The Baby Food Sector in the US, 2019
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. Nestlé 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 Nestlé (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 -
Companies mentioned: Abbott Nutrition, Mead Johnson Nutritionals, Gerber Products Co - Nestlé 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
Reasons to Buy
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. Nestlé 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 Nestlé (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 - Nestlé 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.
Table of Contents
- Introduction
- Executive Summary
- Definitions
- Background to the Market
- Birth
- The Consumer
- Socio-Demographic Trends
- Working Women
- Regulations
- Breastfeeding Trends
- Overview
- Overview
- Manufacturers Shares
- Category Analysis
- Baby Milks
- Baby Cereals
- Baby Meals
- Baby Drinks
- Production & Trade
- Production
- Imports
- Exports
- Company profiles
- Abbott Nutrition
- Mead Johnson Nutritionals
- Gerber Products Co - Nestlé Infant Nutrition
- Beech-Nut Nutrition Corp (Hero)
- Plum Organics (Campbell Soup Company)
- The Hain Celestial Group Inc.
- Happy Family Group (Danone)
- Perrigo Company Plc.
- Distribution
- Baby Food Retailing
- Economic Background
- Key Macroeconomic Forecasts
- Prospects and forecasts
- Birth & Population Projections
- Forecast Overview
- Consumer Attitude
- Appendix
- Additional Data Tables
- Summary Methodology
- About The Author
List of Tables
Table 1: Live Birth & Population Trends, 2008-2018
Table 2: Births & Birth Rates by Ethnic Origin, 2000-2017
Table 3: Births by State, 2012-2017
Table 4: Births by Age of Mother, 2013-2017
Table 5: Number of Women of Childbearing Age, 2010 & 2016
Table 6: Working Mothers, by Ethnic Origin, 2016
Table 7: Female Employment Trends, 2011-2018
Table 8: Breastfeeding Targets by 2020
Table 9: Breastfeeding Rates, 1990-2015
Table 10: Breastfeeding Rates by State, 2015
Table 11: Breastfeeding Rates by Demographic Characteristics, %, at Birth, 2003-2015, and at Six Months, 1996-2015
Table 12: Breastfeeding Rates by Demographic Characteristics, at 12 months and Exclusively, 2015
Table 13: Summary of Breastfeeding Legislation by State, 2018
Table 14: Sector Size, 2018, & Growth Rates, 2012-2018
Table 15: Baby Food: Manufacturer Shares, Value, %, 2012-2018
Table 16: Baby Food: Manufacturer Shares by Sector, %, 2018
Table 17: Baby Milks: Category Size, 2018
Table 18: Baby Milks: Category Growth, % 2012-2018
Table 19: Infant Formula: Trends in Sector Segmentation, 2012-2017
Table 20: Infant Formula: Sector Segmentation, 2015
Table 21: Baby Milks: Segmentation, Value, % 2012-2017
Table 22: Powdered Baby Milks: Brand Price Positioning Analysis, 2018
Table 23: Baby Milks: Brand Price Positioning Analysis, Liquid, 2018
Table 24: Baby Milks: Manufacturer Shares, Value & Volume, %, 2012-2018
Table 25: Baby Milks: Manufacturer Shares by Segment, % Value, 2013-2015
Table 26: Powdered Formula: Leading Brands, % Value, 2010-2015
Table 27: Powdered Formula: Leading Brands, % Volume, 2010-2015
Table 28: Liquid Formula: Leading Brands, 2012-2015
Table 29: Liquid Concentrate: Leading Brands, 2013 & 2014
Table 30: Baby Cereals: Category Size, 2018
Table 31: Baby Cereals: Category Growth, % 2012-2018
Table 32: Baby Cereals & Finger Foods: Segmentation, % Value, 2012-2017
Table 33: Baby Cereals: Brand Price Positioning Analysis, 2018
Table 34: Baby Finger Foods: Brand Price Positioning Analysis, 2018
Table 35: Baby Cereals: Manufacturer/Brand Shares, %, 2012-2018
Table 36: Baby Wet Meals: Category Size, 2018
Table 37: Baby Wet Meals: Category Growth, % 2012-2018
Table 38: Baby Wet Meals: Brand Price Positioning Analysis, 2018
Table 39: Wet Baby Meals: Manufacturer Shares, Value & Volume, %, 2012-2018
Table 40: Baby Drinks: Category Size, 2018
Table 41: Baby Drinks: Category Growth, % 2012-2018
Table 42: Baby Drinks: Retail Prices by Manufacturer, Brand and Product, 2018
Table 43: Baby Drinks: Brand Shares, % Value, 2012-2018
Table 44: Infant Formula Sales by Outlet Type, % Value, 2011-2017
Table 45: Frequency of Infant Formula Purchase, 2008 & 2014
Table 46: Other Baby Food Sales by Outlet Type, %, 2012-2017
Table 47: Online vs. In-store Purchases, 2014
Table 48: In-store Promotion of Baby & Toddler Food by Type, 2015
Table 49: Economic Indicators, 2012-2018
Table 50: Key Macro-Economic Forecasts, 2018-2024
Table 51: Birth & Population Projections, 2008-2024
Table 52: Baby Food: Category Growth, 2018-2024
Table 53: Baby Population, Number of Babies (’000), 2008-2024
Table 54: Baby Food: Sector Value, Current Prices, 2012-2018
Table 55: Baby Food: Sector Value, Constant Prices, 2012-2018
Table 56: Baby Food: Sector Volume, ’000 Tons, 2012-2018
Table 57: Baby Food: Per Capita Expenditure, Current Prices, 2012-2018
Table 58: Baby Food: Per Capita Expenditure, Constant Prices, 2012-2018
Table 59: Baby Food: Per Capita Consumption, Grams, 2012-2018
Table 60: Baby Milks: Sector Trends, 2012-2018
Table 61: Baby Milks: Sector Segmentation, Value & Volume, 2012-2018
Table 62: US: Infant Formula Prices, Milk Powder, September 2018
Table 63: US: Infant Formula Prices, Liquid Milk, September 2018
Table 64: Baby Cereals: Sector Trends, 2012-2018
Table 65: Baby Meals: Sector Trends, 2012-2018
Table 66: Baby Drinks: Sector Trends, 2012-2018
Table 67: Imports of Baby Food by Category, Tons, 2012-2017
Table 68: Imports of Baby Food by Category, US$ ’000, 2012-2017
Table 69: Baby Milks & Cereals: Imports by Country of Origin, 2015-2017
Table 70: Other Baby Food: Imports by Country of Origin, 2015-2017
Table 71: Exports of Baby Food by Category, Tons, 2012-2017
Table 72: Exports of Baby Food by Category, €000, 2012-2017
Table 73: Baby Milks & Cereals: Exports by Country of Destination, 2015-2017
Table 74: Other Baby Food: Exports by Country of Destination, 2015-2017
Table 75: Baby Food: Market Value Forecasts, Current Prices, 2018-2024
Table 76: Baby Food: Market Value Forecasts, Constant Prices, 2018-2024
Table 77: Baby Food: Market Volume Forecasts, Tons, 2018-2024
Table 78: Baby Food: Per Capita Expenditure, Current Prices, 2018-2024
Table 79: Baby Food: Per Capita Expenditure, Constant Prices, 2018-2024
Table 80: Baby Food: Per Capita Consumption, Grams, 2018-2024
List of Figures
Figure 1: Baby Food: Sector Size, 2012-2018
Figure 2: Baby Food: Per Capita, 2012-2018
Figure 3: Baby Food: Sector Segmentation, 2018
Figure 4: Baby Food: Manufacturer Shares, Value, 2018
Figure 5: Baby Food: Manufacturer Shares, Value %, 2018
Figure 6: Baby Food: Manufacturer Shares, Volume %, 2018
Figure 7: Baby Food: Manufacturer Shares by Sector, % Value, 2018
Figure 8: Baby Milks: Category Trends, 2012-2018
Figure 9: Baby Milks: Per Capita Expenditure & Consumption, 2012-2018
Figure 10: Baby Milks: Per Capita Expenditure & Consumption by Age Group, 2012-2018
Figure 11: Baby Milks: Segmentation, Value and Volume, 2012-2018
Figure 12: Baby Cereals: Category Trends, 2012-2018
Figure 13: Baby Cereals: Per Capita Expenditure & Consumption, 2012-2018
Figure 14: Baby Wet Meals: Category Trends, 2012-2018
Figure 15: Baby Wet Meals: Per Capita Expenditure & Consumption, 2012-2018
Figure 16: Baby Drinks: Category Trends, 2012-2018
Figure 17: Baby Drinks Per Capita Expenditure & Consumption, 2012-2018
Figure 18: Baby Food: Sector Size, 2018-2024
Figure 19: Baby Food: Per Capita, 2018-2024
Figure 20: Baby Food: Sector Segmentation, 2024
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Abbott Nutrition
- Mead Johnson Nutritionals
- Gerber Products Co - Nestlé Infant Nutrition
- Beech Nut Nutrition Corp (Hero)
- Plum Organics (Campbell Soup Company)
- The Hain Celestial Group Inc.
- Happy Family Group (Danone)
- Perrigo Company Plc
