Baby Food in India

PROSPECTS

Stringent government regulations keep baby food in check

Through the Infant Milk Substitutes (IMA) Act of 1992, the Indian government seeks to promote breastfeeding by controlling the promotional activities of baby food manufacturers, especially with regard to infant milk formula. The act completely prohibits baby food manufacturers from engaging in any type of promotion or marketing for infant formula.

Mothers become more confident choosing the right food for their babies

Second-time mothers are finding it easier to choose dried baby food and infant formula following their experiences with their first born, albeit still after consulting a doctor or paediatrician. In addition, more educated mothers are extensively researching products online via social media platforms and parenting forums.

Tax revisions helps weaken unit price growth in dried baby food

With the introduction of a Goods and Services Tax (GST) in 2017 and its subsequent revision in 2018, the tax on baby food was reduced by 2%. The benefits were passed on to consumers in the form of lower prices.

COMPETITIVE LANDSCAPE

Nestlé continues to dominate baby food

Thanks to popular brands such as Cerelac and Lactogen, Nestlé continued to dominate baby food in 2018. The company, which has been present in India for decades, has established itself as a trusted manufacturer of baby food.

Wattle Health enters baby food in India

The Australian dairy manufacturer Wattle Health entered baby food in India in early 2018. The company secured a deal with Vasudevan and Sons, a local distributor in Chennai, to initially sell dried baby food and prepared baby food, while looking to also offer infant formula at a later date.

Reckitt Benckiser Group the best performer in baby food

The best performing company in baby food in GBO terms in 2018 was Reckitt Benckiser Group (RB), closely followed by Abbott Laboratories. RB acquired Mead Johnson Nutrition in early 2017 to enter baby food in India.

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