Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Total US retail sales and forecast of baby food and drink, in millions, by segment, at current prices, 2014-24
- Impact of COVID-19 on baby food and drink
- Top takeaways
- The issues
- A continuing birth dearth
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- Figure 2: Annual births and general fertility rate in the US, 2007-17
- Homemade remains popular among younger parents
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- Figure 3: Homemade baby food consumption, by age, January 2020
- Toddler food eschewed in favor of regular foods
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- Figure 4: Attitudes toward feeding children regular food instead of baby/toddler food, January 2020
- The opportunities
- Fruits and vegetables top parents’ wish list
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- Figure 5: Parental wish list, January 2020
- Clean and natural appeal to Hispanic parents
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- Figure 6: Innovation potential in baby/toddler food/drink, by Hispanic origin, January 2020
- Younger parents seek developmental support
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- Figure 7: Developmental wish list, by age, January 2020
The Impact of COVID-19 on Baby Food and Drink
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- What You Need to Know
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- Figure 8: Short, medium and long term impact of COVID-19 on baby food and drink, April 2020
- Opportunities and Threats
- Birthrates will continue to drop even further
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- Figure 9: Annual births and general fertility rate in the US, 2007-18
- Parents will seek immunity supporting products
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- Figure 10: Baby food and drink product launches, 2015-19*
- Shelter-in-place orders will affect families differently
- Trust and value will be of paramount importance, threatening new market entrants
- Impact on the baby food and drink market
- Slow market growth expected to persist, at best
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- Figure 11: Total US retail sales and forecast of baby food and drink, in millions, by segment, at current prices, 2014-24
- Formula segment, while dominant, could be the most vulnerable
- How the crisis will affect baby food and drink’s key consumer segments
- Already present shifts in channel choice will accelerate
- Parents of young children are relying on ecommerce
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- Figure 12: Behavior changes as a result of COVID-19, “shopping more online”, by parental status and age of child/children, fielded April 16-24 2020
- How a COVID-19 recession will reshape the baby food and drink industry
- Immunity claims will prevail
- COVID-19: Baby food and drink context
The Market – What You Need to Know
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- Sales growth continues
- Nonsupermarkets dominate baby food retail
Market Size and Forecast
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- Baby/toddler food/drink on positive path yet hangs in the balance
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- Figure 13: Total US retail sales and forecast of baby food and drink, at current prices, 2014-24
Market Breakdown
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- Steady, moderate growth for baby food and formula, while baby electrolyte sales continue brisk sales growth
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- Figure 14: Total US retail sales and forecast of baby food and drink, in millions, by segment, at current prices, 2014-24
- Figure 15: Total US retail sales and forecast of baby food and drink, by segment, at current prices, 2014-24
- Nonsupermarkets dominate retail landscape for baby food/drink
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- Figure 16: Total US retail sales of baby food and drink, by channel, at current prices, 2014-19
Market Perspective
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- Why parents look to homemade and regular foods
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- Figure 17: Usage of homemade and regular foods, January 2020
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- Figure 18: Interest in regular options instead of baby/toddler foods, January 2020
Market Factors
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- Declining birthrates strongly impact market for baby food
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- Figure 19: Annual births and general fertility rate in the US, 2007-17
- The COVID-19 generation?
Key Players – What You Need to Know
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- Sales slow for segment leaders
- Formula grows by improving upon nature, where possible
- Disruptor brands challenge strongly in food
- Prioritizing immune system development
Company and Brand Sales of Baby Food and Drink
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- Category leaders see sales slow
- Sales of baby food and drink by company
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- Figure 20: Multi-outlet sales of baby food and drink, by leading companies, rolling 52 weeks 2019 and 2020
What’s Working
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- Reckitt’s Enfamil manages growth in the beleaguered formula segment
- Baby electrolytes grow with an adult focus
What’s Struggling
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- Legacy brand baby snacks struggle
What to Watch
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- Better than breast?
- COVID-19 impact to endure long past sheltering in place
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- Figure 21: Baby food and drink product launches, 2015-19*
- Baby foods in the post-pandemic landscape
The Consumer – What You Need to Know
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- Parents seek a role beyond product choice
- Homemade options square off against packaged baby foods
- Mom and dad aren’t aligned in baby drink drivers
- Baby brands trusted as a guide to healthy baby options
- Regular foods prove a challenging competitor
- Leverage trust of parents of multiple children
- Real foods tops parents’ wish list
Consumption of Baby Food and Drink
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- Parents getting involved
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- Figure 22: Baby food and drink consumption, January 2020
- Younger parents much more likely to go homemade
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- Figure 23: Baby food and drink consumption, by age, January 2020
- Formula notably more popular among lower-income households
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- Figure 24: Baby food and drink consumption, by household income, January 2020
- Homemade options resonating among Hispanic parents
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- Figure 25: Baby food and drink consumption, by Hispanic origin, January 2020
Frequency of Consumption
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- Breast milk more frequently used than formula
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- Figure 26: Frequency of baby milk/formula consumption, January 2020
- Baby juice continues to struggle
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- Figure 27: Frequency of baby/toddler milk/juice consumption, January 2020
- Parents turn to a diversity of options for toddler-aged children
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- Figure 28: Frequency of baby/toddler snack/food consumption, January 2020
Baby/Toddler Drink Purchase Factors
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- Health concerns outweigh even price on drink choice
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- Figure 29: Toddler drink purchase factors, January 2020
- Moms motivated by nutrition facts on drinks
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- Figure 30: Toddler drink purchase factors, by parental status, by gender, January 2020
- Health/nutrition concerns about drinks far outweigh price among Hispanics
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- Figure 31: Toddler drink purchase factors, by Hispanic origin, January 2020
- Clear role for nutrition in potential baby/toddler drinks
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- Figure 32: TURF analysis – Drink purchase factors, January 2020
Baby/Toddler Food Purchase Factors
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- Fruit/vegetable content far surpasses other drivers among baby/toddler food
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- Figure 33: Baby/toddler food purchase factors, January 2020
- Fruit/vegetable content resonates significantly more with moms
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- Figure 34: Baby/toddler food purchase factors, by gender, January 2020
- Natural foods resonate most strongly with younger parents
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- Figure 35: Baby/toddler food purchase factors, by age, January 2020
- Brand notably resonating among lower-income households
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- Figure 36: Baby/toddler food purchase factors, by household income, January 2020
- Augmenting a well-priced food with fruit/vegetable content and protein maximizes potential consumer base
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- Figure 37: TURF analysis – Food purchase factors, January 2020
Attitudes Toward Baby Food/Drink
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- Toddler foods face competition from regular foods
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- Figure 38: Attitudes toward baby food and drink, January 2020
- Sugar concerns weigh on parents
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- Figure 39: Attitudes toward baby food and drink, by gender, January 2020
Areas for Baby/Toddler Food Innovation
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- Baby snacks at point of purchase
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- Figure 40: Innovation potential in baby/toddler food/drink, January 2020
- Larger families seek options for throughout childhood
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- Figure 41: Innovation potential in baby/toddler food/drink, by age of children in household, January 2020
- Environmentally friendly and portability resonate with Hispanic parents
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- Figure 42: Innovation potential in baby/toddler food/drink, by Hispanic origin, January 2020
Parental Wish List
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- Fruits/vegetables top parental wish list
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- Figure 43: Parental wish list, January 2020
- Younger parents more likely to seek baby foods that support cognitive and immune health
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- Figure 44: Parental wish list, by age, January 2020
- Vitamins/minerals top Hispanic parents’ wish lists
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- Figure 45: Parental wish list, by Hispanic origin, January 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 46: Total US retail sales and forecast of baby food and drink, at inflation-adjusted prices, 2014-24
- Figure 47: Total US retail sales of baby food and drink, by segment, at current prices, 2017 and 2019
- Figure 48: Total US retail sales and forecast of baby formula, at current prices, 2014-24
- Figure 49: Total US retail sales and forecast of baby formula, at inflation-adjusted prices, 2014-24
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- Figure 50: Total US retail sales and forecast of baby food, snacks and juice, at current prices, 2014-24
- Figure 51: Total US retail sales and forecast of baby food, snacks and juice, at inflation-adjusted prices, 2014-24
- Figure 52: Total US retail sales and forecast of baby electrolytes, at current prices, 2014-24
- Figure 53: Total US retail sales and forecast of baby electrolytes, at inflation-adjusted prices, 2014-24
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Appendix – Retail Channels
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- Figure 54: Total US retail sales of baby food and drink, by channel, at current prices, 2017 and 2019
- Figure 55: US supermarket sales of baby food and drink, at current prices, 2014-19
- Figure 56: US drug store sales of baby food and drink, at current prices, 2014-19
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- Figure 57: US sales of baby food and drink through other retail channels, at current prices, 2014-19
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Appendix – Key Players
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- Figure 58: Multi-outlet sales of baby formula, by leading companies and brands, rolling 52 weeks 2019 and 2020
- Figure 59: Multi-outlet sales of baby food, snacks, and juice, by leading companies and brands, rolling 52 weeks 2019 and 2020
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- Figure 60: Multi-outlet sales of baby electrolytes, by leading companies and brands, rolling 52 weeks 2019 and 2020
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Appendix – TURF Analysis – Methodology
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- Figure 61: Table – TURF analysis – Drink purchase factors, January 2020
- Figure 62: Table – TURF analysis – Food purchase factors, January 2020
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