Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- ACORN
- Abbreviations
Premier Insight
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- One-stop baby solution
- Celebrities could play greater role in promotion
- Own-label: opportunity or threat
- Following in the steps of the chilled foods revolution
- Indirectly influential
Executive Summary
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- Rise in births provides welcome boost
- Growth in retail sales has accelerated
- Supply is highly concentrated
- Organic baby food grows in importance
- NPD in finger foods
- Greater emphasis on below-the-line support
- Direct marketing initiatives vital to brand loyalty
- The grocery multiples dominate distribution
- Usage levels have increased
- Inexperience pays off for the baby food market
- ...with convenience being a key driver
- National roll-out of Healthy Start vouchers
- Innovation in NPD driving future sales
Market Drivers
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- Downward trend in births goes into reverse
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- Figure 1: UK birth-rates, 2000-10
- Women are giving birth later
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- Figure 2: Number of births in England and Wales, by age of mother, 1981-2004
- Breastfeeding
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- Figure 3: UK breastfeeding rates, by age of child, 1980-2000
- Rising incomes make childrearing more affordable
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- Figure 4: PDI and consumer expenditures, at current and constant prices, 2000-09
- More women are working
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- Figure 5: UK workforce in employment, by gender, 2000-09
- Figure 6: UK workforce in part-time employment, by gender, 2000-05
- Structural changes in population favour growth of higher-value sectors
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- Figure 7: Trends and projections in UK population, by socio-economic group, 2000-09
- Subsidising a Healthy Start
- Time-pressed mothers are doing it all
- Review of traditional roles
- Convenience is an ingrained habit
- Only the best for aspirational parents
The Work and Families Bill
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- Extending maternity pay
- Increasing childcare provision
- Extended school hours
- Rise in childcare tax credit
- More daycare places
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- Figure 8: Provision of daycare facilities in England, 2000-04
Market Size and Trends
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- Figure 9: Total UK retail sales of baby food and drink, by volume and value, 2000-05
- Meals account for majority of volume
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- Figure 10: UK retail volume sales of baby food and drink, by product type, by volume, 2000-05
- Milks have made greatest contribution to value growth
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- Figure 11: UK retail value sales of baby food and drink, by product type, by value, 2000-05
- Healthy eating mothers want best for their babies
- NPD has extended the consumer base
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Market Segmentation
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- Baby milks
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- Figure 12: UK retail value sales of baby milks, by type, 2000-05
- First- and second-stage powders account for the majority of sales
- Value for money becomes value for vouchers
- Follow-on milks grow more slowly
- RTF enjoys double-digit growth
- Demand for specialist milks has declined
- Baby meals
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- Figure 13: UK retail value sales of baby meals, by type, 2000-05
- Wet meals have gained share
- Sales of canned meals decline
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- Figure 14: UK retail value sales of wet baby meals, by type, 2000-05
- Sales of dry meals and cereals continue their downward trend
- Finger foods show dynamic growth from a small base
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- Figure 15: UK retail value sales of baby finger foods, by type, 2000-05
- NPD has driven growth
- Baby drinks
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- Figure 16: UK retail value sales of baby drinks, by type, 2000-05
- Organics – more than just a healthy niche
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- Figure 17: Total UK retail sales of organic baby food and drink, 2000-05
The Supply Structure
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- Top three brands dominate
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- Figure 18: Estimated manufacturer/brand shares in the UK baby food and drink market, by value, 2002-05
- Heinz struggles to maintain lead
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- Figure 19: Estimated manufacturer/brand shares in the UK baby food and drink market, by sector, 2005
- HiPP dominates the organic sector
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- Figure 20: Estimated manufacturer/brand shares in the UK organic baby food and drink market, by value, 2002-05
- Companies and brands
- Heinz
- HiPP UK Ltd
- Nutricia
- Organix
- SMA Nutrition
- All Good Stuff
- Babylicious
- Bebivita
- Buxton Foods
- Daisy
- Danone
- Miniscoff
- Truuuly Scrumptious
New Product Development
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- Heinz most active brand
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- Figure 21: UK new product launches, by brand, Sept 2004-05
- Fruit flavours most widespread
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- Figure 22: UK new product launches, by primary flavour, Sept 2004-05
- Convenience is a key theme
- Innovation vs range extension
- Extending the average age of consumption upwards
- New Product Briefs
- Babylicious
- Bledina
- Boots
- Enfamil
- Heinz
- HiPP
- Nanny Care
- Nutricia
- Organix
- Sainsbury’s
Advertising and Promotion
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- Adspend levels respond to increasing demand
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- Figure 23: Main monitored media advertising expenditure on baby food & drink, 2000-04
- Cow & Gate supports follow-on milk
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- Figure 24: Main monitored media advertising expenditure on organic food ranges, by top-spending brands, 2002-05
- Direct advertising of infant formula is banned
- Progress targets babies’ growing needs
- Cow & Gate empathises with toddlers’ needs
- Aptamil gives toddlers a head start
- Heinz talks sense
- HiPP offers reassurance
- Below-the-line promotions
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- Figure 25: Below-the-line promotions, by brand, January-September 2005
- Figure 26: Below-the-line promotions, by type, January-September 2005
- Direct marketing initiatives prevail despite restrictions
- Sampling is widely used
- Cow & Gate roadshow
- Building relationships is important
- Heinz keeps in touch /protects its number one position
Distribution
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- Figure 27: UK retail sales of baby food and drink, by type of outlet, 2000-05
- Grocery multiples increase their share
- Healthy Start will boost grocery share further
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The Consumer
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- Trends in usage of baby or junior foods, cereals and rusks
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- Figure 28: Usage of baby or junior foods, cereals and rusks, 2002-05
- Successful attempts to extend consumer lifecycle
- Prolonged impact from birth-rate boost
- Welcoming profitable new light users
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- Figure 29: Chart showing extended lifecycle for baby food and milk
- Younger parents tend to be heavier users of baby foods
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- Figure 30: Usage of baby or junior foods, cereals and rusks, by age, 2002-05
- 30-34 age group key target for volume sales
- ABC1 families tend towards medium or light usage
- Target market for baby milk expands
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- Figure 31: Usage of baby milk, 2002-05
- Younger parents and C2s are heaviest users of baby milks
- Medium/light users tend to be more affluent
- Attitudes and behaviour towards baby food
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- Figure 32: Attitudes and behaviour towards baby food, August 2005
- Commitment to a varied and healthy balanced diet
The Consumer – Detailed Demographics
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- TGI data: Usage of baby or junior foods, cereals and rusks
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- Figure 33: Usage of baby or junior foods, cereals and rusks, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region and lifestage, 2005
- Usage of baby milk
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- Figure 34: Usage of baby milk, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region and lifestage, 2005
- Attitudes towards baby foods, milk and drinks
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- Figure 35: Age of children, August 2005
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- Figure 36: Attitudes towards prepared baby foods, milk and drinks, by age, socio-economic group, Mintel's Special Groups, region, marital status, working status and presence of children, August 2005
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- Figure 37: Attitudes towards prepared baby foods, milk and drinks, by ACORN categories, media usage, commercial TV viewing and supermarket usage, June 2005
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- Figure 38: Attitudes towards prepared baby foods, milk and drinks, by age, socio-economic group, Mintel's Special Groups, region, marital status, working status and presence of children, August 2005
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- Figure 39: Attitudes towards prepared baby foods, milk and drinks, by ACORN categories, media usage, commercial TV viewing and supermarket usage, June 2005
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- Figure 40: Attitudes towards prepared baby foods, milk and drinks, by age, socio-economic group, Mintel's Special Groups, region, marital status, working status and presence of children, August 2005
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- Figure 41: Attitudes towards prepared baby foods, milk and drinks, by ACORN categories, media usage, commercial TV viewing and supermarket usage, June 2005
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- Figure 42: Cross-analysis of attitudes towards baby food and buying behaviour, August 2005
The Consumer – Assessing Consumer Target Groups
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- Figure 43: Consumer typologies with regard to baby food, drinks and milk, August 2005
- Targeting Novices (30% of respondents)
- Targeting Dedicated Foodies (28% of respondents)
- Targeting Prepared Balancers (24% of respondents)
- Health Conscious (18%)
- Overall conclusions
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Attitudes and Motivations – Detailed Demographics
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- Consumer typologies
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- Figure 44: Consumer typologies with regard to baby food, drinks and milk, by age, socio-economic group, region, working status, marital status, presence of children, media usage, commercial TV viewing and supermarket usage, August 2005
The Future
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- Greater involvement of fathers may also increase sales
- Convenience becomes the norm
- Healthy eating here to stay
- Growing-up milks could boost sales
- Healthy Start will raise retail sales of milk
Forecast
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- Figure 45: Forecast of UK retail value sales of baby food and drinks, by product type, 2005-10
- Figure 46: Forecast of UK retail volume sales of baby food and drinks, 2005-10
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- Figure 47: Indexed forecast of baby food and drinks, live births, PDI and Consumer expenditure, 2000-10
- Milk sales expected to remain strong
- Meals show decline in real terms
- Fastest growth still in finger foods
- Drinks in decline
- Factors used in the forecast
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