Baby food will perform well in 2021, however, the product area will continue to be constrained by declining disposable incomes as a result of the COVID-19 pandemic. This will mainly be reflected in the growing inflation of unit prices and local currency devaluation.
Throughout both 2020 and now 2021, the Algerian government has implemented several lockdowns in the country. As a result, most working mothers have been spending more time at home with their children.
Blédina SA (GBO Danone) will remain the leading player in baby food in Algeria in 2021 due to its long-standing presence in the product area 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 product areas of baby food and its brands are available across the country.
The performance of baby food over the forecast period depends largely on two factors: the birth rate and new lifestyle patterns. For example, the birth rate in Algeria is expected to remain high in 2022 and beyond, meaning demand will continue to be high, despite the ongoing consequences of the COVID-19 pandemic.
The ongoing economic in Algeria, further worsened by the COVID-19 pandemic, 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.
Powder milk formula is expected to continue dominating sales over the forecast period. The product area 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.
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Understand the latest market trends and future growth opportunities for the Baby Food industry in Algeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Baby Food research and analysis database.
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