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The Baby Food Sector in Switzerland 2017

The Baby Food Sector in Switzerland 2017

Summary

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

The Swiss baby food market was boosted by increased live birth numbers up to 2015, although 2016 saw an appreciable fall in both births and sales. Between 2010 and 2016 volume sales rose, although value declined slightly, due to pressure on retail prices and deflation in the economy as a whole. Since 2010, retail sales have fallen by 0.4% and volume sales increased by 11.9%. Strongest growth has occurred in the meals/juices sector, followed by milks. In per capita terms, a 6.6% decrease in current expenditure has taken place, alongside a 5% rise in per capita consumption. GlobalData expects the decline in the number of births to continue up to 2022, which will restrict market growth to an overall 12.9% in current price terms up to 2022, with consumption forecast to rise by 4.2%.

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 baby food market was boosted by increased live births up to 2015, although 2016 saw an appreciable fall in both births and sales.
  • Baby milks dominated the market which accounted for 53.2% of value sales and 42.8% of volume sales in 2016. Four manufacturers control 95% of market value, with Nestlé leading overall from Danone.
  • Switzerland is a major producer of infant formula, with Nestlé and Hochdorf both producing quantities of infant formula for export and has become a major exporter of baby milks, as demand for milk has rocketed in recent years, particularly from China and Russia.
  • Over 70% of baby food value is sold via grocery outlets, notably the Migros and Coop chains. Pharmacies and drugstores account for a quarter of baby food sales, with a higher share in the milks sector.
  • Market value is projected to rise by 12.9% between 2016 and 2022, as the growth is restricted due to decline in number of births.
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: Much of the recent growth is related to Switzerland's immigrant population, with these groups tending to have higher birth rates
      • Table Live Birth Trends, 2006-2016
    • Births - Live Births by Region: Crude birth rates in Zurich, Fribourg, AppenzellInnerrhoden, Zug, and Vaud regularly exceed the national average
      • Table Crude Birth Rate by Region, 2006-2016
    • Births - Live Births by Region: In 2016, the main metropolitan areas, including Zurich and Berne, accounted for the largest number of live births
      • Table Crude Birth Rate by Region, 2006-2016 (Cont.…)
    • The Consumer: In 2016, 51% of all Swiss consumers bought organic products several times a week
    • Socio-demographic Trends - Family Structure: The trend towards babies born outside marriage has continued
      • Table Marriage & Divorce Trends, 2009-2015
    • Socio-demographic Trends - Number of Women of Child Bearing Age: The number of women of childbearing age has increased over the past five years - by 1.6%
      • Table Number of Women of Childbearing Age by Age Group, 2010-2016
    • Socio-demographic Trends - Births by Age of Mother: The slowing birth rate among Swiss nationals is linked to the trend towards having babies later in life
      • Table Breakdown of Live Births by Age of Mothers, 1995-2015
    • Working Women - Female Employment: In 2016, there were 2.3 million women in employment, although most were in part-time employment
      • Table Female Employment Trends, 2010-2016
    • Working Women - Legislation: Since July 2005, working mothers have been eligible for 14 weeks paid maternity leave, of which eight weeks are mandatory
    • Regulations: Switzerland has its own code regarding the promotion of breastmilk substitutes and baby food, which goes beyond the international code
    • Regulations: Not all aspects of the International Code of Marketing of Breast-milk Substitutes are enshrined in Swiss legislation
    • Breastfeeding Trends - Promotion: Switzerland has a strong tradition of promoting breastfeeding
    • Breastfeeding Trends - Prevalence: The levels of breastfeeding in Switzerland are very high, and rising
      • Table Exclusive and Partial Breastfeeding, 2003 & 2014
    • Breastfeeding Trends - Prevalence: Shorter breastfeeding duration is linked to younger and less educated mothers, immigrants, smokers, and overweight mothers
      • Table Breastfeeding Status by Type of Facility, 2003
  • Market Overview
    • Market Overview: The Swiss market was boosted by annual increases in the number of births up to 2015, although 2016 saw an appreciable fall in both births and sales
    • Market Overview: Baby milks dominate the market, accounting for 53% of value sales and 43% of volume sales in 2016
      • Table Market Size, 2016, &Growth Rates, 2010-2016
    • Manufacturer Shares: Nestlé is the leading baby food supplier and has resisted the mounting challenges it has faced
      • Table Baby Food: Trends in Manufacturer Shares, Value, 2011-2016
    • Manufacturer Shares: Nestlé is in the lead in cereals and meals, but was overtaken by Danone in the milks sector in 2016
      • Table Baby Food: Manufacturer Shares by Sector, %, 2016
    • The Future: The Swiss baby food market is expected to grow by an overall 12.9% in current price terms between 2016 and 2022
      • Table Projected Market Size, 2022, &Growth Rates, 2016-2022
  • Sector Analysis
    • Sector Analysis: Baby Milks
    • Baby Milks Sector Trends: Rising numbers of births and the introduction of milks for older babies has boosted the milks market
    • Baby Milks Per Capita Trends: Declining milks prices have led to falling per capita expenditure levels, although consumption has increased since 2010
    • Baby Milks Segmentation: Growing-up/toddler milks have been responsible for much of the recent growth, and these represent the largest segment
    • Baby Milks Segmentation: The bulk of milks retail at between SFr27 and SFr34 per kg
      • Table Powdered Baby Milks: Brand Price Positioning Analysis, 2017
    • Baby Milks Segmentation: Prices per kg are high in Switzerland, and range from SFr18.50 to over SFr44
      • Table Powdered Baby Milks: Brand Price Positioning Analysis, 2017 (Cont...)
    • Baby Milks Segmentation: The high price of baby milks compared with neighboring countries has encouraged a growing volume of cross-border shopping
      • Table Baby Milks: Comparative Prices in Switzerland & Germany, 2017
    • Baby Milks Manufacturer Shares: Competition between Danone and Nestlé has been fierce for some years, and Danone has now clinched the lead
      • Table Baby Milks: Manufacturer Shares, Value and Volume, %, 2011-2016
    • Baby Milks Brands: Danone is primarily represented by its Aptamil brand, while Nestlé operates in every segment, mainly via Beba
    • Sector Analysis: Baby Cereals
    • Baby Cereals Sector Trends: The baby cereals sector was valued at SFr24.6 million (US$24.9 million) in 2016, down 3.8% in current price terms over 2010
    • Baby Cereals Per Capita Trends: In 2016, per capita consumption of cereals amounted to 13.3kg, representing an increase of 3.3% since 2010
    • Baby Cereals Segmentation: Most products sold are instant cereals, to which either milk or water is added
      • Table Cereals & Dry Meals: Price Positioning, 2017
    • Baby Cereals Segmentation: Nearly all baby cereals are sold in packs of 250g, although Milupa also offers larger 330g and 450g sizes
    • Baby Cereals Manufacturers: Nestlé now leads the sector with a share of 39% in value, some way ahead of Danone
      • Table Baby Cereals: Manufacturer Shares, Value and Volume, %, 2011-2016
    • Baby Cereals Brands: Nestlé has a wide range of products, which include milk cereals, dry cereals, and cereal drinks
    • Sector Analysis: Baby Meals
    • Baby Meals & Juices Sector Trends: The sector has outperformed the other main areas in the market with current value growth of 12.2% since 2010
    • Baby Meals & Juices Per Capita Trends: Per capita consumption increased by 6.3%, from 12.8kg in 2010 to the current 13.6kg
    • Baby Meals & Juices Segmentation: The market has become increasingly diverse in recent years and now offers a wide variety of flavors
      • Table Wet Meals: Price Positioning, 2017
    • Baby Meals & Juices Segmentation: Pouches are considerably more expensive than jars
      • Table Wet Meals: Price Positioning, 2017 (Cont…)
      • Table Baby Drinks: Price Positioning, 2017
    • Baby Meals & Juices Segmentation: In addition to meals in jars, the Swiss market features meals in plastic trays, usually targeted at older babies
    • Baby Meals & Juices Manufacturer Shares: Nestlé and Hipp together dominate the meals & juices sector, accounting for 70% of value sales in 2016
      • Table Baby Meals & Juices : Market Shares, Value and Volume, %, 2011-2016
    • Baby Meals & Juices Brands: Nestlé markets a range of jarred meals - some of which are organic - in sweet and savory varieties
    • Sector Analysis: Other Baby Food
    • Other Baby Food Sector Trends: Demand for teas and finger foods have edged higher in recent years as a result of growth in the baby population
    • Other Baby Food Per Capita Trends: Between 2010 and 2016, per capita expenditure levels rose by 10% in current price terms to SFr61.6 (US$62.3) in 2016
    • Other Baby Food Segmentation: Although sales are increasing, these products are nowhere near as popular as in some other European markets
      • Table Finger Foods: Price Positioning, 2017
      • Table Baby Teas: Price Positioning, 2017
    • Other Baby Food Manufacturers: Danone (Milupa) and Nestlé hold two-thirds of sector sales between them
      • Table Other Baby Food: Market Shares, Value & Volume, %, 2011-2016
    • Other Baby Food Brands: Danone is dominant in the teas segment with a range of three instant herbal and fruit teas under the Milupa label
  • Production and Trade
    • Production: Switzerland is a major producer of infant formula, with Nestlé and Hochdorf both producing quantities of infant formula for export
    • Imports: Although Switzerland is a major producer and exporter of baby milks, it has also imported some 3,000 tons of baby milks & cereals annually
    • Exports: Switzerland is a major exporter of baby milks, due to the location of Nestlé and Hochdorf within its borders
  • Company Profiles
    • Company Profiles: The market is dominated by four of the major international baby food manufacturers, which between them control 95% of the market
    • Company Profiles: Nestlé Suisse SA
      • Table Market shares, 2016
    • Company Profiles: Milupa SA (Danone)
      • Table Market shares, 2016
    • Company Profiles: Hero Switzerland
      • Table Market shares, 2016
    • Company Profiles: Hipp GmbH
      • Table Market shares, 2016
    • Company Profiles: Other Manufacturers
      • Table Hochdorf Financial Highlights, 2010-2016
  • Distribution
    • Grocery Structure: Retail sales of food and beverages have been fairly static over the past three years
      • Table Index of Retail Sales of Food & Beverages, 2010-2016
    • Baby Food Distribution: By 2016, grocery outlets, including convenience stores, accounted for over 73% of value sales
      • Table Baby Food: Retail Distribution by Outlet Type, 2010-2016
  • Economic Background
    • Political and Economic Background: Switzerland has not been immune from the economic problems of the last decade
      • Table Economic Indicators, 2010-2017
    • Key Macro-economic Forecasts: From 2017 onwards inflation is expected to creep up, from 0.8% in 2017 to 1.9% by 2022
      • Table Key Macroeconomic Forecasts, 2016-2022
  • Prospects and Forecasts
    • Birth and Population Projections: In 2016, provisional figures from the OFS suggest a reversal of recent trends, with live births falling to 85,600
      • Table Birth & Population Projections, 2006-2022
    • Forecast Overview: Market value is projected to rise by 12.9% between 2016 and 2022 to SFr119.3 million
    • Market Size: In volume terms, demand is expected to show steady growth, after a fall in 2017 due to the projected significant dip in births
  • Appendix
    • Appendix - The Baby Population: The number of babies aged 0-3 years will stand at just under a quarter of a million by 2022, 4.1% below the current baby population
      • Table Baby Population, Number of Babies, '000, 2006-2022
    • Appendix - The Baby Population: The number of women of childbearing age will not change significantly between 2016 and 2020, remaining at 1.9 million
      • Table Number of Women of Childbearing Age by Age Group, 2010-2020
    • Appendix - Market Value: Value sales fell 0.4% between 2010 and 2016 to SFr105.7 million
      • Table Baby Food: Market Value, Current Prices, 2010-2016
    • Appendix - Market Value: In constant price terms, sales declined 1.8% between 2010 and 2016
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: In 2016, the market was valued at US$106.7 million, a rise of 4.6% over 2010
      • Table Baby Food: Market Value, US$ Million, 2010-2016
    • Appendix - Market Volume: Consumption increased by 12% to 4,406 tons in the 2010-2016 period, with milks taking 42.8% of the total
      • Table Baby Food: Market Volume, Tons, 2010-2016
    • Appendix - Per Capita Expenditure: A decline of 6.6% between 2010 and 2016 reduced per capita expenditure to SFr1,234
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
    • Appendix - Per Capita Expenditure: In constant price terms, expenditure per baby showed a fall of 4.5% since 2010
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Average spend per baby fell 1.9% to US$1,247 by 2016
      • Table Baby Food: Per Capita Expenditure, US$ Dollars, 2010-2016
    • Appendix - Per Capita Consumption: Per capita consumption has increased only slowly - up 5% between 2010 and 2016 to 51.5kg
      • Table Baby Food: Per Capita Consumption, Grams, 2010-2016
    • Appendix - Milks: Milks form the largest sector of the market, representing just over half of overall value
      • Table Baby Milks: Sector Trends, 2010-2016
    • Appendix - Milks: Growing-up milks are becoming increasingly prominent and accounted for over one-third of sales in 2016
      • Table Baby Milks: Market Segmentation, Value and Volume, 2010-2016
    • Appendix - Milks: Both Nestlé and Danone field a wide range of milks
      • Table Baby Milks - Powdered: Brand Price Analysis, 2017
    • Appendix - Milks: Hipp's Combiotik is priced at the lower end of the spectrum
      • Table Baby Milks - Powdered: Brand Price Analysis, 2017 (Cont…)
    • Appendix - Cereals: Volume sales of cereals have increased in line with growth in the baby population for most of the period 2010-2022
      • Table Baby Cereals: Sector Trends, 2010-2016
    • Appendix - Meals & Juices: The meals and juices sector has outperformed the other main areas in the market, with current value growth of 12.2% since 2010
      • Table Meals & Juices: Sector Trends, 2010-2016\
    • Appendix - Other Baby Food: Despite growing since 2010 teas and finger foods remain by far the smallest sector of the market
      • Table Other Baby Food: Sector Trends, 2010-2016
    • Appendix - Imports: Germany is the main supplier of milks & cereals, accounting for 49% of imports in 2016
      • Table Baby Milks & Cereals: Trends in Imports, 2010-2016
      • Table Baby Milks & Cereals: Imports by Country of Origin, Value, 2014-2016
    • Appendix - Imports: Imports of all types of baby meals have generally been rising, but stood at only 991 tons, worth US$5.3 million, in 2016
      • Table Trends in Imports of Baby Meals, by Type, Volume & Value, 2010-2016
    • Appendix - Exports: As demand for milk has rocketed, particularly from China and Russia, exports have grown rapidly
      • Table Baby Milks& Cereals: Trends in Exports, 2010-2016
    • Appendix - Exports: In 2016, Russia was overtaken by China as the main destination for baby milks exports
      • Table Baby Milks: Exports by Country of Destination, Value, 2014-2016
    • Appendix - Exports: Exports of meals have slumped to virtually negligible levels, following Hochdorf's withdrawal from this sector in 2009
      • Table Trends in Exports of Baby Meals, by Type, Volume & Value, 2010-2016
    • Appendix - Value Forecasts: By 2022 the market is expected to reach a value of SFr119.3 million, with over half of this made up of baby milks
      • Table Baby Food: Market Value Forecasts, Current Prices, 2016-2022
    • Appendix - Value Forecasts: In constant price terms, sales will increase by just 3.6%, with meals & juices and other baby food outperforming the overall market
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2016-2022
    • Appendix - Value Forecasts: Market value is forecast to rise by 12.9% between 2016 and 2022
      • Table Baby Food: Market Value Forecasts, US$ Million, 2016-2022
    • Appendix - Volume Forecasts: All sectors will grow over the coming years, with overall volume set to reach 4,590 tons by 2022
      • Table Baby Food: Market Volume Forecasts, Tons, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure will reach SFr1,457 per baby born in 2022
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Growth of 8.3% in real terms will be fueled by a move towards premium and organic products
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure is set to rise by 18% between 2016 and 2022
      • Table Baby Food: Per Capita Expenditure, US Dollars, 2016-2022
    • Appendix - Per Capita Forecasts: Overall per capita consumption will increase by 8.9% to 56kg
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Summary Methodology
    • About GlobalData

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