Chile Baby Food, 2020

Chile Baby Food, 2020

Summary

“Chile Baby Food, 2020 ” is an analytical report by Global Data which provides extensive and highly detailed current and future market trends in the Chilean market.

In 2019, baby milks accounted for 55% of market value, with cereals taking a further 29% and wet meals 19%. The value share of milks has declined over the last two years, as the market has moved towards third-stage milks, which have lower average prices than first- and second-stage products, and as breastfeeding, actively promoted by the government, has become more prevalent. Cereals have gained ground in terms of their share of value sales, as unit prices have increased at a rate well ahead of inflation. Wet meals have been the most vibrant category over the last two years.

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 number of live births fell between 2014 and 2017 but has risen slightly in 2018 and 2019. The baby population (aged 0-3 years) stood at 664,000 in 2019, almost 10% down on 2013.
  • The market for baby food was worth CLP$128 billion (US$182 million) in 2019, up 39% on sales in 2013.
  • In 2019, baby milks accounted for 55% of market value, with cereals taking a further 29% and wet meals 19%.
  • Import penetration is highest in the baby milks sector, due to the involvement of Abbott, Danone, Lactalis (Aspen up to 2019), and others, none of which has established a local manufacturing base in Chile. Exports of milks and cereals outstrip imports by a substantial margin, and exports of sweet meals have risen strongly over the last few years.
  • Nestlé remains dominant, with a 72.9% value share and 81.9% of volume in 2019.
  • Consumption is expected to rise by 8% to 12,779 tons in 2025, with a retail value of CLP$165 billion. Growth will be driven by the wet meals category, followed by milks. The structure of the market will remain largely unchanged with milks continuing to lead by value.
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: The number of live births in Chile has fallen over the past decade, but risen slightly over the past two years
      • Table Birth & Population Trends, 2009–2019
    • Births – Birth Rates by Region: The population of Chile is centered in the Santiago metropolitan area, and 43% of births occurred there in 2018
      • Table Births by Province, 2015, 2016 & 2018
    • The Consumer: Chile is the richest country in Latin America on a per capita basis, but income disparities are high
    • The Consumer: Many consumers have yet to be persuaded of the benefits of buying food specifically prepared for babies
    • Socio-demographic Trends – Births by Age of Mother: There has been a clear trend towards giving birth at an older age
      • Table Live Births by Age of Mother, %, 2011–2018
    • Socio-demographic Trends – Number of Women of Child Bearing Age: The number of women aged 15 to 49 rose by 6% between 2015 and 2019
      • Table Number of Women of Childbearing Age by Age Group, 2010, 2015 & 2019
    • Working Women – Female Employment: In total, almost 50% of women aged 15 and over are in work
      • Table Number of Working Women in Chile, 2013–2020
    • Working Women – Legislation: A law introduced in 2019 gives children the right to have free access to breast milk
    • Breastfeeding Trends – Promotion: The government has been strengthening its enforcement of the Code on the Marketing of Breast Milk Substitutes
    • Breastfeeding Trends – Prevalence: Exclusive breastfeeding at six months has risen significantly over the past five years, to 57% in 2017
      • Table Trends in Incidence of Breastfeeding by Type of Feeding, 2000-2017
      • Table Trends in Incidence of Breastfeeding by Age Group, 1993–2010
    • Breastfeeding Trends – Prevalence: Nearly all regions saw an increase in breastfeeding at six months between 2015 and 2016
      • Table Exclusive Breastfeeding Rates by Region, 2015 & 2016
    • Breastfeeding Trends – Prevalence: Older mothers are more likely to exclusively breastfeed up to six months
      • Table Breastfeeding Rates by Age of Mother, 2013
    • Breastfeeding Trends – Prevalence: Breastfeeding rates are lower among women in paid employment outside the home
      • Table Exclusive & Predominant Breastfeeding Rates by Age of Baby, 1993 & 2005
      • Table Breastfeeding Rates by Maternal Occupation & Age of Baby, 2005
    • Regulations: In 2017, the government implemented additional provisions from the International Code of the Marketing of Breastmilk Substitutes
    • Regulations: In 2019, regulations regarding the contents of wet meals were modified, in an attempt to encourage greater competition
  • Overview
    • Sector Overview: Value sales reached CLP$128 billion (US$182 million) in 2019, 39% up on 2013
    • Sector Overview: Milks remains the largest category in value terms, representing 55% of total sales
      • Table Sector Size, 2019, &Growth Rates, 2013–2019
    • Manufacturer Shares: For many years Nestlé has been the overwhelmingly dominant force in the baby food sector
      • Table Baby Food: Manufacturer Shares, Value & Volume %, 2013–2019
    • Manufacturer Shares: Nestlé is the clear leader in all categories, taking an overall 73% value share in 2019
      • Table Baby Food: Manufacturer Shares by Category, % Value, 2019
  • Category Analysis
    • Category Analysis: Baby Milks
    • Baby Milks Category Trends: Sales have been constrained recently by an increase in breastfeeding in the first six months and lower birth numbers
      • Table Baby Milks: Category Size, 2019
      • Table Baby Milk: Category Growth, %, 2013–2019
    • Baby Milks Per Capita Trends: Expenditure on baby milks accounted for 55% of all expenditure on baby foods in 2019
    • Baby Milks Per Capita Trends: Growing-up milks (third-stage) are increasing in importance, although they are dwarfed by other segments
    • Baby Milks Segmentation: The largest segment in the milks category remains firststage milks, but these are losing share
    • Baby Milks Segmentation: The most popular pack size is 800g
      • Table Baby Milks: Facings by Pack Size, 2017
    • Baby Milks Segmentation: Baby milk brands are mainly priced from US$15 to US$40 per kilogram
      • Table Baby Milks: Brand Price Positioning Analysis, 2019
    • Baby Milks Segmentation: The cheapest milks are third-stage products, such as Watt's Calo Crecer and Nestlé's Nido, which cost well under US$10 per kilogram
      • Table Baby Milks: Brand Price Positioning Analysis, 2019
    • Baby Milks Manufacturer Shares: Nestlé's local production of some of its brands, plus strong distribution, give it a dominant position
      • Table Baby Milks: Manufacturer Shares, Value & Volume, %, 2013–2019
    • Baby Milks Manufacturers & Brands: Abbott has performed strongly in recent years, but remains well behind Nestlé
    • Baby Milks Manufacturers & Brands: Behind Nestlé and Abbott, other companies claim only small shares
    • Category Analysis: Baby Cereals & Dry Meals
    • Baby Cereals & Dry Meals Category Trends: Baby cereals are the most important type of baby food in Chile in terms of volume sales
      • Table Baby Cereals: Category Size, 2019
      • Table Baby Cereals: Category Growth, %, 2013–2019
    • Baby Cereals & Dry Meals Category Trends: Cereals compete against maicena, a powdered corn product that is mixed with powdered milk and is widely consumed
    • Baby Cereals & Dry Meals Per Capita Trends: Per capita consumption of baby cereals increased by 18% between 2013 and 2019, to 7.3kg
    • Baby Cereals & Dry Meals Segmentation: The majority of products are wheatbased, but some rice- and oat-based cereals are also available
      • Table Baby Cereals: Facings by Pack Size, 2017
    • Baby Cereals & Dry Meals Segmentation: The majority of products retail for between US$7 and US$9 per kg
      • Table Baby Cereals: Price Positioning, 2019
    • Baby Cereals & Dry Meals Manufacturer Shares: The cereals category is virtually a Nestlé monopoly
      • Table Baby Cereals & Dry Meals: Manufacturer Shares, Value & Volume, %, 2013–2019
    • Category Analysis: Meals & Others
    • Baby Meals & Others Category Trends: Meals & Others is the smallest category within the baby food sector in Chile
      • Table Baby Meals & Others: Category Size, 2019
      • Table Baby Meals & Others: Category Growth, %, 2013–2019
    • Baby Meals & Others Category Trends: Retail sales rose by almost 60% between 2013 and 2019
    • Baby Meals & Others Per Capita Trends: Per capita intake of baby meals increased by 37% over the period 2013–2019, to 5kg
    • Baby Meals & Others Segmentation: Savory meals continue to outsell sweet meals, but the latter are gaining ground
    • Baby Meals & Others Segmentation: The majority of wet meals continue to be sold in jars, but a growing number of pouches are now available
      • Table Baby Meals in Jars: Facings by Pack Type, 2017
      • Table Baby Meals in Pouches : Facings by Pack Size, 2017
    • Baby Meals & Others Segmentation: The majority of sweet meals retail at US$8- US$11 per kg, while savory meals command prices of US$8-US$9 per kg
      • Table Baby Meals: Price Positioning, 2019
    • Baby Meals & Others Manufacturers & Brand Shares: Nestlé is gradually losing share to a variety of challengers, but remains by far the dominant supplier
      • Table Baby Meals: Manufacturer Shares, Value & Volume, %, 2013–2019
    • Baby Meals & Others Manufacturers & Brand Shares: There are as yet no significant challengers to Nestlé, although a growing number of companies are present
  • Production and Trade
    • Production: Chile is an important manufacturing base for Nestlé
    • Imports: Imports of milks and cereals have fallen significantly in 2018 and 2019
    • Exports: Exports of milks and cereals outstrip imports by a substantial margin
  • Company Profiles
    • Company Profiles: Nestlé Chile SA
      • Table Market Shares, 2019
    • Company Profiles: Abbott Laboratories de Chile Ltda.
      • Table Market Shares, 2019
    • Company Profiles: Danone Chile
      • Table Market Shares, 2019
    • Company Profiles: Lactalis Chile SA (Aspen up to May 2019)
      • Table Market Shares, 2019
  • Distribution
    • Baby Food Retailing: Supermarkets and hypermarkets represent the most important sales outlets, but pharmacies remain significant for milks
      • Table Baby Food: Sales by Outlet Type, % Volume, 2013–2019
      • Table Baby Food: Sales by Outlet Type & Sector, % Volume, 2019
    • Baby Food Retailing: Over the last six years supermarkets and hypermarkets have raised their profile in the baby food market by over seven percentage points
  • Economic Background
    • Economic Background: Compared with most of Latin America, Chile's economy performed well up to 2019, when GDP growth fell heavily
      • Table Chile: Key Macroeconomic Indicators, 2013–2020
    • Key Macroeconomic Forecasts: Following a 2.5% predicted decline in 2020, the economy is forecast to bounce back in 2021 and 2022
      • Table Key Macroeconomic Forecasts 2019–2025
  • Prospects and Forecasts
    • Birth and Population Projections: Between 2021 and 2025 the baby population is expected to remain relatively stable
      • Table Birth and Population Projections, 2015–2025
    • Forecast Overview: Market growth will be driven by the wet meals and milks categories
      • Table Baby Food: Category Growth, 2019–2025
    • Future Trends: Value growth will be led by wet meals, although milks will also see a fairly strong rate of expansion
  • Appendix
    • Appendix — The Baby Population: By 2025, there are expected to be some 687,000 babies aged up to three years old
      • Table Baby Population, Number of Babies ('000), 2009–2025
    • Number of Women of Childbearing Age: The number of women of child-bearing age will reach almost five million by 2025
      • Table Number of Women of Childbearing Age by Age Group, 2015, 2019 & 2025
    • Appendix — Sector Value: Market value reached CLP$128 billion in 2019, 39.2% higher than in 2013
      • Table Baby Food: Market Value, Constant Prices, 2013–2019
    • Appendix — Sector Value: In constant price terms, the value of the market rose by 15% between 2013 and 2019
      • Table Baby Food: Market Value, Constant Prices, 2013–2019
    • Appendix — Sector Value: In 2019, sales stood at US$182 million, of which US$99.9 million consisted of baby milks
      • Table Baby Food: Market Value, US$ Million, 2013–2019
    • Appendix — Sector Volume: Volume sales stood at 11,879 tons in 2019, having increased by 7.8% since 2013
      • Table Baby Food: Market Volume, Tons, 2013–2019
    • Appendix — Per Capita Expenditure: Per capita expenditure recorded a 54.1% increase between 2013-2019
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2013–2019
    • Appendix — Per Capita Expenditure: Growth in constant price terms amounted to 27.1% between 2013 and 2019
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2013–2019
    • Appendix — Per Capita Expenditure: In 2019, per capita expenditure stood at US$273.2, of which US$150.4 went on baby milks
      • Table Baby Food: Per Capita Expenditure, US Dollars, 2013–2019
    • Appendix — Per Capita Consumption: Per capita intake in 2019 amounted to 17.9kg, representing a rise of 19.4% compared with 2019
      • Table Baby Food: Per Capita Consumption, Grams, 2013–2019
    • Appendix — Category Trends: Retail sales have slowed over the last two years, largely as a result of increases in breastfeeding rates
      • Table Baby Milks: Category Trends, 2013–2019
    • Appendix — Milks: First-stage milks have lost significant share in recent years
      • Table Baby Milks: Sector Segmentation, % Value & Volume, 2013–2019
    • Appendix — Milks: Baby milk manufacturers offer a full range of products at varying price points
      • Table Baby Milk: Brand Price Analysis, 2020
    • Appendix — Milks: Baby milk brands are priced from US$7 to nearly US$100 per kilogram
      • Table Baby Milk: Brand Price Analysis, 2020
    • Appendix — Cereals & Dry Meals: The sector was valued at CLP$33 billion (US$47 million) in 2019, equivalent to 25.8% of total sector value
      • Table Baby Cereals & Dry Meals: Category Trends, 2013–2019
    • Appendix — Meals & Others: Meals & Others is the smallest category, with sales amounting to CLP$24.4 billion (US$34.7 million) in 2019
      • Table Baby Meals: Category Trends, 2013–2019
    • Appendix — Imports: Imports of milks and cereals fell back sharply in 2018 and 2019
      • Table Baby Milks and Cereals: Trends in Imports, 2013–2019
      • Table Imports of Milks and Cereals by Country of Origin, 2017–2019
    • Appendix — Imports: Imports of other types of baby food are low, and have been declining
      • Table Imports of Baby Meals by Type, 2013–2019
    • Appendix — Exports: Between 2013 and 2018 exports rose strongly, but in 2019 they fell back heavily
      • Table Milks and Cereals: Trends in Exports, 2013–2019
    • Appendix — Exports: Exports of milks and cereals are destined primarily for Central and South American countries
      • Table Exports of Milks and Cereals by Country of Destination, 2017–2019
    • Appendix — Exports: Imports of sweet meals have risen rapidly from 2016 onwards
      • Table Exports of Baby Meals by Type, 2013–2019
    • Appendix — Exports: Exports of sweet meals are mainly destined for the US
      • Table Exports of Baby Meals by Country of Destination, 2017–2019
    • Appendix — Value Forecasts: By 2025, retail sales value is expected to reach CLP$165 billion (US$129.3 million)
      • Table Baby Food: Market Value Forecasts, Current Prices, 2019–2025
    • Appendix — Value Forecasts: In constant price terms, the market is forecast to record an 8% increase between 2019 and 2025
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2019–2025
    • Appendix — Value Forecasts: By 2025, the market is expected to rise by almost 30%
      • Table Baby Food: Market Value Forecasts, US$ Million, 2019–2025
    • Appendix — Volume Forecasts: Consumption is predicted to rise by nearly 8% to 12,779 tons in 2025
      • Table Baby Food: Market Volume Forecasts, Tons, 2019–2025
    • Appendix — Per Capita Forecasts: Expenditure levels are expected to increase by a quarter by 2025
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2019–2025
    • Appendix — Per Capita Forecasts: In constant price terms, per capita expenditure is expected to rise by 4.5% between 2019 and 2025
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2019–2025
    • Appendix — Per Capita Forecasts: Per capita expenditure is forecast to increase by 25% by 2025 to US$341.5
      • Table Baby Food: Per Capita Expenditure, US$, 2019–2025
    • Appendix — Per Capita Forecasts: Per capita consumption of baby milks will rise by 3% to 5.7kg in 2025, while overall baby food consumption will reach 18.6kg
      • Table Baby Food: Per Capita Consumption, Grams, 2019–2025
    • Appendix — Storechecks: Wet meals represented the largest share of facings in 2017
      • Table Facings Allocation by Product Type
    • Summary Methodology

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