Baby Food and Drink - US
Report description
Smaller baby food and drink firms can find themselves having a difficult time gaining a foothold in a market dominated by big players Gerber (Nestlé) and Beech-Nut. Some of these smaller firms have found ways to compete that focus more on the convenience and accessibility factor, rather than solely on the food itself.
One firm that has focused its efforts on the “grab-n-go” market is Plum Organics, of Emeryville, Calif., an organic baby food supplier whose parent company is Nest Collective. One way in which the company has tapped into the trend of convenience is with MishMash, fruit purée snacks in squeezable pouches, which also contain organic acerola fruit. The company notes that this is a good way of naturally boosting vitamin C, even as the firm has focused on this type of pouch technology over the last year. The company states that the pouches enable the firm to provide not just a better-tasting but also a more portable product, both critical success factors for baby food to resonate with both kids as well as parents.
Table of contents
SCOPE AND THEMESWhat you need to know
Definition
Data sources
Sales data
Consumer data
Advertising clips
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Baby food and drink market declines continue in 2010
Consumers laboring under higher food costs and less disposable income
Baby formula leads overall, but is driving the market?s declines
Supermarkets remain the retailer of choice
Leading companies remain Nestlé and Abbott Nutrition
Innovations continue rapidly apace
A fresh look at marketing strategies
The consumer
INSIGHTS AND OPPORTUNITIES
Smaller companies pursuing new packaging ideas
Teaming up with larger companies
Learn from other companies? mistakes
Organic baby food has yet to reach its potential
Changing the eco-friendly paradigm
INSPIRE INSIGHTS
Trend: “Green Technology”
MARKET SIZE AND FORECAST
Key points
Baby food and drink market feeling effects of recession, decline in birth rate
Sales and forecast of baby food and drink
Figure 1: Total U.S. retail sales of baby food and drink, at current prices, 2005-12
Figure 2: Total U.S. retail sales of baby food and drink, at inflation-adjusted prices, 2005-12
Fan chart forecast
Figure 3: Fan chart forecast for baby food and drink, at current prices, 2005-12
Walmart sales
MARKET DRIVERS
Rising food prices impacting consumers? disposable income
Birth rate at its lowest point in the last century
Figure 4: Households by presence of children, 1999-2009
Companies face labeling warnings from FDA
New federal regulations encourage breastfeeding
COMPETITIVE CONTEXT
Key points
Breastfeeding slowing usage of baby formula
High unemployment leaves more time to make food, save money
Figure 5: Feeding behavior, by age and household income, January/February 2011
Making do with substitutes
Mommy blogs proving to have staying power
SEGMENT PERFORMANCE
Key points
Baby formula shows decline, but continues to dominate the category
Sales of market, by segment
Total U.S. sales of baby food and drink, by segment
Figure 6: Total U.S. sales of baby food and drink, by segment, 2008-10
SEGMENT PERFORMANCE—BABY FORMULA
Key points
Breastfeeding having an impact on sales of baby formula
Sales and forecast of baby formula
Figure 7: Total U.S. sales of baby formula, 2005-12
SEGMENT PERFORMANCE—BABY FOOD AND SNACKS
Key points
Sales of baby food and snacks remains stable
Sales and forecast of baby food and snacks
Figure 8: Total U.S. sales and forecast of baby food and snacks, at current prices, 2005-12
SEGMENT PERFORMANCE—BABY ELECTROLYTES
Key points
Baby electrolytes fall further out of favor
Sales and forecast of baby electrolytes
Figure 9: Total U.S. sales and forecast of baby electrolytes, at current prices, 2005-12
SEGMENT PERFORMANCE—BABY JUICE
Key points
Baby juice sales continue to decline
Sales and forecast of baby juice
Figure 10: Total U.S. sales and forecast of baby juice, at current prices, 2005-12
RETAIL CHANNELS
Key points
Supermarkets and their promise of one-stop shopping a powerful draw
Figure 11: Total U.S. FDMx sales of baby food and drink, by channel, 2008 and 2010
Sales through supermarkets continue to be on the decline
Some stores trying to cater to certain demographics
Figure 12: Supermarket/food store sales of baby food and drink, at current prices, 2005-10
Warehouse clubs see sales drop between 2008 and 2010
Figure 13: Supercenter and warehouse club sales of baby food and drink, at current prices, 2005-10
Drugstores see less of a decline than other channels in 2009-2010
Figure 14: Other retailer sales of baby food and drink, at current prices, 2005-10
RETAIL CHANNELS—NATURAL SUPERMARKETS
Key points
Insights
Sales of baby food in the natural channel
Figure 15: Natural supermarket sales of baby food, at current prices, 2008-10
Figure 16: Natural supermarket sales of baby food, at inflation-adjusted prices, 2008-10
Natural channel sales by segment
Figure 17: Natural supermarket sales of baby food, by segment, 2008 and 2010
Leading brands
Natural channel sales by organic content
Figure 18: Natural supermarket sales of baby food, by organic content, 2008 and 2010
LEADING COMPANIES
Key points
Leading companies jockeying for the top position
FDMx sales of baby food and drink by manufacturer
Figure 19: Manufacturer FDMx sales of baby food and drink in the U.S., 2010 and 2011
BRAND SHARE—BABY FORMULA
Key points
Rebranding only partially successful
Changes in WIC program continue to have an impact
Private label receives a boost
Manufacturer and brand sales of baby formula
Figure 20: Selected FDMx brand sales of baby formula, 2010 and 2011
BRAND SHARE—BABY FOOD AND SNACKS
Key points
Largest manufacturers stepping up their offerings
Smaller companies find ways to compete
Manufacturer and brand sales of baby food and snacks
Figure 21: Selected FDMx brand sales of baby food and snacks, 2010 and 2011
BRAND SHARE—BABY ELECTROLYTES
Key points
Pedialyte remains in the top spot, even as private label gains ground
Manufacturer and brand sales of baby electrolytes
Figure 22: Selected FDMx brand sales of baby electrolytes, 2010 and 2011
BRAND SHARE—BABY JUICE
Key points
Juice remains the smallest segment of the baby food and drink category
Manufacturer and brand sales of baby juice
Figure 23: Selected FDMx brand sales of baby juice, 2010 and 2011
INNOVATIONS AND INNOVATORS
Key points
Drop-off in number of baby savory meals and dishes introduced
Baby food and drink product launches 2007-11
Figure 24: New baby food product launches, by subcategory, 2007-11
Desire for products with no additives or preservatives fuels new product launches
Figure 25: New baby food product launches, by product claim, 2007-11
Shelf-stable remains the most popular packaging type by far
Figure 26: New baby food product launches, by storage type, 2007-11
Gerber has the most new product launches
Figure 27: New baby food product launches, by top five companies/top three brands, 2007-11
Figure 28: New baby food product launches, by name brand and private label segmentation, 2007-11
PRODUCT INNOVATIONS
Baby fruit products, desserts and yogurts
Baby savory meals and dishes
Baby snacks
MARKETING STRATEGIES
OVERVIEW
Social media marketing
Gerber engaging more directly with consumers
TELEVISION ADVERTISING
Beech-Nut Steamies
Figure 29: Beech-Nut Steamies, 2011
Enfamil Premium Newborn
Figure 30: Enfamil Premium Newborn, 2011
Gerber Graduates Puffs
Figure 31: Gerber Graduates Puffs, 2010
PBM Products
Figure 32: PBM Products, 2010
BABY FOOD AND DRINK USAGE
Key points
Formula usage
Figure 33: Baby food and drink usage, by age and household income, January/February 2011
Figure 34: Liquid/powdered baby formula, by race/Hispanic origin, July 2009-September 2010
Figure 35: Liquid/powdered baby formula, by household income, July 2009-September 2010
Baby and toddler food usage
Figure 36: baby food/baby cereals/juices, by race/Hispanic origin, July 2009-September 2010
Figure 37: baby food/baby cereals/juices, by household income, July 2009-September 2010
Usage frequency
Figure 38: Baby food and drink usage frequency, July 2009-September 2010
Organic food/baby food usage
Figure 39: Organic food/baby food usage, by race/Hispanic origin, July 2009-September 2010
Figure 40: Organic food/baby food usage, by race/Hispanic origin, July 2009-September 2010
FEEDING BEHAVIOR
Key points
Feeding behavior
Figure 41: Feeding behavior, by age and household income, January/February 2011
Figure 42: Feeding behavior during a typical week, by age and household income, January/February 2011
REASONS WHY MOMS USE STORE-BOUGHT BABY FOOD
Key points
Experienced moms rely less on convenience
Figure 43: Reasons why moms use store-bought baby food, by various demographics, January/February 2011
Figure 44: Attributes that matter to moms for food/drink they buy for child(ren) age 3 and under, by various
demographics, January/February 2011
BRAND USAGE AND ATTITUDES
Key points
Lack of brand loyalty among moms buying store-bought baby food
Figure 45: Brand usage and attitudes, by various demographics, January/February 2011
Figure 46: Attitudes toward varieties of baby food and drink, January/February 2011
Figure 47: Attitudes toward varieties of baby food and drink, by various demographics, January/February 2011
INTERNET USAGE FOR BABY-RELATED CONCERNS
Key points
Mommy blogs as internet phenomenon
Figure 48: Internet usage for baby-related concerns, January/February 2011
Figure 49: Internet usage for baby-related concerns, by top five responses, and by various demographics,
January/February 2011
Figure 50: Internet usage for baby-related concerns, by bottom five responses, and by various demographics,
January/February 2011
CLUSTER ANALYSIS
Price Insensitives
Demographics
Characteristics
Opportunity
Store-Bought Advocates
Demographics
Characteristics
Opportunity
Budgeting Combiners
Demographics
Characteristics
Opportunity
Characteristic tables
Figure 51: Baby food and drink clusters, January/February 2011
Figure 52: Baby food and drink usage, by baby food and drink clusters, January/February 2011
Figure 53: Feeding behavior, by baby food and drink clusters, January/February 2011
Figure 54: Reasons why moms use store-bought baby food, by baby food and drink clusters, January/February
2011
Figure 55: Brand usage and attitudes, by baby food and drink clusters, January/February 2011
Demographic tables
Figure 56: Baby food and drink clusters, by age, January/February 2011
Figure 57: Baby food and drink clusters, by household income, January/February 2011
Figure 58: Baby food and drink clusters, by household size, January/February 2011
Figure 59: Baby food and drink clusters, by children under 18 in household, January/February 2011
Figure 60: Baby food and drink clusters, by employment, January/February 2011
Cluster methodology
CUSTOM CONSUMER GROUPS
Key points
Feeding behavior
Figure 61: Feeding behavior, by formula/breastfeeding groups, January/February 2011
Attitudes and behavior, by custom groups
Figure 62: Brand usage and attitudes, by custom groups, January/February 2011
Figure 63: Attitudes to varieties of baby food and drink, by custom groups, January/February 2011
Figure 64: Internet usage for baby-related concerns (top five responses), by custom groups, January/February
2011
Figure 65: Internet usage for baby-related concerns (next five responses), by custom groups, January/February
2011
SYMPHONYIRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
BABY FOOD
Consumer insights on key purchase measures - baby food
Brand map
Figure 66: Brand map, selected brands of baby food buying rate by household penetration, 2010
Brand leader characteristics
Key purchase measures
Figure 67: Key purchase measures for the top brands of baby food, by household penetration, 2010
APPENDIX—OTHER USEFUL TABLES
Figure 68: Households expecting babies, by key demographics, July 2009-September 2010
Figure 69: Population, by age, 2006-16
Figure 70: Population by race and Hispanic origin, 2006-16
Figure 71: Population, by generation, 2011
Figure 72: Real disposable income, 2007-10
APPENDIX—TRADE ASSOCIATIONS
APPENDIX: RESEARCH METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Sampling
Global Market Insite (GMI)
Secondary Data Analysis
Experian Simmons National Consumer Studies
Statistical Forecasting
Statistical modelling
Qualitative insight
The Mintel fan chart
Weather analogy
APPENDIX: WHAT IS MINTEL?
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