Despite the growth in the number of live births, expansion in the milks sector, which accounts for the bulk of retail sales, has been held back by the increase in breastfeeding rates. Sales in other sectors have been negatively affected by challenges to the popularity of baby meals, due to adverse publicity, a move towards home preparation of meals and, for some of the period, a more difficult economy. The market increased by just 13% in value to C$506 Million (US$381 Million) in 2016, while sales in volume terms declined by 4% to 27,902 tons.
Baby milks account for 63.5% of value sales of baby food, well ahead of wet meals (24.5%) and cereals & finger foods (11.3%). Milks have seen their share of sales decline since 2010, mainly as a result of rapid rises in the price of wet meals following the introduction of pouches from 2011/12 onwards. In volume terms, meals account for 48%, compared with milks on 39%. Cereals & finger foods have outperformed the market in both volume and value terms, due to the growing availability and popularity of a widening range of finger foods. Sales of drinks are low and have fallen back significantly.
At present, Canada does not produce infant formula, but several companies have plans to begin local manufacture. A few small players produce other baby food. Imports of baby food have been fluctuating between 23,000 and 28,000 tons per year. In 2016, 90% of volume and 96% of value consisted of cereals and milks, imported predominantly from the US. Exports plummeted in 2012 and, despite a small rally in 2014, have remained at a low level. In 2016, just 2,137 tons, worth US$5.8 Million, were exported. Cereals and milks accounted for 61% of value exports, destined mainly for Mexico and China.
By 2022, the market is forecast to achieve sales of C$677 Million, an increase of 34% compared with 2016, helped by a gradually increasing number of births and a relatively good economy. Value growth will be highest in cereals & finger foods (+43%), due to the continuing growth in finger foods. Milks value should be boosted by the trend towards premium products, resulting in a 35% increase. Wet meals will benefit from the higher popularity of pouches and regular innovation in product flavors and types. Volume growth is likely to be restricted to 5%, bringing total consumption to 29,378 tons.
Mead Johnson now leads the total market, based on its expanding share of the milks sector. In 2016, it had a share of 24% in value, three percentage points ahead of its nearest rival, Abbott, which held 21%. Nestlé has seen its share of milks and wet meals fall significantly, although its share of cereals has held up. As a result, it now lies in third place. Heinz has also come under increasing pressure in the wet meals sector, due to the growing popularity of products from newer entrants, including Baby Gourmet and Love Child Organics. Own label products have also made a growing impact.
The report "The Baby Food Market in Canada 2017" provides extensive and highly detailed current and future market trends in Canadian market.
Specifically, this report provides the following:
- 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.
- The market for baby food stood at tons in 2016, representing a 4.2% decrease over 2010 adversely affected by the rise in the proportion of mothers breastfeeding and the duration of breastfeeding.
- Baby milks account for 63.5% of value sales of baby food, well ahead of wet meals (24.5%) and cereals & finger foods (11.3%).
- At present, Canada does not produce infant formula, but several companies have plans to begin local manufacturing.
- A high proportion of volume (90%) and value (96%) consisted of cereals and milks, imported predominantly from the US in 2016.
- Grocers have increased their share of baby food sales in recent years, while the proportion sold via drugstores and pharmacies has declined sharply.
- The author estimates that the market will begin to expand again, and will increase by 5.3% in volume between 2016 and 2022.
- 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.
Background to the Market
Birth: Live Birth Rates
Live Births by Region
Key Features and Developments
Baby Wet Meals
Production and trade
Mead Johnson Nutrition Company
Nestlé Canada Inc.
Baby Food Retailing
Key Macro-economic Forecasts
Prospects and forecasts
Birth & Population Projections
Additional Data Tables
List of Tables
Table 1: Live Births & Population Trends, 2006-2016
Table 2: Live Births by Province, 2012-2016
Table 3: Age at which Allergens are Introduced to Babies’ Diets
Table 4: Family Structure, 2001-2011
Table 5: Breakdown of Live Births by Age of Mothers, 2011 & 2013
Table 6: Working Women, 2010-2016
Table 7: Exclusive Breastfeeding Rates, 2003 and 2011/12
Table 8: Breastfeeding Rates in Quebec by Age of Baby, 2005/06
Table 9: Breastfeeding Initiation Trends, by Age & Province, 2008-2013
Table 10: Market Size, 2016, & Growth Rates, 2010-2016
Table 11: Baby Food: Trends in Manufacturer Shares, 2010-2016
Table 12: Baby Food: Manufacturer Shares by Sector, % Value & Volume, 2016
Table 13: Projected Market Size, 2022, & Growth Rates, 2016-2022
Table 14: Powdered Baby Milks: Brand Price Positioning Analysis, 2017
Table 15: Liquid & Concentrated Baby Milks: Brand Price Positioning Analysis, 2017
Table 16: Baby Milks: Manufacturer Shares by % Value & Volume, Trends, 2010-2016
Table 17: Cereals & Dry Meals: Price Positioning, 2016
Table 18: Finger Foods: Price Positioning, 2017
Table 19: Baby Cereals: Manufacturer Shares by Value & Volume, Trends, 2010-2016
Table 20: Wet Meals: Price Positioning, 2017
Table 21: Baby Meals: Market Shares by Value & Volume, Trends, 2010-2016
Table 22: Baby Drinks/Juices: Manufacturer Shares, % Value & Volume, Trends 2010-2016
Table 23: Packaged Food Sales by Channel, C$ Billion, 2010-2016
Table 24: Economic Indicators, 2010-2017
Table 25: Key Macroeconomic Forecasts, 2016-2022
Table 26: Birth & Population Projections, 2006-2022
Table 27: Birth & Population Projections, 2006-2022
Table 28: Baby Food: Market Value, Current Prices, 2010-2016
Table 29: Baby Food: Market Value, Constant Prices, 2010-2016
Table 30: Baby Food: Market Volume, 000 Tons, 2010-2016
Table 31: Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
Table 32: Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
Table 33: Baby Food: Per Capita Consumption, Grams, 2010-2016
Table 34: Baby Milks: Sector Trends, 2010-2016
Table 35: Baby Milks: Sector Segmentation, Value and Volume, 2010-2016
Table 36: Baby Milks - Powdered Infant Formula, Brand Price Analysis, 2017
Table 37: Baby Milks - Liquid Infant Formula, Brand Price Analysis, 2017
Table 38: Baby Cereals: Sector Trends, 2010-2016
Table 39: Wet Meals: Sector Trends, 2010-2016
Table 40: Drinks: Sector Trends, 2010-2016
Table 41: Imports of Baby Food by Sector, Value, US$ ‘000, 2010-2016
Table 42: Imports of Baby Food by Sector, Volume, Tons, 2010-2016
Table 43: Imports of Baby Food by Country of Origin, Value, 2014-2016
Table 44: Imports of Baby Food by Country of Origin, Volume, 2014-2016
Table 45: Exports of Baby Food by Sector, Value, US$ ’000, 2010-2016
Table 46: Exports of Baby Food by Sector, Volume, Tons, 2010-2016
Table 47: Exports of Baby Food by Country of Destination, Value, 2014-2016
Table 48: Exports of Baby Food by Country of Destination, Volume, 2014-2016
Table 49: Baby Food: Market Value Forecasts, Current Prices, 2016-2022
Table 50: Baby Food: Market Value Forecasts, Constant Prices, 2016-2022
Table 51: Baby Food: Market Volume Forecasts, Tons, 2016-2022
Table 52: Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
Table 53: Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
Table 54: Baby Food: Per Capita Consumption, Grams, 2016-2022
List of Figures
Figure 1: Baby Food: Market Size, 2010-2016
Figure 2: Baby Food: Market Segmentation, 2016
Figure 3: Baby Food: Per Capita, 2010-2016
Figure 4: Baby Food: Manufacturer Shares, % Value, 2016
Figure 5: Baby Food: Manufacturer Shares by Sector, % value, 2016
Figure 6: Baby Milks: Sector Trends, 2010-2016
Figure 7: Baby Milks: Per Capita Expenditure & Consumption, 2010-2016
Figure 8: Baby Milks: Sector Segmentation, Value and Volume, 2010-2016
Figure 9: Baby Cereals: Sector Trends, 2010-2016
Figure 10: Baby Cereals: Per Capita Expenditure & Consumption, 2010-2016
Figure 11: Baby Wet Meals: Sector Trends, 2010-2016
Figure 12: Baby Wet Meals: Per Capita Expenditure & Consumption, 2010-2016
Figure 13: Baby Drinks: Sector Trends, 2010-2016
Figure 14: Baby Drinks Per Capita Expenditure & Consumption, 2010-2016
Figure 15: Milks & Cereals: Country of Origin, Top Three, % Volume, 2016
Figure 16: Milks & Cereals : Country of Destination, Top Four, % Volume, 2016
Figure 17: Baby Food: Manufacturer Shares, Value, 2016
Figure 18: Baby Food: Market Size, 2016-2022
Figure 19: Baby Food: Market Segmentation, 2022
Figure 20: Baby Food: Per Capita, 2016-