The Baby Food Sector in Italy, 2019
Summary
The Italian baby food market has been contracting for the past six years and by 2018 stood at 53,649 tons, with value falling to €620 million (US$732 million), down by 10% since 2012. This was due to enforced price decreases in the milks category and lower prices in real terms throughout much of the period in most other categories, a result of competition between the leading brands, and manufacturers' efforts to stimulate sales. In real terms, value sales have fallen by 13.3% since 2012. Per capita consumption is high at 38.5kg, largely due to the unusually high volumes of wet meals and finger foods consumed.
Unusually, it is the wet meals that is the largest category in both volume and value terms, accounting for 54% of consumption and 42% of retail sales. Milks accounted for 29% of retail sales in 2018, but consumption remains low, due to high prices and an increase in breastfeeding rates. Finger foods claimed 17% of retail sales, with rusks often used crumbled as a weaning food. Cereals, dry food, pasta, and drinks together accounted for only 12% of retail sales. All categories have been hard hit by the decline in the baby population, with volume and value sales without exception lower in 2018 than in 2012.
All of the leading companies in the market - Heinz, Danone, and Nestlé - are involved in the local production of baby food, although the extent of production has been adversely affected by the economic situation. Imports of baby food have been falling, and in 2017 were valued at €93million (US$105 million). The bulk of imports consist of cereals & milks (86% of volume). Exports of baby food are considerably lower than imports, although they have risen over the last few years. The market is dominated by the multinationals Heinz and Danone, with a combined 78.6% of value sales and 82.1% of volume sales in 2018. The only other competitor of significance, Nestlé, is well behind the leaders, with just 7.6% of value.
Grocery stores as a channel accounts for the majority of value sales, at 84% in 2018, a share that has been steadily rising, largely due to the convenience and lower prices often offered by the grocery category. Distribution trends vary, however, according to product, with first-stage and special dietary baby milks continuing to do relatively well through pharmacy outlets, sanitarie and outlets specializing in children's products, although even here pharmacies are losing ground.
"The Baby Food Sector in Italy, 2019", is an analytical report which provides extensive and highly detailed current and future market trends in the Italian market. The report offers -
Companies mentioned: Heinz Italia SpA, Danone, Nestlé Italia SpA, Humana Italia SpA, and Other Manufacturers
Scope
Reasons to Buy
Summary
The Italian baby food market has been contracting for the past six years and by 2018 stood at 53,649 tons, with value falling to €620 million (US$732 million), down by 10% since 2012. This was due to enforced price decreases in the milks category and lower prices in real terms throughout much of the period in most other categories, a result of competition between the leading brands, and manufacturers' efforts to stimulate sales. In real terms, value sales have fallen by 13.3% since 2012. Per capita consumption is high at 38.5kg, largely due to the unusually high volumes of wet meals and finger foods consumed.
Unusually, it is the wet meals that is the largest category in both volume and value terms, accounting for 54% of consumption and 42% of retail sales. Milks accounted for 29% of retail sales in 2018, but consumption remains low, due to high prices and an increase in breastfeeding rates. Finger foods claimed 17% of retail sales, with rusks often used crumbled as a weaning food. Cereals, dry food, pasta, and drinks together accounted for only 12% of retail sales. All categories have been hard hit by the decline in the baby population, with volume and value sales without exception lower in 2018 than in 2012.
All of the leading companies in the market - Heinz, Danone, and Nestlé - are involved in the local production of baby food, although the extent of production has been adversely affected by the economic situation. Imports of baby food have been falling, and in 2017 were valued at €93million (US$105 million). The bulk of imports consist of cereals & milks (86% of volume). Exports of baby food are considerably lower than imports, although they have risen over the last few years. The market is dominated by the multinationals Heinz and Danone, with a combined 78.6% of value sales and 82.1% of volume sales in 2018. The only other competitor of significance, Nestlé, is well behind the leaders, with just 7.6% of value.
Grocery stores as a channel accounts for the majority of value sales, at 84% in 2018, a share that has been steadily rising, largely due to the convenience and lower prices often offered by the grocery category. Distribution trends vary, however, according to product, with first-stage and special dietary baby milks continuing to do relatively well through pharmacy outlets, sanitarie and outlets specializing in children's products, although even here pharmacies are losing ground.
"The Baby Food Sector in Italy, 2019", is an analytical report which provides extensive and highly detailed current and future market trends in the Italian 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: Heinz Italia SpA, Danone, Nestlé Italia SpA, Humana Italia SpA, and Other Manufacturers
Scope
- In real terms, value sales have fallen by 13.3% since 2012. Per capita consumption is high at 38.5 kg, largely due to the unusually high volumes of wet meals and finger foods consumed.
- The highest standards of living remain in the North of Italy, although the center is now not far behind. Italians place great emphasis on the quality of food and it is this that influences their purchases, rather than price alone.
- Exports of baby food are considerably lower than imports, although they have risen over the last few years. In 2017, they stood at 30,415 tons, equivalent to a value of €69 million, and consisted primarily of baby meals.
- The market is dominated by the multinationals Heinz and Danone with a combined 78.6% of value sales and 82.1% of volume sales in 2018. The only other player of significance, Nestlé, is well behind the leaders, with just 7.6%.
- Grocery stores account for the majority of value sales, at 54% in 2018, a share that has been steadily rising since 2010, largely due to the convenience and lower prices often offered by the grocery category.
- Between 2018 and 2024 consumption is predicted to decline by 5.4%, to 50,759 tons, with value growth of 6.8%, raising retail sales to €662 million in 2024.
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: Live Birth Rates
- The Consumer
- Socio-Demographic Trends
- Working Women
- Regulations
- Breastfeeding Trends
- Market Overview
- Market Overview
- Manufacturers shares
- Sector Analysis
- Baby Milks
- Baby Cereals
- Baby Meals
- Baby Drinks
- Baby Finger Foods
- Production and trade
- Production
- Imports
- Exports
- Company profiles
- Heinz Italia SpA
- Danone
- Nestlé Italia SpA
- Humana Italia SpA
- Other Manufacturers
- Distribution
- Baby Food Retailing
- Economic background
- Economic Background
- Key Macro-economic Forecasts
- Prospects and forecasts
- Birth And Population Projections
- Forecast Overview
- Future Trends
- Appendix
- Additional Data Tables
- Summary Methodology
- About the Author
List of Tables
- Table 1: Birth & Population Trends, 2008-2018
- Table 2: Birth Rate by Area, 2011-2015
- Table 3: Live Births by Region, 2017
- Table 4: Birth Rate by Region, 2011-2017
- Table 5: Households Not Living in Poverty, 2010-2013
- Table 6: Baby Food Sales, by Geographical Region, 2010
- Table 7: Age of Mother at Birth of Baby, 2010-2017
- Table 8: Female Employment Trends, 2010-2017
- Table 9: Female Employment Rates by Age Group, 2017
- Table 10: Breastfeeding Trends by Region, 2000, 2005 & 2013
- Table 11: Breastfeeding Rates on Leaving Hospital, by Region, 2013
- Table 12: Prevalence in Breastfeeding in Emilia-Romagna, 1999-2011
- Table 13: Breastfeeding in Lombardy, 2006 & 2012
- Table 14: Breastfeeding in Emilia-Romagna, by Nationality of Mother, 2011
- Table 15: Average Length of Breastfeeding by Region, 2000, 2005 & 2013
- Table 16: Market Size, 2018, & Growth Rates, 2012-2018
- Table 17: Baby Food: Manufacturer Market Share Trends, % Value & Volume, 2012-2018
- Table 18: Baby Food: Manufacturer Shares by category, %, 2018
- Table 19: Baby Milks: Category Size, 2018
- Table 20: Baby Milks: Category Growth, % 2012-2018
- Table 21: Powdered Baby Milks: Brand Price Analysis, 2018
- Table 22: Liquid Baby Milks: Brand Price Analysis, 2018
- Table 23: Baby Milks: Manufacturer Market Shares, Value and Volume, 2012-2018
- Table 24: Baby Cereals: Category Size, 2018
- Table 25: Baby Cereals: Category Growth, % 2012-2018
- Table 26: Baby Cereals: Price Positioning, 2018
- Table 27: Baby Cereals: Manufacturer Market Shares, Value and Volume, 2012-2018
- Table 28: Baby Meals: Category Size, 2018
- Table 29: Baby Meals: Category Growth, % 2012-2018
- Table 30: Savory Wet Meals: Price Positioning, 2018
- Table 31: Sweet Wet Meals: Price Positioning, 2018
- Table 32: Dry Meals & Pasta: Price Positioning, 2018
- Table 33: Baby Meals: Manufacturer Market Shares, Value and Volume, 2012-2018
- Table 34: Baby Meals: Manufacturer Market Shares by Segment, Value, 2018
- Table 35: Baby Drinks: Category Size, 2018
- Table 36: Baby Drinks: Category Growth, % 2012-2018
- Table 37: Baby Drinks: Price Positioning, 2018
- Table 38: Baby Drinks: Manufacturer Market Shares, Value and Volume, 2012-2018
- Table 39: Baby Finger Foods: Category Size, 2018
- Table 40: Baby Finger Foods: Category Growth, % 2012-2018
- Table 41: Finger Foods: Price Positioning, 2018
- Table 42: Finger Food: Manufacturer Shares, 2012-2018
- Table 43: Baby Food: Sales by Outlet Type, 2012-2018
- Table 44: Baby Food Sales, by Type of Food Outlet, 2010
- Table 45: Pharmacy Sales, by Type of Baby Food, 2011/2012
- Table 46: Italy: Key Macro-Economic Indicators, 2012-2019
- Table 47: Key Macro-Economic Forecasts, 2018-2024
- Table 48: Birth & Population Projections, 2012-2024
- Table 49: Baby Food: Category Growth, 2018-2024
- Table 50: The Baby Population, 2008-2024
- Table 51: Number of Women of Childbearing Age by Age Group, 2018 & 2024
- Table 52: Baby Food: Market Value Forecasts, Current Prices, 2012-2018
- Table 53: Baby Food: Market Value, Constant Prices, 2012-2018
- Table 54: Baby Food: Market Value, US$ Million, 2012-2018
- Table 55: Baby Food: Market Volume, Tons, 2012-2018
List of Figures
- Figure 1: Baby Food: Market Size,2012-2018
- Figure 2: Baby Food: Per Capita Consumption, 2012-2018
- Figure 3: Baby Food: Segmentation, Value, 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 category, % 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 Consumption & Expenditure by Age Group, 2012-2018
- Figure 11: Baby Milks: Category 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 Meals: Category Trends, 2012-2018
- Figure 15: Baby Meals: Per Capita Expenditure & Consumption, 2012-2018
- Figure 16: Baby Meals: Category Segmentation, Value and Volume%, 2018
- Figure 17: Drinks: Category Trends, 2012-2018
- Figure 18: Drinks: Per Capita Expenditure & Consumption, 2012-2018
- Figure 19: Finger Foods: Category Trends, 2012-2018
- Figure 20: Finger Foods: Per Capita Expenditure & Consumption, 2012-2018
- Figure 21: Baby Food: Market Size, 2018-2024
- Figure 22: Baby Food: Per Capita Consumption, 2018-2024
- Figure 23: Baby Food: Segmentation, 2024
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Heinz Italia SpA
- Danone
- Nestlé Italia SpA
- Humana Italia SpA
