Baby Food in Romania

PROSPECTS

Higher disposable incomes drive sales

The most important driver for the performance of baby food in 2018 was the higher than average incomes that were seen after three years of continuous strong growth of the economy and the intervention of the government to increase the wages of public employees. Consequently, demand for dried and prepared baby food increased as replacements for home-prepared baby food, while milk formula benefited from excellent distribution across all channels as well as a trend to use growing-up milk formula according to age instead of going directly on to fresh cow’s milk.

Baby food influenced by decreasing birth rate

The birth rate continued to be low in Romania, and decreased in 2018 when compared to 2017. In addition, according to the National Institute of Statistics, in 2016, Romania had the highest mortality rate in the EU of 7.

Breastfeeding is strongly promoted

Breastfeeding saw an increased number of supporters in 2018 among paediatricians and family doctors, who strongly recommended it as suitable for healthy feeding of babies. They recommended milk formula as complementary to basic breastfeeding for babies under one year and for which the hand-out is in force.

COMPETITIVE LANDSCAPE

Nestlé Romania SRL leads sales

Nestlé Romania SRL retained its leadership of baby food in 2018, with its brand Nan also ranking first. Its strong position is the result of it leading all baby food types in the category.

International players dominate

International companies and their brands dominated the competitive landscape of baby food in 2018. Nestlé and second-ranked Nutricia Early Life Nutrition controlled baby food, leaving limited space for other companies to employ successful strategies to threaten their positions.

Advertising is partially restricted in Romania

The advertising of standard and follow-on milk formula was banned in 2018 in Romania. On the other hand, there were no restrictions on the advertising of growing-up milk formula, dried baby food, prepared baby food and other baby food.

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