Executive Summary

Aug 2018
PROSPECTS
Outside of milk formula, baby food sees continued conversion to organic

Prepared and other baby food remained more dynamic than milk formula in 2018, despite the low birth rate and low growth of the target population, which limited volume consumption. Still, the conversion to organic, as clearly seen in the rapidly changing product offerings available on the shelves of major grocery retailers, was a potent driver of value growth.

Milk formula remains stable

There were a number of factors leading to the relative stagnancy of milk formula in Canada in 2017 and 2018. First, over the review period there were no reports of significant changes in the breastfeeding rate in Canada, with the last reported rate of 89% in 2011/2012.

Other baby food sees the fastest growth, benefiting from the snacking trend

Other baby food (products not typically positioned as meals) experienced stronger growth than dried and prepared baby food over the last five years. This was supported by the rising snacking trend, which appeals to millennial parents who themselves increasingly skip regular meals and take more snack breaks in the search for more interesting experiences and variety.

COMPETITIVE LANDSCAPE
Milk formula remains highly consolidated

Mead Johnson Nutrition, Abbott Laboratories and Nestlé Canada remained the three dominant players in milk formula in 2018, accounting for most value share and seeing little other competition. Whilst Nestlé Canada appears to be placing increasing emphasis on products with added functionality and benefits such as iron and DHA, Abbott has gradually added non-GMO claims to the majority of its offerings in milk formula.

Kraft Heinz Canada and Nestlé Canada lead baby food, other than milk formula

The Heinz brand lost share in the five years prior to 2018, and received little boost from the merger with Kraft, although this brand still resonates with a sizeable market due to its low price positioning, wide retail distribution and close relationships with retailers and distributors. However, the company has been slow to respond to the shift in market demand.

Baby Gourmet and Love Child continue to flourish

As pioneers and trend-setters in organic baby food in pouches, Baby Gourmet and Love Child have enjoyed healthy growth; in fact, double-digit growth in many categories and years since they started back in 2012-2013. Both have been actively engaged in new product development, including Baby Gourmet’s launch of organic beverages for children and new puffed snacks in 2017.

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Baby Food in Canada

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Overview

Discover the latest market trends and uncover sources of future market growth for the Baby food industry in Canada with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Baby food industry in Canada, our research will save you time and money while empowering you to make informed, profitable decisions.

The Baby food in Canada market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Baby food in Canada?
  • What are the major brands in Canada?
  • How are latest breastfeeding rates impacting retail performance?
  • Are government initiatives to promote breastfeeding constraining market performance?
  • What are market opportunities for higher priced functional, organic and ethically sourced baby food?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Packaged Food in Canada - Industry Overview

EXECUTIVE SUMMARY

Packaged food sees stable growth while continuing to evolve
Growing impact of clean label movement
Leading players facing challenges, while niche segments attract smaller players
Online retailing, mixed retailers and hypermarkets see most dynamic growth
Moderate growth ahead, with increasing uncertainty

FOODSERVICE

Sales to Foodservice
Foodservice experiences stable and stronger growth amid rising headwinds
Growing demand for plant-based food presents challenges and opportunities
Unique experiences and health positioning increasingly critical
Consumer Foodservice
Demographic change and economy impacting consumer foodservice
New era of customer interaction fast approaching
Key trends in menu design

CATEGORY DATA

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources