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Feeding Babies and Toddlers - US - February 2016

Feeding Babies and Toddlers - US - February 2016

Following five years of 2.4% annual sales growth, the market for baby/toddler foods has reached $6.9 billion, and with the increase in the birthrate, the market for baby/toddler food and drinks will grow.

This report examines the following areas:

Baby food/drink sales to rise
Breastfeeding’s growth comes at formula’s expense
Birthrate rise should bode well for baby food/drink


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Total US sales and fan chart forecast of baby food and drink, at current prices, 2010-20
Figure 2: Total US retail sales and forecast of baby formula, at current prices, 2010-20
Figure 3: Annual births and fertility rate, 2003-14
The opportunities
Figure 4: Baby food launches in the US, by claim, 2010-15
Figure 5: Baby/toddler food opportunities, December 2015
Figure 6: Attitudes toward vegetables and calorie consumption, Any agree, by Hispanic origin, December 2015
What it means
THE MARKET
What you need to know
Baby food/drink sales rise
Formula leads a growing market, with baby food/snacks gaining ground
Mothers having children later in life
Market size and forecast
Baby food sales continue to grow
Figure 7: Total US sales and fan chart forecast of baby food and drink, at current prices, 2010-20
Figure 8: Total US sales and forecast of baby food and drink, at current prices, 2010-20
Market breakdown
Formula dominates market share
Figure 9: Sales of baby food and drink, by segment, current year
Formula sales to increase
Figure 10: Total US retail sales and forecast of baby formula, at current prices, 2010-20
Organic impact on baby food/snacks
Figure 11: Total US retail sales and forecast of baby food and snacks, at current prices, 2010-20
Electrolytes a small but growing segment
Figure 12: Total US retail sales and forecast of baby electrolytes, at current prices, 2010-20
Baby juice continues decline
Figure 13: Total US retail sales and forecast of baby juice, at current prices, 2010-20
Supercenters/club stores impacting supermarket baby food sales
Figure 14: Total US retail sales of baby food and drink, by channel, at current prices, 2010-15
Dramatic sales jump for formula in natural channels
Figure 15: Change in sales of baby food and drink – overall natural channel versus naturally-positioned products in the natural channel,
at current prices, rolling 52 weeks ending Nov. 3, 2013, and Nov. 1, 2015
Market perspective
Recall relevance
Breastfeeding boom
Market factors
Consumer confidence could increase spending and possibly birthrates further
Figure 16: Consumer Sentiment Index, January 2007-November 2015
Birth rate rise should bode well for baby food/drink
Figure 17: Annual births and fertility rate, 2003-14
Babies coming later in mothers’ lives
Figure 18: US birth rates, by age of mother, 1990-2014
KEY PLAYERS
What you need to know
Nestle’s declines are Abbott’s gains
Parents continue to eschew baby juice
Celebrities fuel growth in electrolyte sales
Manufacturer sales of baby/toddler foods
Nestle dips, as Abbott and Mead Johnson rise
Manufacturer sales of baby food and drink
Figure 19: Manufacturer sales of baby food and drink, rolling 52 weeks 2014 and 2015
Baby formula brands highlight similarities to breast milk
Figure 20: MULO sales of baby formula, by leading companies and brands, rolling 52 weeks 2014 and 2015
Organic options emerge in baby food and snacks
Figure 21: MULO sales of baby food and snacks, by leading companies and brands, rolling 52 weeks 2014 and 2015
Baby electrolytes not just for babies
Figure 22: MULO sales of baby electrolytes, by leading companies and brands, rolling 52 weeks 2014 and 2015
What’s working?
Baby snack innovation rebounds
Figure 23: Baby food launches in the US, by segment, 2010-15
Figure 24: Dessert and snack product launch examples
Private label launches reflect national brand trends
Figure 25: Baby food launches in the US, branded versus private label, 2010-15
Figure 26: Private label launch examples
Baby food messages conveying the realities of parenting
Figure 27: Plum Organics # ParentingUnfiltered ad, 2015
Figure 28: Similac #EndMommyWars ad, 2015
Figure 29: Plum Organics Mighty Veggie Spinach, Parsnip, Grape and Amaranth Vegetable and Fruit Smoothie
What’s struggling?
Baby juices continue decline
Figure 30: MULO sales of baby juice, by leading companies and brands, rolling 52 weeks 2014 and 2015
Figure 31: Gerber Nature Select Apple Prune Juice
What’s next?
Organic, GMO-free baby food claims surge
Figure 32: Baby food launches in the US, by claim, 2010-15
Figure 33: Organic baby food product launch examples
Nido broadening appeal to target and advise bicultural mothers
Figure 34: Nestlé Nido Kinder Powdered Milk Beverage with Vitamins, Minerals and Prebiotic Ingredients
THE CONSUMER
What you need to know
Water, juice top parental beverage choices for babies
Nutrition on the minds of parents
Larger families more likely to trust baby food brands
Parents quickly learn to make vegetables appeal
Convenience, ease of preparation appeal to parents
Parents on introducing solid foods
Areas for baby food improvement
Drink introduction
Water, juice lead parental beverage choices
Figure 35: Drink consumption and daypart, December 2015
Formula resonates mostly with parents of youngest children
Daypart and baby beverage consumption
Figure 36: Drink consumption and daypart among children, Any usage, aged 2 and under, November 2015
Figure 37: Correspondence analysis, drink consumption and daypart, December 2015
Formula for reaching Hispanic parents
Figure 38: Drink consumption, any use, by Hispanic origin, December 2015
Nutritional opinions
Health concerns at the fore for parents
Figure 39: Opinions of baby food sugar content and nutrition, Any agree, by age of youngest child in household, December 2015
Formula resonates more with experienced parents, though sugar concerns also emerge
Figure 40: Opinions of baby food nutrition, Any agree, by number of children in household, December 2015
Baby food safety
More children leads to greater baby brand trust
Figure 41: Opinions of packaged baby food brands, Any agree, by number of children in household, December 2015
Parents seeking to trust brands throughout childhood
Figure 42: Opinions of baby food safety, Any agree, by age of youngest child in household, December 2015
Parents want safety assurance
Figure 43: Opinions of baby food brands, any agree, by household income, December 2015
Opinions on feeding babies/toddlers
Experience guiding parental opinions of vegetables, calorie intake
Figure 44: Opinions of feeding babies/toddlers vegetables, Any agree, by age of youngest child, December 2015
Making vegetables appealing to babies/toddlers
Figure 45: Opinions of feeding babies, Any agree, by generation, December 2015
Easing parents’ calorie concerns
Figure 46: Opinions of feeding babies/toddlers vegetables, Any agree, by household income, December 2015
Calorie concerns among Hispanic parents
Figure 47: Opinions of calorie content of baby foods, Any agree, by Hispanic origin, December 2015
Opinions on improving baby/toddler foods
Adding benefits to baby food
Figure 48: Opinions of baby food labeling, Any agree, by generation, December 2015
Superfood enrichment could appeal to a host of parents
Baby/toddler brands resonate with Hispanic consumers
Figure 49: Opinions of baby food labeling, any agree, by number of children in household, December 2015
Figure 50: Opinions of baby food labeling, any agree, by Hispanic origin, December 2015
Baby/toddler food opportunities
Health, convenience vie for parents’ baby/toddler food choices
Figure 51: Baby/toddler food opportunities, December 2015
Convenience resonates with lower-income households
Hispanics seek organic, nutritional improvements in baby/toddler food
Figure 52: Baby/toddler food convenience opportunities, by household income, December 2015
Figure 53: Baby/toddler food organic/nutritional opportunities, by Hispanic origin, December 2015
Introducing foods to children
Solid food introductions could build relationships with parents
Figure 54: Food introduction age, December 2015
Hispanics more likely to introduce certain solid foods within first six months
Figure 55: Food introduction age, December 2015
Baby food in need of flavor innovation
Cereals, baby foods could benefit from added flavors
Figure 56: Baby/toddler food improvement, December 2015
Household income and flavor improvement
Figure 57: Improvement for cereal, yogurt, baby/toddler foods, by household income, December 2015
Hispanics looking for cookie, yogurt flavor improvements
Figure 58: Yogurt, cookies, snacks for flavor improvement, by Hispanic origin, December 2015
Target group segmentation
Figure 59: Target groups, November 2015
Group one: Nutrition Needers
Figure 60: Opinions, any agree, by Nutrition Needers, November 2015
Group two: Pacified Parents
Figure 61: Drink consumption, any use, by Pacified Parents, November 2015
Group three: Baby Food Boosters
Figure 62: Opinions, by Baby Food Boosters, November 2015
Group four: Formula Fans
Figure 63: Opinions, by Formula Fans, November 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
Market
Market breakdown
Figure 64: Total US sales and forecast of baby food and drink, at inflation-adjusted prices, 2010-20
Figure 65: Total US retail sales and forecast of baby formula, at inflation-adjusted prices, 2010-20
Figure 66: Total US retail sales and forecast of baby food and snacks, at inflation-adjusted prices, 2010-20
Figure 67: Total US retail sales and forecast of baby electrolytes, at inflation-adjusted prices, 2010-20
Figure 68: Total US retail sales and forecast of baby juice, at inflation-adjusted prices, 2010-20
Figure 69: Births, by age of mother, live-birth order, 2014
Retail channel sales
Figure 70: Total US retail sales of baby food and drink, by channel, at current prices, 2013 and 2015
Figure 71: US supermarket sales of baby food and drink, at current prices, 2010-15
Figure 72: US drugstore sales of baby food and drink, at current prices, 2010-15
Figure 73: US sales of baby food and drink through other retail channels, at current prices, 2010-15
Natural channel sales
Figure 74: Natural supermarket sales of foods and formula for babies, by segment, at current prices, rolling 52 weeks ending Nov. 3, 2013, and Nov. 1, 2015
Figure 75: Naturally positioned baby food and formula brands sold in natural supermarket, at current prices, rolling 52 weeks ending Nov. 3, 2013, and Nov. 1, 2015
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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