Baby Food in Russia

2021 DEVELOPMENTS

Rise in breastfeeding and a difficult economic environment weigh on demand for milk formula

Having fallen for the first time in well over a decade during 2020 (albeit marginally), retail current value sales of baby food will rebound strongly during 2021. Retail current value sales of milk formula declined throughout the review period, due in part to a sharp decline in the population aged 0-36 months.

Some milk formula manufacturers reformulate their products in an effort to broaden their appeal

Despite the economic shock of the pandemic, manufacturers are stepping up the pace of innovation in milk formula in an effort to attract consumers, particularly those who are hesitating between breastfeeding and milk formula. During late 2020, the Campina OOO removed palm oil from its Friso brand, for example.

New flavours and reduced-sugar options help to boost demand for prepared and other baby food

Prepared baby food and other baby food will be the top performers in baby food in terms of retail current value sales growth rates during 2021, due in large part to a recovery in on-the-go consumption as restrictions on movement are eased and parents have less time to cook for their babies at home. Growth in demand for these products is also being driven by new flavours, more convenient packaging formats, fortification, and reduced-sugar options.

PROSPECTS AND OPPORTUNITIES

Increased demand for convenience will drive strong growth in retail current value sales of prepared baby food

The rate of growth in retail volume sales of baby food will accelerate during 2022 and remain strong through the remainder of the forecast period, with an anticipated post-pandemic economic rebound set to play an important role in this. Prepared baby food will remain the top performer during the forecast period due to the convenience it offers busy parents, particularly for on-the-go consumption.

Helping parents cope with pandemic can help baby food brands to build loyalty

Brand loyalty has always been crucial in baby food, and it is likely to grow in importance due to the ongoing threat posed by COVID-19, which has heightened consumer interest in health and wellness. It is essential for parents that they have trust in the baby food that they buy – in terms of nutritional value, low sugar and salt and, most importantly, product safety.

E-commerce growth likely to fuel packaging innovation and increased demand for larger pack sizes

The retail value share of e-commerce in baby food more than doubled during 2020 as a result of the pandemic, and it will continue to expand during both 2021 and the forecast period as a whole. Local consumers are becoming ever-more comfortable with online shopping, and the country’s e-commerce infrastructure is steadily maturing as investment in it increases.