Baby Food in Romania

PROSPECTS

Higher disposable incomes drive growth, despite declining birth rates

The most important driver of growth of baby food in 2019 was the increase in average incomes due to the continuing strong performance of the economy and the intervention of the government to increase the salaries of public employees and the minimum wage. Consequently, demand for baby food increased as a replacement for home-prepared baby food, while milk formula benefited from strong distribution across all channels, as well as the trend to use growing-up milk formula according to age instead of going directly on to fresh cow’s milk.

Breastfeeding strongly promoted but living conditions pose challenge for many

A public health programme has been in place in Romania for many years which offers free milk formula for babies under one year old where there is a need to supplement breastfeeding. However, breastfeeding again witnessed an increased number of supporters in 2019 among paediatricians and family doctors, who strongly recommended it as suitable for healthy feeding of babies.

Widening awareness and distribution support growth for powder special baby milk formula

Powder special baby milk formula recorded the strongest retail value growth in 2019 from a low base. It is not included in the social programme of free formula for babies under one year old, which creates strong growth potential.

COMPETITIVE LANDSCAPE

Nestlé benefits from established brand loyalty and launch of stand-up pouches

Nestlé Romania retained its strong lead in baby food in 2019, ranking first in all the categories in which it was active. The company benefits from its early entry and distribution across modern grocery retailing and health and beauty specialist retailers.

Organic baby food the province of smaller players

Between them, the leading companies, Nestlé Romania and Nutricia Early Life Nutrition Romania, dominated baby food sales in 2019. However, neither offer organic products.

Marketing focuses on growing-up milk formula

Advertising of milk formula for babies under one year old was banned over the review period and is expected to remain so over the forecast period. No restrictions on advertising were in place for dried baby food, prepared baby food and growing-up milk formula.

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