Baby Food in Azerbaijan

PROSPECTS

Strict regulation shapes baby food in Azerbaijan

In 2018, baby food continued to grow in Azerbaijan, attributed to growing female employment and urban development. However, the Ministry of Health continued to promote the importance of breastfeeding for new-born children in a bid to increase its incidence.

Supermarkets closes gap with health and beauty specialists

During 2018, health and beauty specialist retailers continued to lead but supermarkets nearly caught it up and recorded the fastest value growth. Over the review period, doctors’ recommendations played a significant role in baby food brand choices, particularly in rural areas, influencing sales share.

Strict control of milk formula by the state helps avoid significant food scandals

In 2018, the Ministry of Health and other designated institutes maintained strict control of milk formula quality in Azerbaijan. During the review period state law strictly prohibited manufacturers using statements on milk formula packaging, such as “closer than ever to breast milk”, but a note that “milk formula does not substitute breast milk” was mandatory for milk formula producers and importers.

COMPETITIVE LANDSCAPE

Veyseloglu Shirketler Grupu consolidates lead with a wide variety of brands

In 2018, Veyseloglu Shirketler Grupu led sales of baby food, owing to its wide product portfolio, including brands at different price levels. In milk formula its most popular brand was Nutrilak available widely through health and beauty specialist retailers.

International baby food brands continue to dominate in Azerbaijan

In 2018 local manufacture remained negligible in Azerbaijan, attributed to both the unviability of local brands due to harsh baby food quality control by the relevant state authorities and also to low trust levels of local consumers in domestically produced baby food. Therefore, baby food continued to largely be imported from other countries, including Russia, Germany, the Netherlands and Turkey.

New product launches claim economy or added-value benefits

With the stabilised monetary system and regained economic positions local distributors returned to standard and value-added products in 2018 in order to achieve higher mark-ups. In response, new brands with economy claims appeared to fill the niche.

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