Table of Contents
Introduction
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- Definitions
Executive Summary
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- France
- Largest of the five review markets
- Baby meals are the largest sector
- Extending the age range for baby milks
- Grocery multiples lead retail sales of baby foods
- Two multinationals dominate
- Highest penetration of the review countries
- Healthy future
- Germany
- Decline in market may be halted by age extension of follow-up milk
- A shrinking consumer base demands rethinking by suppliers
- Follow-on milk and convenience products doing best
- Organics make the running
- Producer brands are held in high regard
- Grocery chains lead the market, discounters only take small share
- New baby snacks, and healthier foods, attract consumers
- All in all, stagnation looks likely
- Italy
- Good growth
- Growing-up milks give the greatest boost to sector value
- Grocery multiples account for the bulk of sales
- Plada generates over half of market value
- New product development is a major driver of growth
- An encouraging outlook
- Spain
- Rising birth rate leads to market growth
- Ready-to-drink and stage-3 are the growth segments
- Grocers have become the leading retail outlet for babyfoods
- Well-known babyfood brands lead the Spanish market
- New product development
- Positive outlook for future growth
- UK
- Household and work patterns increase demand
- Continual rise
- Shifting sector composition
- RTF dynamic sector
- Large suppliers dominate
- Multiples and Boots reign; focus below the line
- Combination penetration strong
- Quality assurance keeps outlook strong
Market Drivers
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- Figure 1: Birth rate, by country, 1999-2003
- Women in employment
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- Figure 2: Trends in French employment, 1998-2003
- Figure 3: Trends in German employment, 1999-2003
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- Figure 4: Women in employment in Spain, 1998-2003
- Figure 5: Workforce in employment in the UK, by gender, 1999-2008
- Rising awareness of food intolerance
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- Figure 6: Attitudes towards genetically-modified food, by country, 2002-04
- Strict controls of marketing baby milks
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Market Size and Trends
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- France is the largest market in value terms for baby foods and drinks
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- Figure 7: Retail value sales of baby foods, milk and drinks, at current prices, by country, 1999-2004
- Growth has been steady in all countries except Germany
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- Figure 8: Indexed retail value sales of baby foods, milk and drinks, at current prices, by country, 1999-2004
- France takes the largest value share of the European market, closely followed by Italy
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- Figure 9: Retail value sales of baby foods, milk and drinks, % share by country, 2004
Market Segmentation
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- Foods are the largest sector, except in Spain where milk is most popular
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- Figure 10: Retail value sales of baby foods, milk and drinks, by type, by country, 2004
Distribution
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- Grocery dominates in all countries except Germany
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- Figure 11: Retail value sales of baby foods, milk and drinks, by oulet type, by country, 2004
The Supply Structure
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- France
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- Figure 12: Manufacturers’ value shares in the French baby milks, food and drinks, 2001-04
- Germany
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- Figure 13: Brand shares in German baby milks, 2001-04
- Baby foods and drinks - bottled
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- Figure 14: Brand shares in German bottled baby foods, 2003-04
- Italy
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- Figure 15: Manufacturers’ retail value sales of baby milk, food and drinks, 2001-04
- Spain
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- Figure 16: Manufacturers’ retail value shares in baby milks, food and drinks*, 2001-04
The Consumer
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- Figure 17: Use of baby foods and baby milk, by country, 2004
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- Figure 18: Penetration of baby foods and baby milk, by country, 2004
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- Figure 19: Use of baby food and baby milk, by main shoppers with children aged under 2, 2004
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- Figure 20: Use of baby foods, by main shoppers with children aged under 1, 2004
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Prospects
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- France
- Baby food less affected by a downturn in the economy
- Declining birth rate, but extension of the age group for baby milks and foods will compensate
- Making it easier to feed baby out of home
- ‘Home-cooked’ values appeal to busy parents
- Ready-to-eat to invigorate the cereals sector
- Healthy options
- Germany
- Market to stagnate
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- Figure 21: Forecast of German child population, 2004-09
- Figure 22: Forecast of child population, by country, 2003-07
- Big brands to do well, but there may be new entrants…
- …and more downmarket lines will make some ground
- …but organic lines are set to grow further
- Italy
- Economic outlook and effect on consumer confidence
- But baby food less affected than discretionary goods
- Number of 1-2-year-olds forecast to decline to 2009
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- Figure 23: Forecast child population in Italy, 2004-09
- Spain
- Good economic prospects help maintain consumer spend
- Baby food to benefit from rising birth rate
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- Figure 24: Forecast child population in Spain, 2004-09
- Follow-on foods will be a growth segment
- UK
- Determining live births
- Motherhood at an older age
- No downward price pressure
- Father knows
- Snacks sector dynamic
- Organic sits in place
- Baby milk sales resilient
Forecast
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- France is forecast to remain the largest value market
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- Figure 25: Forecast retail value sales of baby foods, milk and drinks, at current prices, by country, 2004-09
- French market expected to keep growing the fastest in value terms
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- Figure 26: Indexed forecast retail value sales of baby foods, milk and drinks, at current prices, by country, 2004-09
- Figure 27: Forecast value sales of baby foods, milk and drinks, % share by country, 2009
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