Table of Contents
Executive Summary
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- The market
- Sales continue to decline
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- Figure 1: Forecast of UK value sales of baby food, drink and milk, 2014-24
- Milk remains dominant; wet and dry sales fall; snacks rise
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- Figure 2: Retail value sales of baby food, drink and milk, by segment, 2017-19
- Birth rate fell at an even faster rate in 2018
- Regulation on formula milk imposed by EFSA
- Companies and brands
- Market leader Aptamil suffers a steep decline in milk
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- Figure 3: Leading brands’ shares in the UK baby milk market, by value, 2019*
- Leading brands suffer in baby food as own-label thrives
- Organix under pressure from Kiddylicious and Ella’s Kitchen in finger food
- Danone leads NPD in 2019
- Ella’s Kitchen launches dairy-free yoghurt alternative
- Little Dish taps into the vegan trend
- Advertising spend at £12.8 million in 2019
- The consumer
- Homemade baby food is the most popular; 89% of parents feeding this
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- Figure 4: Usage of baby food and drink, by type, December 2019
- Sugar is the top concern when buying baby food/snacks
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- Figure 5: Factors influencing choice of baby/toddler food and snacks, December 2019
- Immune system and physical growth are parents’ top factors in milk
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- Figure 6: Factors influencing choice of baby/toddler milk, December 2019
- Vitamins and minerals are the most recognised milk ingredients
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- Figure 7: Awareness of ingredients in infant milk formula, December 2019
- Manufacturers need to address concerns over the quality of meat
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- Figure 8: Behaviours related to baby/toddler food and snacks, December 2019
- Fortification appeals to parents
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- Figure 9: Attitudes towards baby/toddler food, December 2019
- What we think
Issues and Insights
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- Opportunities in chilled and frozen baby food
- The facts
- The implications
- Manufacturers need to address concerns over the quality of meat
- The facts
- The implications
- Delivery services appeal to 39%
- The facts
- The implications
The Market – What You Need to Know
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- Sales continue to decline
- Values to grow while volumes decline over 2019-24
- Milk remains dominant; wet and dry sales fall; snacks rise
- Birth rate fell at an even faster rate in 2018
- Regulation on formula milk imposed by EFSA
Market Size and Forecast
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- Sales continue to decline
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- Figure 10: UK retail sales of baby food, drink and milk, by value and volume, 2014-24
- The future
- Birth rates will decline further
- Price rises will drive growth
- Homemade food dampens demand
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- Figure 11: Forecast of UK value sales of baby food, drink and milk, 2014-24
- Forecast methodology
Market Segmentation
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- Milk remains dominant, despite ongoing sales fall
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- Figure 12: Retail value and volume sales of baby food, drink and milk, by segment, 2017-19
- Baby food sees worst volume decline
- Finger food bucks trend to see value growth
- Baby drinks continue to struggle
Market Drivers
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- Birth rate fell at an even faster rate in 2018
- Women are delaying childbearing
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- Figure 13: Live births in England and Wales, 2014-18
- London and the Midlands had the most births in 2018
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- Figure 14: Live births in England and Wales, by area of residence of mother, 2018
- Decline in the number of 0-4s will put pressure on the market
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- Figure 15: Trends in the age structure of the UK population, 2014-19 and 2019-24
- Breastfeeding rates rise
- Regulation on formula milk imposed by EFSA
- Real incomes rising
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- Figure 16: Annual change in CPI and average weekly earnings, January 2012-December 2019
Companies and Brands – What You Need to Know
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- Market leader Aptamil suffers a steep decline in milk
- Leading brands suffer in baby food as own-label thrives
- Organix under pressure from Kiddylicious and Ella’s Kitchen
- Danone leads NPD in 2019
- Ella’s goes dairy-free
- Little Dish taps into the vegan trend
- Advertising spend stands at £12.8 million in 2019
Market Share
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- Market leader Aptamil suffers a steep decline in milk
- Other milk brands benefit
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- Figure 17: Leading brands’ sales and shares in the UK baby milk market, by value and volume, 2017-19
- Leading brands suffer in baby food as own-label thrives
- Own-label in growth
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- Figure 18: Leading brands’ sales and shares in the UK wet and dry baby food market^, by value and volume, 2017-19
- Organix under pressure from Kiddylicious and Ella’s Kitchen
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- Figure 19: Leading brands’ sales and shares in the UK baby finger foods and snacks market, by value and volume, 2017-19
- Heinz is the market leader in under fire baby drinks
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- Figure 20: Leading brands’ sales and shares in the UK baby drinks market, by value and volume, 2017-19
Launch Activity and Innovation
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- 2019 sees a decline in launch activity, with brands and own-labels cutting back
- Danone leads NPD by company…
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- Figure 21: Share of new product launches within the UK baby food, drink and milk market, by company, 2015-19
- Figure 22: Aptamil updates formula in line with registration, 2020
- …launching sachets across Aptamil and Cow & Gate baby milk
- …and invests in blockchain
- SMA launches two new milk brands
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- Figure 23: SMA launches two new milk brands, 2019
- Piccolo moves into milk
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- Figure 24: Piccolo expands into formula milk, 2020
- Own-label players cut back
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- Figure 25: Share of new product launches within the UK baby food, drink and milk market, by brands vs own-label, 2015-19
- Figure 26: Tesco expands Exploring flavours range, 2019 and 2020
- Ella’s goes dairy-free…
- …and expands Big Kids range
- Little Dish taps into the vegan trend…
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- Figure 27: Share of new product launches within the UK baby food, drink and milk market, with a vegan/no animal ingredient claim, 2015-19
- Figure 28: Little Dish unveils plant-based range, 2019
- …and follows Ella’s into frozen
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- Figure 29: Little Dish expands into frozen, 2019
- NPD in snacks increases
- Organix steps up veg content and links with Gruffalo
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- Figure 30: Organix launches new snacks, 2019
- Kiddylicious claims UK first with houmous dip
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- Figure 31: Kiddylicious launches houmous dips, 2019
- Own-labels target snacking
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- Figure 32: Own-labels target snacks, 2019 and 2020
- Brands target parent cooks
- Piccolo launches Cooking range
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- Figure 33: Piccolo launches cooking range, 2019
- Ella’s Kitchen seeks to provide a “veggie boost” to meals
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- Figure 34: Ella’s introduces boosts, 2019
- Sustainability remains on the radar
- Piccolo unveils bioplastic pouches
- Ella’s teams up with Asda
- Little Freddie launches recycling scheme
Advertising and Marketing Activity
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- Advertising spend falls in 2019
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- Figure 35: Total above-the-line, online display and direct mail advertising expenditure on baby food and drink, by media type, 2016-19
- Danone is top advertiser, supporting Aptamil and Cow & Gate brands
- Aptamil calls on parents to “raise them ready”
- Cow & Gate continues happiness theme
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- Figure 36: Total above-the-line, online display and direct mail advertising expenditure on baby food and drink, by leading advertisers, 2019
- Nestlé supports its SMA brands
- HiPP calls on parents to “Get that HiPP feeling”
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Homemade baby food is the most popular; 89% of parents feeding this
- Sugar is the top concern
- Immune system and physical growth are parents’ top factors in milk
- Vitamins and minerals are the most recognised milk ingredients
- Manufacturers need to address concerns over the quality of meat
- Fortification appeals to parents
Usage of Baby Food and Drink
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- Homemade baby food is the most popular; 89% of parents feeding this
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- Figure 37: Usage of baby food and drink, by type, December 2019
- Milk given most frequently
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- Figure 38: Frequency of usage of baby food and drink, by type, December 2019
- 44% use all types of baby food and drink
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- Figure 39: Repertoire of types of baby food and drink used, December 2019
Factors Influencing Baby Food Choice
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- Sugar is the top concern
- 28% look for organic baby food/snacks
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- Figure 40: Factors influencing choice of baby/toddler food and snacks, December 2019
- Environmentally-friendly packaging matters to a minority
Factors Influencing Baby Milk Choice
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- Immune system and physical growth are parents’ top factors in milk
- Mandatory addition of omega-3 dilutes standout
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- Figure 41: Factors influencing choice of baby/toddler milk, December 2019
- Cow’s milk alternatives important to 11%
Awareness of Milk Ingredients
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- Vitamins and minerals are the most recognised milk ingredients
- Less common ingredients lack awareness
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- Figure 42: Awareness of ingredients in infant milk formula, December 2019
Behaviours Related to Baby Food and Drink
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- Manufacturers need to address concerns over the quality of meat…
- …and prove absence of harmful substances
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- Figure 43: Behaviours related to baby/toddler food and snacks, December 2019
- Opportunities in chilled and frozen
- Established brands have taken the lead
- Delivery services appeal to 39%
Attitudes towards Baby Food and Drink
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- Fortification appeals to parents
- Opportunities to leverage brand equity through expansion
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- Figure 44: Attitudes towards baby/toddler food, December 2019
- Calling out organic or plant-based credentials would appeal to parents
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 45: Forecast of UK volume sales of baby food, drink and milk, 2014-24
- Figure 46: UK value sales of baby food, drink and milk, best- and worst-case forecast, 2019-24
- Figure 47: UK volume sales of baby food, drink and milk, best- and worst-case forecast, 2019-24
- Forecast methodology
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Appendix – Market Drivers
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- Figure 48: Mean age of mother at childbirth in England and Wales, 2014-18
- Figure 49: Live births in England and Wales, by age of mother, 2014-18
- Figure 50: Live births to non-UK born mothers, by percentage of total births, 2014-18
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Appendix – Market Share
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- Figure 51: Leading brand owners’ sales and shares in the UK baby milk market, by value and volume, 2017-19
- Figure 52: Leading brand owners’ sales and shares in the UK wet and dry baby food market^, by value and volume, 2017-19
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- Figure 53: Leading brand owners’ sales and shares in the UK baby finger foods and snacks market, by value and volume, 2017-19
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Appendix – Launch Activity and Innovation
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- Figure 54: Share of new product launches within the UK baby food, drink and milk market, by sub-category, 2015-19
- Figure 55: Share of new product launches within the UK baby food, drink and milk market, by storage, 2015-19
- Figure 56: Share of new product launches within the UK baby food, drink and milk market, by package type, 2015-19
- Figure 57: Share of new product launches within the UK baby food, drink and milk market, by claim, 2015-19
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Appendix – Advertising and Marketing Activity
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- Figure 58: Total above-the-line, online display and direct mail advertising expenditure on baby food and drink, by category, 2016-19
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