Baby Food in the US

PROSPECTS

Premium baby food brands to benefit from older, more affluent parents

The average age at which American women give birth is rising and there are various factors at play. Young women are increasingly prioritising their careers over starting a family, while advances in medical technology mean that that it is now possible to give birth safely at an older age.

Increased advocacy for breastfeeding poised to suppress growth in milk formula

Breastfeeding continues to be promoted as the ideal way to promote infant health and this is linked to national and international efforts among policymakers and health advocates. In 2016, the World Health Assembly of the World Health Organization voted to approve pro-breastfeeding regulations and in 2018 the Assembly detailed ten revised steps to promote breastfeeding globally through an approach championing sustained education initiatives and resources for mothers and maternal health staff.

Amidst challenges, e-commerce offers new opportunities for future growth

As e-commerce has become increasingly influential on the US packaged food industry, baby food has emerged as a new frontier for online services that offer unique opportunities for growth. One particularly innovative development in the distribution of packaged food in recent years has been meal-kit delivery services.

COMPETITIVE LANDSCAPE

Lactalis scandal reinforces rising distrust in big food, threatening leading brands

Early 2018 saw the world’s largest dairy company Lactalis experience a major baby food salmonella contamination scare. Although the Lactalis scandal was confined to Europe, Africa and Asia, extensive press coverage in important US news outlets could result in fallout despite American consumers not being directly affected by the outbreak.

Innovative packaging primed to emerge as environmental consciousness rises

Baby food packaging has long been dominated by the preference for convenience among busy parents, resulting in the widespread use of single-use plastic packaging, which generates a considerable amount of waste. As environmental consciousness increasingly becomes a top-of-mind issue for many young consumers, including the emerging generation of new parents, baby food manufacturers are developing baby food packaging that responds to environmental concerns by creating less waste than the single-serving pouches that have prevailed for decades.

Manufacturers develop formulas that mimic human breastmilk in response to growing preference for breastfeeding

Baby food manufacturers are increasingly focusing on developing milk formula fortified with ingredients that purport to rival the nutritional properties of human breastmilk. Breastfeeding is becoming more popular due to recent initiatives from health and policy advocates and in response baby food companies seek to alter entrenched perceptions of milk formula as inherently unnatural.

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