Table of Contents
Executive Summary
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- The market
- Values and volumes rise in 2015
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- Figure 1: Best- and worst-case forecast of total UK retail value sales of baby food, drink and milk, 2010-20
- Baby milk grows sales and share, while baby food plateaus
- Birth rate drops in 2014
- Companies and brands
- Ella’s Kitchen gains sales and share within baby food and leads on innovation
- Danone captures around 80% of the baby milk market
- Adspend falls as follow-on milk sees drop in support
- The consumer
- Homemade food dominates, used by 83% of parents
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- Figure 2: Usage of baby food, by type, December 2015
- Brand is the top factor
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- Figure 3: Factors influencing purchasing of baby/toddler milk, December 2015
- Figure 4: Factors influencing purchasing of manufactured baby/toddler food, December 2015
- Almost half prefer their child to eat the same food as the family
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- Figure 5: Attitudes towards baby/toddler food, December 2015
- A near 80% associate variety with combatting allergies
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- Figure 6: Attitudes to baby/toddler food and drink, December 2015
- What we think
Issues and Insights
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- An emphasis on convenience should provide a tangible benefit for parents
- The facts
- The implications
- Opportunities to add further value to the market
- The facts
- The implications
- Sugar remains an issue
- The facts
- The implications
The Market – What You Need to Know
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- Values and volumes rise in 2015
- Baby milk grows sales and share, while baby food plateaus
- Birth rate drops in 2014
- Sugar continues to hit the headlines
- Opportunities for premiumisation; those with ‘healthy’ finances more likely to use baby food
Market Size and Forecast
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- Values and volumes rise in 2015
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- Figure 7: Total UK retail volume and value sales of baby food, drink and milk, 2010-20
- The future
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- Figure 8: Best- and worst-case forecast of total UK retail value sales of baby food, drink and milk, 2010-20
- Figure 9: Best- and worst-case forecast of total UK retail volume sales of baby food, drink and milk, 2010-20
- Forecast methodology
Market Segmentation
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- Baby milk grows sales and share
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- Figure 10: UK retail value and volume sales of baby food, drink and milk, by segment, 2012-15
- Baby food sales plateau in 2015
- Finger foods/snacks grow over 2012-15
- Baby drinks see ongoing decline
Market Drivers
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- Birth rate drops in 2014
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- Figure 11: Live births in England and Wales, 2010-14
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- Figure 12: Live births in England and Wales, by area of residence of mother, 2014
- Only slight growth predicted in 0-4s over 2015-20
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- Figure 13: Trends in the age structure of the UK population, 2010-20
- Average age of mothers continues to edge up
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- Figure 14: Mean age of mother at childbirth, 2010-14
- Health remains an ongoing focus
- Sugar continues to hit the headlines…
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- Figure 15: Daily sugar intake, by age, UK, and share of daily food energy from added sugars, rolling programme 2008-12
- …also in baby food
- Obesity rates rise year on year
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- Figure 16: Prevalence of obese/overweight children aged 2-4, by gender, England, 2013 and 2014
- Breastfeeding rates fall
- Breastfeeding in public continues to attract attention
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- Figure 17: Percentage of mothers initiating breastfeeding and the percentage of infants being breastfed at six to eight weeks, 2008/09-2014/15
- Opportunities for premiumisation, with those in ‘healthy’ finances more likely to use baby food
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- Figure 18: Considerations when buying food and drink for youngest child, June 2014
- Time pressures hit parents
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- Figure 19: Qualities associated with baby Food and Drink, December 2015
Key Players – What You Need to Know
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- Ella’s Kitchen gains sales and share within baby food
- Snack brands see mixed fortunes, with Organix continuing to lead
- Danone captures around 80% of the baby milk market
- Heinz is the only dominant player in baby drinks
- Ella’s Kitchen leads on innovation
- Adspend falls as follow-on milk sees drop in support
Market Share
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- Ella’s Kitchen gains sales and share within baby food
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- Figure 20: Leading brands’ sales in the UK baby food market, by value and volume, 2014/15 and 2015/16
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- Figure 21: Leading manufacturers’ sales in the UK baby food market, by value and volume, 2014/15 and 2015/16
- Snack brands see mixed fortunes, with Organix continuing to lead
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- Figure 22: Leading brands’ sales in the UK baby snacks market, by value and volume, 2014/15 and 2015/16
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- Figure 23: Leading manufacturers’ sales in the UK baby snacks market, by value and volume, 2014/15 and 2015/16
- Danone captures around 80% of the baby milk market
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- Figure 24: Leading brands’ sales in the UK baby milk market, by value and volume, 2014/15 and 2015/16
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- Figure 25: Leading manufacturers’ sales in the UK baby milk market, by value and volume, 2014/15 and 2015/16
- Heinz is the only dominant player in baby drinks
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- Figure 26: Leading brands’ sales in the UK baby drinks market, by value and volume, 2014/15 and 2015/16
Launch Activity and Innovation
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- Meals lead NPD
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- Figure 27: Share of new product launches within the UK baby food, drink and milk market, by sub-category, 2012-15
- Baby biscuits and rusks see rise in launches
- Drinks brands look to water variants
- Popularity of pouches continues
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- Figure 28: Share of new product launches within the UK baby food, drink and milk market, by selected package type, 2012-15
- Heinz looks to wider spout for chunkier ingredients
- Ella’s Kitchen leads on innovation
- Ella’s expands snack range for those aged 3+…
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- Figure 29: Share of new product launches within the UK baby food, drink and milk market, by company, 2012-15
- …and relaunches cereals range
- Hipp unveils dessert range for those aged 15 months plus
- Aptamil looks to premiumisation with Profutura range, featuring omega-3
- Little Dish introduces pizza line…
- …and expands into snacks
- Brands dominate NPD, but own-label is gaining share
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- Figure 30: Share of new product launches within the UK baby food, drink and milk market, by brands vs own-label, 2012-15
- Health remains a focus of NPD
- No additives claims continue to dominate NPD
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- Figure 31: Share of new product launches within the UK baby food, drink and milk market, by selected claims, 2012-15
- L/N/R allergen claim falls
- Gluten-free claim falls
- Increased focus on sugar
- Fortification adds value to the market
- Time/speed claim only present across 7% of launches
- Ease of use claim is referenced to a greater extent
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- Figure 32: Share of new product launches within the UK baby food, drink and milk market, with an ease of use claim, 2012-15
- Yogurt brands target children
Advertising and Marketing Activity
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- Adspend falls as follow-on milk sees drop in support
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- Figure 33: Total above-the line, online display and direct mail advertising expenditure on baby food and drink, 2012-15
- Figure 34: Total above-the line, online display and direct mail advertising expenditure on baby food and drink, by category, 2012-16
- Danone is leading advertiser
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- Figure 35: Total above-the line, online display and direct mail advertising expenditure on baby food and drink, by advertiser, (sorted by total), 2012-16
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- Figure 36: Total above-the line, online display and direct mail advertising expenditure on baby food and drink, by brand, 2015
- Ella’s looks to alternative media
- Little Dish looks to social media
- Nielsen coverage
The Consumer – What You Need to Know
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- Homemade food dominates, used by 83% of parents
- Brand is the top factor
- Almost half prefer their child to eat the same food as the family
- A near 80% associate variety with combatting allergies
- Convenience is the main appeal of manufactured baby/toddler food
Baby Food Usage
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- Homemade food dominates, used by 83% of parents
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- Figure 37: Usage of baby food, by type, December 2015
- Affluent groups show above-average usage of manufactured food and drink
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- Figure 38: Usage of baby food, by type, by socio-economic status and annual household income of parents, December 2015
- Milk usage is skewed towards younger babies
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- Figure 39: Usage of baby milk, by age of youngest child, December 2015
- 66% use homemade food daily, with milk also popular as a daily staple
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- Figure 40: Frequency of usage of baby food, by type, December 2015
Factors Influencing Purchasing of Baby/Toddler Milk
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- Brand is the top factor
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- Figure 41: Factors influencing purchasing of baby/toddler milk, December 2015
- Convenient packaging appeals to those with ‘healthy’ finances and those living in urban locations
- Ingredients are a driver
Factors Influencing Purchasing of Baby/Toddler Food
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- Trust in a brand is most important factor
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- Figure 42: Factors influencing purchasing of manufactured baby/toddler food, December 2015
- Interest in nutritional content provides an incentive for NPD
Attitudes towards Baby/Toddler Food
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- Almost half prefer their child to eat the same food as the family
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- Figure 43: Attitudes towards baby/toddler food, December 2015
- Control of ingredients is important to 45%
- Time pressures cause parents to look for back-up or default options
Attitudes to Baby/Toddler Food and Drink
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- A near 80% associate variety with combatting allergies
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- Figure 44: Attitudes to baby/toddler food and drink, December 2015
- Reducing sugar of drinks appeals to 58%
- 45% find hitting the 5-a-day target challenging
- Foodservice provides another avenue for expansion
- Opportunities for up-ageing
Qualities Associated with Baby/Toddler Food
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- Convenience is the main appeal of manufactured baby/toddler food
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- Figure 45: Correspondence analysis – Qualities associated with different types of baby food products, December 2015
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- Figure 46: Qualities associated with different types of baby food products, December 2015
- Homemade is seen to be trustworthy and natural
- Finger foods are seen as ‘fun’
- Methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Forecast methodology
Appendix – Launch Activity and Innovation
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- Figure 47: Share of new product launches within the UK baby food, drink and milk market, by brand, 2012-15
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Appendix – Advertising and Marketing Activity
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- Figure 48: Total above-the line, online display and direct mail advertising expenditure on baby food and drink, by brands, (sorted by total), 2012-16
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Appendix – Market Size and Forecast
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- Figure 49: Best- and worst-case forecast of total UK retail value sales of baby food, drink and milk, 2015-20
- Figure 50: Best- and worst-case forecast of total UK retail volume sales of baby food, drink and milk, 2015-20
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