At the start of the pandemic, the government banned large gatherings, restricted movement, and closed non-essential services including schools in mid-March. During this time, the lockdown led to a surge in demand for milk formula and dried baby food, including dehydrated soups and cereals, as in the first few weeks of quarantine mothers worried about lacking essential food products for their babies.
With the increasing health and wellness trend in Portugal extending to baby food to address concerns amongst parents, strong competition is developing amongst players offering organic baby food. Smileat, a new brand of 100% organic baby food and snacks, launched in Portugal in 2019.
Nestlé Portugal SA is expected to regain leadership from two-year leading player Milupa Comercial, SA in 2020. Milupa Comercial offers leading brands such as Blédina and milk formula Nutricia Aptamil.
Over the forecast period, baby food is expected to experience minimal growth overall, and some subcategories may struggle to meet consumer demands. Over the forecast period, milk formula will likely struggle to grow as there is increasing pressure for mothers to opt for breast feeding rather than artificial feeding in the first few months of life.
Quality of ingredients in line with rising awareness of health trend will likely become increasingly important to Portuguese parents over the forecast period. The organic trend is growing swiftly, although in Portugal it remains niche in 2020 due to higher prices of organic products which ultimately drive standard consumers away.
Over the forecast period, new product launches in baby food are expected to be consistent with the new wave of snacks without added sugars that are both healthy and convenient. Following the trend in adult nutrition, companies will likely focus on innovating within prepared baby food as it is best positioned to adapt to convenience needs of consumers, and can offer a wider audience including older children, as is the case with pouches of pureed fruit.
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This report originates from Passport, our Baby Food research and analysis database.
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