Baby Food and Drink - US - January 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Market size and sales data for this report
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The bottom line--a bland market
• Three companies control 90% of FDM market
• Formula is a two-brand market--for now
• Sales of baby food actually decline for two big brands, while the organic one rises
• Advertising is traditional, but online bulletin boards and the like are causing a seismic shift in moms' attentions
• Channels sales rise fastest outside FDM
• Consumer highlights--trust and convenience, convenience and trust
• Market Drivers and Future Trends
• Increasing growth in number of young children--but not babies and toddlers
  • Figure 1: U.S. population projections, by age groups, 2002-12
• The debate rages over the value of organic and all-natural
  • Figure 2: Cost comparison of organic & conventional baby foods reviewed, September 2006
• Increased interest in fortified nutrition and homestyle products
• Internet challenging conventional wisdom
• Convenience trumps taste
  • Figure 3: Reasons toddler foods are used, December 2007
• Market Size and Trends
• Market size
  • Figure 4: FDM sales of baby food and drink, at current and constant prices, 2002-07
• Market trends
• Organics
• Frozen
• Independent homemade foods
• Fortified choices
• Market Segmentation
• Introduction
  • Figure 5: FDM sales of baby food and drink, segmented by type, 2005 and 2007
• Baby formula
  • Figure 6: FDM sales of baby formula, at current and constant prices, 2002-07
• Baby food/snacks
  • Figure 7: FDM sales of baby food/snacks, at current and constant prices, 2002-07
• Baby electrolytes
  • Figure 8: FDM sales of baby electrolytes, at current and constant prices, 2002-07
• Baby juice
  • Figure 9: FDM sales of baby juice, at current and constant prices, 2002-07
• Supply Structure
• Overview
  • Figure 10: Manufacturer and brand FDM sales of baby food and drink, 2005 and 2007
• Baby formula
  • Figure 11: Manufacturer and brand FDM sales of baby formula, 2005 and 2007
• Baby food
  • Figure 12: Manufacturer and brand FDM sales of baby food, 2005 and 2007
• Earth' s Best Organic
• Gerber
• Tastybaby
• HappyBaby
• Baby juice
  • Figure 13: Manufacturer and brand FDM sales of baby juice, 2005 and 2007
• Baby electrolytes
  • Figure 14: Manufacturer and brand FDM sales of baby electrolytes, 2005 and 2007
• Advertising and Promotion
• Traditional formats
• Partnering and panels
• Maternity ward marketing
• Company activity
• Safeway
• Safeway O Organics -- organic baby food
  • Figure 15: O Organics, 2007
• Gerber
  • Figure 16: Gerber Baby Fruit Puree, 2007
• Nestl
  • Figure 17: Nestlé Good Start, 2007
• Retail Distribution
• Baby food at FDM
  • Figure 18: FDM sales of baby food and drink, by channel, 2005 and 2007
• Supermarkets
  • Figure 19: Supermarket sales of baby food and drink, at current and constant prices, 2002-07
• Private label offerings increase
• Other supermarkets adding Kids Centers licensed characters
• Other types of retailer
• Baby food in the natural channel/SPINS
  • Figure 20: Natural product supermarket retail sales of baby food, at current and constant prices, 2004-07
• Natural channel sales by segment
  • Figure 21: Natural product supermarket retail sales of baby food, by segment, 2005 and 2007
• Natural product supermarket channel sales of baby food
  • Figure 22: Natural product supermarket retail sales of baby food at current and constant prices, 2004-07
• Natural supermarket channel sales of baby formula
  • Figure 23: Natural product supermarket retail sales of baby formula at current and constant prices, 2004-07
• Natural channel sales of organic baby foods
  • Figure 24: Natural product supermarket retail sales of baby food, by organic, 2005 and 2007
• Natural channel baby food brands
  • Figure 25: Manufacturer brand natural supermarket sales of non-dairy beverages, 2005 and 2007
• Small but growing segment of frozen organic baby food emerging
• The Consumer
• Summary
• Household penetration of baby food and drink
  • Figure 26: Incidence of baby food and drink usage in baby and toddler households, May 2006-June 2007
• Household penetration by brand
  • Figure 27: Brands of baby food and drink used, May 2006-June 2007
  • Figure 28: Brands of baby food and drink used, by age of children in the household, May 2006-June 2007
• Feeding habits--breastfeeding versus formula
  • Figure 29: Feeding habits, breastmilk and/or formula, December 2007
  • Figure 30: Feeding habits, breastmilk and/or formula, by employment status, December 2007
• Moms name their most influential sources for feeding information
  • Figure 31: Sources of information about baby nutrition, December 2007
  • Figure 32: Sources of information about baby nutrition, by marital status, December 2007
  • Figure 33: Sources of information about baby nutrition, by employment status, December 2007
• Vitamin and supplement usage during pregnancy and breastfeeding
  • Figure 34: Vitamin and supplement usage while pregnant or nursing, December 2007
• Toddler nutrition
• Types of foods toddlers are fed
  • Figure 35: How toddlers are/will be fed toddler foods and/or adult foods, December 2007
  • Figure 36: How toddlers are/will be fed toddler foods and/or adult foods, by marital status, December 2007
• Why moms buy toddler foods
  • Figure 37: Reasons toddler foods are used, December 2007
• Attributes that moms value in nutrition for their children
  • Figure 38: Attributes moms believe are important for toddler nutrition, December 2007
• Market Forecast
• Baby food and drink
  • Figure 39: Forecast of total U.S. FDM sales of baby food and drink, at current and constant prices, 2007-12
• Baby formula
  • Figure 40: Forecast of U.S. FDM sales of baby formula, at current and constant prices, 2007-12
• Baby food and snacks
  • Figure 41: Forecast of U.S. FDM sales of baby food and snacks, at current and constant prices, 2007-12
• Forecast factors
• Appendix: Trade Associations