Baby Food in Algeria

PROSPECTS

High birth rate and working mothers key to the growth of baby food

Baby food continued to see strong growth in 2019 with this being driven by two key factors. Firstly, despite dropping, the birth rate in Algeria remains relatively high and as incomes rise consumers are showing a greater willingness to spend out on packaged baby food.

Uncertain political and economic climate poses threat to sales of baby food

The ongoing economic and political crisis in Algeria is expected to be a real threat to the growth of baby food over the forecast period. Indeed, the situation could lead to growing restrictions on imports and a further devaluation of the Algerian dinar, which would have a negative impact on the availability of imported goods and lead to price rises.

Convenience and affordability drives demand for powder milk formula

Powder milk formula is expected to continue dominating sales over the forecast period, with it also being expected to see the largest increase in retail volume terms in absolute terms. The category benefits from a wide selection of products and brands with it being widely used as an alternative to breastfeeding for busy mothers and those who are unable to breastfeed.

COMPETITIVE LANDSCAPE

Blédina holds a strong lead with popular, affordable and well-known brands

Blédina SA (GBO Danone) remains the leading player in baby food in Algeria due to its long-standing presence in the category through its high equity brands Nursie, Blédilait and Blédina. Indeed, through its wide selection of brands and wide-reaching distribution-network, Blédina is present in all categories of baby food and its brands are available across the country.

Celia starts on the path to recovery following milk scandal

Celia Algerie SpA dropped from second to fifth place in the rankings in 2018 following the Lactalis Group scandal in France. Milk formula from the Celia plant of the French group Lactalis was removed from the market after contamination with salmonella bacteria.

Import restrictions prove challenging with Algeria completely reliant on imported baby food

The category continues to rely exclusively on imports with there being almost no local production of baby food in Algeria. However, growing restrictions on imports have impacted the category in term of product variety.

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