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Tag: baby food

  • Philippines’ baby food market to shrink by 4.5% annually until 2028

    Philippines’ baby food market to shrink by 4.5% annually until 2028

    The baby food market in the Philippines is expected to decline by 4.5% on average annually to reach $826.7m by 2028 as the government pushes for public access to contraceptives and family planning that resulted in childbirth rates.

    In a report, GlobalData said the rising inflation will also contribute to constraining spending on baby food products.

    “Demographic changes taking place with respect to the baby population and live birth rates, and the government’s measures to restrict the number of births coupled with an increase in the number of working women will contribute to a decline in the Philippines’ baby food market,” said Shraddha Shelke, consumer analyst at GlobalData.

    Within the sector, baby milk was the largest category in terms of value and volume in 2022, with a GlobalData survey showing 47% of 369 respondents saying they spent a very or quite high among on baby milk in the fourth quarter of the year. Around 43% also said they spent a high amount on baby food.

    Per capita expenditure on baby food in the country increased to $267.1 in 2022 from $204.1 in 2017 due to a high inclination for high-quality products, exceeding the regional level of $177.3 and $167.2 globally.

    But as the economy rebounds, following the high inflationary pressures, consumer spending is seen to recover in value sales and reach $271.2 by 2027.

    “The Philippine baby food market’s growth is tied to the economic fortunes of the country. The rising disposable income of Filipino families with babies will stimulate sales of premium and organic baby food products,” the analyst said.

    “To build a stable consumer base in the country amid changing demographic conditions, manufacturers should focus on offering affordable premium baby food products with value-added benefits,” Shraddha added.

  • Baby food company Bubs Australia wins big Chinese contract

    Baby food company Bubs Australia wins big Chinese contract

    Baby food manufacturer Bubs Australia will soon see its products in up to 80,000 outlets across China, under an agreement with the country’s largest distributor of infant nutrition products.

    Bubs announced today that it had signed a distribution deal with QianJiaWanPu Co, to supply up to 80,000 Mother & Baby stores in China with organic baby food pouches, cereals and snacks.

    The company said an initial order to the value of $1.1 million would be supplied between June and December.

    QianJiaWanPu founder Zhou Dongming said the addition of Bubs products was an important extension to its international product portfolio.

    “In time, we look forward to deepening our association with Bubs once its goat milk infant formula products are approved for import,” Mr Zhou said.

    “Premium organic baby food and goat milk based formulas are two segments of the category experiencing rapid growth in China, and I’m confident my retail customers and Chinese mothers will find Bubs’ Australian brand story and premium quality attributes a winning combination.

    “No other infant formula brand in the world uses Australian goat milk, so this point of differentiation will be highly sought-after.”

    Bubs Australia managing director Kristy Carr said the deal was an important step in the execution of the company’s China strategy.

    “The importance of the partnership cannot be underestimated, given that Mother & Baby stores account for over half of all infant formula products sold in China, and is the prime source for new parents and parents-to-be seeking advice about babies’ development and infant nutrition products,” Mrs Carr said.

    “This is why physical representation in the sector is critical to our long-term success in the market, notwithstanding the importance of cross-border e-commerce and daigou shoppers as our existing primary routes to market.”

    Bubs’ stock gained 1.5 cents on the ASX following the announcement, to close trade at 81 cents.

    The deal is the latest in a series of recent tie-ups between Australian infant formula manufacturers and Chinese groups in 2018.

    Earlier in April Wattle Health Australia inked a deal with China’s International Supplies and Distribution Company, to distribute its products across more than 2,000 retail stores.

    That was followed up by Golden Koala milk, infant formula and milk powders being approved to be sold on JD.com’s JD.hk cross-border platform.

  • Russian chocolate, beer and baby food companies aim to conquer Asia

    Russian chocolate, beer and baby food companies aim to conquer Asia

    Every time Chinese President Xi Jinping visits Russia, he asks for some Russian ice cream. As a result of this craving, Russian President Vladimir Putin presented a whole box of ice cream to his Chinese counterpart at the G20 summit.

    Chinese tourists share their leader’s love for Russian ice cream so much that there are rumors that China is planning to build its own Russian ice cream factory. Consumers from across Asia are increasingly buying Russian food products thanks to a recent growth in exports from Russia.

    Chocolate

    Alyonka, Babaevsky and Rossyia chocolate bars, which are popular among tourists, are now being exported to Asia.

    “Alyonka is the most popular brand of chocolate that is being sold in China, but Babaevsky and Vdohnovenie chocolate bars are also becoming popular,” says Denis Usalev, marketing manager of Uniconf, which owns all three brands, and is the largest confectionery holding in Eastern Europe.

    He adds that sales of Alyonka grew six-fold year-over-year in China in 2015 and the company expects to see even more growth in 2016. Chinese consumers can buy Russian chocolate through ecommerce platforms as well as in local shops.

    Russian companies are also looking beyond China, and are obtaining Halal certification to compete in Muslim countries in Asia.

    Waffles and biscuits

    The Russian confectionary industry is developing new products specifically for the Asian market to cater to local tastes.

    “Korovka waffles with milk and chocolate fillings is our main driver of sales in China,” says Usalev. “Also around 50 per cent of Alenka biscuits are exported to China.”

    The Jubilee sugar cookies brand was launched in early 1913 and gradually became very popular in Russia. In 2007, Mondelēz International Inc acquired the brand and renamed it to belVita Breakfast. In 2015 belVita Breakfast biscuits were introduced in China and Indonesia . The company has become a global breakfast icon, with sales growing at about 20 per cent annually over the last few years.

    Healthy snack bars

    The organic food market segment has been growing rapidly for years. In 2015, Take a Bite was launched in Hong Kong, China and Singapore. The Russian company relied almost exclusively on retail sales in local super markets, but today buyers can purchase Take a Bite from the TMALL online store.

    Another Russian healthy food brand ECO botanica, which is owned by Uniconf, is also looking to tap into the Asian market.

    “Sales in China grew tenfold in the first nine months of this years,” says Usalev. Next month we will launch the ECO Botanica store on the Alibaba platform.”

    Baby food 

    The leader in the baby food market in Russia, Frutonyanya has also entered the Chinese food market.  “We’ve already received two 40-feet containers of Frutonyanya products and are now waiting for the third one,” says Artem Zhdanov, co-founder and marketing director of UChina, which is helping the Russian baby food company enter the Chinese market.

    “The first consignment went to our Chinese partners, distributers, trade platforms and a food exhibition to enhance brand recognition and to promote the brand name.”

    The company has more than 200 products including fruit drinks, jellies, desserts, fruit puree, milk and milkshakes. It will launch a separate line for pregnant women and breastfeeding mothers.

    Beer

    Baltika, a favorite of former U.S. Ambassador to Russia Michael McFaul, became the first Russian beer to be exported to Asia. It is now available in Vietnam and Malaysia.

    The Russian beer brewer, Ochakovo established licensed production in Japan in 2016. Since July 2016, the company has been supplying three types of canned beer. Ochakovo has also launched beer exports to China.

  • Baby Food Market is would reach $72.7 Billion, globally, by 2020

    Baby Food Market is would reach $72.7 Billion, globally, by 2020

    Big Market Research has added a report titled “Baby Food Market – Opportunities and Forecasts, 2014 -2020)”. As per the report, global baby food market would garner a revenue of $72.7 billion by 2020, growing at 6.4 % CAGR during the forecast period 2015 – 2020. The report offers in-depth industry insights in terms of current and future market trends, key drivers and restraints along with their impact analysis, growth opportunities and profitable trends, detailed market segmentation and forecast.

    Increasing awareness for nutrition, growing activities in organized retail marketing, urbanization along with rapidly increasing count of working women are the key factors that would drive the baby food market growth. The report segments the market on the basis of product type, type of distribution channel used and geographical regions.

    Asia Pacific region generates the maximum revenue and is expected to register highest 7.7% CAGR amid 2015 – 2020.

    On the basis of types, the report further segments the market majorly into dried baby food, milk formula, and prepared baby food. Among these segments, the milk formula contributes a major market share of nearly about 2/3rd of the market, in terms of value. This is primarily due to rising global demand for milk formula, increasing rate of urbanization, rising disposable incomes and the changing lifestyles. Cow milk based formulas witness prominence among emerging economies.

    Based on types, prepared baby food is the second largest market globally and would grow at the fastest CAGR amid the forecast period. Time constraints faced by the parents fueled by changing lifestyle are the key factors driving the market demand. Developed countries majorly contribute to the demand for prepared baby food, however, the segment will witness significant adoption across developing countries along the forecast period. On the basis of distribution channels, the global baby food market is segmented into supermarkets, hypermarkets, small grocery retails, beauty and health retails. Vendors prefer the supermarket channels as the primary distribution channel, and followed health and beauty retailers segment. Asia-Pacific dominates the global baby food market, followed by European, North American and LAMEA region

    Asia Pacific region is the largest market in terms of the market demand for milk formula, contributing over 50% of the total global market share, driven largely due to improving economic condition and changing lifestyles of individuals across this region. Presence of multi nutrition along with the market availability of balanced nutrition in one pack is a major factor propelling the demand in North America.

    Key market players operating in this market are adopting acquisition as dominant strategy to consolidate their market presence. Acquisition is one of the primary strategies adopted by companies operating in this market. Companies like Abbott Laboratories and Nestle are adopting competitive branding strategies in order to expand their customer base.

     

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