Baby Food in Azerbaijan

PROSPECTS

Government efforts to increase breastfeeding have negative impact on milk formula

Milk formula continued to decline in retail volume terms in 2019 with this being driven by government efforts to encourage mothers to breastfeed instead. The government introduced stricter regulations and ran active social campaigns at hospitals, including banning doctors from adding milk formula brands to prescription lists and limited the influence of distributors on sales.

Many areas of baby food set for bright future as parents look for convenient options

Aside from milk formula, the other categories of baby food are projected to see solid growth over the forecast period. As incomes rise and as more women join the workforce there is a growing demand for convenient and nutritious baby food for parents to feed their children.

Supermarkets see significant gains with consumers attracted to lower prices

Over the review period health and beauty specialist retailers retained a strong share of distribution of baby food with these stores benefiting from the trust of consumers, some of whom did not trust other channels to provide authentic products. Nevertheless, it was the supermarkets channel that saw the most significant gains, with the number of these stores seeing rapid expansion over the forecast period.

COMPETITIVE LANDSCAPE

Veyseloglu Shirketler Grupu extends lead thanks to popular brands and strong distribution

Veyseloglu Shirketler Grupu extended its lead in baby food in 2019, with it benefiting from a wide product portfolio, including brands at different price levels. In addition to the well-known Heinz brand, the company also offers the Cicibebe brand in other baby food, with its line of sweet baby biscuits profiting from competitive prices, better shelf positioning and widespread availability.

Imported brands dominate, with lack of trust in domestically produced baby food

Local manufacturers hold a negligible presence in baby food in Azerbaijan. This is largely down to the lack quality control by the relevant state authorities over its production and also the lack of local consumers have in terms of domestically produced baby food.

Price key in the battle for sales, as Agusha rises and Humana falls

Humana Azerbaijan Ltd, which is present in all of the main baby food categories with its Humana brand, saw a further decline in its value share in 2019. The company struggled throughout the review period due to its higher prices, with the growing presence of supermarkets opening the market up to more affordable options.

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