Baby food experienced a short-term spike in North Macedonia, particularly in March and April of 2020, due to parents panic-buying at the start of the COVID-19 health crisis. The government and retailers recommended consumers not to stockpile, but even with this behaviour, there were no known shortages during this time.
E-commerce remains a highly niche channel within baby food, with a close to negligible value share expected in 2020. However, the year is expected to see strong current value growth for this distribution channel, as e-commerce retailers sought to offer improved availability of baby food during the COVID-19 crisis.
Domestic players command a small value share in baby food. Makprogres doo and Alkaloid AD are the most prominent domestic companies and focus almost exclusively on dried baby food and other baby food production.
Baby food is expected to be heavily impacted by the current negative demographic trend, preventing the category from achieving significant growth rates. The birth rate in North Macedonia is continuing to decline, with the number of births in urban areas higher than the number in rural areas, where stagnation continues.
In addition to the falling birth rate, growth in milk formula is being hampered by growing awareness of the benefits of prolonged breastfeeding, which is increasingly and more widely accepted by young couples and mothers of new-born babies and toddlers. Health officials, medical professionals and paediatricians recommend prolonged breastfeeding for babies and toddlers due to the benefits to their immunity and overall long-term health.
The convenience trend is only likely to gain strength over the forecast period, as workplace demands are set to increase, and more young parents will favour their career and spend less time with their babies and toddlers. This will continue to boost growth in baby food, with prepared and dried baby food expected to continue to see strong performances, with even stronger growth rates than seen in the review period.
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This report originates from Passport, our Baby Food research and analysis database.
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