Baby Food in Georgia

PROSPECTS

Convenience of prepared baby food appeals to parents, with price reductions likely thanks to new global entrants

Baby food is an essential product, offering a combination of convenience and perceived value. As the category continues to grow quite actively, the entrance of new international players is expected to result in lower average unit price, resulting in increased consumption.

Prepared food boosted by rising incomes and increased availability

Prepared baby food is expected to see the fastest growth over the forecast period. This performance will be underpinned by growing availability and a resultant increase in awareness.

Health and beauty specialist retailers consolidate leading position

The retailing environment in Georgia continued to see a transformation in 2019. Modern grocery retailers such as Carrefour, Goodwill, Nikora and Ori Nabiji, boosted by their competitive prices and widening assortments, were taking share from the independent small grocers.

COMPETITIVE LANDSCAPE

Imported products dominant, but Kula set to introduce baby food in 2020

Imported products dominate the baby food environment, with almost no local production present. Despite high demand, an absence of the required technology and manufacturing standards results in the lack of local production.

Inexpensive products appeal to large low-income consumer base

Price elasticity in the baby food category is low, but in the long term products with lower unit prices are expected to see success in Georgia. Low-price products are popular due to the high number of consumers with low disposable incomes.

Nestlé remains in the lead, but share continues to slide

Nestlé continued to lead the category in 2019, but saw its value share eroded. While a high level of trust was earned in the past, with perceived high quality and widespread availability underpinning the long-standing popularity of Nestlé’s products, less expensive alternatives are gaining consumer interest.

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