Global Baby Food Overview: Key Categories, Countries and Trends

Toddler milk formula the main bright spot in mature developed markets

Developed markets continue to see stagnating baby food sales as parents and carers’ awareness of the health properties of breastfeeding rises and they attempt to rely less on baby food. However, toddler milk formula sales remain more resilient as they do not face such a strong threat from breastfeeding.

Shifts in the Chinese market create new challenges

Despite being the world’s largest baby food market and remaining the largest growth contributor, thanks to the adoption of milk formula among urban parents, lower breastfeeding rates than in most other emerging markets in Asia, a slowdown in growth rates and a wave of consolidation, alongside the rise of joint ventures between local companies and global baby food manufacturers, all create more challenging conditions in China.

Growth opportunities remain strong in key emerging markets

Growing urbanisation is forecast to remain a key growth driver in Asia between 2015 and 2020, notably in Vietnam. Toddler milk formula’s high sales per capita in large emerging markets, notably Indonesia and Thailand, are expected to remain major growth drivers.

Move towards premium products and brands

Premium brands are outperforming standard brands in China, due to consumers’ growing affluence and their distrust of cheaper brands. In developed markets, organic ranges represent a key growth area, particularly for prepared baby food and other baby food.

Targeting older children

In the wake of toddler milk formula’s stronger performance compared to the overall baby food market, manufacturers increasingly target older children to meet the demand for healthy and convenient meal solutions and in order to retain their customer base for a longer period.