Market Research Logo

The Baby Food Sector in Thailand 2017

The Baby Food Sector in Thailand 2017

Summary

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

The environment in Thailand has not been conducive towards the development of the baby food sector, which underwent a 7.5% drop in consumption between 2010 and 2016. Women are increasingly employed in professional and skilled jobs. This is likely to mean an increase in income, but a decrease in spare time, and in general has a tendency to favor the purchase of baby foods. The baby food sector is forecast to show some recovery in volume terms over the next six years, due to higher per capita consumption in all categories, and despite the expectation that the number of births will continue to decrease. Sales of baby milks are expected to show slow growth. Consumption of cereals will remain more or less stable, while the very small meals category will show buoyant growth.

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 sector continues to be fairly sluggish compared with the boom years a decade ago. The environment has not been conducive towards the development of the baby food sector, which underwent a 7.5% drop in consumption between 2010 and 2016.
  • Sales are dominated by milks, at 93% of value and 92.5% of volume, but consumption has declined and prices have come under pressure, holding down the value increase to 13%.
  • Wet meals have been the only segment to show volume growth, as they are primarily purchased by affluent working women, who are less affected by economic difficulties, but this remains a tiny segment, accounting for less than 3% of both value and volume
  • Multinationals enjoy a high profile, with the top three holding over 90% of sales. Most are involved primarily or exclusively in the milks sector.
  • Thailand has one of the lowest levels of exclusive breastfeeding in the world, and this, combined with growing affluence, led to growth in milk consumption up to 2008.
  • In August 2014, UNICEF and its partners launched the “powdered milk = risk” campaign, aimed at preventing mothers from mistakenly believing that formula-milk is as good as breast milk for their babies.
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: Categories
    • Definitions: Terminology
  • Background
    • Births - Live Birth Rates: Despite some fluctuation, the number of live births has been falling in recent years, although both 2015 and 2016 saw slight increases
      • Table Live Birth Trends, 2006-2016
    • Births - Live Births by Region: Birth rates are higher in rural areas than in urban areas, but the highest number of births occurs in the densely populated north-east
      • Table Live Births by Area, 2010-2016
    • Births - Live Births by Region: The birth rate varies from below 10 births per thousand in the northern/northeast regions to over 14 in the south and east
      • Table Birth Rates by Region, 2011-2014
    • The Consumer: Economic growth has allowed many consumers to purchase commercially prepared baby food, but 20% of the population can ill afford these
    • The Consumer: Industrially prepared baby foods are seen as inferior to freshly prepared food, but families are becoming increasingly attracted by their convenience
    • Socio-demographic Trends - Family Structure: Any move away from the traditional family structure is happening at only a very slow pace
      • Table Trends in Marriages & Divorces, 2010-2015
    • Socio-demographic Trends - Births by Age of Mother: Thailand has a high rate of teenage pregnancy, but 36% of births were to mothers in the 30+ age range in 2014
      • Table Live Births by Age of Mother, 2000-2014
    • Socio-demographic Trends - Number of Women of Childbearing Age: The decline is strongest in the peak childbearing age range of 20-34
      • Table Number of Women of Childbearing Age by Age Group, 2010 & 2015
    • Working Women - Female Employment: A partial recovery in the proportion and number of women in work was seen in 2015
      • Table Female Employment Trends, 2010-2015
    • Working Women - Female Employment: In the peak childbearing age groups, 55% of women aged 20-24 are in the labor force and over 80% of those aged 25-34
      • Table Female Labor Force Participation Rates by Age, 2013 & 2014
    • Working Women - Female Employment: Growth in female employment in professional and skilled jobs is likely to increase incomes, but reduce spare time
      • Table Working Women by Type of Work, 2012 & 2015
    • Working Women - Legislation: Thailand's low rate of breastfeeding has led to calls to extend the period of maternity leave to four months for all women
    • Regulations: The Marketing Control on Food for Infants and Young Children Act (Milk Code) came into force on September 8, 2017
    • Regulations: Advertising of first- and second-stage formula is banned, but third-stage formula may be advertised
    • Regulations: Some provision of the International Code of Marketing of Breast-milk Substitutes are now enshrined in law
    • Breastfeeding Trends - Promotion: The government has ambitious targets to improve breastfeeding rates, and all health centers are now 'baby-friendly'.
    • Breastfeeding Trends - Prevalence: Although government initiatives have improved breastfeeding rates, Thailand still has the lowest rate in Asia
      • Table Breastfeeding Trends, Thailand, 2012
    • Breastfeeding Trends - Prevalence: While 85% of babies are breastfed within a day of birth there is huge disparity, dependent on region, level of education, and income
      • Table Early Breastfeeding Initiation, 2012
    • Breastfeeding Trends - Prevalence: Although exclusive breastfeeding rates are low, the majority of babies are at least partially breastfed up to the age of six months
      • Table Types of Breastfeeding by Region, 2009
    • Breastfeeding Trends - Duration: A number of factors combine to hamper longer breastfeeding duration
    • Breastfeeding Trends - Duration: Thailand's median exclusive breastfeeding duration remains low at just half a month
      • Table Median duration breastfeeding among children aged 0-35 months, Thailand, 2012
  • Overview
    • Sector Overview: A falling birth rate and tough economic conditions have suppressed sales of baby food
    • Sector Overview: The baby food sector rose by almost 14% in value terms between 2010 and 2016, but consumption has fallen back by 7.5%
      • Table Market Size, 2016, & Growth Rates, 2010-2016
    • Manufacturer Shares: In 2016, the top three players - Nestlé, Danone, and Mead Johnson - held a combined value share of more than 90% of overall sales
      • Table Trends in Manufacturer Shares, % Value, 2010-2016
    • Manufacturer Shares: Nestlé remains the only manufacturer to be significant in more than one category, dominating in cereals, as well as holding first place in milks
      • Table Baby Food: Manufacturer Shares by Sector, % Value, 2016
    • The Future: The baby food sector is forecast to show some recovery in volume terms over the next six years, due to higher per capita consumption in all categories
      • Table Projected Market Size, 2022, & Growth Rates, 2016-2022
  • Category Analysis
    • Category Analysis: Baby Milks
    • Milks Category Trends: Baby milks dominate the baby food sector, taking 90% of volume sales in 2016 and 93% of value
    • Milks Per Capita Trends: In 2016, per capita consumption of baby milks stood at 51kg, 3% down on 2010
    • Milks Segmentation: First- and second-stage milks have been declining in importance, due to the high growth rates in the third-stage segment
    • Milks Segmentation: Over half of consumption consists of third-stage milks, sales of which have been stimulated by new product activity and large promotional budgets
    • Milks Segmentation: Premium milks account for half of sales but the economic environment since 2012 has favored mid-priced and low-priced products
      • Table Baby Milks: Segmentation by Quality, 2010-2016
    • Milks Segmentation: The majority of products fall into the mid- and low-priced segment, although all the major manufacturers also market high-priced brands
      • Table Baby Milks (Powder): Brand Price Positioning Analysis, 2016
    • Milks Segmentation: Nestlé and Danone are strong in the low-priced segment
      • Table Baby Milks (Powder): Brand Price Positioning Analysis, 2016
      • Table Baby Milks (Liquid): Brand Price Positioning Analysis, 2016
    • Milks Segmentation: The Thai market favors relatively small pack sizes and many manufacturers continue to downsize their products
      • Table Baby Milks: Type of Packaging, 2016
      • Table Baby Milks: Pack Sizes, 2016
    • Milks Manufacturer Shares: Nestlé, Danone, and Mead Johnson together accounted for 94% of sales in value in 2016
      • Table Baby Milks: Manufacturer Shares, Value, %, 2010-2016
    • Milks Manufacturer Shares: Nestlé attained market leadership in 2013 as a result of the acquisition of Wyeth Nutrition and Danone's product recall
    • Milks Brands: Nestlé has a broad range of brands including Nan Pro, Lactogen, Bear Brand, and Carnation, as well as the former Wyeth brand S-26
    • Category Analysis: Cereals
    • Cereals Category Trends: Baby cereals saw an 11.5% fall in consumption between 2010 and 2016, but in value terms, the category appreciated by 24.2%
    • Cereals Per Capita Trends: Per capita consumption of baby cereals amounted to just 3.9kg in 2016
    • Cereals Segmentation: The price of cereal ranges from US$10 per kilogram for Cerelac to US$33 per kilogram for organic brands
      • Table Cereals & Dry Meals: Price Positioning, 2016
    • Cereals Segmentation: Most cereals are packaged in boxes, with sizes ranging from 80g to 250g
      • Table Cereals & Dry Meals: Pack Sizes, 2016
    • Cereals Manufacturers & Brands: Nestlé is the sole significant supplier of baby cereals with its Cerelac brand
      • Table Baby Cereals: Manufacturer Shares, 2010-2016
    • Category Analysis: Meals
    • Meals Category Trends: Demand has risen more strongly than in the other two categories, as the economic climate has affected higher income consumers less
    • Meals Per Capita Trends: Although per capita consumption rose by 10% between 2010 and 2016, consumption is very low, equivalent to just one 110g jar per month
    • Meals Segmentation: Sweet meals outsell savory varieties
      • Table Savoury Wet Meals: Price Positioning, 2016
    • Meals Segmentation: The price of pouches is competitive with jars, while organic products command a premium
      • Table Sweet Wet Meals: Price Positioning, 2016
    • Meals Segmentation: Pouches have begun to make their mark
      • Table Baby Meals: Pack Types, 2016
      • Table Baby Meals: Pack Sizes, 2016
    • Meals Manufacturer & Brands: Heinz remains dominant with 79% of sales, although local supplier Srichiengmai Industry's Peachy has been making inroads
      • Table Baby Meals: Manufacturer Shares, 2010-2016
    • Category Analysis: Other Baby Food
    • Other Baby Food: The drinks and finger foods categories are very under-developed in Thailand
      • Table Finger Foods: Price Positioning, 2017
  • Production and Trade
    • Production: In addition to the multinational operators with domestic production facilities, a number of local companies are now active in the baby food sector
    • Imports: Imports rose strongly up to 2013, but have since fallen back to below the 2009 level, to stand at 14,218 tons in 2015
    • Exports: The value of exports of other baby foods exceeded exports of milks & cereals in 2015
  • Company Profiles
    • Company Profiles: The baby food market in Thailand is controlled by multinationals, although several have local production bases
    • Company Profiles: Nestlé (Thailand) Ltd
      • Table Category shares, 2016:
    • Company Profiles: Dumex Ltd (Danone)
      • Table Category shares, 2016:
    • Company Profiles: Mead Johnson Nutrition (Thailand) Ltd
      • Table Market shares, 2016:
    • Company Profiles: Abbott Laboratories Limited
      • Table Market shares, 2016:
    • Company Profiles: Heinz Win Chance Co. Ltd
      • Table Market shares, 2016:\
    • Company Profiles: Other Manufacturers
  • Distribution
    • Retail Structure: Traditional food & drinks outlets account for more than half of sales of packaged foods, but their position is being eroded by modern grocery outlets
      • Table Packaged Food Sales by Channel, . Billion, 2009-2016
    • Baby Food Retailing: The rapid expansion of sales through hypermarkets and supermarkets means that they now account for the majority of sales of baby food
      • Table Baby Food: Sales by Outlet Type, 2010-2016
  • Economic Background
    • Political and Economic Background: Thailand has been plagued with political instability and social unrest
      • Table Economic Indicators, 2010-2016
    • Key Macro-economic Forecasts: After a few difficult years, the economy began to pick up in 2015-2016, and steady GDP growth of 3% is forecast
      • Table Key Macroeconomic Forecasts, 2016-2022
  • Prospects and Forecasts
    • Birth and Population Projections: Since the late 1990s, the live birth rate has been declining slowly but steadily, despite a slight uptick in 2015-2016
      • Table Birth & Population Projections, 2010-2022
    • Forecast Overview: Sales of baby food are forecast to expand, although growth will be held back by the expected continued decline in the number of births
    • Future Trends: The development of the baby food sector is likely to remain dependent on Thailand's economic performance for growth
  • Appendix
    • Appendix - The Baby Population: The underlying trend in the number of births is steadily downward
      • Table Baby Population, Number of Babies, 2006-2022
    • Birth and Population Projections: There will be a sharp drop in the number of women of childbearing age
      • Table Number of Women of Childbearing Age, By Age Group, 2010-2022
    • Appendix - Sector Value: Milks dominate sales and have increased by 13%, while the smaller categories have grown faster
      • Table Baby Food: Market Value, Current Prices, 2010-2016
    • Appendix - Sector Value: At constant prices, sales are up by just 3% over the 2010- 2016 period, compared with a 13.9% rise in current price terms
      • Table Baby Food: Sector Value, Constant Prices, 2010-2016
    • Appendix - Sector Value: In 2016, the baby food sector was valued at US$634 million, with milks accounting for US$589 million of this
      • Table Baby Food: Sector Value, US$ Million, 2010-2016
    • Appendix - Sector Volume: Consumption has been in decline, but picked up slightly in 2015 and 2016 to stand at 40,983 tons - 7.5% down on 2010
      • Table Baby Food: Sector Volume, Tons, 2010-2016
    • Appendix - Per Capita Expenditure: Expenditure per baby rose by 19.5% between 2010 and 2016 to .30,801
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Even when inflation is taken into account, expenditure per baby rose by 8%
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
    • Appendix - Per Capita Expenditure: The average expenditure on baby food reached US$873 in 2016
      • Table Baby Food: Per Capita Expenditure, US$ Dollars Prices, 2010-2016
    • Appendix - Per Capita Consumption: After falling in the years up to 2014, per capita consumption has begun to recover and reached 56.5kg per baby in 2016
      • Table Baby Food: Per Capita Consumption, Grams, 2010-2016
    • Appendix - Milks: The decline in the number of live births has precipitated a 7.5% drop in consumption
      • Table Baby Milks: Category Trends, 2010-2016
    • Appendix - Milks: Growing-up milks account for over half of baby milks sales, and are continuing to make headway
      • Table Baby Milks: Market Segmentation, Value & Volume, 2010-2016
    • Appendix - Milks: Danone's Dugro 3 retails at just .263 per kg, while its HI-Q 1 Pepti special formula is a top-of-the-range product costing .1,263 per kg
      • Table Baby Milks: Brand Price Analysis, 2016
    • Appendix - Milks: Nestlé fields the cheapest product - Carnation 3 - at .199 per kg, while its Nan Pro range is premium is priced at over .800 per kg
      • Table Baby Milks: Brand Price Analysis, 2016
    • Appendix - Cereals: Consumption of cereals has fallen by 11.5% as the number of babies has declined and the meals category has taken sales from cereals
      • Table Baby Cereals: Sector Trends, 2010-2016
    • Appendix - Meals: The wet meals category is under-developed but has shown some growth
      • Table Wet Meals: Sector Trends, 2010-2016
    • Appendix - Imports: Imports rose up to 2013, but fell back subsequently to 14,218 tons with a value of US$93 million
      • Table Imports of Baby Food by Type, Value & Volume, 2010-2015
    • Appendix - Imports: Singapore is the main supplier of milks & cereals, and has gained in prominence
      • Table Baby Milks & Cereals: Imports by Country of Origin, Value & Volume, 2009-2015
    • Appendix - Exports: Up to 2014, Thai exports of milks & cereals were on the rise, but they fell back sharply in 2015, as exports to Vietnam slumped
      • Table Baby Milks & Cereals: Exports, 2010-2015
    • Appendix - Exports: Laos has become one of the leading export destinations for Thai milks and cereals, alongside Malaysia and Cambodia
      • Table Baby Milks & Cereals: Exports by Country of Destination, Value & Volume, 2010-2015
    • Appendix - Exports: Exports of other baby food rose up to 2014 but fell back in 2015 to 16,645 tons, valued at US$30.8 million
      • Table Baby Meals: Exports, Value & Volume, 2011-2015
      • Table Other Baby Food: Exports by Country of Destination, Value & Volume, 2012-2015
    • Appendix - Value Forecasts: Sales are forecast to reach .27,312 million in 2022, with all categories showing growth
      • Table Baby Food: Sector Value Forecasts, Current Prices, 2016-2022
    • Appendix - Value Forecasts: At constant prices, sales will increase by just over 7%, with growth led by the small meals sector
      • Table Baby Food: Sector Value Forecasts, Constant Prices, 2016-2022
    • Appendix - Value Forecasts: Sales will show an increase of 22.1% between 2016 and 2017
      • Table Baby Food: Sector Value Forecasts, US$ Million, 2016-2022
    • Appendix - Volume Forecasts: Overall consumption of baby food will increase by 5.5% to reach 43,224 tons by 2021
      • Table Baby Food: Sector Volume Forecasts, Tons, 2016-2022
    • Appendix - Per Capita Forecasts: Expenditure per baby will rise to .38,523 by 2021, with milks representing the bulk of this
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
    • Appendix - Per Capita Forecasts: There will be a steady rise in expenditure even in constant price terms
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Expenditure per baby will rise by a quarter between 2016 and 2021
      • Table Baby Food: Per Capita Expenditure, US Dollars, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita consumption will rise at an accelerating pace, to reach almost 61kg in 2021
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Summary Methodology

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