Baby Food, Drinks and Milk - UK - November 2007

ISSUES IN THE MARKET
Key themes
Definition
INSIGHTS AND OPPORTUNITIES
More choice for toddlers
The pleasure of sharing
A helping hand for on-the-go parents
Opportunities for growth via the catering trade
Treat or treat
FAST FORWARD TRENDS
Fast Forward Trends – an explanation
Medical Cure-All
Over-Optioned Consumers
MARKET IN BRIEF
Baby food market experiences strong growth
Balance shifts to milk and finger foods
NPD growth with new brands
Heinz is in decline
Baby meals are finding favour
INTERNAL MARKET ENVIRONMENT
Key Points
Breastfeeding rates on the rise
Figure 1: Initial breast feeding rate in England and Wales, 1980-2005
Figure 2: UK Breastfeeding rates, by age of child, 1990-2005
Clever kids are breastfed
Solid food is introduced later
Figure 3: Age at introduction of solid food, 1995-2005
Childhood obesity
Figure 4: Current and projected levels of obesity among UK children by age and gender, 2003 and 2010
Healthy eating influences choices
Figure 5: Agreement with selected lifestyle statements, 2003-07
Salt becomes focus of attention
Parents willing to pay more
Figure 6: Agreement with selected lifestyle statements, 2003-07
BROADER MARKET ENVIRONMENT
Key Points
Birth rates
Figure 7: Number of live births and fertility rate in England and Wales, 2002-12
Fertility rate boosted by immigration
Figure 8: Average number of children per woman, 1996-2006
…and older mothers
Figure 9: Average age of women at childbirth, UK, 2002-06
Healthy Start gives greater choice to low-income parents
Growth in PDI expected to continue
Figure 10: PDI and consumer expenditure, at constant 2002 prices, 2002-12
Demographic and labour force trends
NICE to promote breast feeding
Greater focus on nutrition could encourage breastfeeding
COMPETITIVE CONTEXT
Key Points
Fair competition
Tough competition with cereals
Figure 11: UK retail volume and value sales of hot cereal, 2002-07
Baby drinks lose their juice
Figure 12: UK retail sales of juice drinks, by target age group, 2001-06
…but demands on parental budgets are many
Figure 13: Sales of other baby care products by type, 2001-06
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING
Key Points
Organics lead the way
Packaging adds to convenience
Figure 14: Number of products launched by type of packaging, Jan 2006-Sept 2007
Premiumisation is key trend
Flavours and ingredients become more diverse
Broadening the ethnic base
Meals and snacks dominate
Product claims are abundant
Figure 15: Product launches in the UK, by product claim, Jan 2006-Sept 2007
More manufacturers getting involved
Figure 16: Number of new launches by company in the UK, Jan 2006-Sept 2007
Taking an ethical stand
MARKET SIZE AND FORECAST
Key Points
Baby food market enjoys renewed growth
Figure 17: UK retail sales of baby food, milk and drink, by volume and value, 2002-07
What’s in store for the market?
The future of the market
Market value continues to grow healthily
Figure 18: Forecast of UK retail value sales of baby food, milk and drinks, by product type, 2007-12
Figure 19: Forecast of UK retail volume sales of baby food, milk and drinks, 2007-12
Value driven by product premiumisation
Factors used in the forecast
SEGMENT PERFORMANCE
Key Points
Meals dominate baby food sales
Figure 20: UK retail volume sales of baby food, milk and drink, by product type, by volume, 2002-07
Figure 21: UK retail value sales of baby food, milk and drink, by product type, by value, 2002-07
Organic foods take increasing share
Figure 22: Total UK retail sales of organic baby food, milk and drink, 2002-07
Future trends
SEGMENT PERFORMANCE – BABY MEALS
Baby meals enjoy healthy growth
Figure 23: UK retail value sales of baby meals, by type, 2002-07
Wet meals benefit from greater segmentation
Halal meals attract new consumers
Pots and trays replace jars and cans
Figure 24: UK retail value sales of wet baby meals, by type, 2002-07
10 month+ meals are most dynamic
Frozen meals remain niche sector
Cereals enjoy organic growth
Biscuits and snacks drive finger food sales
Figure 25: UK retail value sales of baby finger foods, by type, 2002-07
SEGMENT PERFORMANCE – BABY MILKS AND DRINKS
Milks receive boost from Healthy Start
Figure 26: UK retail value sales of baby milks, by type, 2002-07
First- and second-stage powders benefit most
Baby drinks stagnate
Figure 27: UK retail value sales of baby drinks, by type, 2002-07
MARKET SHARE
Key Points
Leading manufacturers loosen their grip
Figure 28: Estimated manufacturer/brand shares in the UK baby food, milk and drink market, by value, 2004-07
Big brands lead the way
Figure 29: Estimated manufacturer/brand shares in the UK baby food, milk and drink market, by sector, 2007
Cow & Gate and Heinz scale back organic activities
Figure 30: Estimated manufacturer/brand shares in the UK organic baby food, milk and drink market, by value, 2004-07
COMPANIES AND PRODUCTS
Heinz (www.heinzbaby.com)
HiPP (www.HiPP.co.uk)
Nutricia (www.cowandgate.co.uk)
Organix (www.organix.com)
Plum Baby (www.plum-baby.co.uk)
SMA Nutrition (www.smanutrition.co.uk)
Future contenders in the market
 OTHER BRANDS
Babylicious (www.babylicious.co.uk)
Ella’s Kitchen (www.ellaskitchen.co.uk)
Annabel Karmel (www.annabelkarmel.com)
Little Dish (www.littledish.co.uk)
Mumtaz (www.mumtaz.co.uk)
BRAND COMMUNICATION AND PROMOTION
Key Points
Advertising restrictions set to tighten further?
Main media spend continues to rise
Figure 31: Main monitored media advertising expenditure on baby food and drink, 2003-07*
TV is key advertising medium
Cow & Gate dominates advertising spend
Figure 32: Main monitored media advertising expenditure on baby food and drink, by top-spending brands, 2004-07
Pressing the emotional buttons
…and educating too
Maintaining a clear identity
Celebrities play important role
Asda targets new parents
BRAND ELEMENTS
 BRAND MAP
Figure 33: Attitudes and usage of baby food brands, July 2007
 SMA
Brand background
Brand performance
Figure 34: Attitudes towards the SMA brand, July 2007
 ORGANIX
Brand background
Brand performance
Figure 35: Attitudes towards the Organix brand, July 2007
 BEBIVITA
Brand background
Brand performance
Figure 36: Attitudes towards the Bebivita brand, July 2007
 COW & GATE
Brand background
Brand performance
Figure 37: Attitudes towards the Cow & Gate brand, July 2007
 BABYLICIOUS
Brand background
Brand performance
Figure 38: Attitudes towards the Babylicious brand, July 2007
 HIPP
Brand background
Brand performance
Figure 39: Attitudes towards the HiPP brand, July 2007
 MILUPA APTAMIL
Brand background
Figure 40: Attitudes towards the Milupa Aptimil brand, July 2007
 HEINZ
Brand background
Brand performance
Figure 41: Attitudes towards the Heinz babyfoods brand, September 2007
 BRAND QUALITIES OF BABY FOODS BRANDS
Organix is firmly the healthiest brand
Figure 42: Consumer usage of various baby food brands, July 2007
 EXPERIENCE OF BABY FOODS BRANDS
Heinz meanz most popular baby food
Figure 43: Consumer usage and consideration of various baby food brands, September 2007
 BRAND SATISFACTION FOR BABY FOOD BRANDS
SMA leads the way on excellence
Figure 44: Satisfaction of various baby food brands, July 2007
 BRAND COMMITMENT TO BABY FOOD BRANDS
Bebivita the most recommended baby food brand
Figure 45: Commitment to various baby food brands, July 2007
 ROUND UP
CHANNELS TO MARKET
Key Points
Grocery multiples take rising share
Figure 46: UK retail sales of baby food and drink, by type of outlet, 2002-07
Healthy Start scheme offers opportunity for smaller outlets
THE CONSUMER – USAGE
Key Points
Are breastfeeding initiatives having an effect?
Figure 47: Usage of baby milk in the last 12 months, 2003-07
Usage of meals continues to grow
Figure 48: Usage of baby or junior foods, cereals, rusks, yoghurt and fromage frais in the last 12 months, 2003-07
THE CONSUMER – ATTITUDES AND MOTIVATIONS
Key Points
Figure 49: Age of own child/children, August 2007
Figure 50: Attitudes towards baby foods, milk and drink, August 2007
Price is an increasingly important issue
Need for prepared foods is acknowledged
…and not just for out of home
Figure 51: I only use baby food jars when going out/on holiday/on the move, 2003, 2005 and 2007
More choice would be welcome
Change of image
Demand for greater fortification
A little bit of what they fancy…
Proportions who buy exclusively organic remains small
Home-made will always be first choice for some
Cross-analysis of attitudes
Figure 52: Age of child/children by key attitudes towards baby foods, milk and drink, August 2007
FURTHER ANALYSIS – BABY FOOD AND DRINK TYPOLOGIES
Figure 53: Cluster groups for baby food, drink and milk, August 2007
Fortified Nutritionists (22% of sample)
Little Adults (28% of respondents)
Go with the Flow – 50% of respondents
APPENDIX
Advertising data
Abbreviations
Internal market environment
Figure 54: Initial breast feeding rate by age of mother in England and Wales, 2000 and 2005
Broader market environment
Figure 55: Trends and projections in UK population (‘000s), by age group, 2002-12
Figure 56: UK workforce in employment by gender, 2002-12
Figure 57: Agreement with selected lifestyle statements, by demographic sub-group, 2007
Figure 58: Agreement with selected lifestyle statements, by demographic sub-group, 2007
The consumer – usage: Detailed demographics
Figure 59: Usage of baby milk in the last 12 months, by demographic sub-group, 2007
Figure 60: Usage of baby or junior foods, cereals, rusks, yoghurt and fromage frais in the last 12 months, by demographic sub-group, 2007
Figure 61: Age of child/children, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007
Figure 62: Attitudes towards baby foods, milk and drink, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007
Figure 63: Attitudes towards baby foods, milk and drink, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007
Figure 64: Attitudes towards baby foods, milk and drink, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007
Figure 65: Age of child/children by key attitudes towards baby foods, milk and drink, August 2007
Further analysis: Detailed demographics
Figure 66: Cluster groups for baby food, drink and milk, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, supermarket usage, household size and detailed lifestage groups, August 2007
Figure 67: Attitude clusters by age of child/children
Figure 68: Cluster groups by attitudes to baby food, drink and milk