Singapore Baby Food, 2020

Singapore Baby Food, 2020

Summary

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

The sector is heavily dominated by milks, partly because consumption levels are high but also because retail prices are among the highest in the world - a problem the government has recently tried to alleviate, but so far with limited success. In value terms, milks account for 87.2% of sales, wet meals and drinks for 6.3%, and cereals for 5.3%. Finger foods remain marginal. Finger foods and wet meals/drinks are showing the most growth in value terms, as more sophisticated products have come on-stream. Per capita consumption of all types of food, with the exception of baby milks, has increased since 2013.

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 birth rate fell from 7.9 per thousand population in 2009 to 6.9 per thousand population in 2019.
  • Retail sales in 2019 stood at S$211 million (US$152 million), 2.6% down on the previous year, whilst consumption fell to 4,311 tons, a decline of 1%.
  • In value terms, milks account for 87.2% of sales, wet meals and drinks for 6.3%, and cereals for 5.3%. Finger foods remain marginal.
  • Three major manufacturers have infant formula factories in Singapore: Abbott, Nestlé (via Wyeth) and Mead Johnson.
  • Abbott is the clear leader in milks, which gives it the lead position in the baby food sector as a whole. Nestlé leads in cereals, is in second place in milks and finger foods but is losing share in wet meals.
  • Retail sales are forecast to show growth of only 7.6% up to 2025, equivalent to a 1.6% rise at constant 2019 prices. Per capita consumption will, however, show slow but steady growth from 2021 onwards.
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 birth rate fell from 7.9 per thousand population in 2009 to below 6.9 per thousand population in 2019
      • Table Birth & Population Trends, Total Population, 2009–2019
    • Births – Live Birth Rates: Almost 9% of births are to non-residents
      • Table Birth & Population Trends, Resident Population, 2009–2019
    • Births – Live Birth Rates: Almost three-quarters of the resident population are ethnic Chinese, but they represent just under 60% of live births
      • Table Singapore: Ethnic Composition, 2013–2019
      • Table Singapore: Births by Ethnic Group, 2014–2019
    • Births – Live Birth Rates: The fertility rate among Malay mothers is significantly higher than among Chinese or Indian mothers
      • Table Fertility Rates by Ethnic Origin, 2000–2019
    • Births – Number of Births by Age Group: The proportion of births to older women is increasing
      • Table Births by Age of Mother, 2014, 2016 & 2018
    • Births – Number of Women of Child Bearing Age: The number of women of childbearing age fell to just over one million in 2018, 2.4% down on 2010
      • Table Number of Women of Childbearing Age by Age Group, 2010, 2016 & 2018
    • Socio-demographic Trends – Incentives for Child Birth: The government is keen to increase the birth rate to a minimum level of 50,000 babies per year
    • Socio-demographic Trends – Incentives for Child Birth: The government has continued to improve financial support for parents
    • Socio-demographic Trends – Incentives for Child Birth: The government continues to look for innovative ways to promote childbearing
    • The Consumer: Singapore is one of the wealthiest countries in the world, with a GDP per capita of over US$100,000 in 2019
      • Table Average Monthly Household Income from Work, 2013–2019
    • The Consumer: As in all developed markets, consumers are showing an increasing interest in healthy food and health matters in general
    • Working Women – Female Employment: In 2015, the proportion of women in work topped 60% for the first time, with a high proportion of women of childbearing age
      • Table Women in the Labor Force, 2013–2019
      • Table Working Women by Age Group, 2013–2019
    • Working Women – Legislation: In 2016, the government made a second week of paternity leave compulsory
    • Breastfeeding Trends – Promotion: Government authorities are taking more measures to regulate manufacturers and to promote the value of breastfeeding
    • Breastfeeding Trends – Promotion: A new code of ethics came into force in January 2020,
    • Breastfeeding Trends – Prevalence: The proportion of women who breastfeed for prolonged periods increased significantly in the decade up to 2011
      • Table Breastfeeding Incidence, 2001 & 2011
    • Breastfeeding Trends – Prevalence: Exclusive breastfeeding is considerably less prevalent than partial breastfeeding
      • Table Breastfeeding Incidence, 2004–2005
    • Breastfeeding Trends – Duration: The increase in breastfeeding duration was seen across all socio-demographic groups
      • Table Average Breastfeeding Duration by Socio-Demographic Group, 2002–2008
  • Overview
    • Sector Overview: Retail sales in 2019 stood at S$211 million (US$152 million), only 7% higher than in 2013
    • Sector Overview: Milks account for 87%, cereals 5.3% and Meals and Drinks 6.3% of value sales.
      • Table Sector Size, 2019, and Growth Rates, 2013–2019
    • Manufacturer Shares: Singapore's baby food market, although small, continues to attract a surprising number of manufacturers
      • Table Baby Food: Manufacturer Shares, %, 2014–2019
    • Manufacturer Shares: Nestlé, in second place overall, is the only major company to have a share in all market categories
      • Table Baby Food: Manufacturer Shares by Category, % Value, 2019
  • Category Analysis
    • Category Analysis: Baby Milks
    • Baby Milks Category Trends: Milks continue to dominate the market, accounting for 87.2% of market value and 74.9% of market volume in 2019
    • Baby Milks Per Capita Trends: Per capita consumption is lower now than in 2013 but remains high largely as a result of higher rates of breastfeeding
    • Baby Milks Per Capita Trends: Per capita consumption for babies aged up to 12 months is very high for the region, at 37.7kg in 2019
    • Baby Milks Segmentation: The general trend had been away from first/second stage formulae and towards special dietary and growing-up milks
    • Baby Milks Segmentation: Growing-up milks are by far the largest segment, accounting for 54% of volume in 2019
    • Baby Milks Segmentation: Agencies are working with retailers and others to try and lower prices, through more competition and better education of parents
    • Baby Milks Segmentation: Several new value-for-money brands, including own label, were launched in 2017, but one has already disappeared
      • Table Baby Milks: Price Positioning of New Brands, 2017 & 2020
    • Baby Milks Segmentation: Premium and special dietary products retail at US$46 to over US$60 per kg
      • Table Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Segmentation: Medium-priced products cluster around the US$35–45 per kg level
      • Table Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Segmentation: Low price products retail at prices below US$35 per kilogram, with Lactogen and Dupro currently offering the lowest prices
      • Table Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Segmentation: The single most popular pack size is 900g cans, accounting for just over a quarter of facings in 2017
      • Table Baby Milks by Pack Type, 2017
      • Table Baby Milks by Pack Size, 2017
    • Baby Milks Manufacturer Shares: Abbott accounts for 37% of value sales, still ahead of Nestlé, although the latter is catching up
      • Table Baby Milks: Manufacturer Shares, Value & Volume, %, 2014–2019
    • Baby Milks Manufacturer & Brands: Most manufacturers market a broad spectrum of brands to meet consumer demand
    • Baby Milks Manufacturer & Shares: Own-label and other "affordable" milks have entered the category but have yet to make a significant impact
    • Category Analysis: Baby Cereals
    • Baby Cereals & Dry Meals Category Trends: Value sales stood at S$11.2 million (US$8.1 million) in 2019, 26% up on 2013 but down since 2017
    • Baby Cereals Per Capita Trends: Per capita expenditure stood at S$95 (US$68) in 2019, equivalent to per capita consumption of 4.3kg
    • Baby Cereals Segmentation: Organic products have gained significant ground over the last few years
    • Baby Cereals Segmentation: Nestlé's Cerelac, the most popular brand on sale, is positioned mid-market, at between US$13 and US$16 per kg
      • Table Baby Cereals: Brand Price Positioning Analysis, 2020
    • Baby Cereals Segmentation: 250g packs remain the most popular size, accounting for a quarter of shelf facings in late 2017
      • Table Baby Cereals by Pack Type, 2017
      • Table Baby Cereals by Pack Size, 2017
    • Baby Cereals Brands: Nestlé remains dominant with a 44% value share in 2020
      • Table Baby Cereals : Manufacturer Shares, Value & Volume, %, 2013–2019
    • Baby Cereals Brands: The category continues to attract new, mainly organic, suppliers
    • Category Analysis: Baby Meals & Drinks
    • Baby Meals & Drinks Category Trends: The popularity of pouches has boosted category value sales since 2013
    • Baby Meals & Drinks Per Capita Trends: Per capita consumption is relatively low, at 4.5kg, and is growing only slowly
    • Baby Meals & Drinks Segmentation: Sweet meals now outsell savory meals by a margin of around two to one
      • Table Baby Drinks : Price Positioning, 2020
    • Baby Meals & Drinks Segmentation: Average per kg prices of pouches are well above the price of jars, but most prices have stabilised over the past three years
      • Table Savory Baby Meals: Price Positioning, 2020
    • Baby Meals & Drinks Segmentation: Average per kg prices for wet meals range from US$14 to over US$40 per kg
      • Table Sweet Baby Meals: Price Positioning, 2020
    • Baby Meals & Drinks Segmentation: The wet meal category was split evenly between jars and pouches in 2017
      • Table Wet Meals by Pack Type, 2017
      • Table Wet Meals by Pack Size, 2017
    • Baby Meals & Drinks Manufacturers & Brands : The market is composed almost exclusively of imported products, led by Heinz, Cussons and Nestlé's Gerber
      • Table Baby Meals & Drinks : Manufacturer Shares, Value & Volume, %, 2013–2019
    • Baby Meals & Drinks Manufacturers & Brands : Other manufacturers have made strong headway, accounting for approaching 40% of value sales in 2019
    • Category Analysis: Baby Finger Foods
    • Baby Finger Foods Category Trends: Finger foods remains by far the smallest and least developed category in the baby food sector
    • Baby Finger Foods Per Capita Trends: Per capita consumption of finger foods has been on an upward trend since 2013, increasing by 19%
    • Baby Finger Foods Segmentation: The finger foods sector comprises an increasingly broad range of products
      • Table Finger Foods: Price Positioning, 2020
    • Baby Finger Foods Segmentation : There is a very broad range of pack sizes in this category, reflecting the diversity of the products marketed
      • Table Finger Foods by Pack Type, 2017
      • Table Finger Foods by Pack Size, 2017
    • Baby Finger Foods Manufacturers & Brands Shares: Heinz remains in the lead, but other brands have made significant inroads
      • Table Baby Finger Foods: Manufacturer Shares, Value & Volume, %, 2014–2019
  • Production and Trade
    • Production: Singapore has become an Asian hub for the production of baby milk
    • Imports: The Netherlands is the main source of imports of milks & cereals, accounting for 41% of volume in 2019
    • Exports: Singapore is a major transit center and a significant proportion of exports actually represent re-exports
  • Company Profiles
    • Company Profiles: Abbott Laboratories Singapore Pte Ltd
      • Table Market Shares, 2019
    • Company Profiles: Nestlé Singapore (Pte) Ltd
      • Table Market Shares, 2019
    • Company Profiles: Mead Johnson Nutrition (Singapore) Pte Ltd
      • Table Market Shares, 2019
      • Table Mead Johnson: Sales in Singapore, 2011-2016
    • Company Profiles: Danone Dumex Early Life Nutrition Singapore Pte Ltd
      • Table Market Shares, 2019
    • Company Profiles: FrieslandCampina (Singapore) Pte Ltd
      • Table Market Shares, 2019:
    • Company Profiles: Heinz Singapore Pte Ltd
      • Table Market Shares, 2019:
    • Company Profiles: Other Manufacturers
  • Distribution
    • Baby Food Retailing: Supermarkets and hypermarkets are the most important distribution outlets for baby milks
      • Table Baby Milks: Sales by Outlet Type, 2014–2019
    • Baby Food Retailing: Supermarkets/hypermarkets have an even larger share of baby meals and juices
      • Table Baby Meals & Juices: Sales by Outlet Type, 2014–2019
  • Economic Background
    • Economic Background: The economy stalled in 2019, after many years of strong growth
      • Table Key Macroeconomic Indicators, 2013–2020
    • Key Macroeconomic Forecasts: GDP growth is forecast to fall by at least 6% in 2020, but bounce back by almost 5% the following year
      • Table Key Macroeconomic Forecasts, 2019–2025
  • Prospects and Forecasts
    • Birth and Population Projections: The number of births is expected to fall slowly between 2020 and 2025
      • Table Baby Food: Sector Size, 2019–2025 Baby Food: Per Capita, 2019–2025
    • Forecast Overview: Growth of only 7.6% in value sales is expected up to 2025, and volume sales may rise by only 1.4%, as the baby population continues to decline
      • Table Baby Food: Category Growth, 2019–2025
    • Consumer Attitudes: The impact of COVID-19
    • Consumer Attitudes: Lower birth numbers and higher breastfeeding rates will act to stifle growth, particularly of baby milks
  • Appendix
    • Appendix — The Baby Population: The baby population will decline to 114,236 in 2025, 3.1% down on 2019
      • Table Baby Population, Number of Babies, 2009–2025
    • Appendix — Sector Value: Value sales have risen by just 7% between 2013 and 2019, to S$211 million (US$152 million)
      • Table Baby Food: Market Value, Current Prices, 2013–2019
    • Appendix — Sector Value: In constant price terms, the market rose by 6% between 2013 and 2019
      • Table Baby Food: Market Value, Constant Prices, 2013–2019
    • Appendix — Sector Value: Sales stood at US$152 million in 2019, US$132 million of which consisted of baby milks
      • Table Baby Food: Market Value, US$ Million, 2013–2019
    • Appendix — Sector Volume: Since 2013 the market has shrunk by 5% due to a decline in milk consumption
      • Table Baby Food: Market Volume, Tons, 2013–2019
    • Appendix — Per Capita Expenditure: Per capita expenditure rose by 11% over the 2013–2019 period to S$1,800 (US$1,299)
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2013–2019
    • Appendix — Per Capita Expenditure: In constant price terms, expenditure grew by just 9% between 2013 and 2019
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2013–2019
    • Appendix — Per Capita Expenditure: Per capita expenditure amounted to US$1,288 in 2019, of which US$1,122 went on baby milks
      • Table Baby Food: Per Capita Expenditure, US Dollars, 2013–2019
    • Appendix — Per Capita Consumption: In 2019, per capita consumption stood at 36.6kg, down from 37.1kg in 2013
      • Table Baby Food: Per Capita Consumption, Grams, 2013–2019
    • Appendix — Category Trends: Consumption of milks decreased by 7% between 2013 and 2019, with value sales rising by just 4%
      • Table Baby Milks: Category Trends, 2013–2019
    • Appendix — Milks: Growing-up milks is by far the largest single segment, claiming over half of value sales in 2019
      • Table Baby Milks: Category Segmentation, Value & Volume, 2013–2019
    • Appendix — Milks: Baby milks prices are among the highest in the world
      • Table Baby Milks - Powder: Brand Price Analysis, 2020
    • Appendix — Milks: Nestlé and Danone offer milks at various price points
      • Table Baby Milks - Powder: Brand Price Analysis, 2020
    • Appendix — Milks: Nestlé fields one of the lowest priced milks on the market – Lactogen at just US$12.79 per kg
      • Table Baby Milks - Powder: Brand Price Analysis, 2020
    • Appendix — Cereals & Dry Meals: Volume sales have increased by just 1% although value sales have increased by 26% since 2013
      • Table Baby Cereals & Dry Meals: Category Trends, 2013–2019
    • Appendix — Baby Meals & Drinks: Sector value increased by over 50% between 2013 and 2019, due in large part to the success of pouches
      • Table Baby Meals & Drinks: Category Trends, 2013–2019
    • Appendix — Finger Foods: Although this is the fastest growing category, it remains tiny, at less than 1% of total sector volumes
      • Table Baby Finger Foods: Category Trends, 2013–2019
    • Appendix — Imports: Imports of milks & cereals have fluctuated around 1,400 tons per year since 2015
      • Table Imports of Milks & Cereals, Volume & Value, 2013–2019
      • Table Imports of Milks & Cereals by Country of Origin, Volume & Value, 2017–2019
    • Appendix — Imports: Imports of other baby food have generally been falling and were below 200 tons in 2019
      • Table Imports of Other Baby Food by Type, Volume & Value, 2013–2019
      • Table Imports of Baby Food by Country of Origin, Volume & Value, 2017–2019
    • Appendix — Exports: Exports of milks & cereals are destined mainly for neighboring countries, including Vietnam, Thailand, and the Philippines
      • Table Exports of Milks & Cereals, Volume & Value, 2013–2019
      • Table Exports of Milks & Cereals by Country of Destination, Volume & Value, 2017–2019
    • Appendix — Imports: Exports of other baby food have been falling, and dropped to 129 tons in 2019
      • Table Exports of Other Baby Food by Type, Volume & Value, 2013–2019
      • Table Exports of Baby Food by Country of Destination, Volume & Value, 2017–2019
    • Appendix — Value Forecasts: By 2025 the market is projected to be worth S$227 million (US$163 million) at current prices, up 8% over 2019
      • Table Baby Food: Market Value Forecasts, Current Prices, 2019–2025
    • Appendix — Value Forecasts: In constant price terms, sales are forecast to rise just 2% between 2019 and 2025
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2019–2025
    • Appendix — Value Forecasts: In 2025, the sector is expected to be worth US$163 million, up 8% on the 2019 level
      • Table Baby Food: Market Value Forecasts, US$ Million, 2019–2025
    • Appendix — Volume Forecasts: Total baby food consumption is forecast to rise slightly — by 1.4% — between 2019 and 2025, as birth numbers decrease
      • Table Baby Food: Market Volume Forecasts, Tons, 2019–2025
    • Appendix — Per Capita Forecasts: Average expenditure per baby up to three years old is expected to reach S$1,989 (US$1,431) by the end of 2025
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2019–2025
    • Appendix — Per Capita Forecasts: In constant price terms, per capita expenditure is forecast to rise by just over 5% between 2019 and 2025
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2019–2025
    • Appendix — Per Capita Forecasts: In 2025, total expenditure is expected to be US$1,431, of which US$1,216 will go to milks
      • Table Baby Food: Per Capita Expenditure, US$, 2019–2025
    • Appendix — Per Capita Forecasts: Per capita consumption is forecast to stand at 38.3kg in 2025, up 5% over 2019, with all categories recording growth
      • Table Baby Food: Per Capita Consumption, Grams, 2019–2025
    • Appendix — Storechecks: Of the 710 facings recorded in-store in 2017, the largest proportion, 40%, was accounted for by milks
      • Table Facings Allocation by Product Type
    • Summary Methodology
    • About GlobalData

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