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Baby Food, Milk and Drinks Pan European Overview Europe
Market Report, January 2005, 745  €


Description

About this reportAbout the market… “Baby food has become a key strategic grocery market, driven by intense marketing and new product development from a few major players.As a consumer market, baby food is unique in that it is not consumed by its purchasers – marketing is to adults, although they are not the end-users.
As a result, market trends in terms of product values mirror those in adult food markets, with the important proviso that quality and brand reputation are of absolute importance and almost invariably override considerations of price.
Convenience is also an important selling point.”The countries included in the Consumer Goods Intelligence series of reports are France, Germany, Italy, Spain and the UK.About Mintel’s report… Using the latest consumer research, market size data and trend analysis, Mintel’s European report offers you vital new insight into the current state of the market, its prospects and the attitudes of key target audiences.
You can use Mintel’s European market research to:Gain a vital overview of the dynamics of the Baby Food, Milk and Drinks market across the largest European consumer marketsEnsure that every step of your product development and brand marketing is focused towards real demand and real opportunity.
Benchmark major consumer trends in the Baby Food, Milk and Drinks market from one country to another.Track developing market trends in each country Measure market sizes, finds sales opportunities and monitor leading players’ activityIntriguing findings include…€254 is the average expenditure per 0-4 year-old in France, compared to €210 in Spain and €140 in the UK.Organic products account for 75% of the baby food and drinks sector in GermanyMilks are the largest sector by value in Spain, representing 50% of sales in 2004 (€216 million), with foods taking 49% and juices the remaining 1%.


Sommaire
 
Contents
 

 
Introduction
 

 
Definitions
 
Executive Summary
 
France
 
Largest of the five review markets
 
Baby meals are the largest sector
 
Extending the age range for baby milks
 
Grocery multiples lead retail sales of baby foods
 
Two multinationals dominate
 
Highest penetration of the review countries
 
Healthy future
 
Germany
 
Decline in market may be halted by age extension of follow-up milk
 
A shrinking consumer base demands rethinking by suppliers
 
Follow-on milk and convenience products doing best
 
Organics make the running
 
Producer brands are held in high regard
 
Grocery chains lead the market, discounters only take small share
 
New baby snacks, and healthier foods, attract consumers
 
All in all, stagnation looks likely
 
Italy
 
Good growth
 
Growing-up milks give the greatest boost to sector value
 
Grocery multiples account for the bulk of sales
 
Plada generates over half of market value
 
New product development is a major driver of growth
 
An encouraging outlook
 
Spain
 
Rising birth rate leads to market growth
 
Ready-to-drink and stage-3 are the growth segments
 
Grocers have become the leading retail outlet for babyfoods
 
Well-known babyfood brands lead the Spanish market
 
New product development
 
Positive outlook for future growth
 
UK
 
Household and work patterns increase demand
 
Continual rise
 
Shifting sector composition
 
RTF dynamic sector
 
Large suppliers dominate
 
Multiples and Boots reign; focus below the line
 
Combination penetration strong
 
Quality assurance keeps outlook strong
 
Market Drivers
 
Figure 1: Birth rate, by country, 1999-2003
 
Women in employment
 
Figure 2: Trends in French employment, 1998-2003
 
Figure 3: Trends in German employment, 1999-2003
 
Figure 4: Women in employment in Spain, 1998-2003
 
Figure 5: Workforce in employment in the UK, by gender, 1999-2008
 
Rising awareness of food intolerance
 
Figure 6: Attitudes towards genetically-modified food, by country, 2002-04
 
Strict controls of marketing baby milks
 
Market Size and Trends
 
France is the largest market in value terms for baby foods and drinks
 
Figure 7: Retail value sales of baby foods, milk and drinks, at current prices, by country, 1999-2004
 
Growth has been steady in all countries except Germany
 
Figure 8: Indexed retail value sales of baby foods, milk and drinks, at current prices, by country, 1999-2004
 
France takes the largest value share of the European market, closely followed by Italy
 
Figure 9: Retail value sales of baby foods, milk and drinks, % share by country, 2004
 
Market Segmentation
 
Foods are the largest sector, except in Spain where milk is most popular
 
Figure 10: Retail value sales of baby foods, milk and drinks, by type, by country, 2004
 
Distribution
 
Grocery dominates in all countries except Germany
 
Figure 11: Retail value sales of baby foods, milk and drinks, by oulet type, by country, 2004
 
The Supply Structure
 
France
 
Figure 12: Manufacturers’ value shares in the French baby milks, food and drinks, 2001-04
 
Germany
 
Figure 13: Brand shares in German baby milks, 2001-04
 
Baby foods and drinks - bottled
 
Figure 14: Brand shares in German bottled baby foods, 2003-04
 
Italy
 
Figure 15: Manufacturers’ retail value sales of baby milk, food and drinks, 2001-04
 
Spain
 
Figure 16: Manufacturers’ retail value shares in baby milks, food and drinks*, 2001-04
 
The Consumer
 

 
Figure 17: Use of baby foods and baby milk, by country, 2004
 
Figure 18: Penetration of baby foods and baby milk, by country, 2004
 
Figure 19: Use of baby food and baby milk, by main shoppers with children aged under 2, 2004
 
Figure 20: Use of baby foods, by main shoppers with children aged under 1, 2004
 
Prospects
 
France
 
Baby food less affected by a downturn in the economy
 
Declining birth rate, but extension of the age group for baby milks and foods will compensate
 
Making it easier to feed baby out of home
 
‘Home-cooked’ values appeal to busy parents
 
Ready-to-eat to invigorate the cereals sector
 
Healthy options
 
Germany
 
Market to stagnate
 
Figure 21: Forecast of German child population, 2004-09
 
Figure 22: Forecast of child population, by country, 2003-07
 
Big brands to do well, but there may be new entrants…
 
…and more downmarket lines will make some ground
 
…but organic lines are set to grow further
 
Italy
 
Economic outlook and effect on consumer confidence
 
But baby food less affected than discretionary goods
 
Number of 1-2-year-olds forecast to decline to 2009
 
Figure 23: Forecast child population in Italy, 2004-09
 
Spain
 
Good economic prospects help maintain consumer spend
 
Baby food to benefit from rising birth rate
 
Figure 24: Forecast child population in Spain, 2004-09
 
Follow-on foods will be a growth segment
 
UK
 
Determining live births
 
Motherhood at an older age
 
No downward price pressure
 
Father knows
 
Snacks sector dynamic
 
Organic sits in place
 
Baby milk sales resilient
 
Forecast
 
France is forecast to remain the largest value market
 
Figure 25: Forecast retail value sales of baby foods, milk and drinks, at current prices, by country, 2004-09
 
French market expected to keep growing the fastest in value terms
 
Figure 26: Indexed forecast retail value sales of baby foods, milk and drinks, at current prices, by country, 2004-09
 
Figure 27: Forecast value sales of baby foods, milk and drinks, % share by country, 2009
 
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