Baby Food in Turkey

TRENDS

In 2015, baby food registered positive value growth of 12%, stimulated by rising urbanisation and the higher number of working mothers in the country. Nevertheless, growth in 2015 was weaker than the 14% CAGR of the review period as a result of news that appeared in the media in June 2014 which caused a fall in demand for baby food at the end of the review period. Genetically modified organisms (GMOs) were found in Aptamil branded milk formula from Numil Gida Urunleri San ve Tic AS based on investigations carried out by the Ministry of Food and Livestock. After checks in the central Control Laboratory in Ankara, it became certain that the Milupa Aptamil Multigrain included GMO products. As Milupa commands a strong position in milk formula, this affected the whole category, particularly as parents started to worry about whether or not to give their babies milk formula. On the other hand, the 2015 value growth was higher than 2014’s value growth of 9% due to increases in unit prices. The depreciation of the Turkish lira against the US dollar and euro in 2015 increased manufacturing costs due to rising raw milk prices, import and distribution costs, which led to increased value growth at the end of the review period.

COMPETITIVE LANDSCAPE

In 2015, Numil Gida Urunleri San ve Tic AS remained the leading player with a 62% value share in baby food thanks to its strong Milupa and Bebelac brands. However, the company’s share fell by two percentage points at the end of the review period. In the middle of 2015, the media announced that during investigations carried out by the Ministry of Food and Livestock, some Milupa milk formula products were found to contain GMOs which resulted in a significant decline in the Milupa brand’s share in 2015, as well as a smaller decline for the company’s Bebelac brand. Numil released a statement addressing the claims and confirmed it recalled certain products from sale as a “cautionary judgement”. The company said there are no GMOs in the product and it is produced in Portugal in line with EU infant food regulations.

PROSPECTS

Baby food is expected to register a value CAGR of 9% at constant 2015 prices over the forecast period. It is expected to record a higher value CAGR over the forecast period when compared to the review period of 6% at constant 2015 prices due to the diminishing negative effects of the GMO scandal. As Turkey has a high birth rate and currently only one third of babies are fed with packaged baby food, the category has very strong growth potential.

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