Milks: Brand Price Positioning Analysis, 2017
    • Milks Manufacturer Shares: Together Danone and Nestlé controlled just over 96% of value sales in 2016, and rivalry between these two is keen
      • Table Baby Milks: Manufacturer Shares, Value, %, 2010-2016
      • Table Baby Milks: Market Shares by Volume, %, 2010-2016
    • Milks Brands: Danone's Aptamil and Cow & Gate brands lead, with Nestlé's SMA now having slipped back to third place
    • Sector Analysis: Baby Cereals & Dry Meals
    • Cereals & Dry Meals Sector Trends: Sales have been on a downward trajectory, facing growing competition from more convenient products
    • Cereals & Dry Meals Per Capita Trends: Per capita consumption has fallen from 4.4 kg in 2010 to 4.26 kg currently
    • Cereals & Dry Meals Segmentation: Cereals have taken a growing proportion of sales, as dry meals have rapidly lost popularity
      • Table Cereals & Dry Meals: Price Positioning, 2017
    • Cereals & Dry Meals Segmentation: The majority of cereals are sold in boxes, but a few bags and other formats are available
    • Cereals & Dry Meals Manufacturers: Danone, via the Milupa, Cow & Gate and Aptamil brands, dominates the cereals & dry meals sector by a clear margin
      • Table Baby Cereals & Dry Meals: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Cereals & Dry Meals Brands: Milupa is by far the leading brand, and has maintained this position through strong marketing
    • Sector Analysis: Baby Meals
    • Meals Sector Trends: Increasing prices over the last year have boosted sales in value, despite lower consumption levels
    • Meals Per Capita Trends: In 2016, per capita expenditure stood at -201 (US$223) and consumption at 32kg, virtually the same level as in 2010
    • Meals Segmentation: The sector remains weighted slightly towards savory meals, although the sweet sector has grown due to the success of fruit pots and pouches
      • Table Wet Meals: Price Positioning, 2016
    • Meals Segmentation: Pouches typically retail at more or less double the price of jars, with trays similarly expensive
      • Table Wet Meals: Price Positioning, 2016 (Cont…)
    • Meals Segmentation: Desserts in plastic cups are priced on a par with jars
      • Table Wet Meals: Price Positioning, 2016 (Cont…)
    • Meals Segmentation: Wet meals in jars have lost share to meals in plastic pots and particularly to pouches
      • Table Baby Wet Meals, Sales by Type, Value, 2010-2016
    • Meals Manufacturer Shares: The sector has become more fragmented as new entrants have arrived on the market
      • Table Baby Wet Meals: Market Shares, Value , 2010-2016
    • Meals Manufacturer Shares: Danone is now the sector leader, with 40% of value sales, followed by Nestlé, with Hipp and Ella's Kitchen now disputing third place
    • Meals Brands: Most manufacturers field several sub-brands in different market segments
    • Sector Analysis: Baby Drinks
    • Drinks Sector Trends: The value of baby drinks halved between 2010 and 2016
    • Drinks Per Capita Trends: Per capita consumption has declined by almost 30% since 2010 and stood at 6.4 liters per baby born in 2016
    • Drinks Segmentation: The sector now consists of juices or water and fruit juice, sold either in multi-serving or single serving bottles
      • Table Baby Drinks: Price Positioning, 2017
    • Drinks Manufacturers & Brands: The disappearance of Cow & Gate and Jacob Fruitfield from this sector has left the market largely in the hands of Heinz
      • Table Baby Drinks: Market Shares, Value & Volume, %, 2010-2016
    • Sector Analysis: Baby Finger Foods
    • Finger Foods Sector Trends: Manufacturer innovation has revitalised what had long been a staid rusk sector
    • Finger Foods Per Capita Trends: Expenditure per baby was at the same level in 2016 as in 2010 at current prices, but average consumption dropped by 12%
    • Finger Foods Segmentation: Whilst rusks remain a significant part of the sector, innovation has ushered in a range of more modern and attractive products
      • Table Finger Foods: Price Positioning, 2017
    • Finger Foods Segmentation: Retail prices range from US$8.40/kg for Farley's plain rusks up to almost US$100/kg for sophisticated, organic products
      • Table Finger Foods: Price Positioning, 2017 (Cont…)
    • Finger Foods Manufacturer Shares: Four companies - Heinz, Organix , Jacob Fruitfield and Ella's Kitchen - account for 74% of value sales
      • Table Finger Foods: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Finger Foods Brands: Product innovation and the arrival of new entrants has caused a proliferation of brands
  • Production and Trade
    • Production: Ireland is a major producer of infant formula, with proximity to a high quality milk supply a major advantage
    • Imports: Imports of milks & cereals have been rising, with the vast majority of products sourced from the EU
    • Imports: Imports of other baby food peaked at almost 17,000 tons in 2015, but fell back in 2016 to 13,771 tons
    • Exports: Ireland is a major producer and exporter of infant formulae, and in 2016, exports reached a value of -1.3 billion
  • Company Profiles
    • Company Profiles: The top three manufacturers - Danone, Nestlé and Heinz - account for 85% of the overall market in terms of value
    • Company Profiles: Danone Baby Nutrition
    • Company Profiles: Nestlé (Ireland) Ltd
    • Company Profiles: HJ Heinz Company Ireland Ltd
    • Company Profiles: Hipp UK Ltd
    • Company Profiles: Ella's Kitchen (Hain Celestial)
    • Company Profiles: Valeo Foods
    • Company Profiles: Other Manufacturers
  • Distribution
    • Retail Structure: Large-scale grocery outlets accounted for 46.8% of packaged food sales in 2016
      • Table Packaged Food Sales by Channel, - Billion, 2010-2016
    • Baby Food Retailing: Baby food retailing in Ireland is dominated by the grocery sector which accounts for over 95% of sales
  • Economic Background
    • Political and Economic Background: After a dip caused by the global recession in 2008/09, the Irish economy has picked up strongly since 2014
      • Table Economic Indicators, 2010-2017
    • Key Macro-economic Forecasts: Steady annual increases in real GDP, and inflation below 2%, will boost household disposable incomes
      • Table Key Macro-Economic Forecasts, 2016-2022
  • Prospects and Forecasts
    • Birth and Population Projections: The rate of decline in the number of births is expected to slow considerably
      • Table Birth & Population Projections, 2010-2022
    • Forecast Overview: The prospects for the baby food market are muted, due to falling live birth numbers and static per capita consumption.
    • Future Trends: With the exception of finger foods, all sectors are expected to continue to contract in the years up to 2022
  • Appendix
    • Appendix - The Baby Population: The number of births is set in long-term decline, although the rate of decline will slow in the next few years
      • Table Baby Population, Number of Babies, 2006-2022
    • Appendix - The Baby Population: The next six years will see a sharp decline in the number of women in the peak childbearing age group of 30 to 39 years
      • Table Number of Women of Childbearing Age by Age Group, 2010, 2016 & 2022
    • Appendix - Market Value: Sales of baby food have fallen steadily to stand at -57.3 million in 2016, over 10% lower than in 2010
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: In real terms, the decline has been more pronounced; the meals sector has been the best performer
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: A 25% fall in market value has reduced sales value to US$63.6 million in 2016
      • Table Baby Food: Market Value, US$ Million, 2010-2016
    • Appendix - Market Volume: Baby food consumption has dropped to 5,446 tons in 2016, down by almost 20% in comparison with 2010
      • Table Baby Food: Market Volume, Tons, 2010-2016
    • Appendix - Per Capita Expenditure: Average expenditure per baby rose by almost 5% between 2010 and 2016 to -889
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
    • Appendix - Per Capita Expenditure: In real terms, expenditure on baby food is static
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Milks accounted for US$592 of the total US$987 spent per baby
      • Table Baby Food: Per Capita Expenditure, US$ Dollars Prices, 2010-2016
    • Appendix - Per Capita Consumption: Per capita consumption has shrunk from 89.9kg in 2010 to 84.55kg in 2016
      • Table Baby Food: Per Capita Consumption, Grams, 2010-2016
    • Appendix - Milks: Consumption of milks fell by 18% over the 2010-2016 period, while value was down by 9% to -34.3 million
      • Table Baby Milks: Sector Trends, 2010-2016
    • Appendix - Milks: The decline in the number of births and increased uptake of second and third stage milks have eroded the share taken by starter formulae
      • Table Baby Milks: Market Segmentation, Value and Volume, 2010-2016
    • Appendix - Milks: Danone's Aptamil is positioned above its Cow & Gate range
      • Table Baby Milks - Powdered: Brand Price Analysis, 2017
    • Appendix - Milks: SMA form Nestlé has a premium price-positioning
      • Table Baby Milks - Powdered: Brand Price Analysis, 2017 (Cont…)
    • Appendix - Milks: Cow & Gate products compete at the lower end of the liquid milks sector, with SMA focusing on higher priced products
      • Table Baby Milks - Liquid: Brand Price Analysis, 2017
    • Appendix - Cereals & Dry Meals: Sales have fallen by over 20%, with most of the fall coming from the dry meals segment
      • Table Baby Cereals & Dry Meals: Sector Trends, 2010-2016
    • Appendix - Wet Meals: Sales of wet meals have held up better than other sectors thanks to the move towards higher-priced formats such as pouches
      • Table Baby Wet Meals : Sector Trends, 2010-2016
    • Appendix - Drinks: Value sales have halved, with volume down to just 414,000 liters
      • Table Baby Drinks : Sector Trends, 2010-2016
    • Appendix - Finger Foods: Falling volumes have to some extent been offset by rising average prices as demand for more sophisticated products has grown
      • Table Baby Finger Foods : Sector Trends, 2010-2016
    • Appendix - Imports: Sweet meals accounted for over half of baby food imports in 2016, and have grown rapidly, while milks have also shown strong growth
      • Table Imports of Baby Food by Type, Volume, 2010-2016
      • Table Imports of Baby Food by Type, Value, 2010-2016
    • Appendix - Imports: Poland and the UK are the main sources of milks & cereals, representing a combined 43% of volume in 2016
      • Table Imports of Milks & Cereals by Country of Origin, Volume & Value, 2013-2016
    • Appendix - Imports: The UK provides the bulk of imports of other baby foods, and is growing increasingly prominent
      • Table Imports of Other Baby Food by Country of Origin, Volume & Value, 2013-2016
    • Appendix - Exports: Ireland is one of the world leaders in exports of infant formula, with sales of cereals & milks exceeding 158,000 tons in 2012
      • Table Exports of Baby Food by Type, Volume, 2010-2016
      • Table Exports of Baby Food by Type, Value, 2010-2016
    • Appendix - Exports: The UK and China are the leading export destinations, accounting for 42% of al exports, with China likely to overtake the UK
      • Table Exports of Milks & Cereals by Country of Destination, Volume, 2013-2016
    • Appendix - Exports: In value terms, China is the dominant export destination, accounting for nearly 39% of all exports, with super-premium products in demand
      • Table Exports of Milks & Cereals by Country of Destination, Value, 2013-2016
    • Appendix - Exports: Exports of other baby food are very low and destined almost exclusively for the UK
      • Table Exports of Other Baby Food by Country of Destination, Volume & Value, 2013-2016
    • Appendix - Value Forecasts: The market is forecast to reach -63.8 million by 2016
      • Table Baby Food: Market Value Forecasts, Current Prices, 2016-2022
    • Appendix - Value Forecasts: In real terms the market will fall a little before recovering by 2022
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2016-2022
    • Appendix - Value Forecasts: Between 2016 and 2022, the market is forecast to achieve 11% value growth
      • Table Baby Food: Market Value Forecasts, US$ Million, 2016-2022
    • Appendix - Volume Forecasts: The downward trend in consumption is likely to persist until 2020, but may then begin to pick up slightly
      • Table Baby Food: Market Volume Forecasts, Tons, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure will show a steady increased to -1,033.5 by 2022
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Sales of cereals & dry meals will show a slight decline in real terms, and drinks will fall by a third, while all other sectors will grow
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure will increase by 16% by 2022, with growth led by the finger foods and meals sectors
      • Table Baby Food: Per Capita Expenditure, US$ Dollars, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita consumption will stagnate at its current level of around 84kg
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Summary Methodology
    • About GlobalData

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