Baby Food in Russia

PROSPECTS

Milk formula is expected to stagnate in volume due to decline in birth rate

Before 2017, milk formula was growing in both volume and value, since the number of new-born babies was going up each year – in particular, due to the set of state measures aimed at birth rate support. However, in 2017 this trend reversed.

Future volume and value growth of prepared baby food to be driven by baby dairy

Prepared baby food is the largest category in value. Dairy accounts approximately for two thirds of the category volume, and purée for one third.

Purée grows in volume and value, while dried baby food stagnates

All types of purée – fruits, vegetable, meat, fish purée – grew in both volume and value in the latter part of the review period, which was an important driver of prepared baby food development. Meat and fish purée saw the highest growth rate, from a small base, while the much larger fruit and vegetable purée grew at a moderate rate.

COMPETITIVE LANDSCAPE

Foreign brands dominate milk formula, but local producers are ready to compete

Historically, foreign brands have dominated in milk formula, while local brands have had minor importance. However, in 2017 and 2018 there were more and more voices suggesting that domestic products should be favoured over imports.

PepsiCo strengthens its positions in dairy baby food

PepsiCo is one of the largest players in the dairy category in Russia. The company has a strong position in dairy baby food, with its Agusha brand.

Strong competition and launch of new products in baby fruit purée

Sady Pridonya OAO NPG and Progress OAO are the leading producers of baby fruit purée in Russia, and are thus important players in prepared baby food. In 2017 and 2018, the companies continued to be the category drivers.

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