Baby Food and Drink - US - May 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Overview
Healthy growth predicted
Figure 1: Total US retail sales and fan chart forecast of baby food and drink, at current prices, 2008-18
Sales driven by increasing number of babies/toddlers, rise of organic products
Slow economy and rise in breastfeeding prevent greater gains
Key players
The consumer
Respondents are most apt to feed their kids store-bought, but homemade also popular
Figure 2: Foods parents feed their children aged 2 or younger, January 2014
Parents more apt to give their kids water, cow’s milk than baby/toddler juice or formula
Figure 3: Drinks parents give to their children aged 2and younger, January 2014
More than half of respondents report loyalty to one brand of formula
Figure 4: Behaviors and preferences toward baby/toddler formula, January 2014
More than four in 10 want brands to provide more online (website/social media) deals
Figure 5: What parents would like to see baby/toddler food and drink companies provide, January 2014
What we think
ISSUES AND INSIGHTS
Can brands persuade parents to use baby food over adult food?
Insight: Highlighting the nutrients in baby foods
How can juice brands help decelerate losses?
Insight: Reducing sugar, not diluting; adding vitamins and minerals
TREND APPLICATIONS
Trend: Let’s Make A Deal
Trend: Extend My Brand
Trend: Prove It
MARKET SIZE AND FORECAST
Key points
Slow economic rebound limits sales growth potential
Sales and forecast of baby food and drink
Figure 6: Total US retail sales and forecast of baby food and drink, at current prices, 2008-18
Figure 7: Total US retail sales and forecast of baby food and drink, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 8: Total US retail sales and fan chart forecast of baby food and drink, at current prices, 2008-18
MARKET DRIVERS
Key points
Slow economic recovery prevents greater growth
Figure 9: US unemployment rate, by month, 2002-14
Figure 10: Attitudes toward baby food and drink, January 2014
Number of children aged three and younger expected to increase 2013-19
Figure 11: Household usage of liquid/powdered baby formula, 2007-13
Figure 12: Population projections for children aged three and younger, 2013-19
Blacks report most use of liquid/powdered formula and baby foods, cereals, juices
Figure 13: Household usage of liquid/powdered baby formula, by race/Hispanic origin, November 2012-December 2013
Figure 14: Household use of baby foods, baby cereals, or baby juices, by race/Hispanic origin, November 2012-December 2013
Organic brands will drive future sales
Figure 15: What parents would like to see baby/toddler food and drink companies provide, by gender, January 2014
COMPETITIVE CONTEXT
Rate of breastfeeding increases
Homemade baby food/drink competes directly with store-bought brands
Figure 16: Foods parents feed their children aged 2 or younger, January 2014
Nearly half of parents give their babies adult food
Product recalls may scare away some parents
SEGMENT PERFORMANCE
Key points
Baby formula holds 70% share, baby food/snacks segment grows faster
Sales of baby food and drink, by segment
Figure 17: Total US retail sales of baby food and drink, segmented by type, 2011 and 2013
SEGMENT PERFORMANCE – BABY FORMULA
Key points
Baby formula sales impacted by breastfeeding trends, price objections
Sales and forecast of baby formula
Figure 18: Total US retail sales and forecast of baby formula, at current prices, 2008-18
SEGMENT PERFORMANCE – BABY FOOD AND SNACKS
Key points
Moderate growth predicted for baby food/snacks
Sales and forecast of baby food and snacks
Figure 19: Total US retail sales and forecast of baby food and snacks, at current prices, 2008-18
SEGMENT PERFORMANCE – BABY ELECTROLYTES
Key points
Moderate growth expected in 2013-19, but small share overall
Sales and forecast of baby electrolytes
Figure 20: Total US retail sales and forecast of baby electrolytes, at current prices, 2008-18
SEGMENT PERFORMANCE – BABY JUICE
Key points
Baby juice is drying up
Sales and forecast of baby juice
Figure 21: Total US retail sales and forecast of baby juice, at current prices, 2008-18
RETAIL CHANNELS
Key points
Supermarkets sales flat; drug stores and other channels grow substantially
Sales of baby food and drink, by channel
Figure 22: Total US retail sales of baby food and drink, by channel, 2011 and 2013
Figure 23: US supermarket sales of baby food and drink, 2008-13
Figure 24: US drug store sales of baby food and drink, 2008-13
Figure 25: US other channel sales of baby food and drink, 2008-13
LEADING COMPANIES
Key points
Nestlé S.A. leads market, registers only sales gain
Private label grows 9.3%
Manufacturer sales of baby food and drink
Figure 26: Manufacturer sales of baby food and drink, 2013 and 2014
Brand loyalty runs high for Nestlé among baby food/snack buyers
Figure 27: Key purchase measures for the top baby food/snack brands, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec. 30, 2012 (year ago)
BRAND SHARE – BABY FORMULA
Key points
Abbott leads but drops 3.6%
Mead Johnson drops 1.4% but finds a good formula with Nutramigen
Nestlé gains 16.7% with Gerber Good Start Soothe
Manufacturer sales of baby formula
Figure 28: Manufacturer sales of baby formula, 2013 and 2014
BRAND SHARE – BABY FOOD
Key points
Nestlé’s Gerber tops segment, drops slightly
Milnot and The Hain Celestials Group comprise much smaller share
Manufacturer sales of baby food
Figure 29: Manufacturer sales of baby food, 2013 and 2014
BRAND SHARE – BABY ELECTROLYTES
Key points
Abbott experiences little competition for electrolyte sales
Manufacturer sales of baby electrolytes
Figure 30: Manufacturer sales of baby electrolytes, 2012 and 2013
BRAND SHARE – BABY JUICE
Key points
Nestlé has no name brand or private label competition; segment in decline
Manufacturer sales of baby juice
Figure 31: Manufacturer sales of baby juice, 2012 and 2013
INNOVATIONS AND INNOVATORS
Organic claims highest among all claims in 2013
Figure 32: Top 9 product claims, baby food and formula, by percent of total claims, 2009-13
Organic baby foods ease parents’ minds about food safety
On-the-go products make feeding easier for parents
Ethnic-inspired and internationally flavored baby foods offer more variety
Hypoallergenic brands help prevent reactions while still providing nutrients
MARKETING STRATEGIES
Overview of the brand landscape
Theme: A partner in prenatal and newborn/toddler care
Brand example: Gerber
Gerber TV presence
Figure 33: Gerber television ad, 2014
Figure 34: Gerber Graduates Lil’ Entrees television ad, 2014
Brand example: Similac
Brand example: Enfamil
Enfamil TV presence
Figure 35: Enfamil Newborn television ad, 2014
Figure 36: Enfagrow Toddler Next Step television ad, 2014
SOCIAL MEDIA
Key points
Market overview
 KEY SOCIAL MEDIA METRICS
Figure 37: Key social media metrics, April 2014
Brand usage and awareness
Figure 38: Brand usage and awareness for select baby food and drink brands, April 2014
Interaction with baby food and drink brands
Figure 39: Interactions with select baby food and drink brands, April 2014
 LEADING ONLINE CAMPAIGNS
Baby photos
Parenting advice
What we think
 ONLINE CONVERSATIONS
Figure 40: Online conversations around selected baby food and drink brands, by month, April 1, 2013-March 31, 2014
Where are people talking about baby food and drink brands?
Figure 41: Online conversations around selected baby food and drink brands, by page type, April 1, 2013-March 31, 2014
What are people talking about?
Figure 42: Topics of conversations around selected baby food and drink brands, by month, April 1, 2013-March 31, 2014
BABY FOOD/DRINKS USED IN THE HOUSEHOLD
Key points
Nearly six in 10 report household use of baby formula
Figure 43: Household use of liquid/powdered baby formula, by age, November 2012-December 2013
Nearly two thirds use baby foods, cereals, juices in the household
Figure 44: Household use of baby foods, baby cereals, or baby juices, by age, November 2012-December 2013
FOODS PARENTS FEED THEIR CHILDREN AGED 2 OR YOUNGER
Key points
More than half use a range of store-bought baby foods
Figure 45: Foods parents feed their children aged 2 or younger, by gender, January 2014
Parents who give their children breast milk also likely to feed them homemade pureed fruit/vegetables
Figure 46: Foods parents feed their children aged 2 or younger—homemade, by drinks parents give to their children aged 2 and younger, January 2014
Parents who give their kids juice and/or nutritional shakes also apt to feed them store-bought snacks, yogurt, and treats
Figure 47: Foods parents feed their children aged 2 or younger—store-bought, by drinks parents give to their children aged 3 and younger, January 2014
DRINKS PARENTS GIVE TO THEIR CHILDREN AGED TWO AND YOUNGER
Key points
Parents most apt to give water to their babies aged two and younger
Figure 48: Drinks parents give to their children aged 2 and younger, and 1 and younger, by gender, January 2014
BRANDS USED
Key points
Most use Similac formula in the household
Figure 49: Brands of liquid/powdered baby formula products used in the last 12 months, November 2012-December 2013
Gerber top baby food/cereal/juice choice for parents
Figure 50: Brands of baby foods, baby cereal, or baby juices used in the household, November 2012-December 2013
BEHAVIORS AND PREFERENCES TOWARD BABY/TODDLER FORMULA
Key points
More than half stick to the same formula brand all the time
Figure 51: Behaviors and preferences toward baby/toddler formula, by demographics, January 2014
$50K+ most likely to buy formula with added nutrients such as DHA
Figure 52: Behaviors and preferences toward baby/toddler formula, by demographics, January 2014
BEHAVIORS AND PREFERENCES TOWARD BABY/TODDLER FOOD
Key points
Nearly half feed their children some kind of adult food
Figure 53: Behaviors and preferences toward baby/toddler food, by gender, January 2014
WHAT PARENTS WOULD LIKE TO SEE BABY/TODDLER FOOD AND DRINK COMPANIES PROVIDE
Key points
Most want to see online deals for baby/toddler food/drink
Figure 54: What parents would like to see baby/toddler food and drink companies provide, by gender, January 2014
OPINIONS ABOUT BABY FOOD/DRINK
Key points
A majority feel private label baby food/drink is as good as name brands
Figure 55: Opinions about baby food and drink, January 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Food parents feed their children aged two or younger
Figure 56: Foods parents feed their children aged 2 or younger, by age, January 2014
Figure 57: Foods parents feed their children aged 2 or younger, by household income, January 2014
Figure 58: Foods parents feed their children aged 2 or younger, by marital status, January 2014
Drinks parents give their child(ren) aged two or younger, and one and younger
Figure 59: Drinks parents give to their children aged 2 and younger, by age, January 2014
Figure 60: Drinks parents give to their children aged 1 and younger, by demographics, January 2014
Figure 61: Drinks parents give to their children aged 2 and younger, by household income, January 2014
Figure 62: Drinks parents give to their children aged 1 and younger, by demographics, January 2014
Behaviors and preferences towards baby/toddler food
Figure 63: Behaviors and preferences toward baby/toddler food, by household income, January 2014
Figure 64: Behaviors and preferences toward baby/toddler food, by race/Hispanic origin, January 2014
What parents would like to see baby/toddler food and drink companies provide
Figure 65: What parents would like to see baby/toddler food and drink companies provide, by race/Hispanic origin, January 2014
What parents would like to see baby/toddler food and drink companies provide
Figure 66: What parents would like to see baby/toddler food and drink companies provide, by household income, January 2014
Figure 67: What parents would like to see baby/toddler food and drink companies provide, by race/Hispanic origin, January 2014
Opinions about baby food and drink
Figure 68: Opinions about baby food and drink, by gender, January 2014
Figure 69: Opinions about baby food and drink, by age, January 2014
Figure 70: Opinions about baby food and drink, by marital status, January 2014
APPENDIX – SOCIAL MEDIA
Brand usage or awareness
Figure 71: Brand usage or awareness, January 2014
Figure 72: Enfamil usage or awareness, by demographics, January 2014
Figure 73: Gerber usage or awareness, by demographics, January 2014
Figure 74: Plum Organics usage or awareness, by demographics, January 2014
Figure 75: Earth’s Best usage or awareness, by demographics, January 2014
Figure 76: Ella’s Kitchen usage or awareness, by demographics, January 2014
Figure 77: Happy Baby usage or awareness, by demographics, January 2014
Interactions with brands
78: Activities done, January 2014
Figure 79: Enfamil – activities done – I have looked up/talked about this brand online on social media…, by demographics, January 2014
Figure 80: Enfamil – activities done – I have contacted/interacted with the brand online on social media to…, by demographics, January 2014
Figure 81: Enfamil – activities done – I have researched the brand on social media to…., by demographics, January 2014
Figure 82: Gerber – activities done – I have looked up/talked about this brand online on social media…, by demographics, January 2014
Figure 83: Gerber – activities done – I have contacted/interacted with the brand online on social media to…, by demographics, January 2014
Figure 84: Gerber – activities done – I follow/like the brand on social media because…., by demographics, January 2014
Figure 85: Gerber – activities done – I have researched the brand on social media to…., by demographics, January 2014
Figure 86: Plum Organics – activities done – I have researched the brand on social media to…., by demographics, January 2014
Figure 87: Earth’s Best – activities done – I have researched the brand on social media to…., by demographics, January 2014
Key social media metrics
Figure 88: Key social media metrics—Gerber, April 2014
Figure 89: Key social media metrics—Enfamil, April 2014
Figure 90: Key social media metrics—Plum Organics, April 2014
Figure 91: Key social media metrics—Happy Baby, April 2014
Figure 92: Key social media metrics—Earth’s Best, April 2014
Figure 93: Key social media metrics—Ella’s Kitchen, April 2014
Online conversations
Figure 94: Online conversations around selected baby food and drink brands, by month, April 1, 2013-March 31, 2014
Figure 95: Online conversations around selected baby food and drink brands, by page type, April 1, 2013-March 31, 2014
Figure 96: Topics of conversations around selected baby food and drink brands, by month, April 1, 2013-March 31, 2014
APPENDIX – INFORMATION RESOURCES INC. BUILDERS PANEL DATA DEFINITIONS
Information Resources Inc. Consumer Network Metrics
APPENDIX – TRADE ASSOCIATIONS