Summary

Living standards in the US are among the highest in the world. The country ranks 11th in the IMF’s world listing of GDP per capita, and after a period of recession, over the last three years or so consumer confidence has increased. However, many parents have put off raising children, and the number of births has fallen unremittingly to 3.8 million in 2018. Growing demand for organic and non-GMO products indicates that many parents who have sufficient income are prepared to spend it on food they perceive as more beneficial for their babies. The infant formula market is distorted by the Federal WIC program.

In 2018, sales of baby food amounted to US$6.9 billion, a level more or less unchanged over the past three years. In volume terms, consumption has fallen by 11% from 2012 to 2018, partly as a result of a lower number of births, and, in the case of baby milks, also due to higher levels of breastfeeding. On the other hand, growth in newer segments, particularly pouches, snacks, and toddler milks, has prevented even more serious declines. Consumption per baby aged 0-3 years old stood at 34.3kg in 2018, 8.7% down on 2012.

Milks account for almost three-quarters of the value of retail sales, and wet meals for 23%. The share of milks has declined over the last six years, as consumption has fallen and prices remained fairly stable in real terms, due to the swing towards toddler milks, with typically lower unit prices than first-stage milks. Conversely, wet meals have taken a larger share of spending (22.7% in 2018, compared with 18.3% in 2012), mainly due to the trend towards more expensive organic and pouch products.

The US is a major producer of baby milks, due largely to the strong presence of Abbott and Mead Johnson. Perrigo produces store brand infant formulas for the world’s leading retailers. Nestl? manufactures its Gerber infant formula range locally, as well as a broad range of other types of baby food. Hero and Campbell Soup also manufacture in the US.

Supermarkets dominate sales of baby food, accounting for some two-thirds of infant formula sales and 60% of other baby food. However, supermarkets are losing share to less traditional discounting outlets, such as mass merchandisers and warehouse stores. Drugstores have lost ground in milks over the past two years. The increase in interest in organic baby food has led to an increase in the share taken by natural food retailers. Online purchases of baby food are increasing but remain low, although half of mothers have bought formula via the internet on some occasion.

In 2018, Abbott pulled further ahead of Mead Johnson in the milks category, gaining a share of over 42%, compared with Mead Johnson’s 38%. These two companies are well ahead of Nestl? (Gerber), which claimed 13% in value. In terms of the total market, all three leading companies remain closely bunched, with shares of between 25% and 31% each.

The report "The Baby Food Sector in the US, 2019", provides extensive and highly detailed current and future market trends in the US market.

The report offers -

  • Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry
  • Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors
  • Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands
  • Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel
  • Future projections considering various trends which are likely to affect the industry



Companies mentioned: Abbott Nutrition, Mead Johnson Nutritionals, Gerber Products Co - Nestl? Infant Nutrition, Beech Nut Nutrition Corp (Hero), Plum Organics (Campbell Soup Company). The Hain Celestial Group Inc.,Happy Family Group (Danone), Perrigo Company Plc.


Scope

  • In 2018, sales of baby food amounted to US$ 6.9 billion, a level more or less unchanged over the past three years.
  • Living standards in the US are among the highest in the world. However, many parents have put off raising children, and the number of births has fallen unremittingly to 3.8 million in 2018.
  • Milks account for almost three-quarters of the value of retail sales, and wet meals for 23%.
  • Conversely, wet meals have taken a larger share of spending (22.7 % in 2018, compared with 18.3% in 2012), mainly due to the trend towards more expensive organic and pouch products.
  • Cereals/finger foods and drinks account for only 3.8% of overall sales, and growth here has come mainly from snacks.
  • Supermarkets dominate sales of baby food, accounting for some two-thirds of infant formula sales and 60% of other baby food.




Reasons To Buy

  • Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
  • Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
  • Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
  • Investigates which categories are performing the best and how this is changing market dynamics.