Baby Food in the US

PROSPECTS

Falling birth rates make it a struggle for baby food to grow

The US birth rate fell again in 2018, down to 3,788,235 births, which was a 2% drop from 2017. It was also the lowest number of births in 32 years, according to a new federal report from the Centers for Disease Control and Prevention.

Premiumisation helps keep sales moving upwards in current value terms

Premiumisation is important for succeeding in baby food – from clear glass packaging to including organic ingredients, traditional branded leaders and private label lines have demonstrated that this trend is here to stay. Parents want to give their babies the best-quality products, so it makes sense that with less time for meal preparation, and convenience at the forefront, baby food will likely continue its transition towards premium products.

Frozen and refrigerated baby food as an answer to shelf stable products’ perceived lack of freshness

Frozen and refrigerated baby food has been increasingly appearing in the main retailers as a result of the perceived lower levels of freshness offered by shelf stable products. Shelf stable products have sometimes been subjected to high temperatures that can potentially kill vital nutrients.

COMPETITIVE LANDSCAPE

Internet retailing of baby food is enjoying very strong growth

Baby food sales through the online channel are booming in the US, driven in particular by the fact that Millennials are making up the new generation of parents. E-commerce ticks a number of boxes, including the convenience of home delivery, discounts on subscription-based programmes for recurring purchases and access to better prices, which is changing the way parents buy their baby food essentials.

Cerebelly’s food range taps into the baby food for development of key body areas trend

Baby food attributes contributing to the development of key body areas have always been a strong selling point for products and are likely to continue being so. This trend will continue to develop as more innovative products emerge and technology improves.

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.

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