Table of Contents
Issues in the Market
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- Key themes
- Definition
Insights and Opportunities
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- 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
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- Fast Forward Trends – an explanation
- Medical Cure-All
- Over-Optioned Consumers
Market in Brief
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- 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
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- Key Points
- Breastfeeding rates on the rise
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- Figure 1: Initial breast feeding rate in England and Wales, 1980-2005
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- Figure 2: UK Breastfeeding rates, by age of child, 1990-2005
- Clever kids are breastfed
- Solid food is introduced later
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- Figure 3: Age at introduction of solid food, 1995-2005
- Childhood obesity
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- Figure 4: Current and projected levels of obesity among UK children by age and gender, 2003 and 2010
- Healthy eating influences choices
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- Figure 5: Agreement with selected lifestyle statements, 2003-07
- Salt becomes focus of attention
- Parents willing to pay more
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- Figure 6: Agreement with selected lifestyle statements, 2003-07
Broader Market Environment
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- Key Points
- Birth rates
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- Figure 7: Number of live births and fertility rate in England and Wales, 2002-12
- Fertility rate boosted by immigration
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- Figure 8: Average number of children per woman, 1996-2006
- …and older mothers
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- 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
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- 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
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- Key Points
- Fair competition
- Tough competition with cereals
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- Figure 11: UK retail volume and value sales of hot cereal, 2002-07
- Baby drinks lose their juice
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- Figure 12: UK retail sales of juice drinks, by target age group, 2001-06
- …but demands on parental budgets are many
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- Figure 13: Sales of other baby care products by type, 2001-06
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating
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- Key Points
- Organics lead the way
- Packaging adds to convenience
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- 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
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- Figure 15: Product launches in the UK, by product claim, Jan 2006-Sept 2007
- More manufacturers getting involved
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- Figure 16: Number of new launches by company in the UK, Jan 2006-Sept 2007
- Taking an ethical stand
Market Size and Forecast
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- Key Points
- Baby food market enjoys renewed growth
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- 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
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- 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
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- Key Points
- Meals dominate baby food sales
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- 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
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- Figure 22: Total UK retail sales of organic baby food, milk and drink, 2002-07
- Future trends
Segment Performance – Baby Meals
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- Baby meals enjoy healthy growth
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- 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
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- 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
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- Figure 25: UK retail value sales of baby finger foods, by type, 2002-07
Segment Performance – Baby Milks and Drinks
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- Milks receive boost from Healthy Start
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- Figure 26: UK retail value sales of baby milks, by type, 2002-07
- First- and second-stage powders benefit most
- Baby drinks stagnate
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- Figure 27: UK retail value sales of baby drinks, by type, 2002-07
Market Share
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- Key Points
- Leading manufacturers loosen their grip
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- Figure 28: Estimated manufacturer/brand shares in the UK baby food, milk and drink market, by value, 2004-07
- Big brands lead the way
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- 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
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- Figure 30: Estimated manufacturer/brand shares in the UK organic baby food, milk and drink market, by value, 2004-07
Companies and Products
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- 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
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- Key Points
- Advertising restrictions set to tighten further?
- Main media spend continues to rise
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- Figure 31: Main monitored media advertising expenditure on baby food and drink, 2003-07*
- TV is key advertising medium
- Cow & Gate dominates advertising spend
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- 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
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- Brand map
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- Figure 33: Attitudes and usage of baby food brands, July 2007
- SMA
- Brand background
- Brand performance
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- Figure 34: Attitudes towards the SMA brand, July 2007
- Organix
- Brand background
- Brand performance
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- Figure 35: Attitudes towards the Organix brand, July 2007
- Bebivita
- Brand background
- Brand performance
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- Figure 36: Attitudes towards the Bebivita brand, July 2007
- Cow & Gate
- Brand background
- Brand performance
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- Figure 37: Attitudes towards the Cow & Gate brand, July 2007
- Babylicious
- Brand background
- Brand performance
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- Figure 38: Attitudes towards the Babylicious brand, July 2007
- HiPP
- Brand background
- Brand performance
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- Figure 39: Attitudes towards the HiPP brand, July 2007
- Milupa Aptamil
- Brand background
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- Figure 40: Attitudes towards the Milupa Aptimil brand, July 2007
- Heinz
- Brand background
- Brand performance
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- Figure 41: Attitudes towards the Heinz babyfoods brand, September 2007
- Brand qualities of baby foods brands
- Organix is firmly the healthiest brand
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- Figure 42: Consumer usage of various baby food brands, July 2007
- Experience of baby foods brands
- Heinz meanz most popular baby food
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- 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
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- Figure 44: Satisfaction of various baby food brands, July 2007
- Brand commitment to baby food brands
- Bebivita the most recommended baby food brand
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- Figure 45: Commitment to various baby food brands, July 2007
- Round up
Channels to Market
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- Key Points
- Grocery multiples take rising share
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- 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
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- Key Points
- Are breastfeeding initiatives having an effect?
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- Figure 47: Usage of baby milk in the last 12 months, 2003-07
- Usage of meals continues to grow
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- 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
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- Key Points
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- Figure 49: Age of own child/children, August 2007
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- 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
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- 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
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- Figure 52: Age of child/children by key attitudes towards baby foods, milk and drink, August 2007
Further Analysis – Baby Food and Drink Typologies
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- 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
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Appendix
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- Advertising data
- Abbreviations
- Internal market environment
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- Figure 54: Initial breast feeding rate by age of mother in England and Wales, 2000 and 2005
- Broader market environment
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- 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
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- Figure 58: Agreement with selected lifestyle statements, by demographic sub-group, 2007
- The consumer – usage: Detailed demographics
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- 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
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- 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
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- 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
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- Figure 65: Age of child/children by key attitudes towards baby foods, milk and drink, August 2007
- Further analysis: Detailed demographics
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- 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
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