The Baby Food Sector in Italy, 2019

The Baby Food Sector in Italy, 2019

  • April 2019 •
  • 149 pages •
  • Report ID: 5773560 •
  • Format: PDF
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 -
- 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.
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