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The Baby Food Market in the UK, 2019

The Baby Food Market in the UK, 2019

Summary

UK babies were consuming considerably less baby food in 2018 than in 2012. Volume sales were down by 17%, although the number of babies born was only 8% lower. Consumption is down in all categories, with the exception of finger foods. In 2018, per capita consumption stood at 29.2kg per infant aged 0- 3 years, 12% lower than in 2012. However, the value of the sector has risen both in absolute and in real terms, largely due to the higher unit prices of milks, as well as the trend towards higher priced finger foods. Baby food for the older age range has also been a growth segment.

Infant formula dominates, accounting for 57% of value sales and 44% of volume. Breastfeeding rates remain relatively low, and manufacturers have succeeded in selling more milk for older babies, as well as more premium products, fueling growth. Wet meals form the second largest category (28% of value). Despite the development of the pouches category and a very broad range of varieties, volume sales are in decline. Finger foods have been the most buoyant category, with a high level of innovation.

The UK baby food market is forecasted to a rise of 15.6% to £834.6 million in 2024, equivalent to a rise of 3% in real terms. Volumes will decline slightly, although finger foods will gain ground. Uncertainty is higher than usual due to the unpredictable nature of the changes that will arise from Brexit.

There is limited production of baby food in the UK. Most infant formulae sold on the market are imported from Ireland, where both Danone (Cow & Gate, Aptamil) and Nestlé (SMA) have major plants. Imports of baby food rose sharply between 2009 and 2014, but have subsequently dropped back significantly to 93,428 tons, equivalent to a value of €334 million. Although for many years contested primarily by three multinational players (Danone, Heinz, and Nestlé), in 2016 a relative newcomer, Ella’s Kitchen, rose to second place, well behind Danone, but slightly ahead of Nestlé, a position it has maintained.

The major food multiples and pharmacies/drugstores are the main commercial channels for baby food distribution. Non- commercial channels including hospitals and clinics are excluded from the retail sector; subsidized milk distribution through clinics was terminated in 2006. There has been a steady movement away from pharmacies & drugstores towards the major grocery multiples, which offer advantages in terms of choice, convenience, and value.

The report The Baby Food Market in the UK, 2019, is an analytical report which provides extensive and highly detailed current and future market trends in the UK market.

The report offers -

  • 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
Companies mentioned: Danone/Nutricia Ltd, Ella's Kitchen Group Limited (Hain Celestial), Nestlé UK (SMA), HJ Heinz Company Limited (Kraft Heinz Company), Organix Brands Plc (Hero), Hipp (UK) Ltd, The Kids Food Company, Urban Fresh Foods, Annabel Karmel Group Holdings Ltd, Little Dish.

Scope
  • There is growing concern among parents about health and quality, as well as convenience, and manufacturers are undertaking active marketing to meet these concerns. This includes the development of organic and homemade-style foods, and reduced salt/sugar baby foods, as well as more convenient pack formats and a broadening range of snack foods.
  • Consumption is down in all categories, with the exception of finger foods. However, the value of the sector has risen both in absolute and in real terms, largely due to the higher unit prices of milks, as well as the trend towards higher priced finger foods.
  • Infant formula dominates, accounting for 57% of value sales and 44% of volume. Breastfeeding rates remain relatively low, and manufacturers have succeeded in selling more milk for older babies, as well as more premium products, fueling growth.
  • Most infant formulae sold on the market are imported from Ireland, where both Danone (Cow & Gate, Aptamil) and Nestlé (SMA) have major plants.
  • Exports of baby food rose in volume up to 2014, but fell back slightly in 2015 before picking up again.
  • Danone remains the clear leader with a share of 51% of total value sales. It leads in the milks category and is in second place in cereals and wet meals.
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
Background to the Market
Births
The Consumer
Socio-demographic Trends
Working Women
Regulations
Breastfeeding Trends
Market Overview
The Organic Phenomenon
Manufacturers Shares
Sector Analysis
Baby Milks
Baby Cereals
Baby Meals
Baby Drinks
Baby Finger Foods
Production and trade
Production
Imports
Exports
Company profiles
Danone/Nutricia Ltd
Ella's Kitchen Group Limited (Hain Celestial
Nestlé UK (SMA)
HJ Heinz Company Limited (Kraft Heinz Company)
Organix Brands Plc (Hero)
Hipp (UK) Ltd
Distribution
Baby Food Retailing
Economic background
Economic Indicators
Key Macro-economic Forecasts
Prospects and forecasts
Birth & Population Projections
Forecast Overview
Future Trends
Appendix
Additional Data Tables
Summary Methodology
About GlobalData
List of Tables
Table 1: Birth & Population Trends, 2008-2018
Table 2: Live Births by Country, 2007-2017
Table 3: Live Births & Crude Birth Rates by Region, 2016
Table 4: Breakdown of Live Births by Age of Mothers, %, 2012-2017
Table 5: Women in the Workforce, 2010-2016
Table 6: Proportion of Births in BFHI Facilities by Country, %, 2017 & 2019
Table 7: Incidence of Initial Breastfeeding by Country, %, 1990-2010
Table 8: Prevalence of Breastfeeding by Age of Baby by Country, %, 2005 & 2010
Table 9: Prevalence of Exclusive Breastfeeding by Age of Baby by Country, %, 2010
Table 10: Scotland: Breastfeeding Trends, 2010-2016
Table 11: Northern Ireland: Breastfeeding at Discharge from Hospital, 2010/11-2014/15
Table 12: England: Breastfeeding at 6-8 Weeks, 2016-2018
Table 13: Incidence of Breastfeeding Initiation by Social Class, %, 2005 & 2010
Table 14: Prevalence of Initial Breastfeeding by Age at which Mother Completed Full-time Education, %, 2005 & 2010
Table 15: Incidence of Initiation of Breastfeeding by Age of Mother, %, 2005 & 2010
Table 16: Duration of Exclusive Breastfeeding among Mothers who Breastfed Exclusively at Birth by Country, %, 2010
Table 17: Sector Size, 2018, & Growth Rates, 2012-2018
Table 18: Organic Baby Food: Market Trends, Value, 2010-2017
Table 19: Baby Food: Trends in Manufacturer Shares, Value and Volume, %, 2012-2018
Table 20: Baby Food: Manufacturer Shares by Sector, %, 2018
Table 21: Baby Milks: Category Size, 2018
Table 22: Baby Milks: Category Growth, % 2012-2018
Table 23: Baby Milks: Per Capita Expenditure & Consumption, 2012-2018
Table 24: Baby Milks: Market Segmentation, Powdered & Liquid, Value, 2012-2018
Table 25: Powdered Baby Milks: Brand Price Positioning Analysis, 2018
Table 26: Liquid Baby Milks: Brand Price Positioning Analysis, 2018
Table 27: Baby Milks: Manufacturer Market Share Trends, Value and Volume, 2012-2018
Table 28: Baby Milk: Shares of Leading Brands, 2012-2017
Table 29: Baby Cereals: Category Size, 2018
Table 30: Baby Cereals: Category Growth, % 2012-2018
Table 31: Cereals & Dry Foods: Brand Price Positioning Analysis, 2018
Table 32: Baby Cereals: Manufacturer Market Share Trends, Value and Volume, 2012-2018
Table 33: Baby Meals: Category Size, 2018
Table 34: Baby Meals: Category Growth, % 2012-2018
Table 35: Baby Meals: Sales by Pack Type, % Value, 2012-2018
Table 36: Manufacturer Involvement, by Pack Type, 2018
Table 37: Baby Meals: Brand Price Positioning Analysis, 2018
Table 38: Baby Meals: Manufacturer Market Share Trends, Value And Volume, 2012-2018
Table 39: Baby Drinks: Category Size, 2018
Table 41: Baby Drinks: Category Growth, % 2012-2018
Table 42: Drinks: Price Positioning, 2018
Table 43: Baby Drinks: Manufacturer Market Share Trends, % Value and Volume, 2012-2018
Table 44: Baby Finger Foods: Category Size, 2018
Table 45: Baby Finger Foods: Category Growth, % 2012-2018
Table 46: Baby Finger Foods: Parental Perception of Snacks Ingredients, 2018
Table 47: Finger Food: Market Segmentation, % Value, 2012-2018
Table 48: Finger Foods: Brand Price Positioning Analysis, 2018
Table 49: Finger Foods: Manufacturer Market Share Trends, Value and Volume, 2012-2018
Table 50: Milks & Cereals: Country of Origin, Top Five, % Volume, 2017
Table 51: Milks & Cereals: Country of Destination, Top Four, % Volume, 2017
Table 52: Nutricia Ltd: Financial Highlights, 2012-2017
Table 53: Ella's Kitchen: Turnover, 2010-2017
Table 54: Organix Brands: Financial Highlights, 2012-2017
Table 55: Hipp UK Ltd: Financial Highlights, £ '000, 2012-2016
Table 56: Baby Food Sales by Type of Outlet, 2012-2018
Table 57: Baby Product Sales by Retailer, 2010-2016
Table 58: Economic Indicators, 2012-2019
Table 59: Key Macroeconomic Forecasts, 2018-2024
Table 60: Birth & Population Projections, 2012-2024
Table 61: Baby Food: Category Growth, 2018-2024
Table 62: Baby Population, Number of Babies, ’000, 2008-2024
Table 63: Number of Women of Childbearing Age by Age Group, 000s, 2011-2022
Table 64: Baby Food: Market Value, Current Prices, 2012-2018
Table 65: Baby Food: Market Value, Constant Prices, 2012-2018
Table 66: Baby Food: Market Value, US$ Million, 2012-2018
Table 67: Baby Food: Market Volume, Tons, 2012-2018
Table 68: Baby Food: Per Capita Expenditure, Current Prices, 2012-2018
Table 69: Baby Food: Per Capita Expenditure, Constant Prices, 2012-2018
Table 70: Baby Food: Per Capita Expenditure, US Dollar Prices, 2012-2018
Table 71: Milks: Sector Trends, 2012-2018
Table 72: Baby Milks Segmentation, Value & Volume, 2012-2018
Table 73: Powdered Baby Milks: Brand Price Analysis, 2018
Table 74: Powdered Baby Milks: Brand Price Analysis, 2018
Table 75: Liquid Baby Milks: Brand Price Analysis, 2018
Table 76: Cereals & Dry Food : Sector Trends, 2012-2018
Table 77: Drinks: Sector Trends, 2012-2018
Table 78: Finger Foods: Sector Trends, 2012-2018
Table 79: Imports of Baby Milks & Cereals, Volume and Value, 2012-2017
Table 80: Baby Milks & Cereals: Imports by Country of Origin, 2015-2017
Table 81: Other Baby Food: Imports by Type, Volume & Value, 2012-2017
Table 82: Other Baby Food: Imports by Country of Origin, 2015-2017
Table 83: Baby Milks & Cereals: Trends in Exports, 2012-2017
Table 84: Baby Milks & Cereals: Exports by Country of Destination, 2015-2017
Table 85: Other Baby Food: Exports by Type, Volume & Value, 2012-2017
Table 86: Other Baby Food: Exports by Country of Destination, 2015-2017
Table 87: Baby Food: Market Value Forecasts, Current Prices, 2018-2024
Table 88: Baby Food: Market Value Forecasts, Constant Prices, 2018-2024
Table 89: Baby Food: Market Value Forecasts, US Dollars, 2018-2024
Table 90: Baby Food: Market Volume Forecasts, 2018-2024
Table 91: Baby Food: Per Capita Expenditure Forecasts, Current Prices, 2018-2024
Table 92: Baby Food: Per Capita Expenditure Forecasts, Constant Prices, 2018-2024
Table 93: Baby Food: Per Capita Forecasts, US Dollars, 2018-2024
Table 94: Baby Food: Per Capita Consumption Forecasts, 2018-2024
List of Figures
Figure 1: Baby Food: Sector Size, 2012-2018
Figure 2: Baby Food: Per Capita Consumption, 2012-2018
Figure 3: Baby Food: Segmentation, Value, 2018
Figure 4: Baby Food: Manufacturer Shares Value, 2018
Figure 5: Baby Food: Manufacturer Shares, Value %, 2018
Figure 6: Baby Food: Manufacturer Shares, Volume %, 2018
Figure 7: Baby Food: Manufacturer Shares by Category, % value, 2018
Figure 8: Baby Milks: Category Trends, 2012-2018
Figure 9: Baby Milks: Per Capita Expenditure & Consumption, 2012-2018
Figure 10: Starter, Follow-on & Special Formula
Figure 11: Growing-up Milks
Figure 12: Baby Milks: Category Segmentation, Value and Volume, 2012-2018
Figure 13: Baby Cereals : Category Trends, 2012-2018
Figure 14: Baby Cereals : Per Capita Expenditure & Consumption, 2012-2018
Figure 15: Baby Meals: Category Trends, 2012-2018
Figure 16: Baby Meals: Per Capita Expenditure & Consumption, 2012-2018
Figure 17: Drinks: Category Trends, 2012-2018
Figure 18: Drinks: Per Capita Expenditure & Consumption, 2012-2018
Figure 19: Finger Foods: Category Trends, 2012-2018
Figure 20 Finger Foods: Per Capita Expenditure & Consumption, 2012-2018
Figure 21: Baby Food: Market Size, 2018-2024
Figure 22: Baby Food: Per Capita Consumption, 2018-2024
Figure 23: Baby Food: Market Segmentation, 2024

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