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Baby Food and Drink - UK - May 2021

The above prices are correct at the time of publication, but Report Price: £1995.00 | $2693.85 | €2245.17 are subject to change due to currency fluctuations.

This report looks at the following areas:

• The impact of COVID-19 on the baby food, drink and milk category. “The COVID-19 outbreak hit • Demographic changes in society and the impact these will have on the sales of baby food and drink market. products by boosting scratch • Recent launch activity and opportunities for further innovation. • Health benefits parents most desire from baby/toddler food and milk. cooking. Shortcut cooking • Attributes seen as worth paying more for in baby food/drink/milk products such as parent/child products. meal kits and cooking sauces

Recommendations from friends/family are a powerful purchase driver, swaying specially formulated for the buying choices of 72% of parents of under-5s who buy and feed/give baby babies/toddlers would help food and drink to their children. Persuading their users to spread the word thus companies to capitalise on offers substantial potential payback for brands, whether through discounts or this trend, which Mintel marketing messages themed around shared experiences and knowledge. expects to continue due to The COVID-19 outbreak hit sales of baby food and drink products in 2020 by permanent shifts in work boosting scratch cooking. Shortcut cooking products such as parent/child meal patterns.” kits and cooking sauces specially formulated for babies/toddlers would help companies to capitalise on this trend, which Mintel expects to continue due to - Alice Baker, Senior permanent shifts in work patterns. Shortcut products will chime in the ‘next Research Analyst normal’ by allowing parents to feel part of the cooking process while offering sought-after convenience and time-saving benefits. Buy this report now Visit store.mintel.com The pandemic’s economic effects on younger adults and projected decline in the population of 20-34s will likely ensure that birth rates continue on their EMEA +44 (0) 20 7606 4533 downward trend of recent years. Companies therefore need to continue to Brazil 0800 095 9094 innovate with products suitable for older children in order to expand their user base and look to added-value opportunities. Americas +1 (312) 943 5250

Functional health benefits pose an untapped opportunity in baby food. China +86 (21) 6032 7300 Benefits such as supporting immune health and brain development are widely valued by parents but are rare in baby food products, though well-established APAC +61 (0) 2 8284 8100

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations. in formula milk. Publicising their ethical attributes better also stands to win sales, with environmentally friendly packaging, sustainable production and high animal welfare all widely seen as worth paying more for. Meanwhile, 70% of What's included baby food/drink users/buyers would pay more for products with an on-pack Executive Summary charity pledge. Full Report PDF

Infographic Overview

Powerpoint Presentation

Interactive Databook

Previous editions

Did you know?

This report is part of a series of reports, produced to provide you with a more holistic view of this market.

All Mintel 2020 reports contain specific OVID-19C related research and forecasts. The world’s leading brands rely on Mintel reports for the most complete, objective and actionable market intelligence.

Buy this report now Visit store.mintel.com

EMEA +44 (0) 20 7606 4533

Brazil 0800 095 9094

Americas +1 (312) 943 5250

China +86 (21) 6032 7300

APAC +61 (0) 2 8284 8100

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

Table of Contents

OVERVIEW What's included • Key issues covered in this Report Executive Summary • COVID-19: market context • Economic and other assumptions Full Report PDF • Products covered in this Report Infographic Overview

EXECUTIVE SUMMARY Powerpoint Presentation • Impact of COVID-19 on baby food, drink and milk Interactive Databook Figure 1: Short-, medium- and long-term impact of COVID-19 on baby food, drink and milk, 17 May 2021 Previous editions • The market • Falling birth rates drive volume sales decline over 2015-20 • Further volume sales decline with some inflation xpecte ed for 2020-25 Figure 2: Value sales of baby food, drink and milk, 2015-25 Did you know? • Milk remains the dominant segment but sees further steep This report is part of a series sales decline in 2020 of reports, produced to • Demographic changes present both a challenge and an provide you with a more opportunity holistic view of this market. • Companies and brands • Aptamil and Cow & Gate see steep sales falls as baby milk All Mintel 2020 reports category declines contain specific OVID-19C related research and • Competition heats up in the baby food category forecasts. The world’s • Scope for expansion in functional health claims in baby leading brands rely on food Mintel reports for the most • Rise in launch activity from own-label ups the competition complete, objective and for brands actionable market • Brands look to social media to push the idea of community intelligence. • The consumer • COVID-19 outbreak boosts usage of homemade food Figure 3: Usage frequency for baby food and drink, December 2019 and February 2021 Buy this report now • Foods with functional benefits warrant further exploration Visit store.mintel.com Figure 4: Desired health benefits from baby food and drink, February 2021 EMEA +44 (0) 20 7606 4533 • Ethical attributes can help to add value Brazil 0800 095 9094 Figure 5: Attributes deemed worth paying more for in baby food and drink, February 2021 Americas +1 (312) 943 5250 • Develop shortcut cooking products to harness the scratch- China +86 (21) 6032 7300 cooking trend Figure 6: Interest in innovation in baby food and drink, APAC +61 (0) 2 8284 8100 February 2021

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

• Find ways to harness the powerful influence of recommendations What's included Figure 7: Behaviours relating to baby food and drink, Executive Summary February 2021

• Broadcast charitable initiatives more widely Full Report PDF

ISSUES AND INSIGHTS Infographic Overview • Develop shortcut cooking products to tap into the scratch- Powerpoint Presentation cooking trend accelerated by COVID-19 • Explore functional health benefits in baby/toddler food Interactive Databook products Previous editions • Charity links can help to drive buying by appealing to the emotions

THE MARKET – KEY TAKEAWAYS • Falling birth rates drive volume sales decline over 2015-20 Did you know? • Further volume sales decline with some inflation xpecte ed for 2020-25 This report is part of a series • Milk remains the dominant segment but sees further steep of reports, produced to sales decline in 2020 provide you with a more • Demographic changes present both a challenge and an holistic view of this market. opportunity All Mintel 2020 reports contain specific OVID-19C MARKET SIZE AND FORECAST related research and • COVID-19 outbreak drives down sales of baby food and forecasts. The world’s drink in 2020 leading brands rely on Figure 8: Short-, medium- and long-term impact of COVID-19 Mintel reports for the most on baby food, drink and milk, 17 May 2021 complete, objective and • Falling birth rates drive volume sales decline over 2015-20 actionable market Figure 9: Value and volume sales of baby food, drink and milk, intelligence. 2015-25 • Further volume sales decline with some inflation xpecte ed for 2020-25 • Further decline in the birth rate is likely for 2020-21 Buy this report now • Value to remain important for parents in 2021 Visit store.mintel.com • Volume sales to see a resurgence in 2022, but ageing UK EMEA +44 (0) 20 7606 4533 population will erode long-term sales Figure 10: Value sales of baby food, drink and milk, 2015-25 Brazil 0800 095 9094 Figure 11: Volume sales for baby food, drink and milk, 2015-25 Americas +1 (312) 943 5250 • Market drivers and assumptions Figure 12: Key drivers affecting Mintel’s market forecast China +86 (21) 6032 7300 (prepared on 11 May 2021), 2015-25 APAC +61 (0) 2 8284 8100 • Learnings from the last recession • Rising birth rates drove category growth over 2008-10

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

• Growth of own-label and scratch-cooking trend present barriers to branded products What's included Figure 13: Year-on-year growth in value and volume sales of Executive Summary baby food and drink, 2008-12

• Forecast methodology Full Report PDF

MARKET SEGMENTATION Infographic Overview • Milk remains the dominant segment but sees further steep Powerpoint Presentation sales decline in 2020 Figure 14: Value and volume sales of baby food and drink, by Interactive Databook segment, 2018-20 Previous editions • Manufactured baby food loses out from the rise in scratch cooking

MARKET DRIVERS • Multiple factors influence growth in the child population Did you know? • Birth rates fall in 2019 and January-September 2020 Figure 15: Live births in England and Wales, 2015-19 This report is part of a series • Uncertainty remains over effects of the pandemic on birth of reports, produced to rates provide you with a more • Trend for women to delay motherhood limits family sizes but holistic view of this market. offers potential for premium products All Mintel 2020 reports Figure 16: Mean age of mother at childbirth in England and contain specific OVID-19C Wales, 2014-19 related research and • Rise in breastfeeding rates in 2020 pushes down formula forecasts. The world’s milk sales leading brands rely on • Pressure on household incomes favours own-label and Mintel reports for the most homemade food complete, objective and • Consumers’ confidence about their financesebounds r in actionable market intelligence. 2021 Figure 17: Consumers’ confidence in their financesor f the coming year, those saying they are pretty confident they will be OK, January 2020- April 2021 • Baby foods’ sugar content comes under scrutiny again in Buy this report now 2020 Visit store.mintel.com

EMEA +44 (0) 20 7606 4533 COMPANIES AND BRANDS – KEY TAKEAWAYS • Aptamil and Cow & Gate see steep sales falls as baby milk Brazil 0800 095 9094 category declines Americas +1 (312) 943 5250 • Competition heats up in the baby food category • Scope for expansion in functional health claims in baby China +86 (21) 6032 7300 food APAC +61 (0) 2 8284 8100 • Rise in launch activity from own-label ups the competition for brands

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

• Brands look to social media to push the idea of community

MARKET SHARE What's included • Aptamil and Cow & Gate see steep sales falls as milk Executive Summary category declines Full Report PDF Figure 18: Leading brands’ sales and shares in the UK baby milk market, by value and volume, 2018/19-2020/21 Infographic Overview • Alpro bucks negative trend in the milk category Powerpoint Presentation • Ella’s Kitchen recovers sales slightly in struggling baby food category Interactive Databook Figure 19: Leading brands’ sales and shares in the UK wet and Previous editions dry baby food market^, by value and volume, 2018/19-2020/ 21 • Own-label pushes forward, bolstered by economic downturn and NPD activity • Niche brands add to the competition faced by the major Did you know? players • Leading snacks brands experience falling or flat sales in This report is part of a series 2020 of reports, produced to Figure 20: Leading brands’ sales and shares in the UK baby provide you with a more snacks/finger foods market, by value and volume, 2018/ holistic view of this market. 19-2020/21 All Mintel 2020 reports • Heinz is the only brand of note in the baby drinks segment contain specific OVID-19C Figure 21: Leading brands’ sales and shares in the UK baby related research and drinks market, by value and volume, 2018/19-2020/21 forecasts. The world’s leading brands rely on LAUNCH ACTIVITY AND INNOVATION Mintel reports for the most • Baby food products dominate launch activity complete, objective and Figure 22: New product launches in the UK baby food and actionable market intelligence. drink market, by sector, 2017-21 • Food and milk brands differ in the aspects of health they focus on Figure 23: New product launches in the UK baby food^ and drink market, by claim category, 2017-20 Buy this report now • Baby/toddler food Visit store.mintel.com • No added sugar is the top ‘minus’ claim EMEA +44 (0) 20 7606 4533 Figure 24: New product launches in the UK baby food^ category, by ‘minus’ claims, 2017-20 Brazil 0800 095 9094 • Heinz cuts sugar in its baby biscuits Americas +1 (312) 943 5250 Figure 25: Heinz So Yummy Chocolate Biscotti, 2020 • Vitamin/mineral fortified is the most widespread ‘plus’ China +86 (21) 6032 7300 claim APAC +61 (0) 2 8284 8100

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

Figure 26: New product launches in the UK baby food^ category, by ‘plus’ claims, 2017-20 What's included • Milupa cereals call out their ‘seven vitamins and minerals’ Executive Summary Figure 27: Milupa expands its cereals range, 2020

• Scope for expansion in functional health claims Full Report PDF Figure 28: New product launches in the UK baby food^ category, by functional health claims, 2017-20 Infographic Overview • Cereal launches reference iron’s links with cognitive Powerpoint Presentation development Figure 29: Examples of baby food launches with functional Interactive Databook health claims relating to the brain and nervous system, 2020 Previous editions • Bone health claims are underexplored Figure 30: Little Yeos Apple & Pear Whole Milk Yogurt, 2020 • Organic launches look to make their environmental credentials more tangible Figure 31: New product launches in the UK baby food^ Did you know? category, by ethical claims, 2017-20 Figure 32: HiPP Organic Creamy Porridge – before and after, This report is part of a series 2019-20 of reports, produced to Figure 33: Holle Organic Wholegrain Oat Cereal, 2020 provide you with a more holistic view of this market. • Scope for expansion in sustainable packaging claims Figure 34: Ella’s Kitchen Raspberry + Mango Puff Pops, 2020 All Mintel 2020 reports • Ella’s Kitchen teams up with Danone on recycling scheme contain specific OVID-19C • Piccolo claims first with 100% ecyr clable pouch related research and • Upswing in activity from own-label as retailers expand their forecasts. The world’s ranges leading brands rely on • Snack launches offer competition for brands Mintel reports for the most complete, objective and Figure 35: Examples of own-label baby/toddler snack actionable market launches, 2020-21 intelligence. • Meals with international flavours draw inspiration from adult food trends Figure 36: Examples of own-label baby/toddler meal launches with international flavours, 2020 Buy this report now • Ella’s Kitchen explores food trends and shortcut products Visit store.mintel.com • Milk and drinks • Aptamil unveils its first organic milk plus pre-measured EMEA +44 (0) 20 7606 4533 tablets Figure 37: Examples of Aptamil formula milk launches, Brazil 0800 095 9094 2020-21 Americas +1 (312) 943 5250 • Brain/nervous system and immune health are the leading functional claims in formula milk China +86 (21) 6032 7300 Figure 38: New product launches in the UK baby milk and APAC +61 (0) 2 8284 8100 drinks category, by functional health claims, 2017-20

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

• Products with multiple functional claims are well-placed to succeed What's included Figure 39: SMA Nutrition Stage 3 Growing-Up Milk, 2020 Executive Summary • Kendamil makes multiple functional claims and emphasises

its British origins Full Report PDF Figure 40: Kendamil Organic Stage 2 Follow-On Milk, 2020 • Alpro makes functional claims and puts a stronger emphasis Infographic Overview on ethics Powerpoint Presentation Figure 41: Alpro Growing Up Soya Drink, 2020 • SMA promotes its reformulated products’ closeness to Interactive Databook breast milk Previous editions

ADVERTISING AND MARKETING ACTIVITY • Advertising spend falls in 2020 Figure 42: Total above-the-line, online display and direct mail advertising expenditure on baby food and drink (sorted Did you know? by 2020), 2019-21 • Danone Nutricia leads on advertising in 2020 This report is part of a series • Cow & Gate emphasises the importance of parental of reports, produced to solidarity with the “Love Don’t Judge” campaign provide you with a more • Interactive element should help to harness the power of holistic view of this market. recommendations All Mintel 2020 reports • TV advert for Aptamil Tabs emphasises the convenience of contain specific OVID-19C its pre-measured dosages related research and • Organix emphasises its snacks’ wholesome qualities forecasts. The world’s • Piccolo launches its first out-of-home and elet vision leading brands rely on advertising Mintel reports for the most • Selected social-media campaigns complete, objective and actionable market • Ella’s Kitchen promotes use of its pouches as shortcut intelligence. ingredients… Figure 43: Facebook post by Ella’s Kitchen promoting use of one of the brand’s baby food pouches as an ingredient, 2021 • …and offers advice to parents via the “Weanursery” Buy this report now • Organix uses the ‘WonderDen’ to engage parents during the early 2021 lockdown Visit store.mintel.com

Figure 44: Instagram photos by Organix promoting the EMEA +44 (0) 20 7606 4533 WonderDen resource on its website, 2021 • Babease links up with baby care brands on giveaway Brazil 0800 095 9094 competition… Americas +1 (312) 943 5250 • …and offers recipes for baby-suitable versions of seasonal treats China +86 (21) 6032 7300 • Nielsen Ad Intel coverage APAC +61 (0) 2 8284 8100

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

THE CONSUMER – KEY TAKEAWAYS • COVID-19 outbreak boosts usage of homemade food What's included • Foods with functional benefits warrant further exploration Executive Summary • Ethical attributes can help to add value

• Develop shortcut cooking products to harness the scratch- Full Report PDF cooking trend • Find ways to harness the powerful influence of Infographic Overview recommendations Powerpoint Presentation • Broadcast charitable initiatives more widely Interactive Databook IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR Previous editions • COVID-19 outbreak boosts scratch cooking among parents • The pandemic’s economic effects will continue to support scratch cooking Figure 45: Those reporting that they or someone else in their household had lost their job or been furloughed as a result of Did you know? the COVID-19 outbreak, by parental status, 4-12 March 2021 • Loss of on-the-go occasions hits snacks This report is part of a series • Parents’ inclinations to limit time in-store make it essential of reports, produced to to make an immediate impact on-shelf provide you with a more • Growth in online retail offers potential for expansion in holistic view of this market. direct-to-consumer services All Mintel 2020 reports • Parents’ focus on the environment makes it imperative for contain specific OVID-19C companies to be seen as proactive on sustainability related research and forecasts. The world’s USAGE OF BABY FOOD AND DRINK leading brands rely on • Homemade food is the most popular, used by 90% of Mintel reports for the most parents complete, objective and Figure 46: Usage of baby food and drink, by type, February actionable market intelligence. 2021 • COVID-19 outbreak boosts usage frequency of both homemade and manufactured food Figure 47: Usage frequency for baby food and drink, December 2019 and February 2021 Buy this report now Visit store.mintel.com DESIRED HEALTH BENEFITS FROM BABY FOOD AND MILK EMEA +44 (0) 20 7606 4533 • Supporting immune health is seen as important by 4 in 10 for both food and milk Brazil 0800 095 9094 Figure 48: Desired health benefits from baby food and drink, Americas +1 (312) 943 5250 February 2021 • Leverage nutrients’ authorised immune health claims to China +86 (21) 6032 7300 appeal to consumers APAC +61 (0) 2 8284 8100 Figure 49: International examples of baby food products with immune health claims, 2020-21

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

• Strengthening bones/teeth is seen as a key benefit orf baby milk by 53%, and for food by 41% What's included • Scope for expansion in meals/snacks supporting brain Executive Summary development

• Various minerals can make cognitive claims Full Report PDF • The format of food can elevate developmental proposition Figure 50: Examples of baby food products combining brain/ Infographic Overview nervous system claims with other claims to help with Powerpoint Presentation development, 2018-20 Interactive Databook ATTRIBUTES DEEMED WORTH PAYING MORE FOR IN BABY FOOD AND DRINK Previous editions • Various options to add value in the baby food and drink category Figure 51: Attributes deemed worth paying more for in baby food and drink, February 2021 • Endorsements from health organisations are the most Did you know? widely seen as worth paying more for This report is part of a series • Environmental claims can tap into parents’ increased eco- of reports, produced to consciousness provide you with a more • Parents’ concerns make it imperative for formula milk holistic view of this market. brands to demonstrate their ecological credentials • Companies must look beyond recyclability claims to truly All Mintel 2020 reports contain specific OVID-19C stand out related research and Figure 52: International examples of baby/toddler food and forecasts. The world’s drink products with packaging made from partly/wholly leading brands rely on recycled materials, 2020 Mintel reports for the most • Combine environmentally friendly packaging with complete, objective and sustainable production claims actionable market Figure 53: Organics Happy Baby Farmed for Our Future intelligence. Regenerative & Organic Pears, Squash & Oats, 2020 • A quarter of buyers would pay more for high animal welfare • Highlight the animal welfare aspects of organic to drive purchase Buy this report now Figure 54: Piccolo Organic Gentle Growing Up Milk Stage 3, Visit store.mintel.com 2020 EMEA +44 (0) 20 7606 4533 INTEREST IN INNOVATION IN BABY FOOD AND DRINK Brazil 0800 095 9094 • Non-dairy baby/toddler yogurts appeal to 38% of parents Figure 55: Interest in innovation in baby food and drink, Americas +1 (312) 943 5250 February 2021 China +86 (21) 6032 7300 • Non-dairy baby/toddler yogurts are an unrealised opportunity APAC +61 (0) 2 8284 8100

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

• Develop shortcut cooking products to tap into the scratch- cooking trend What's included • Opportunities for meal kit delivery services to offer ‘Baby & Executive Summary Me’ options

Figure 56: Photos from Instagram posts by Baby Fresh Full Report PDF promoting its meal kit delivery service, 2020 • Push the emotional associations around shared meals in Infographic Overview order to drive buying Powerpoint Presentation • Offer cooking sauces/stocks from different international cuisines to tap into the world foods trend Interactive Databook • Encourage users to share images of finished dishes via Previous editions social media • Explore healthier versions of seasonal foods Figure 57: DM babylove Organic Snowman Biscuits with Pear, 2020 • Link up with supermarkets to publicise seasonal recipes Did you know? • Offer healthier celebration cakes made to order This report is part of a series BEHAVIOURS RELATING TO BABY FOOD AND DRINK of reports, produced to • Find ways to harness the powerful influence of provide you with a more recommendations holistic view of this market. Figure 58: Behaviours relating to baby food and drink, All Mintel 2020 reports February 2021 contain specific OVID-19C • On-pack charity pledges appeal to 7 in 10 users/buyers related research and Figure 59: Piccolo Organic Garden Vegetable Three Grain forecasts. The world’s Risotto with Cheese & Basil, 2020 leading brands rely on • Children’s and environmental charities are particularly Mintel reports for the most good fits complete, objective and actionable market Figure 60: International examples of baby food products intelligence. referencing support for charities on-pack, 2019-20 • Allow people to see the results of their donations • Processed image hangs over baby/toddler snacks • Be transparent about manufacturing processes to reassure Buy this report now parents Figure 61: Ella’s Kitchen Carrot & Parsnip Mini Puffs, 2020 Visit store.mintel.com

EMEA +44 (0) 20 7606 4533 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION Brazil 0800 095 9094 • Abbreviations • Consumer research methodology Americas +1 (312) 943 5250

China +86 (21) 6032 7300 APPENDIX – MARKET SIZE AND FORECAST

Figure 62: Retail value sales of baby food, drink and milk, APAC +61 (0) 2 8284 8100 best- and worst-case forecast, 2020-25

The above prices are correct at the time of publication, but are subject to change due to currency fluctuations.

Figure 63: Retail volume sales of baby food, drink and milk, best- and worst-case forecast, 2020-25 What's included APPENDIX – MARKET SHARE Executive Summary Figure 64: Leading brand owners’ sales and shares in the UK Full Report PDF baby milk market, 2018/19-2020/21 Figure 65: Leading brand owners’ sales and shares in the UK Infographic Overview wet and dry baby food market, 2018/19-2020/21 Powerpoint Presentation Figure 66: Leading brand owners’ sales and shares in the UK baby snacks/finger foods market, 2018/19-2020/21 Interactive Databook Figure 67: Leading brand owners’ sales and shares in the UK Previous editions baby drinks market, 2018/19-2020/21

Did you know?

This report is part of a series of reports, produced to provide you with a more holistic view of this market.

Buy this report now Visit store.mintel.com

EMEA +44 (0) 20 7606 4533

Brazil 0800 095 9094

Americas +1 (312) 943 5250

China +86 (21) 6032 7300

APAC +61 (0) 2 8284 8100

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