Colombia Baby Food, 2020

Colombia Baby Food, 2020

Summary

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

Milks accounted for 61% of value sales in 2019, down from 64% in 2013. Both wet and dry meals have risen more strongly, reflecting higher unit price increases. Sales of cereals and wet meals were more or less equal in value terms in 2019, although in terms of volume, wet meals account for an appreciably higher share of sales (40% in 2019, compared to 27% in the case of cereals). Baby drinks are no longer available, and sales of finger foods are extremely low at present.

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 has been on a generally downward trend, a direction exacerbated in 2016 by the impact of the Zika virus. 2018 and 2019 saw further drops, with the result that births in 2019 were 10% lower than in 2013.
  • In 2019, the market for baby food stood at COL$901.5 billion, equivalent to US$278 million. Since 2013, retail sales have grown by 42% and volume sales by 7%, with all the main categories experiencing growth.
  • Milks accounted for 61% of value sales in 2019, down from 64% in 2013. Both wet and dry meals have risen more strongly, reflecting higher unit price increases. In terms of volume, wet meals account for an appreciably higher share of sales (40% in 2019, compared to 27% in the case of cereals). Baby drinks are no longer available, and sales of finger foods are extremely low at present.
  • Imports of baby milks & cereals have generally been on an upward trend since 2013, although they fell in 2019, to stand at 10,308 tons, worth US$62 million. Exports of milks and cereals are almost negligible.
  • The top three manufacturers accounted for only 60% of sales value in 2019. In 2019, Nestlé ranked first with a 37% value share, followed by Mead Johnson with 12%. Abbott is believed to have overtaken the Aspen brands (now owned by Lactalis) to claim third place, with an 11% share.
  • The market is forecast to grow by 15% in value between 2019 and 2025, to reach COL$1,038 billion.
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 has been on a downward trend, and the crude birth rate has fallen significantly
      • Table Birth and Population Trends, 2009-2019
    • Births - Birth Rates by Region: In 2019, 13.3% of births occurred in the capital, Bogotá DC
      • Table Live Births by Province, 2016 & 2019
    • The Consumer: Poverty levels have been falling, but remain significant
    • The Consumer: By May 2020, COVID-19 had led to a reduction in income for 44% of the working population
      • Table Effects of COVID-19 on the Working Population, May 2020
    • The Consumer: Colombian consumers are gradually changing their attitude towards commercially prepared baby food
      • Table Eating-related Problems of Under-5s, 2000-2015
    • The Consumer: Consumption of infant formula is most prevalent when babies are aged between four and nine months
      • Table Types of Baby Food Eaten, 2010
    • The Consumer: Among non-breastfed babies aged up to six months, infant formula was consumed on average 3.3 times per day in 2005
      • Table Frequency of Eating Baby Food, 2005
    • Socio-demographic Trends - Births by Age of Mother: Over 70% of births occur to mothers aged 15-29
      • Table Births by Age of Mother, %, 2013-2019
  • Working Women - Number of Women of Child Bearing Age: The number of women of childbearing age (15-49) is increasing
    • Table Number of Women of Childbearing Age by Age Group, 2010, 2016 & 2020
    • Working Women - Female Employment: The proportion of women in paid employment fell slightly between 2015 and 2019
      • Table Female Employment Trends, 2013 and 2020
    • Working Women - Legislation: In January 2017 maternity leave was extended to 18 weeks
    • Breastfeeding Trends - Promotion: An important part of the government's plan to improve child nutrition is to increase the average duration of exclusive breastfeeding
    • Breastfeeding Trends - Prevalence: Early breastfeeding initiation is common, and in 2015 stood at 72%
    • Breastfeeding Trends - Prevalence: Rates of exclusive breastfeeding at six months and any breastfeeding at 12 months fell between 2010 and 2015
      • Table Breastfeeding Trends, 1995-2015
    • Breastfeeding Trends - Prevalence: Although early breastfeeding rates have fallen slightly, there is a tendency to breastfeed for longer
      • Table Breastfeeding by Type and by Age of Baby, %, 2005 & 2010
    • Breastfeeding Trends - Prevalence: In 2010, almost half of all mothers exclusively breastfed their babies up to the age of three months
      • Table Breastfeeding Habits, % of Babies, 2010
    • Breastfeeding Trends - Duration: The median duration of any breastfeeding was 14.9 months in 2010, and the median duration of exclusive breastfeeding 1.8 months
      • Table Average Length of Breastfeeding by Socio-Economic Characteristics, 2000-2010
    • Regulations: In 2015, the government announced additional measures to ban inappropriate marketing tactics
    • Regulations: The International Code of Marketing of Breastmilk Substitutes is still not fully implemented into legislation
  • Overview
    • Sector Overview: In 2019, the market for baby food in Colombia had a retail value of COL$901 billion (US$278 million)
    • Sector Overview: Milks account for 61% of value sales, but cereals and wet meals have seen higher growth rates in terms of value
      • Table Sector Size, 2019, and Growth Rates, 2013-2019
    • Manufacturer Shares: The market is fragmented and the top three manufacturers accounted for only 60% of sales value in 2019
      • Table Baby Food: Manufacturer Shares, Value and Volume, %, 2013-2019
    • Manufacturer Shares: Nestlé, Mead Johnson, and Abbott dominate in value terms, but in volume, Alpina and Heinz are also prominent
    • Manufacturer Shares: Nestlé leads in both the milks and cereals categories, with Heinz and Alpina dominating the meals category
      • Table Baby Food: Manufacturer Shares by Category, % Value, 2019
  • Category Analysis
    • Category Analysis: Baby Milks
    • Baby Milks Category Trends: Sales have risen fairly strongly since 2013 and reached US$169 million in 2019
      • Table Baby Milks: Category Growth, % 2013-2019
    • Baby Milks Category Trends: Lower average prices have encouraged sales and led to volume growth of 13% since 2013
    • Baby Milks Per Capita Trends: Per capita consumption of baby milks has continued to increase
    • Baby Milks Per Capita Trends: Consumption among older babies (1-3 years) is increasing but stood at only 1.4kg per head in 2019
    • Baby Milks Segmentation: The proportion of sales taken by first-stage milks has dropped significantly due to a fall in birth numbers and higher rates of mixed feeding
    • Baby Milks Segmentation: Milks with HMO, OPO and other ingredients promoted as efficacious are increasingly popular
    • Baby Milks Segmentation: For milk powders, the most frequently found size in 2017 was 400g with 39% of facings
    • Baby Milks Segmentation: Cans continue to dominate the sale of powdered formulae
    • Baby Milks Segmentation: Most special formulae retail at prices from COL$120,000 (US$33) per kilogram
      • Table Powdered Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Segmentation: Mid-priced products retail from COL$71,667 (US$19.72) per kg to over COL$110,000 (US$30.26)
      • Table Powdered Baby Milks: Brand Price Positioning Analysis, 2020 (Cont..)
    • Baby Milks Segmentation: Nestogeno, Klim and Alpina compete in the low-priced segment
      • Table Liquid Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Manufacturer Shares: Only a handful of manufacturers operate in the baby milks category in Colombia and nearly all are multinationals
      • Table Baby Milks: Manufacturer Shares, Value and Volume, %, 2013-2019
    • Baby Milks Manufacturers and Brands: Nestlé is the clear leader, and has consolidated its lead recently
    • Baby Milks Manufacturers and Brands: Danone has yet to make the impact it was aiming for
    • Category Analysis: Baby Cereals and Dry Meals
    • Baby Cereals and Dry Meals Category Trends: Demand for cereals and dry meals has remained at just over 5,000 tons per year since 2013
      • Table Baby Cereals Category Growth, %, 2013-2019
    • Baby Cereals and Dry Meals Per Capita Trends: Per capita consumption rose by 9% from 2013 to 2019 to 2.7kg
    • Baby Cereals and Dry Meals Segmentation: Most products retail at between US$8 and US$10 per kg
      • Table Baby Cereals: Price Positioning, 2020
    • Baby Cereals and Dry Meals Segmentation: The vast majority of products are sold in boxes, most containing 200g
      • Table Baby Cereals: Facings by Pack Size, 2017
    • Baby Cereals and Dry Meals Manufacturers: Nestlé is clearly dominant in the cereals category
      • Table Baby Cereals and Dry Meals: Manufacturer Shares, Value and Volume, %, 2013-2019
    • Baby Cereals and Dry Meals Manufacturers and Brands: Nestlé's nearest competitor is Quaker, but the gap between the two companies is huge
    • Category Analysis: Baby Meals
    • Baby Meals Category Trends: In volume terms, baby meals constitute the largest category in the baby food market
      • Table Baby Cereals Category Growth, %, 2013-2019
    • Baby Meals Category Trends: Demand has been strong, led by mothers who like the convenience of prepared meals
    • Baby Meals Per Capita Trends: In 2019, per capita consumption of baby meals amounted to 4.1 kg, a rise of 9.4% since 2013
    • Baby Meals Segmentation: Organic meals are increasingly popular
    • Baby Meals Segmentation: Pouches are more expensive than jars on a per kg basis
      • Table Baby Meals and Others: Price Positioning, 2020
    • Baby Meals Segmentation: Pouches are increasing their availability and share of sales
    • Baby Meals Manufacturers and Brands Shares: Unlike most other categories of the baby food sector, local brands maintain a significant share of baby meals sales
      • Table Baby Meals : Manufacturer Shares, Value and Volume, %, 2013-2019
    • Baby Meals Manufacturers and Brands Shares: Alpina continues to lead in volume terms but Heinz is first in value sales
    • Baby Meals Manufacturers and Brands Shares: The category is attracting new entrants, particularly companies marketing meals in pouches
    • Category Analysis: Baby Drinks
    • Baby Drinks Category Trends: Sales of drinks, always low, declined rapidly from 2015 onwards and have now disappeared from the market
    • Baby Drinks Per Capita Trends: In recent years, consumption never exceeded a peak of 247ml (2013/14) and by 2017 demand fell to zero
    • Baby Drinks Manufacturer Shares: Alpina, the only manufacturer of significance operating in this small category in 2015, has now withdrawn
      • Table Baby Drinks: Manufacturer Shares, Value and Volume, %, 2011-2015
    • Definitions: Baby Finger Foods
    • Baby Finger Foods: This is so far a tiny category offering very few products
      • Table Baby Finger Foods: Price Positioning, 2020
    • Baby Finger Foods: Players in the wet meals category are dipping their toes into the finger foods category
  • Production and Trade
    • Production: A significant, but shrinking, proportion of the market is supplied through locally manufactured baby foods
    • Imports: Imports of baby milks and cereals dipped slightly in 2019, but have been on a generally upward trend
    • Exports: Exports of milks and cereals are almost negligible, but exports of baby meals, though still low, have reached a higher level
  • Company Profiles
    • Company Profiles: Nestlé de Colombia SA
    • Company Profiles: Mead Johnson Nutrition Colombia Ltda
    • Company Profiles: Abbott de Colombia SA
    • Company Profiles: Lactalis (previously Aspen)
    • Company Profiles: Alpina Productos Alimenticios SA
    • Company Profiles: Alpina Productos Alimenticios SA
    • Company Profiles: Danone Baby Nutrition Colombia SAS
    • Company Profiles: Alimentos Polar Colombia SA (Productos Quaker)
    • Company Profiles: Compañía Nacional de Levaduras Levapan SA
    • Company Profiles: Other Manufacturers
  • Distribution
    • Baby Food Retailing: Food retail outlets - mostly independent grocery stores and supermarkets - account for the majority of baby food volume sales
      • Table Baby Food: Sales by Outlet Type, % Volume, 2013-2019
      • Table Baby Food: Sales by Outlet Type and Category, % Volume, 2019
  • Economic Background
    • Economic Background: After faring relatively well for several years, the economy is expected to shrink by at least 7.8% in 2020
      • Table Economic Indicators, 2013-2020
    • Key Macro-economic Forecasts: In 2020, inflation is forecast to drop to 2.2%, but then rise to around 3% per annum up to 2025
      • Table Key Macro-economic Forecasts, 2019-2025
  • Prospects and Forecasts
    • Birth and Population Projections: The number of births is expected to continue to decline, falling to 578,000 by 2025
      • Table Birth and Population Projections, 2013-2025
    • Forecast Overview: Value sales are expected to grow by only 15% between 2019 and 2025, following a clear fall in 2020
    • Future Trends: The effects of the COVID-19 pandemic are expected to cause a 6% drop in volume sales in 2020
    • Future Trends: Prospects from 2022 onwards are relatively good, but declining birth numbers will hinder greater expansion
  • Appendix
    • Appendix - The Baby Population: The baby population is forecast to decline by 9.4% over the next six years to 1.76 million in 2025
      • Table Baby Population, Number of Babies, `000, 2009-2025
    • Appendix - Sector Value: Sales of baby food rose by 42% from 2013 to 2019 to hit COL$901 billion, with strong growth in all categories except drinks
      • Table Baby Food: Market Value, Constant Prices, 2013-2019
    • Appendix - Sector Value: At constant prices the overall baby food sector increased by 10%, with the cereals category up by 30%
      • Table Baby Food: Market Value, US$, 2013-2019
    • Appendix - Sector Value: The sector was valued at US$278 million; milks accounted for 61% of this
      • Table Baby Food: Market Volume, Tons, 2013-2019
    • Appendix - Sector Volume: Consumption of baby food has risen only modestly, reaching 19,847 tons in 2019, just 7% higher than in 2013
      • Table Baby Food: Market Volume, Tons, 2009-2015
    • Appendix - Per Capita Expenditure: Per capita expenditure rose by 46% from 2013 to 2019 to COL$463,661 per infant aged 0-36 months
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2013-2019
    • Appendix - Per Capita Expenditure: In real terms, per capita expenditure has risen by 12.8%, with slower annual growth since 2016 than between 2013 and 2015
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2013-2019
    • Appendix - Per Capita Expenditure: Per capita expenditure stood at US$143.2 in 2019, a similar level to Peru and Mexico
      • Table Baby Food: Per Capita Expenditure, US$ Dollars Prices, 2013-2019
    • Appendix - Per Capita Consumption: Per capita consumption has risen steadily over the 2013-2019 period to reach 10kg per baby aged 0-36 months
      • Table Baby Food: Per Capita Consumption, Grams, 2013-2019
    • Appendix - Milks: Consumption of baby milks has risen steadily since 2013 to reach 6,591 tons in 2019, with value boosted by a move towards higher-priced formulae
      • Table Baby Milks: Category Trends, 2013-2019
    • Appendix - Milks: The share of first-stage milks has fallen significantly due to a fall in birth numbers
      • Table Baby Milks: Market Segmentation, Value and Volume, 2013-2019
    • Appendix - Milks: Alpina's products are among the cheapest on the market
      • Table Baby Milks - Brand Price Analysis, 2020
    • Appendix - Baby Cereals and Dry Meals: Since 2014, volumes have been rising only slowly, but demand for more sophisticated products has caused strong value increases
      • Table Baby Cereals and Dry Meals: Category Trends, 2013-2019
    • Appendix - Baby Meals: With existing high levels of consumption, growth has been only moderate, at less than 7% in volume terms
      • Table Baby Meals: Category Trends, 2013-2019
    • Appendix - Baby Drinks: After some years of stagnation, the drinks market has succumbed to the lack of demand, with sales dwindling to nothing by 2017
      • Table Baby Drinks: Category Trends, 2013-2019
    • Appendix - Imports: Imports of baby milks and cereals were on an upward trend up to 2018, with Mexico the major country of origin
      • Table Baby Milks and Cereals: Import Trends, 2013-2019
      • Table Imports of Milks and Cereals by Country of Origin, 2017-2019
    • Appendix - Imports: Imports of fruit-based meals rose strongly up to 2018, but fell back in 2019
      • Table Imports of Baby Meals by Type, Volume and Value, 2013-2019
      • Table Imports of Other Baby Meals by Country of Origin, 2017-2019
    • -Appendix - Exports: Exports of milks and cereals are almost negligible, and primarily destined for the US and Ecuador
      • Table Baby Milks and Cereals: Export Trends, 2013-2019
      • Table Exports of Milks and Cereals by Country of Destination, 2017-2019
    • Appendix - Exports: Exports of baby meals are low, though rising
      • Table Baby Meals: Export Trends, 2013-2019
      • Table Exports of Sweet Meals by Country of Destination, 2017-2019
    • Appendix - Value Forecasts: After falling in 2020, the baby food sector is forecast to show steady growth and to be worth COL$1,037 billion by 2025
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2019-2025
    • Appendix - Value Forecasts: At constant 2019 prices, the sector will decrease by 2.4% over the 2019-2025 period
      • Table Baby Food: Market Value Forecasts, US Dollars Million, 2019-2025
    • Appendix - Value Forecasts: Sales will rise by 15% by 2025, with milks and meals outpacing the increase in the cereals category
      • Table Baby Food: Market Volume Forecasts, Tons, 2019-2025
    • Appendix - Volume Forecasts: Consumption of baby food is forecast to fall by 6% in 2020 and by 2% between 2019 and 2025 as a whole
      • Table Baby Food: Market Volume Forecasts, Tons, 2019-2025
    • Appendix - Per Capita Forecasts: Per capita expenditure will expand to COL$588,774 per baby aged 0-36 months in 2025
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2019-2025
    • Appendix - Per Capita Forecasts: In real terms, per capita expenditure will rise by around 7% in all categories
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2019-2025
    • Appendix - Per Capita Forecasts: By 2025, per capita expenditure will stand at US$182 per baby aged 0-36 months
      • Table Baby Food: Per Capita Expenditure, US$ Dollars, 2019-2025
    • Appendix - Per Capita Forecasts: Per capita consumption will drop by 4.5% in 2020, but then begin to expand by 2-3% per year
      • Table Baby Food: Per Capita Consumption, Grams, 2019-2025
    • Appendix - Storechecks: Baby meals and milks accounted for the vast majority of facings in 2017
      • Table Baby Food: Facings Allocation by Product Type
    • Summary Methodology
    • About GlobalData

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