Baby Food, Drinks and Milk - UK - April 2009
Since Mintel last reported on the baby food, drink and milk market in 2007, sales have continued to see dynamic growth, fuelled by rising birth rates and wider usage, largely on the back of NPD.
Sales value is estimated to have increased by at least 14% in 2008, to reach £456 million. Sales in the main product segment, milk, have been boosted by the Healthy Start scheme launched in late 2006, with rapid value growth in 2008 partly driven by global dairy price inflation.
While lower food and milk price inflation will dampen growth in current terms, an increase of 8% is expected in 2009, to take market value to £491 million. While PDI is expected to fall in the economic crisis, most parents seem reluctant to cut back on their baby’s food.
Seen as closely related to the baby’s health and wellbeing, Mintel expects the market to be better insulated from the effects of the downturn than most. However, some parents are still put off by ready-made baby food because they perceive the brands to fall too far behind the purity of home-cooked food.
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