Baby Food in Romania

TRENDS

The dynamics of baby food in 2017 were the result of the improvement of incomes, a result of steps made by the government to increase the minimum wage in the economy and the wages of public employees. Higher incomes have led to growing demand for baby food, especially in the case of dried baby food and prepared baby food, which represent a swap from home-prepared food for babies to packaged baby food. Meanwhile, the largest category, milk formula, has continued to benefit from gratuities in the case of babies under one year old and in need of additional feeding or even breastfeeding replacement, which continues to affect its growth rates. The gratuity is a financial help for families with lower incomes while higher-income families generally go over the bureaucracy of the public health system and prefer retail. It can be said that the increased incomes have also supported the retail sale of milk formula.

COMPETITIVE LANDSCAPE

Accounting for a 49% retail value share, Nestlé Romania SRL is the leading player in baby food in 2017. Its brand, Nan, also ranks first with a 30% retail value share in the same year. The top position of the company in 2017 is the result of its dominance of milk formula and dried baby food which it leads with 50% and 52% retail value shares, respectively. Its early entry into baby food in Romania and extended distribution across modern retailers and pharmacies, as well as the medical recommendation, have contributed to the company’s performance.

PROSPECTS

The forecast period performance of baby food is expected to be the result of further economic growth and the recovery of available incomes. Higher-income families in large cities will be the main purchasers of baby food from retail instead of using the cheaper gratuities selected through public tenders. Changes in lifestyle mean shorter time for the preparation of baby food and the need for convenience among high-income families which is expected to support the growth of dried baby food, prepared baby food and other baby food. Lower-income families will continue to keep attention on milk formula gratuities but also on home-made food.

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