Global Baby Food and Formula Industry Forecast to 2016 - Asia: An Emerging Market for Organic Baby Food
August 2012
152
About the Report
About the Report
The present report title “Global Baby Food and Formula Industry Forecast to 2016 – Asia: An Emerging Market for Organic Baby Food” gives a comprehensive analysis over baby food industry demand trends worldwide and by geography. It includes a detailed description of the industry segmentation and product category. The report further discusses about industry trends, major drivers, leading players and future outlook. It also provides a detailed description of baby food and formula industry in the US, France, Germany, India and China with market size, segmentation, sub segments of the industry, major players, competition, industry developments, SWOT analysis, industry driving forces, macro economy environment and industry forecasts to 2016.
During global credit crisis, with the reduction in available income, especially in emerging economies, preference for home cooked baby food had increased over manufactured food items. Rapidly expanding emerging economies such as in India and China the baby food market were witnessing intensifying demand. Over the past few years, a number of large and small new baby food companies have introduced high quality baby food products to meet the market need for quality baby food products.
Formula milk is witnessing fall in demand due to the impact of government initiatives to support breastfeeding and economy slowdown which started in 2008 and since then world economy is going through many fluctuations which caused parents to cut down their expenses. Geographically, the US accounts for larger market share of the organic baby food market. The European market is seeing an increase in demand, particularly in France, Germany and the UK. Asia is an emerging market for organic baby food.
There are bright prospects though for baby snacks and flavored baby juice segment in the US. The number of children born in the US was highest in 2007 at a level of 4.30 million births but since then it has reduced and reached 4.00 million births in 2010. The US baby food market constitutes a large percentage of dried and prepared baby food and the target market is 0-4 year old kids.
The French baby food and formula market performed negative during 2009 and 2010 due to the effect of financial crises. At present, growth in organic baby food is relatively slow but is expected to gain momentum with the stability in inflation and rise in disposable income. Organic baby food accounted for 5.30% of the total baby food retail sales in 2011
Germany is the largest dairy market in the European Union in terms of volume and value production. The demand for convenience food products such as ready to feed baby foods are rapidly developing across Germany. The population of children in the age group of 0 to 1 year declined by 2.67% in 2011 as compared to 2010. Dried baby food represents a very low demand as compared to high demand observed for ready-to-feed (prepared baby food) baby food products. Baby juices are enjoying strong growth momentum.
India is the potential destination for baby food manufacturers with huge untapped market. Pricing is the major concern for baby food manufacturers in the country. Only one fourth of the population belongs to upper middle class and high class. Baby juices are still in its infancy stage and facing difficulty to gain importance.
China is the second largest baby food and infant formula market in the world and largest in Asia, which constitute of baby food such as- Dry baby food (cereals, bottled baby food), ready-to-eat baby food (canned baby food and snacks for one year and above babies) and baby juices; and infant formula milk segment.
Key Findings
- From 2006-2011, the global baby food and formula industry grew at a CAGR 4.17% and expected to register 5.30% CAGR between 2011-2016 to reach USD 47.00 billion mark.
- In 2011 global formula milk retail sales grew 3.64% to USD ~ billion from USD ~ billion in 2010. The segment recorded CAGR of 3.25% from 2006 to 2011.
- The total baby food segment in the world grew from USD ~ billion in 2006 to USD ~ billion in 2011 at a CAGR 5.88%.
- The global baby food and formula market is dominated by North America region which contributed 28.63% of the industry worldwide
- The baby food and formula industry in the country has showcased a consistent growth prior to 2008 from USD ~ million in 2006 to USD ~ million in 2008 at CAGR 1.19% in the US.
- In 2011, baby food retail sales reached USD 2,737 million, registering a growth rate of 4.46% after falling in 2009 and 2010. This segment is expected to grow at CAGR 3.54% from 2011-2016 in the US. In 2011, dry baby food segment grew by 6.67% from previous year to USD ~ million, whereas in 2010, the segment recorded negative results.
- In the US, from 2011, formula milk market in the country showed stability, although grew by only 2.55%
- In France, Ready-to-feed (prepared) baby food category holds a dominant position with a market share of 83.94% in 2011. In 2011, formula milk showed some signs of improvements and inclined by 0.57% after performing negative in 2009 and 2010. Infant formula market recorded a negative CAGR of 0.28% from 2007-2011.
- Overall, the market for France baby food and formula is expected to grow at CAGR of 2.32% from 2012-2016.
- In 2011, Germany baby food and formula segment accounted for 9.13% of the total European market, growing at CAGR 1.81% from 2006-2011. The baby food segment has inclined by 3.33% in 2011 from previous year to USD ~ million.
- In India, baby food and formula market had witnessed a growth of 4.18% CAGR from 2006-2011. Baby food forms the largest segment and account for 50.52% of the total retail sales of baby food and formula market.
- The China baby food and infant formula milk market retail sales by value was recorded at USD 3,581 million in 2007 whereas in 2009, the segment grew by 20.44%, comparatively lower than previous year results. By 2016, industry is expected to record revenue of USD ~ million to grow at 16.57% CAGR in the next five years.
- Consumer spending on baby food was recorded 0.12% of GDP in 2011 compared to 0.10% in the previous year. Infant formula has recorded usual growth in volume sales of 14.08% in 2011 relative to the growth of 14.09% and 15.97% in 2010 and 2009 respectively.
Products
Products
Baby Food, Formula Milk, Prepared Baby Food, Dry Baby Food, Infants, Toddlers, Organic Baby Food, Dried Baby Food, Baby Juice, Baby Snacks
Companies
Nestle, Danone, H Z Heinz
Table of Contents
Table of Contents
1. Global Baby Food and Formula Industry
1.1. Consumer Behavior and Regulations
Consumer Buying Behavior
Regulations
1.2. Market Size and Forecast
Growing Middle Class
Rising Per-capita income
Rising Women Participation in Labor Force
Large Range of Products Offering
1.3. Market Segmentation
1.4. Industry Opportunities
1.4.1. Rising Awareness of Organic Baby Food
1.4.2. Rising Birth Rate in Developing Nations
2. Performance by Geography
3. The US Baby Food and Formula Industry
3.1. Market Size
Falling Birth Rate
3.2. Industry Segmentation-Retail Sales and Forecast
3.2.1. Baby Food Market and Forecast
3.2.1.1. Segmentation by Dry, Ready-to-feed and Other Baby Food
3.2.2. Formula Milk Demand and Segmentation by base Ingredient
3.3. The US Organic Baby Food Demand
3.4. SWOT Analysis
3.5. Industry Opportunities and Growth Drivers
Infants on Mother Feed vs Formula Milk
Working Women Population
US healthcare Spending
Rising Per Capita Income
The US Milk Powder Production
3.6. Country Analysis and Industry Insight
3.6.1. Key Findings
3.6.2. Political and Regulatory Structure
Regulatory Body
3.6.3. Macro Economic Indicators: Current and Projections
The US Economy, Impact over baby food demand
Population, 2006-2015
Personal Disposable Income 2005-2015
Inflation, 2006-2015
3.7. Export and Import of Baby Food Products in the US
3.8. Industry Players and Competition in the US
3.9. The US Baby Food Industry Forecast to 2016
4. France Baby Food and Infant Formula Industry
Market Scenario
4.1. Market Size, 2006-2011
4.2. Industry Segmentation - Retail Sales
4.2.1. Baby Food Retail Sales, 2007-2011
Baby Food Demand by Type, 2011
4.2.2. Formula Milk Demand by Retail Sales, 2007-2016
4.3. SWOT Analysis
4.4. Industry Opportunities and Growth Drivers
Rising Fertility Rate
Rising Women Participation in Labor Market
Urbanization
Role of Education in rising consumption of baby food
Cow Milk Production
4.5. Country Analysis and Industry Insights
4.5.1. Key Findings
4.5.2. Political Environment
Regulation on Baby Food
4.5.3. Macro-Economic and Industry Indicators
Population, 2006-2011
GDP, 2006-2015
Import/Export, 2007-2011
4.6. France Baby Food Industry Forecasts, 2012- 2016
5. Germany Baby Food and Formula Industry
5.1. Market Size
5.2. Industry Segmentation-Retail Sales and Forecast
5.2.1. Baby Food Demand and Forecast
5.2.1.1. Segmentation by Dry, Ready-to-feed and Other Baby Food
5.2.2. Formula Milk Demand and Segmentation by base Ingredient
5.3. SWOT Analysis
5.4. Industry Opportunities and Growth Drivers
Rising number of foreign citizens
Largest dairy producer in Europe
Intensifying Organic Food Demand
Convenience Food – A Recent Phenomenon
Working Women Population
5.5. Country Analysis and Industry Insight
5.5.1. Key Findings
5.5.2. Political Structure
5.5.3. Germany Macro Economic Indicators: Historical and Projections
Population, 2006-2015
GDP, 2006-2015
5.6. Export and Import
5.7. Germany Baby food Industry Players
5.8. Germany Baby Food and Formula Industry Forecast to 2016
6. India Baby Food and Infant Formula Industry
Market Scenario
6.1. Market Size
Role of birth rate in baby food demand
6.2. Industry Segmentation-Retail Sales and Forecast
6.2.1. Segmentation by Dry, Ready-to-feed and Other Baby Food
6.2.2. Formula Milk Demand and Segmentation by base Ingredient
6.3. SWOT Analysis
6.4. Industry Opportunities and Growth Drivers
Affluence of Working Population with Changing Lifestyles
Role of Urbanization in Baby Food and Formula Market
Annual Disposable Income
Surging Infant Population will showcase rise in Demand for Baby Food
Flourishing Dairy Market
6.5. Country Analysis and Industry Insights
6.5.1. Key Findings
6.5.2. Political Environment
Regulation on Baby Food
6.5.3. Macro-Economic and Industry Indicators
GDP Enabling Growth of Pharmaceuticals
Import/Export
Population and Projection
6.6. Industry Players and Competition
6.7. India Baby Food Industry Forecast
7. China Baby Food and Infant Formula Industry
7.1. Market Size
Consumer Spending on Baby food and Infant formula industry
7.2. Industry Segments
7.2.1. Infant Formula Milk Demand
7.2.2. Baby Food Demand
7.2.2.1. Baby Food Industry Segmentation
Baby Cereals Demand
Bottled Baby Food
7.3. SWOT Analysis
7.4. Industry Opportunities and Growth Drivers
Infants on Mother Feed
Child Birth Rate and Baby Population
Opportunities for New Players
Opportunities for Domestic Players
Disposable Income and Urbanization
Growing Middle Class and Working Women population
7.5. Country Analysis and Industry Insights
7.5.1. Key Findings
7.5.2. Political Environment and Government Regulations
Regulations
7.5.3. Macro-economic Indicators
GDP Recovery and Growth
Import/Export
Population and Literacy Rate
7.6. Industry Players and Competition
Multinational Producers
7.7. Future Outlook
8. Global Competitive Landscape and Profile of Major Players
8.1. Market Share of Major Baby Food Manufacturers
8.2. Nestle
8.2.1. Business Overview
8.2.2. Key Financials
8.2.3. Major Developments and Strategies
8.3. Danone
8.3.1. Business Overview
8.3.2. Key Financials
8.3.3. Major Developments and Strategies
8.4. H. J. Heinz
8.4.1. Company Description
8.4.2. Key Financials
8.4.3. Major developments and Strategies
9. Appendix
9.1. Market Definition
9.2. Abbreviations
9.3. Research Methodology
Data Collection Methods
Approach
Multi Factor Based Sensitivity Model (SPSS Analysis)
Final Conclusion
9.4. Disclaimer
List of Figure
Figure 1: Global Baby Food and Infant Formula Market and Forecast by Value (2006-2016)
Figure 2: Global Formula Milk Retail Sales (2006-2011)
Figure 3: Global Baby Food Retail Sales (2006-2011)
Figure 4: Baby Food and Formula Industry Demand by Geography in 2011 (%)
Figure 5: Baby Food and Formula Industry Market Value by Geography in 2011
Figure 6: The US Baby Food and Formula Retail Sales by Value (2006-2011)
Figure 7: Birth Rate in the US (2006-2011)
Figure 8: The US Baby Food and Formula Segmentation in Percentage, 2011
Figure 9: The US Baby Food Retail Sales and Forecast (2006-2016F)
Figure 10: The US Baby Food Retail Sales and Forecast by Segments (2007-2016F)
Figure 11: The US Formula Milk Retail Sales and Forecast (2007-2016F)
Figure 12: The US Formula Milk Demand by Base-Ingredients in 2010
Figure 13: The US Organic Formula Market (2006-2010)
Figure 14: US Breastfed Infants who are Supplemented With Infant Formula in Percentage (2011)
Figure 15: Exclusive Breastfeeding by Month since Birth among the US Infants Born in Percentage (2008)
Figure 16: The US Labor Force Contribution by Male and Female in Percentage May 2012
Figure 17: The US Women Population in Civilian Labor Force in Thousand, 2006-2010
Figure 18: The US Average Annual Cost of Healthcare (2006-2011)
Figure 19: The US Healthcare Expenditures (2000, 2005, 2008 & 2010)
Figure 20: Per Capita Income in the US (2000-2011)
Figure 21: The US Skim Milk Powder Market Production by Volume (2007-2015)
Figure 22: The US GDP at Current Prices (2000-2010)
Figure 23: The US Population in Million, 2006-2015
Figure 24: The US Personal Disposable Income in USD Billion, 2006-2015
Figure 25: Per Capita Income in the US (2006-2011)
Figure 26: The US inflation, Average Consumer Prices in % (2007-2015F)
Figure 27: Consumer Price Index in the US, 2006-2015
Figure 28: Import of Infant Foods of Cereals, Flour, Starch or Milk, by Value and Volume in the US (2006-2010)
Figure 29: Export of Infant Foods of Cereals, Flour, Starch or Milk by Value and Volume in the US (2006-2010)
Figure 30: The US Infant Milk Formula Players in 2011
Figure 31: Share of Leading Baby Food Brands in the US, 2011
Figure 32: The US Baby Food and Formula Retail Sales Forecast by Value (2011-2016F)
Figure 33: France Baby Food and Formula Retail Sales by Value (2006-2011)
Figure 34: France Baby food and Formula Segmentation in %, 2011
Figure 35: France Baby Food Retail Sales (2007-2011)
Figure 36: France Baby food Demand by Type in 2011
Figure 37: France Formula Milk Retail Sales and Forecast (2007-2016F)
Figure 38: Urban Population in France (2008-2010)
Figure 39: France Total Cow Milk Production Volume in Million Tonnes (2006-2010)
Figure 40: France Total Exports and Imports by Value (2007-2011)
Figure 41: France Baby Food and Formula Retail Sales Forecast by Value (2011-2016F)
Figure 42: Germany Baby Food and Formula Retail Sales by Value (2006-2011)
Figure 43: Total Fertility Rate (TFR) in Germany (2006-2011)
Figure 44: Germany Baby Food and Formula Segmentation in Percentage, 2011
Figure 45: Germany Baby Food Retail Sales and Forecast by Segments (2006-2016F)
Figure 46: Germany Baby Food Demand by Product Category, by Value (2009-2011)
Figure 47: Germany Formula Milk Retail Sales and Forecast (2006-2016F)
Figure 48: Foreign Population in Germany (2006-2011)
Figure 49: Total Cow Milk Production Volume in Germany '000 tones (2006-2010)
Figure 50: Europe Organic Food Per Capita Consumption in 2010 (EUR)
Figure 51: Germany Organic Baby Food Market Retail Sales and Forecast (2006-2016)
Figure 52: Working Women Population in Germany (2008-Q2 2011)
Figure 53: Women Share of the Labor Force in Germany (2006-2011)
Figure 54: Germany Baby Food and Formula Retail Sales Forecast by Value (2011-2016F)
Figure 55: Indian Baby Food and Formula Retail Sales by value (2006-2011)
Figure 56: Birth Rate in India (2006-2011)
Figure 57: India Baby food and Formula Segmentation in %, 2011
Figure 58: India Baby Food Demand by Type in % (2007-2011)
Figure 59: India Formula Milk Retail Sales and Forecast (2007-2016F)
Figure 60: India Formula Milk Demand by Base-Ingredient in 2011
Figure 61: Indian Urban Population in Million, 2006-2015
Figure 62: Total Annual Personal Disposable Income in India (2006-2016)
Figure 63: Child Population Age 0-6 Years Old in India (2006 & 2011)
Figure 64: Indian Dairy Products Export by Product Type (2010)
Figure 65: India’s GDP at Current Prices in USD Billion, 2006-2015
Figure 66: India’s Population in Million, 2006-2016
Figure 67: India Baby Food and Formula Retail Sales Forecast by Value (2011-2016F)
Figure 68: Distributor’s Share in China Baby Food Market in 2011
Figure 69: China Baby Food and Infant Formula Demand by Volume (2006-2011)
Figure 70: China Baby Food and Infant Formula Demand by Value (2006-2011)
Figure 71: Segmentation of China Baby Food and Infant Formula Market by Type in %, 2011
Figure 72: China Infant Formula Milk Demand by Volume (2006-2011)
Figure 73: China Infant Formula Milk Demand by Value (2006-2011)
Figure 74: China Baby Food Retail Sales by Value (2006-2011)
Figure 75: China Baby Food Market Segmentation by Type in 2011 (%)
Figure 76: China Baby Cereal Retail Sales by Value (2006-2011)
Figure 77: China Bottled baby food Demand by Value (2006-2011)
Figure 78: China Birth Rate of 1000 population in % (2006-2011)
Figure 79: Baby Population in China (Age 0-4 years), 1995-2050
Figure 80: Import of Milk Powder in China by Volume (2006-2010)
Figure 81: China Urban per Capita Disposable Income (2003-2010)
Figure 82: China Gross Domestic Product (2003-2011)
Figure 83: China Population (2003-2011)
Figure 84: Market Share of Players in China Baby food and Infant Formula Market, 2010
Figure 85: Market Share of Players in China Baby Food and Infant Formula Milk Market, 2011
Figure 86: China Baby Food and Infant Formula Market Forecast by Value (2011-2016F)
Figure 87: Baby Food Demand Forecast by Value (2011-2016F)
Figure 88: Infant Formula Demand Forecast by Value (2011-2016F)
Figure 89: Global Players Market Share in 2011
List of Table
Table 1: The Global Middle Class, 2009: People and Spending
Table 2: Global Baby Food Demand by Type in 2011
Table 3: Country Overview
Table 4: France Total Fertility Rate (TFR) and Births (2006-2010)
Table 5: Women in Labor Force % (2006-2011)
Table 6: Country Overview
Table 7: France Population Trend in Million, 2006-2015
Table 8: France Gross Domestic Product in USD Billion, 2006-2015
Table 9: Infant Foods of Cereals, Flour, Starch or Milk Import Export by Value and Volume (2006-2010)
Table 10: Child Population in Germany (2008-2010)
Table 11: Country Overview
Table 12: Germany Population Trend in Million, 2006-2015
Table 13: Germany Gross Domestic Product in USD Billion, 2006-2015
Table 14: Germany Total Exports and Imports and Trade in Food Industry, by Volume (200-2011)
Table 15: Germany Trade of Infant Foods of Cereals, Flour, Starch or Milk (2006-2010)
Table 16: Leading Players in Baby Food and Formula Industry, Products and Market Share, 2011
Table 17: Labor Participation Rates by Gender and by Age Group in India, 2000 and 2008
Table 18: Production and consumption of Non-fat Dry Milk in India (2006-2011)
Table 19: Country Overview
Table 20: India Economy (2010-2012)
Table 21: Export/Import Statistics in India (2006-2010)
Table 22: Trade of Infant foods of cereals, flour, starch or milk in India (2006-2010)
Table 23: Income Distribution among Households in thousands in India, 2009-2012
Table 24: Popular Baby Food Brands by Type
Table 25: Baby Food Market Segmentation by Product Category in China, 2011
Table 26: Baby Milk Consumption in China
Table 27: Import of Milk Powder in China by Value (2006-2010)
Table 28: China Comparison of Foreign Milk Power and Domestic Milk Powder on the Basis of Retail Price (2010&2011)
Table 29: Country Overview
Table 30: China Economy (2010-2012)
Table 31: China Import & Export Statistics (Jan to May 2011)
Table 32: Domestic Players Business and Financials
Table 33: Nestle Sales and Profit in 2011
Table 34: Danone Financials by Business Segment (Q1’2011 & Q1 2012)
Table 35: H. J. Heinz Company Financials in USD Million (2010-2012)
Table 36: Heinz Revenue by Business Segments (2010-2012)
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