Baby Food in Slovakia

PROSPECTS

Parents’ nutritional focus favours natural and organic food for babies

Healthy ingredients play a major role in the consumer’s decision-making process in regard to baby food. Natural sugar gained popularity in 2019, with no-sugar brands performing well, while organic and free-from baby food strengthened their position as health-awareness in Slovakia grew.

Milk formula set for further challenges in terms of demographic trends and popularity of breastfeeding

Demographic trends will play a major role in terms of overall demand for baby food in Slovakia over the forecast period. As no baby boom is expected in Slovakia over the coming few years, demand will be driven by premiumisation.

Potential cut in VAT could boost premiumisation and volume sales

In the middle of the review period, the Slovak government introduced a list of foods that are subject to a lower 10% value-added tax as opposed to the full 20% tax. In 2020, this list is likely to expand and should cover baby food products, which is going to make these goods more affordable to Slovak parents.

COMPETITIVE LANDSCAPE

Pouches can save time and effort for busy parents, while free gifts and discounts are increasingly seen

More convenient packaging continued gaining in popularity in 2019, especially in the form of resealable pouches (baby fruit puree). Although home-made purees for babies remained a popular option among Slovak parents, due to the rising convenience trend prepared baby food gained more traction.

Private label benefits from key retailers’ investment in own ranges, but quality issues resurface

Private label sales recorded double-digit value sales growth in 2019 for the third year in a row thanks to activity among the major retail chains, such as Lidl Slovenská Republika vos, which launched a significant number of its own label products in baby food in 2018. However, babylove by dm-Drogerie Markt sro experienced quality issues and disappointed customers yet again in early 2019 when its prepared baby food products had to be withdrawn from the market.

Hipp Bio is well positioned for organic growth

New product launches are offering more variety and reflecting a focus on higher quality. For instance, Hipp Bio organic creamy soups were introduced in late 2018.

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