Baby Food and Drink - US - May 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Overview
Baby food and drink market size and forecast
Figure 1: Total U.S. sales and fan chart forecast of baby food and drink, at current prices, 2007-17
Baby food and drink segment performance
Figure 2: Sales of baby food and drink, segmented by type, 2007-17
Decline in birthrate shrinks baby food and drink consumer base
Figure 3: Fertility rate, by race and ethnicity, 2010
Full-time employment drives baby formula and store-bought food usage
Figure 4: Parents' behaviors toward feeding their child(ren), by employment, February 2013
Interest in all-natural and organic products adds momentum to market
Figure 5: New baby food and drink product launches, by organic and not organic, 2007-13*
Supermarkets suffer as consumers turn to value shopping experience
Figure 6: Total U.S. retail sales of baby food and drink, by channel, at current prices, 2010 and 2012
Three brands account for 87% of category sales
Figure 7: MULO sales of baby food and drink, by leading companies, rolling 52 weeks 2012 and 2013
Parents more likely to use formula but not necessarily store-bought food
Figure 8: Parents' behaviors toward feeding their child(ren) younger than one, February 2013
Figure 9: Parents' behaviors toward feeding their child(ren) younger than three, February 2013
Price, all-natural ingredients, and convenience most important to parents
Figure 10: Important characteristics when purchasing baby food and drink, February 2013
Nutrition and safety on the minds of most parents
Figure 11: Important nutritional characteristics when purchasing baby food and drink, February 2013
What we think
ISSUES IN THE MARKET
What can the industry do to counter the effects of declining birthrates?
What role does nutrition play in the baby/toddler food market?
How can the industry address concerns over product safety?
INSIGHTS AND OPPORTUNITIES
Expanding market beyond babies and toddlers
Positioning pureed fruits and vegetables for adults
Ethnic and exotic flavors may appeal to young adults
Baby food products that offer versatility in usage
TREND APPLICATIONS
Trend: Factory Fear
Trend: Buydeology
Mintel Futures: Access Anything, Anywhere
MARKET SIZE AND FORECAST
Key points
Declining birthrates, struggling economy, price instability obstruct growth
Economic recovery, innovation, and market expansion will drive category
Sales and forecast of baby food and drink
Figure 12: Total U.S. retail sales and forecast of baby food and drink, at current prices, 2007-17
Figure 13: Total U.S. retail sales and forecast of baby food and drink, at inflation adjusted prices, 2007-17
Fan chart forecast
Figure 14: Total U.S. sales and fan chart forecast of baby food and drink, at current prices, 2007-17
MARKET DRIVERS
Key points
Declining fertility rates challenge baby food and drink market growth
Figure 15: Fertility rate, by race and ethnicity, 2010
Full-time employment drives use of store-bought baby/toddler food
Figure 16: Parents' behaviors toward feeding their child(ren), by employment, February 2013
Organic movement has hit baby food market
COMPETITIVE CONTEXT
Breast milk still number one source of nutrition for baby
Homemade baby/toddler food used by more parents than store-bought food
Adult foods, such as cereals, compete for growing babies
Figure 17: Cheerios TV ad, “Two Generations,” 2012
SEGMENT PERFORMANCE
Key points
Baby formula remains dominant, but baby food growth rate much higher
Sales of baby food and drink, by segment
Figure 18: Sales of baby food and drink, segmented by type, 2010 and 2012
SEGMENT PERFORMANCE – BABY FORMULA
Key points
Baby formula to continue to drive slow category sales growth
Sales and forecast of baby formula
Figure 19: Sales and forecast of baby formula, at current prices, 2007-17
SEGMENT PERFORMANCE – BABY FOOD AND SNACKS
Key points
Baby food and snacks fares relatively well in recession recovery
Sales and forecast of baby food and snacks
Figure 20: Sales and forecast of baby food and snacks, at current prices, 2007-17
SEGMENT PERFORMANCE – BABY ELECTROLYTES
Key points
Baby electrolytes suffer after recession, expected to slowly recover
Sales and forecast of baby electrolytes
Figure 21: Sales and forecast of baby electrolytes, at current prices, 2007-17
SEGMENT PERFORMANCE – BABY JUICE
Key points
Baby juice on downward spiral, no end in sight
Sales and forecast of baby juice
Figure 22: Sales and forecast of baby juice, at current prices, 2007-17
RETAIL CHANNELS
Key points
Other channels sales dominance grows as supermarkets lose sales
Sales of baby food and drink, by channel
Figure 23: Total U.S. retail sales of baby food and drink, by channel, at current prices, 2010-12
RETAIL CHANNELS – SUPERMARKETS
Key points
Supermarket sales of baby food and drink take 13% tumble since 2007
Supermarket sales of baby food and drink
Figure 24: U.S. supermarket sales of baby food and drink, at current prices, 2007-12
RETAIL CHANNELS – DRUG STORES
Key points
Drug store sales remain small fraction of total sales
Drug store sales of baby food and drink
Figure 25: U.S. drug store sales of baby food and drink, at current prices, 2007-12
RETAIL CHANNELS – OTHER
Key points
Other channel finds success with competitive pricing
Other channel sales of baby food and drink
Figure 26: U.S. sales of baby food and drink, through other retail channels, at current prices, 2007-12
RETAIL CHANNELS – NATURAL SUPERMARKETS
Key points
Insights
Sales of baby food in the natural channel
Figure 27: Natural supermarket sales of baby food, at current prices, 2010-12*
Figure 28: Natural supermarket sales of baby food, at inflation-adjusted prices, 2010-12*
Natural channel sales of baby foods by segment
Figure 29: Natural supermarket sales of baby food, by segment, 2011 and 2013*
Natural channel sales of baby food by organic
Figure 30: Natural supermarket sales of baby food, by organic, 2011 and 2013*
LEADING COMPANIES
Key points
Three brands dominate baby food and drink market
Private label, other companies’ sales growing faster than leaders’
MULO sales of baby food and drink
Figure 31: MULO sales of baby food and drink, by leading companies, rolling 52 weeks 2012, 2013
BRAND SHARE – BABY FORMULA
Key points
Similac, Enfamil lead segment, but Gerber experiences strongest growth
Private label not making much headway
MULO sales of baby formula
Figure 32: MULO sales of baby formula, by leading companies, rolling 52 weeks 2012 and 2013
BRAND SHARE – BABY FOOD AND SNACKS
Key points
Gerber dominates market, but shows little sign of growth in 2013
Demand for organic, new products, savings drives other sales
MULO sales of baby food and snacks
Figure 33: MULO sales of baby food and snacks, by leading companies, rolling 52 weeks 2012 and 2013
BRAND SHARE – BABY ELECTROLYTES
Key points
Pedialyte and private label share baby electrolyte market
MULO sales of baby electrolytes
Figure 34: MULO sales of baby electrolytes, by leading companies, rolling 52 weeks 2012, 2013
BRAND SHARE – BABY JUICE
Key points
Gerber, other brands suffer as baby juice sales decline
MULO sales of baby juice
Figure 35: MULO sales of baby juice, by leading companies, rolling 52 weeks 2012 and 2013
INNOVATIONS AND INNOVATORS
Traditional baby food leads all subcategories in innovation
Figure 36: New baby food and drink product launches, by subcategory, 2007-13*
Innovation in organic baby food is helping drive the market
Figure 37: New baby food and drink product launches, by organic and not organic, 2007-13*
Figure 38: New baby food and drink product launches, by brand, 2007-13*
New product claims reflect what parents say is important
Figure 39: Top 10 claims on new baby food and drink product launches, 2007-13*
MARKETING STRATEGIES
Overview of brand landscape
Brand analysis: Gerber Good Start
Figure 40: Brand analysis of Gerber Good Start, 2013
Online initiatives
Figure 41: Gerber Facebook Post, 2013
Figure 42: Gerber Website, 2013
TV presence
Figure 43: Gerber Good Start TV ad, “Baby Einstein,” 2012
Brand analysis: Gerber Graduates
Figure 44: Brand analysis of Gerber Graduates, 2013
TV presence
Figure 45: Gerber Graduates TV ad, “Graduates  Grabbers/Lil’ Entrees,” 2012
Brand analysis: Earth’s Best Organic
Figure 46: Brand analysis of Earth’s Best Organics, 2013
Online initiatives
Figure 47: Earth’s Best Organic Facebook Post, 2013
TV presence
Figure 48: Earth’s Best organic TV ad, “Best Way to Grow,” 2012
Brand analysis: Enfamil
Figure 49: Brand analysis of Enfamil, 2013
Online initiatives
Figure 50: Enfamil Facebook Post, 2013
Figure 51: Enfamil YouTube Video, 2013
TV presence
Figure 52: Enfamil TV ad, “Peace of Mind,” 2012
SOCIAL MEDIA – BABY FOOD AND DRINK
Key points
Social media metrics
Figure 53: Key performance indicators, April 2013
Market overview
Brand usage and awareness
Figure 54: Usage and awareness of selected baby food and drink brands, February 2013
Interaction with baby food and drink brands
Figure 55: Interaction with baby food and drink brands, February 2013
Online conversations
Figure 56: Selected baby food and drink brands’ share of conversation, Jan. 17-April 16, 2013
Figure 57: Conversations on selected baby food and drink brands, by week, Jan. 17-April 16, 2013
Where are people talking about baby food and drink brands?
Figure 58: Selected baby food and drink brands’ share of brand conversations, by page type, Jan. 17-April 16, 2013
What are people talking about?
Figure 59: Types of conversations concerning selected baby food and drink brands, Jan. 17-April 16, 2013
Figure 60: Types of conversations concerning selected baby food and drink brands, by week, Jan. 17-April 16, 2013
Figure 61: Types of conversations concerning selected baby food and drink brands, by site type, Jan. 17-April 16, 2013
 ANALYSIS BY BRAND
Enfamil
Figure 62: Enfamil—Key social media indicators, April 15, 2013
Key online campaigns
What we think
Gerber
Figure 63: Gerber—Key social media indicators, April 15, 2013
Key online campaigns
What we think
Plum Organics
Figure 64: Plum Organics—Key social media indicators, April 15, 2013
Key online campaigns
Figure 65: Word cloud of mentions of Plum Organic’s “The Full Effect” campaign, Jan. 17-April 21, 2013
What we think
Earth’s Best
Figure 66: Earth’s Best—Key social media indicators, April 15, 2013
Key online campaigns
What we think
Ella’s Kitchen
Figure 67: Ella’s Kitchen—Key social media indicators, April 15, 2013
Key online campaigns
What we think
Happy Baby
Figure 68: Happy Baby—Key social media indicators, April 15, 2013
Key online campaigns
What we think
PARENTS’ FEEDING BEHAVIOR
Key points
Parents more likely to buy formula and food than nurse and make food
Figure 69: Parents' behaviors toward feeding their child(ren), by age of child(ren), February 2013
Employment status impacts how parents feed babies and toddlers
Figure 70: Parents' behaviors toward feeding their child(ren), by employment, February 2013
First-time parents more likely to rely on store-bought baby/toddler food
Figure 71: Parents' behaviors toward feeding their child(ren), by parents with children, February 2013
ATTITUDES COMPARING HOMEMADE AND STORE-BOUGHT FOOD
Key points
Homemade baby/toddler food more highly regarded than store-bought food
Figure 72: Attitudes toward baby/toddler food, February 2013
Dads more likely than moms to favor store-bought baby/toddler food
Figure 73: Store-bought baby/toddler food, by gender, February 2013
New parents more likely to think store-bought food is cheaper, less wasteful
Figure 74: Store-bought baby/toddler food, by parents with children, February 2013
IMPORTANT PRODUCT ATTRIBUTES
Key points
Parents value price, all-natural ingredients, and convenience most
Figure 75: Important characteristics when purchasing baby food and drink, February 2013
Many parents think nutritional attributes are important
Parents using only store-bought food value nutrition, ingredients less
Figure 76: Any important characteristics when purchasing baby food and drink, by parents' behaviors toward feeding their child(ren), February 2013
BABY/TODDLER FOOD AND DRINK PARENT BEHAVIOR
Key points
Word-of-mouth marketing plays role in baby/toddler food marketing
Figure 77: Behaviors toward baby/toddler food and drink, February 2013
Labeling may be more effective in reaching parents aged 35+
Figure 78: Research behavior toward baby/toddler food and drink, by age, February 2013
Parents aged 35+ more brand loyal, less likely to value shop
Figure 79: Purchase behavior toward baby/toddler food and drink, by age, February 2013
PARENTS’ ATTITUDES ON BABY AND TODDLER FOOD
Key points
Nutrition a concern for almost a quarter of parents
Figure 80: Attitudes toward baby food and drink nutritional attributes, February 2013
Low-income parents more concerned about product safety
Figure 81: Attitudes toward baby food and drink nutritional attributes, by household income, February 2013
Parents who use a mix of foods more likely to desire ethnic food options
Figure 82: Attitudes toward baby food and drink nutritional attributes, by feeding type, February 2013
SOURCES OF NUTRITIONAL INFORMATION
Key points
Parents most likely to look online for baby food and drink products
Figure 83: Attitudes toward nutritional information, February 2013
Men and women favor different sources for baby food information
Figure 84: Attitudes toward nutritional information, by gender, February 2013
Household income level plays a role in determining information sources
Figure 85: Attitudes toward nutritional information, by household income, February 2013
RACE AND HISPANIC ORIGIN
Key points
Non-white parents more likely to use formula, make baby food
Figure 86: Parents’ behavior toward feeding their child(ren), by race, February 2013
Figure 87: Parents’ behavior toward feeding their child(ren) drinks, by race, February 2013
Low/no sugar, recognizable brand trump convenience for other races
Figure 88: Any important characteristics when purchasing baby food and drink, by race, February 2013
Figure 89: Attitudes toward nutritional information, by race, February 2013
IRI/BUILDERS – KEY HOUSEHOLD PURCHASE MEASURES
 OVERVIEW OF BABY FOOD
Baby food/snacks
Consumer insights on key purchase measures—baby food/snacks
Brand map
Figure 90: Brand map, selected brands of baby food/snacks, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 91: Key purchase measures for the top brands of baby food/snacks, by household penetration, 2012*
APPENDIX – FOOD AND DRINK MARKET DRIVERS
Consumer confidence
Figure 92: University of Michigan’s index of consumer sentiment (ICS), 2007-13
Unemployment
Figure 93: U.S. unemployment rate, by month, 2002-13
Figure 94: U.S. Unemployment and underemployment rates, 2007-13
Figure 95: Number of employed civilians in U.S., in thousands, 2007-13
Food cost pressures
Figure 96: Changes in USDA Food Price Indexes, 2011 through 2013, March 25, 2013
Obesity
Figure 97: U.S. Obesity, by age group, 2008 and 2012
Childhood and teen obesity—highest in decades
Figure 98: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
Racial, ethnic population growth
Figure 99: Population by race and Hispanic origin, 2008, 2013, and 2018
Figure 100: Households with children, by race and Hispanic origin of householder, 2012
Shifting U.S. demographics
Figure 101: Population, by age, 2008-18
Figure 102: Households, by presence of own children, 2002-12
APPENDIX – OTHER USEFUL CONSUMER TABLES
Figure 103: Parents' behaviors toward feeding their child(ren), by gender, February 2013
Figure 104: Parents' behaviors toward feeding their child(ren), by household income, February 2013
Figure 105: Parents' behaviors toward feeding their child(ren), by parents with children, February 2013
Figure 106: Homemade baby/toddler food, by gender, February 2013
Figure 107: Homemade baby/toddler food, by household income, February 2013
Figure 108: Homemade baby/toddler food, by employment, February 2013
Figure 109: Homemade baby/toddler food, by region, February 2013
Figure 110: Homemade baby/toddler food, by parents' behaviors toward feeding their child(ren), February 2013
Figure 111: Store-bought baby/toddler food, by gender, February 2013
Figure 112: Store-bought baby/toddler food, by region, February 2013
Figure 113: Store-bought baby/toddler food, by parents' behaviors toward feeding their child(ren), February 2013
Figure 114: They are about the same, by parents' behaviors toward feeding their child(ren), February 2013
Figure 115: Attitudes toward nutritional information, by presence of children in household, February 2013
Figure 116: Attitudes toward nutritional information, by parents' behaviors toward feeding their child(ren), February 2013
Figure 117: Usage of baby drink and food in the past 12 months, by attitudes toward nutritional information, February 2013
Figure 118: Usage of baby drink and food in the past 12 months, by attitudes toward nutritional information, February 2013
Figure 119: Usage of baby drink and food in the past 12 months, by attitudes toward nutritional information, February 2013
Figure 120: Usage of baby drink and food in the past 12 months, by behaviors toward baby/toddler food and drink, February 2013
Figure 121: Usage of baby drink and food in the past 12 months, by behaviors toward baby/toddler food and drink, February 2013
Figure 122: Attitudes toward baby food and drink nutritional attributes, by generation, February 2013
APPENDIX – SOCIAL MEDIA – BABY FOOD AND DRINK
Brand usage and awareness
Figure 123: Brand usage or awareness, February 2013
Figure 124: Enfamil usage or awareness, by demographics, February 2013
Figure 125: Earth’s best usage or awareness, by demographics, February 2013
Figure 126: Plum organics usage or awareness, by demographics, February 2013
Figure 127: Ella’s kitchen usage or awareness, by demographics, February 2013
Figure 128: Happy Baby usage or awareness, by demographics, February 2013
Figure 129: Gerber usage or awareness, by demographics, February 2013
Activities done
Figure 130: Activities done, February 2013
Figure 131: Enfamil—Activities done, by demographics, February 2013
Figure 132: Earth’s Best—Activities done, by demographics, February 2013
Figure 133: Gerber—Activities done, by demographics, February 2013
Online conversations
Figure 134: Selected baby food and drink brands’ share of conversation, Jan. 17-April 16, 2013
Figure 135: Conversations on selected baby food and drink brands, by day, Jan. 17-April 16, 2013
Figure 136: Selected baby food and drink brands’ share of brand conversations, by page type, Jan. 17-April 16, 2013
Figure 137: Types of conversations concerning selected baby food and drink brands, Jan. 17-April 16, 2013
Figure 138: Types of conversations concerning selected baby food and drink brands, by day, Jan. 17-April 16, 2013
Figure 139: Types of conversations concerning selected baby food and drink brands, by site type, Jan. 17-April 16, 2013
APPENDIX – SYMPHONYIRI BUILDERS PANEL DATA DEFINITIONS
SymphonyIRI Consumer Network Metrics
APPENDIX – TRADE ASSOCIATIONS