UK Baby Food Market

Product Code: BF0087MR

Published Date: March 2015

Report Price: US$ 3,275 (Single Copy)

Synopsis “Baby Food in the UK” report is a qualitative report providing extensive and highly detailed consumption data

on the Baby Food industry in the UK.

This report is the result of ERC’s extensive market research covering Baby Food in the UK. The report

provides consumption data based upon a unique combination of industry research, field work, market

sizing work and our in-house expertise in the Baby Food industry in order to offer extensive data

about the trends and dynamics affecting the Baby Food industry in the UK.

This report is aimed at companies operating in the Baby Food industry and for new companies

considering entry into the UK Baby Food industry.

This report provides detailed data for the various companies operating in the Baby Food industry in

the UK along with their key focus product sectors.

Market profile of the various product sectors of the Baby Food industry has also been provided in this

report with the key features & developments, segmentation, per capita trends and the various

manufacturers & brands.

This report also provides an overview of Food Retailing in the UK, with a mention of the major Food

retailers in the country, along with the Food distribution in the UK.

This report also provides future projections of the Baby Food industry in the UK considering various

trends which are likely to affect the industry.

Summary “Baby Food in the UK” is a new report by ERC that analyzes the Baby Food industry demand prospects in the

UK, key segments, features & developments, future projections based on various trends. This report also

examines trends which are currently affecting the industry. Furthermore, it profiles various companies in the

Baby Food industry in the UK along with the foreign trade involving the Baby Food industry.

Scope

This report provides a comprehensive analysis of Baby Food industry in the UK

It provides current and constant values for Baby Food for 2014 and forecast figures for 2020

It provides value and volume break-up of the Baby Food market at category level.

Reasons to Buy Baby Food companies require a detailed understanding of Baby Food consumption by individual product

categories in order to align their sales and marketing efforts with the latest trends in the market. This report

clarifies in detail, by product category, where the growth opportunities are in Baby Food industry to enable

effective marketing plan

As consumers’ product demands evolve, the dynamics between different Baby Food types also change –

favouring some product categories and leaving others increasingly out of line with demand patterns. As a

result, understanding the shifting market dynamics is key to ensuring maximum sales in the future

The differing growth rates in overall product category sales drive fundamental shifts in the market. This report

provides detailed, authoritative data on these changes for marketers

The report provides the latest data on market dynamics in the Baby Food industry in the UK market, providing

marketers with essential data in order to understand their own position in the market and to identify where to

compete in the future

1 Overview

Overall, ERC estimates that the total value of the market grew by 38% at current prices between 2008 and 2013, but in 2014 sales fell back by 0.7%, 37.3% higher than in 2008, registering a CAGR of 5.4% during 2008-2014. At constant 2008 prices, the value of the sector has grown by 16% over the same period.

Baby Food: Market Value, Current Prices, 2008-2014

£ Million

2008 2009 2010 2011 2012 2013 2014

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

%

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Index, 2008 = 100.0

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

% Annual Change

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

Baby Food: Market Value, Constant Prices, 2008-2014

£ Million

2008 2009 2010 2011 2012 2013 2014

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

Index, 2008 = 100.0

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

% Annual Change

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

Baby Food: Market Value, US Dollars, 2008-2014

US$ Million

2008 2009 2010 2011 2012 2013 2014

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

Index, 2008 = 100.0

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

% Annual Change

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

Baby Food: Market Volume, 2008-2014

Tonnes

2008 2009 2010 2011 2012 2013 2014

Milks*

Cereals*

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

%

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Index, 2008 = 100.0

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

% Annual Change

Milks

Cereals

Meals & Others

- Meals

- Drinks

- Finger Foods

TOTAL

2 Baby Milk

Despite the well-publicised health benefits of breastfeeding, sales of formula milks are on the rise as convenience continues to be an important factor for many mothers. Although there has been a clear increase in initial breastfeeding, there has been less change in the percentage of mothers opting for exclusive breastfeeding after six weeks.

Baby Milks: Sector Trends, 2008-2014

Current Prices(£ Million)

% Value Share Constant Prices(£

Million) Tonnes* % Volume Share

2008

2009

2010

2011

2012

2013

2014

Index, 2008 = 100.0

2008

2009

2010

2011

2012

2013

2014

2.1 Per Capita Trends

Though per capita consumption remained fairly stable between 2008 and 2012, there was an increase of 8.9% in 2013. This was in part the result of a slight drop in breastfeeding initiation, but is also influenced by the relatively high number of births the previous year

Baby Milks: Per Capita Expenditure & Consumption, 2008-2014

2008 2009 2010 2011 2012 2013 2014

Current Prices (£)

Index, 2008 = 100.0

% Annual Change

Constant Prices (£)

Index, 2008 = 100.0

% Annual Change

Consumption (Grams)(1)

Index, 2008 = 100.0

% Annual Change

2.2 Sector Segmentation

ERC estimates that the infant formula segment (0-6 months) takes 55% of value sales and 50.4% of volume, and saw its share of sales grow for much of the review period as the number of births rose, although recent drops in live birth numbers have slowed its expansion. Follow-on milks (6-12 months) form the second largest segment, accounting for 27.5% of value in 2014 and 31% of volume.

Baby Milks: Market Segmentation by Stage, Volume, 2008-2014

Tonnes

2008 2009 2010 2011 2012 2013 2014

Infant Formula

Follow-on Milk

Growing-up Milk

Special Dietary

TOTAL

%

2008 2009 2010 2011 2012 2013 2014

Infant Formula

Follow-on Milk

Growing-up Milk

Special Dietary

TOTAL

Methodology

ERC’s research methodology includes the following steps in order to ensure a robust research programme to

deliver the highest quality market insights:

Information Scanning

Thorough investigation of all published sources worldwide to highlight gaps and decide means of obtaining

information requirements.

Economic Intelligence

Gathering all relevant:

• Statistical data

• Financial information

• Industrial data

• Economic information

Collection of Published Research

A thorough search to identify and obtain relevant published material using:

• Media sources

• Corporate literature

• Trade journals

• On-line services

• ERC databank

• National press

• Research institutes.

In-Country Research

Field research conducted in each country designed to:

• collect informed and up-to-date information from interviews to gauge attitudes, expectations and current

market developments.

• monitor product and brand availability, prices and facings allocation through specially commissioned retail

store-checks.

In-House Research & Analysis

Based on a solid knowledge of the current market scenario and years of experience in the area of global baby

nutrition market research, further telephone interviews are carried out with leading manufacturers and

industrial competitors. The result is first-hand knowledge of new product developments, user ship patterns,

new investments and inherent market trends.

Related Reports

Baby Food in Turkey

Baby Food in Tunisia

Baby Food in Thailand

Baby Food in Taiwan

Baby Food in South Korea

Baby Food in Israel

Baby Food in Indonesia

Baby Food in India

Baby Food in Egypt

Table of Contents

Executive Summary 1-4

Major Developments 1

Baby Food: Market Size, 2008-2014 1 Baby Food: % Growth, 2008-2014 1

Market Structure 2 Baby Food: Market Segmentation, 2014 2

Per Capita 2-3 Baby Food: Per Capita Consumption & Expenditure, 2013 & 2014 3

Distribution 3 The Suppliers 3-4

Manufacturer Shares, 2014 4 The Future 4

Projected Market Size, 2020 & Growth Rates, 2014-2020 4

Background to the Market 5-24

Births 5-8

Live Birth Rates 5-6 Birth & Population Trends, 2004-2014 6

Live Births by Region 6-7 Live Births by Country, 2004-2014 6 Live Births & Crude Birth Rates by Region, 2013 7

The Baby Population 7-8 The Baby Population, 2004-2014 8

The Consumer 8-10 Living Standards 8-9 Eating Habits 9-10

Socio-Demographic Trends 10-13 Family Structure 10-12

Trends in Marriage & Divorces, 2008-2012 11 Trends in Births Outside Marriage, 2008-2012 11

Number of Women of Childbearing Age 12 Number of Women of Childbearing Age by Age Group, 2011 & 2013 12

Births by Age of Mother 12-13 Live Births by Age of Mother, 2008-2013 13

Working Women 13-14 Female Employment 13

Women in the Workforce, 2008-2014 13 Maternity Legislation 14

Breastfeeding 14-21 Breastfeeding Promotion 14-17 Breastfeeding Prevalence 17-21

Incidence of Initial Breastfeeding by Country, 1990-2010 17 Initial Breastfeeding, England, 2006/07-2013/14 18 Prevalence of Breastfeeding by Age of Baby by Country, 2005 & 2010 18 Prevalence of Exclusive Breastfeeding by Age of Baby by Country, 2010 19 Duration of Exclusive Breastfeeding among Mothers who Breastfed

Exclusively at Birth by Country, 2010 19 Scotland: Breastfeeding Trends, 2007-2014 20 Incidence of Breastfeeding Initiation by Social Class, 2005 & 2010 20 Prevalence of Initial Breastfeeding by Age Mother Completed Full-Time

Education, 2005 & 2010 21 Incidence of Initiation of Breastfeeding by Age of Mother, 2005 & 2010 21

Regulations 22-23 Marketing Legislation 22 Food Safety 23

Market Profile 25-82

Overview 25-38

Definitions 25 Key Features & Developments 25-34

Baby Food: Market Value, Current Prices, 2008-2014 27 Baby Food: Market Value, Constant Prices, 2008-2014 28 Baby Food: Market Value, US Dollars, 2008-2014 29 Baby Food: Market Volume, 2008-2014 30 Baby Food: Per Capita Expenditure, Current Prices, 2008-2014 31 Baby Food: Per Capita Expenditure, Constant Prices, 2008-2014 32 Baby Food: Per Capita Expenditure, US Dollars, 2008-2014 33 Baby Food: Per Capita Consumption, 2008-2014 34

The Organic Phenomenon 35-36 Organic Baby Food: Market Trends, Value, 2008-2014 35

Manufacturers & Brands 36-38 Baby Food: Manufacturer Market Share Trends, Value, 2008-2014 37 Baby Food: Manufacturer Market Share Trends, Volume, 2008-2014 37 Baby Food: Manufacturer Shares by Sector, Value, 2014 38 Baby Food: Manufacturer Shares by Sector, Volume, 2014 38

Baby Milks 39-50

Key Features & Developments 39-40

Baby Milks: Sector Trends, 2008-2014 40 Per Capita Trends 40-41

Milks: Per Capita Expenditure & Consumption, 2008-2014 41 Market Segmentation 41-46

Product Stage 41-42 Baby Milks: Market Segmentation by Stage, Volume, 2008-2014 41-42 Baby Milks, Market Segmentation by Stage, Value, 2008-2014 42

Product Type 42-44 Baby Milks: Market Segmentation, Powdered & Liquid, Value, 2008-2013 44

Pricing 44-45 Powdered Baby Milks: Brand Price Positioning Analysis, 2014 45 Liquid Baby Milks: Brand Price Positioning Analysis, 2014 45

Packaging 46 Manufacturers & Brands 46-50

Manufacturers 46-47 Baby Milks: Manufacturer Market Share Trends, Value, 2008-2014 46 Baby Milks: Manufacturer Market Share Trends, Volume, 2008-2014 47

Brands 47-50 Baby Milks: Share of Leading Brands, 2008-2014 48 Baby Milks: Brands by Segment, 2014 50

Baby Cereals 51-56 Key Features & Developments 51

Baby Cereals: Sector Trends, 2008-2014 51 Per Capita Trends 52

Baby Cereals: Per Capita Expenditure & Consumption, 2008-2014 52 Market Segmentation 52-53

Product Type 52 Pricing 53

Cereals & Dry Foods: Price Positioning, 2015 53 Packaging 53

Manufacturers & Brands 54-56 Manufacturers 54-56

Baby Cereals: Manufacturer Market Share Trends, Value, 2008-2014 54

Baby Cereals: Manufacturer Market Share Trends, Volume, 2008-2014 55 Brands 55

Baby Meals 57-68

Key Features & Developments 57 Baby Meals: Sector Trends, 2008-2014 57

Per Capita Trends 57-58 Baby Meals: Per Capita Expenditure & Consumption, 2008-2014 58

Market Segmentation 58-63 Product Type 58-61

Manufacturer Involvement, by Type of Meal, 2014 60 Pricing 60-62

Baby Meals: Price Positioning, 2015 61-62 Packaging 62-63

Baby Meals: Sales by Pack Type, 2011-2014 63 Manufacturers & Brands 63-68

Manufacturers 63-66 Baby Meals: Manufacturer Market Share Trends, Value, 2008-2014 65 Baby Meals: Manufacturer Market Share Trends, Volume, 2008-2014 66

Brands 66-68 Baby Meals: Brand Shares, 2010-2014 68

Baby Drinks 69-74 Key Features & Developments 69

Baby Drinks: Sector Trends, 2008-2014 69 Per Capita Trends 70

Baby Drinks: Per Capita Expenditure & Consumption, 2008-2014 70 Market Segmentation 70-71

Product Type 70-71 Baby Drinks: Market Segmentation, 2008-2014 70

Pricing 71 Drinks: Price Positioning, 2015 71

Packaging 71 Manufacturers & Brands 71-73

Manufacturers 71-73 Baby Drinks: Manufacturer Market Share Trends, Value, 2008-2014 72 Baby Drinks: Manufacturer Market Share Trends, Volume, 2008-2014 73

Brands 73

Finger Food 75-82

Key Features & Developments 75-76 Finger Food: Sector Trends, 2008-2014 75-76

Per Capita Trends 76 Finger Food: Per Capita Expenditure & Consumption, 2008-2014 76

Market Segmentation 76-79 Product Type 77

Finger Food: Market Segmentation, 2008-2014 77 Pricing 77-79

Finger Foods: Price Positioning, 2015 78-79 Packaging 79

Manufacturers & Brands 79-82 Manufacturers 79-81

Finger Food: Manufacturer Market Share Trends, Value, 2008-2014 81 Finger Food: Manufacturer Market Share Trends, Volume, 2008-2014 81

Brands 81-82

Distribution 83-88

Retailing 83-86

Retail Structure 83-86

Number of Food Outlets by Type, 1980-2014 83 Food Stores by Type, 2008-2014 84 UK Food Outlets: Market Share by Turnover, 2008-2014 85 Major Grocery Retailers Store Numbers, 2004-2014 86

Pharmacy & Drugstore Retailing 86 Baby Food Retailing 86-88

Baby Product Sales by Retailer, 2008-2014 87 Baby Food Sales by Type of Outlet, 2008-2014 88

The Suppliers 89-118

Company Profiles 89-110

Introduction 89-90

Baby Food: Manufacturer Representation, Value, 2014 90 Baby Food: Manufacturer Representation, Volume, 2014 90

Danone/Nutricia Ltd 91-93 Danone: Market Shares, 2014 91

Leading Brands 91 Introduction 91-92

Nutricia Ltd: Financial Highlights, 2008-2013 92 Activity in the Baby Food Market 92-93

Nestlé/SMA Nutrition 94-95 SMA: Market Shares, 2014 94

Leading Brands 94 Introduction 94

John Wyeth & Brother Ltd: Financial Highlights, 2007-2012 94 Activity in the Baby Food Market 95

HJ Heinz Company Ltd 96-97 Heinz: Market Shares, 2014 96

Leading Brands 96 Introduction 96-97 Activity in the Baby Food Market 97-98

Hipp (UK) Ltd 99-101 Hipp: Market Shares, 2014 99

Leading Brands 99 Introduction 99-100

Hipp UK Ltd: Financial Highlights, 2008-2013 100 Activity in the Baby Food Market 100-101

Ella's Kitchen Group Ltd 102-103 Ella's Kitchen: Market Shares, 2014 102

Introduction 102-103 Ella's Kitchen: Turnover, 2008-2012 103

Activity in the Baby Food Market 103 Hero/Organix Brands Plc 104-106

Organix: Market Shares, 2014 104 Leading Brands 104 Introduction 104-105

Organix Brands: Financial Highlights, 2008-2013 105 Activity in the Baby Food Market 105-106

Other Companies 107-109 Plum Baby 107 The Kids Food Co 107-108 Little Dish 108 Annabel Karmel Group Holdings Ltd 108 Peter Rabbit Organics 109

Baby Zilli 109

Foreign Trade 111-118

Production 111 Imports 111-113

Imports of Baby Food by Type, Volume, 2007-2013 111 Imports of Baby Food by Type, Value, 2007-2013 112 Imports of Baby Food by Country of Origin, Volume, 2010-2013 112-113 Imports of Baby Food by Country of Origin, Value, 2010-2013 112-113

Exports 114-117 Exports of Baby Food by Type, Volume, 2007-2013 114 Exports of Baby Food by Type, Value, 2007-2013 114 Exports of Baby Food by Country of Destination, Volume, 2010-2013 115-116 Exports of Baby Food by Country of Destination, Value, 2010-2013 116-117

The Future 119-130

Future Determinants 119-121

Live Birth Rates 119-120 Birth & Population Projections, 2014-2020 119 The Baby Population, 2014-2020 119-120 Number of Women of Childbearing Age by Age Group, 2013 & 2018 120

Consumer Attitudes 120-121 Breastfeeding 121

Future Trends 121-130 Baby Food: Market Value Forecasts, Current Prices, 2014-2020 123 Baby Food: Market Value Forecasts, Constant Prices, 2014-2020 124 Baby Food: Market Value Forecasts, US Dollars, 2014-2020 125 Baby Food: Market Volume Forecasts, 2014-2020 126 Baby Food: Per Capita Expenditure Forecasts, Current Prices, 2014-2020 127 Baby Food: Per Capita Expenditure Forecasts, Constant Prices, 2014-2020 128 Baby Food: Per Capita Expenditure Forecasts, US Dollars, 2014-2020 129 Baby Food: Per Capita Consumption Forecasts, 2014-2020 130

Economic & Demographic Background 131-134

Political & Economic Summary 131-132 Economic Background 133

Economic Indicators, 2008-2015 133 RPI Trends, 2008-2020 133

Demographic Data 134 Population Trends, 2008-2020 134