Author: Mintel Group Ltd.
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Baby Food and Drink - US - May 2014
Scope and Themes
 
What you need to know 
The US baby food and drink market is expected to increase significantly and steadily between 2013 and 2019, boosted by moderate population growth among children aged three and younger. Also factoring into future growth is a push toward organic products and more brands offering convenient baby food pouches, which bring higher prices and profit margins and are helping drive sales gains, innovation, and new product development. Nearly a third of respondents report wanting to see baby food/drink brands commit further to organic ingredients. However, stronger growth will be prevented by the growing rate of breastfeeding among new mothers, as well as by the slow economic recovery, which likely prevents those parents with limited spending power from buying organic and other costlier baby food and drinks. This report provides analysis of these factors, as well as critical exploration of the following:

●	How sales growth in the number-two baby food segment is outpacing that of the number-one segment baby formula
●	How three top companies maintain their competitive dominance in the MULO market
●	Online parenting support programs provided by top brands and how they figure into marketing strategies

This report also features analysis of Mintel’s exclusive consumer research, with emphasis on product usage, brands used, attitudes and preferences toward baby formula and baby food, and what consumers would like to see baby/toddler food and drink companies provide.

Definition 
For the purposes of this report, Mintel has used the following definitions: 

This report builds on the analysis in Mintel’s Baby Food and Drink—US, May 2013, as well as the June 2012, May 2011, May 2010, January 2009, and January 2008 reports of the same title. 

This report includes powdered, ready-to-feed (RTF), and concentrated, canned baby formula. It also includes canned and jarred baby food (including shelf-stable and frozen/refrigerated products), cereal, and snacks, as well as baby juice.

Not included are other foods that babies consume such as fruit, non-baby-specific juice, or non-baby-specific canned or jarred products that may be eaten by consumers of all ages (eg, “regular” apple sauce or cereal, “regular” juice).

For the purposes of this report, babies are children younger than one, and toddlers are aged 1-2 years.

Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated. 

Data sources
Sales data
●	Market Size and Forecast and Segment Performance: Total retail sales based on Information Resources, Inc. InfoScan® Reviews; U.S. Census Bureau, Economic Census; Progressive Grocer’s Consumer Expenditure Study.
●	Retail Channels: Based on SymphonyIRI Group InfoScan® Reviews; U.S. Census Bureau, Economic Census; Progressive Grocer’s Consumer Expenditure Study; except supermarket and drugstore sales, which are based on SymphonyIRI Group InfoScan® Reviews.
●	Leading Companies and Brand Share: based on MULO sales data from SymphonyIRI Group InfoScan® Reviews. MULO is defined as Multi Outlet, representative of the following channels: total U.S. Grocery, Mass, Total U.S. Drug, Total Walmart, Dollar, Military, and Club.

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer consumption of/attitudes and behaviors toward baby food and drink. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in January 2014 among a sample of 895 adults aged 18+ with child(ren) aged three and under and who have access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly over-samples, relative to the population, respondents that are Hispanic or black to ensure an adequate representation of these groups in our survey results and to allow for more precise parameter estimates from our reported findings. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

Mintel has also analyzed data from EMS (Experian Marketing Services), using the Simmons (NCS National Consumer Study) and the Simmons NHCS (National Hispanic Consumer Study.

The EMS Simmons NCS/NHCS was carried out during November 2012-December 2013 and the results are based on the sample of 2,617 adults aged 18+ who have a child aged three and under, with results weighted to represent the US adult population. 

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following abbreviations are used in this report: 

AAP | American Academy of Pediatrics
ARA | Arachidonic Acid
BPA | Bisphenol A
CDC | Centers for Disease Control and Prevention
CPI | Consumer Price Index
DHA | Docosahexaenoic Acid
DV | Daily Value
EMS | Experian Marketing Services
EPA | Eicosapentaenoic Acid
FDA | Food and Drug Administration
GMO | Genetically Modified Organism
GNPD | Global New Products Database
HH | Household
LGG | Lactobacillus GG
MULO | Multi Outlet, representative of the following channels: total U.S. Grocery, Mass, total U.S. Drug, total Walmart, Dollar, Military, and Club
NOFB | Natural/organic Food and Beverage
NHCS | National Consumer Study/National Hispanic Consumer Study (Experian Marketing Services)
POS | Point of Sale
rsp | Retail Selling Price
RTF | Ready-to-feed
UPC | Universal Product Code
USDA | US Department of Agriculture

Generations are discussed within this report, and they are defined as: 

World War II/Swing Generations | Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 68-81 in 2014.
Baby Boomers | The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X | Born between 1977 and 1994, Millennials are aged 20-37 in 2014.
Millennials* | The generation born between 1977 and 1994. In 2014, Millennials are between the ages of 19 and 36.
iGeneration | Born between 1995 and 2007, members of iGen are aged 7-19 in 2014.
Emerging Generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014, members of this as-yet-unnamed generation are younger than 7.

* also known as Generation Y or Echo Boomers; includes the oldest members of the iGeneration, aged 18-19

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: 

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.

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