Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://www.e-digitaleditions.com/i/195987
research spotlight THE MARKET KEY POINTS • The category is heavily influenced by baby formula sales, as those account for almost 71 percent of overall baby food and drink sales. But baby food and snacks—the fastest-growing segment since 2007— accounted for 25.6 percent of the market in 2012. • Baby juice was suffering even before the recession hit, falling 53 percent during 2007–2012. The already tiny segment's market share dropped from 2.3 percent in 2007 to 1.2 percent in 2012. The problem? Not only the struggling economy but also the health and wellness perceptions that have stigmatized juices as too high in sugar. • Parents are increasingly buying organic baby products. Organic baby food sales in the natural supermarket channel saw a 63 percent increase during 2011–2013. Organic was the top claim on baby food and drink products in 2012; new foods and drinks making that claim grew 59 percent from 2007. • Although not in the top three attributes sought by parents of children younger than 3, low/no sugar, whole grain/whole wheat and low/no sodium claims are still important to parents. Companies will benefit from marketing that draws attention to the nutritional value of their products. TOP 10 CLAIMS ON NEW BABY FOOD AND DRINK PRODUCT LAUNCHES 2011 Organic 43 Kosher 52 No additives/ preservatives 42 Ease of use 30 Convenient packaging 27 Vitamin/mineral fortified 23 Low/no/ reduced allergen 18 Microwaveable 24 Low/no/ reduced sugar 14 Low/no/reduced sodium 11 2012 2013* Total 105 69 15 18 163 139 65 46 38 17 11 8 3 10 118 84 68 50 26 22 5 1 49 47 15 13 0 2 29 26 • There is no shortage of baby foods that have been introduced or reintroduced in flexible, reclosable pouch packaging. From January 2012 to April 2013, 94 products launched with pouch packaging, making it the top packaging type for baby food and drink. SALES OF BABY FOOD AND DRINK 2010 $ million 4,382 2012 $ million 4,629 % change 5.7 1,499 147 109 6,136 1,677 153 81 6,541 11.9 4.1 -25.4 6.6 Baby formula Baby food and snacks Baby electrolytes Baby juice Total *through April 15, 2013 Top 10 Claims on New Baby Food and Drink Product Launches, 2011–2013 Source: Mintel GNPD Sales of Baby Food and Drink, Segmented by Type, 2010 and 2012 Source: Mintel/Based on Information Resources, Inc., Infoscan® Reviews; U.S. Census Bureau, Economic Census; Progressive Grocer, Consumer Expenditures Study While the top claim used on baby food and drink from 2011 to April 15, 2013, is organic, further research shows that the top attribute parents of children younger than 3 look for is all natural/ no additives or preservatives. These claims were used heavily on new baby food and drink products from 2011 to 2013, with no additives/preservatives being the third-highest claim during that period. Parents of children younger than 3 also say that low/no/ reduced allergen and fortification are important. The baby formula segment dominates the baby food and drink category with more than 70 percent of the market share, followed by baby food and snacks, which owns a quarter of the market. Baby electrolytes and baby juice are each very small portions of the market. Overall, the category experienced a mediocre 6.6 percent growth rate from 2010 to 2012; however, the baby food and snacks segments grew by a more impressive 12 percent. 46 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com