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Demand-Supply Assessment of the US Baby Products Market


Table of ContentsSection 1: Market Overview

▪ Market Size and Segmentation

‒ Baby Food

‒ Baby Skincare

▪ Key US States

▪ Growth Trends

▪ Industry Challenges

Section 2: Competitive Landscape Assessment

Section 3: Distribution Channel Analysis

Section 4: Branding & Marketing Strategies

Section 5: Summary

Section 6: Appendix

Sample – Disguised and Abridged



In 2015, baby food market in the US was estimated at ~USD XX billion; it is

forecasted to reach USD XX billion by 2020

Market Overview Study on the US Baby Products Market

Though xx% of the baby food sales value comes from North America and

Europe, smaller regions like Latin America & Middle East are also growing fast

➢ In 2015, the US baby products market was worth ~ USD XX billion. It comprised

the following segments:

‒ Baby Food

‒ Baby Skincare

‒ Baby Seat and Safety Products

‒ Diapers and Accessories

➢ The US baby food market accounted for about XX of the total baby products market

in 2015

➢ During 2009-2015, the baby food market was almost stagnant (0.x% CAGR), with

2014 market value similar to 2009. However, from 2011-2015, market grew at CAGR

xx%

*Inclusive of baby formula

XX%

XX%

xx%

• The percentage within the pie-chart indicates the contribution to the global baby food

market in 20xx

• The figures in the bar graph indicate the YoY growth in baby food & formula in 20xx

Baby Food

Baby Formula




Within the baby food market, organic food is gaining traction and is

emerging as a “significant segment” in the US

Total Market

USD XX bn

➢ Baby milk constitutes the largest segment of the

overall baby food market. It contributed about

three-fourth of the total baby food market value

in 2015

‒ During 2009-2014, the share of baby milk

declined as consumption fell, while prices

remained stable

A. Organic Prepared Baby

Food (USD Mn)

B. Organic Milk Formula

(USD Mn)

C. Other Organic Baby Food

(USD Mn)

D. Organic Dried Baby Food

(USD Mn)

Market Overview Study on the US Baby Products Market

➢ High product quality and safety are the top

criteria for consumers purchasing baby food

products. The parents’ desire to provide the best

to their kids is expected to drive the demand for

baby food products

➢ Demand for gluten free baby food products

has also risen, primarily driven by increased

consciousness regarding allergens among many

parents

Organic baby food was one of the fastest growing sub-segments in 2015


Table of ContentsSection 1: Market Overview

▪ Market Size and Segmentation

▪ Key US States

▪ Growth Trends

▪ Industry Challenges




Section 5: Summary

Section 6: Appendix




Growing Online

Sales

➢ Online sales of baby products have outpaced all other segments of

consumer packaged goods in the past three years

‒ In 2015, the online share of baby products sales was 10 times

higher than the online share for any other consumer-packaged

goods. Also, online sales made up XX % of baby product

sales, compared to only X % for other consumable goods,

reflecting the consumers willingness to buy these products online

Rise in online sales and increasing demand for high quality products are the

key trends emerging in the US market

Market Overview Study on the US Baby Products MarketB

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Packaging Innovation

1➢ In terms of packaging, products in tubs or glass currently make up the vast majority of baby food value sales

➢ However, in 20xx, pouch market sales grew x% year-on-year in the US

➢ In comparison, sales of products packaged in tubs or glass declined by x% in the US during the same period

“The popularity of pouches is largely driven by their ease and flexibility; pouches provide

convenient, portable nutrition that’s extremely compatible with consumers’ on-the-go

lifestyles, and they promote self-feeding and independence”

– Liz Buchanan, Director, Global Professional Services, Nielsen

Product Trends

➢ The market for baby care products is evolving, primarily driven by

consumers' desire to give their children the best. Manufacturers in

the baby care market are taking inspiration from the adult market,

especially in categories such as food and personal care, fueled by

consumers' desire to pamper their babies

➢ High product quality and safety are the top criteria for consumers

when purchasing baby products. The penetration of less expensive

private labels in the category is low, as consumers are ready to pay

higher prices for high-quality branded products


Table of Contents

Section 1: Market Overview


▪ Baby Food

‒ Competitive Landscape

‒ Key Player Profiles

‒ Product Portfolio and Price Mapping

‒ Organic Food Landscape

▪ Baby Skincare



Section 5: Summary

Section 6: Appendix



Sample – Disguised and AbridgedCompetitive LandscapeStudy on the US Baby Products Market

North America baby food market is fairly consolidated, with top three

players accounting for XX of the total market

*The market share chart presented here accounts for xx % of the market. The details of the players constituting the

remaining x% market are unavailable. Hence, the break-up for US vs non-US is ascertained for xx% of the market



Sample – Disguised and AbridgedCompetitive LandscapeStudy on the US Baby Products Market

The top brand by these 3 players together enjoy the lion’s share

(more than XX) of the baby food market in North America

Company x Brand Mapping Brand-wise Market Share, 2015

SIMILAC

SENSITIVE

ALIMENTUM

*The market share chart presented here accounts for XX% of the branded market


Table of Contents



▪ Baby Food





▪ Baby Skincare



Section 5: Summary

Section 6: Appendix




Price Mapping: Formula

Competitive LandscapeStudy on the US Baby Products Market

Under 2 oz 2 – 3.9 oz 4 – 4.9 oz 5 – 7.9 oz 8 – 8.9 oz 9 – 22.9 oz 23 oz & above

3

6

9

12

15

18

21 &

above

Prices (

US

D)

Weight (Ounces)

Opportunity Area

9-22.9oz 23 oz & above

The above chart is indicative in nature and depicts the price range

for a particular brand, segregated by package weight

1 2 3 4 5

Brand Products

Earth’s

Best

• Organic Sensitivity Infant

Formula with Iron

Enfamil• Enfamil Gentlease Non-

GMO Powder Tub

Similac• Similac Neosure Infant

Formula with Iron

Gerber

• Stage 1 Gerber Good Start

Gentle Powder Infant

Formula

Enfagrow• Enfagrow Toddler

Transitions Powder Can

Indicative Product Portfolio

Price Legend

Brand Price

Gerber 45.9

Enfamil 41

Similac 32.4

Brand Price

Earth Best 50.9

Enfamil 37.5

Similac 37.4

Gerber 33.1

Enfogrow 23.5


Table of Contents



▪ Baby Food





▪ Baby Skincare



Section 5: Summary

Section 6: Appendix




Three brands dominate the organic baby food market, accounting for about

XX of the market share

➢ Over the last few years, the organic baby food market has witnessed high growth as well as increased

competition, with the entry of a number of new organic baby food players

➢ Plum Organics operated as an independent player in 2011 and held mere x% market share. However, post

Campbell’s acquisition of the company, it has grown to become the leading market players with xx% share in

the organic baby food market

➢ In 2011, Hain Celestial’s Earth’s Best was the leading players accounting for xx% of the market share,

followed by Nestle’s Gerber which contributed xx%


Organic Baby Food Market Players

➢ North America, the largest organic market globally, accounted for xx% of

value sales in 2015. Few of the key highlights of the US market:

− Organic baby food sales in the supermarket channel saw a xx%

increase during 2011–2013. Also, it held xx% shelf space in

retail outlets in 2015

− In terms of the segments, the demand for organic milk formula

increased significantly

− xx% of the parents (with children younger than three years)

believe organic food to be healthy and natural, with no

preservatives

➢ Few Challenges:

− Recent initiatives emphasising on breastfeeding in the US

pose a challenge to the growth of organic milk formula market

− Premium pricing for organic baby food is one of the main

challenges. However, the trends are changing and parents are

now moving towards healthy organic option

Market Dynamics




Headquartered in Camden (New Jersey), CSC is a food and beverage company. Its product portfolio includes baby foods, cereals, confectionary, biscuits and snacks,

frozen foods. CSC has presence across more than 100 countries, with manufacturing facilities in 6 countries and 18.6 thousand employees. Plum Organics is a

benefit corporation under a public company umbrella

*Figures are for year ending Dec2015


Campbell’s Soup Company (CSC) – Plum Organics

‒ Plum donates Super Smoothies to hungry children.

This helps the company in multiple ways, such as

creating a positive image among customers,

boosting company’s reputation and meeting the

bottom line

‒ Plum partnered with various non-profit

associations under its social drive ‘The Full Effect’

‒ Partnered with Target: Under this, if a customer

buys four packs of their product, a pack of Plum

Organic food is donated to hungry children by Plum

Acquisition by Campbell

➢ In 2013, CSC acquired Plum Organics, an American

organic baby food and baby products manufacturer. The

final all-cash purchase price stood at USD 249 MN,

funded through the issuance of commercial paper

Product Portfolio

Supply VendorsGrowth

Strategy

Plum Organics* Net Sales (2014) - USD 88 MN;

xx% organic segment sales growth

Market Share (2015)Leading player (xx% value share)

Mega MarketsUS

CATEGORY PRODUCTS

BabyFormula, Just Vegies, Just Fruits, Grow Well, Second

Blends, Super Puffs, Little Yums, Stage 3 meals

Tots

Mighty 4 Blends, Mighty Snack Bars, Mighty Veggie,

Mighty Dinos, Mighty Squares, Mighty Sticks, Mighty

mealtime, Teemsy Fruits, Super Smoothie

Kids Mashups, Jammy Sammy, Shredz, Frozen

‒ Plum organics partnered with an iconic brand to

reach more households across the country, which

helped it become the leading player in the segment

‒ Secured robust double-digit growth

Sonoco

Global supplier

of infant formula

and baby food

puree packaging

Cheer Pack

Leader in

spouted

pouch

packaging in

North America

SunOpta

Engaged in

sourcing,

processing and

packaging of

organic food

HQC

Manufactures

plastic pouches

for packaging

companies

Distribution Channel

Focus on supermarkets, hypermarkets and online channels


Table of Contents




▪ Channel Structure

▪ Online vs. Offline

‒ Key Retailers


Section 5: Summary

Section 6: Appendix




Baby food and skincare products are primarily sold via mass retailers and

supermarkets / hypermarkets in the US

Distribution Channel AnalysisStudy on the US Baby Products Market

x% Convenience Stores

x% Independent Stores

Baby Food Channel Distribution, 2015 (Value %) Baby Skincare Channel Distribution, 2015 (Value %)

Supermarkets/ Hypermarkets xx%

Pharmacies/Drugstores xx%

Baby Specialty Stores xx%

➢ Walmart and Target are the leading offline retailers for both products in the US

(accounting for ~xx% of the mass merchandisers in baby food segment)

➢ Although these retailers have a significant share in offline market, their private labels

have not been able to command sizeable share across both baby food and skin care

segments

➢ For organic baby food, the distribution channel is highly fragmented among mom-

and-pop stores (20,000+ stores in the US). The leading retailer for organic baby food

in the US is Whole Foods (~350 stores)

xx% Mass National MerchandisersMass National Merchandisers xx%

xx% Supermarkets/ Hypermarkets

x% Pharmacies/Drugstores




An overview of the online baby products sale: customers, demand and

growth

of the USD XX billion market for

baby products, that is, USD XX

billion worth of sales occur via

online channels

XX%

Online channel contribution for

baby products is XX times higher

than the channel contribution for

consumer packaged goods in the

US

10x

Though brick and mortar stores remain the dominant channel for baby

product sales, online is growing; with Amazon leading the space in 2015

➢ E-Commerce penetration for

various baby product segments

ranges between xx-xx%

➢ Top three players account for more

than XX of the total online sales

of baby products in the US

HighLow

Low

Hig

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PriceP

urc

hase F

requency

Food

Formula

Safety

➢ Products that are more expensive are

purchased less frequently

‒ Safety baby products enjoy the

highest online share but the lowest

purchase frequency

‒ Baby food, on other hand, enjoys

higher online purchase frequency

but relatively lower online share

Distribution Channel AnalysisStudy on the US Baby Products Market

What’s bought Online?

Who’s Buying These Baby Products?

➢ Households with young children (aged 0-5) are the largest buyers of

baby products

➢ Adults with young children account for xx% of the US adult population

➢ Households without young children account for xx-xx% of purchases

➢ Adults without young children account for xx% of the US adult

population




➢ Gerber spent USD XX million on advertising during Q1 2016

➢ Its total annual expenditure in the past two years on

advertising has been USD XX million

Branding and Marketing StrategiesStudy on the US Baby Products Market

Branding & Marketing Strategy: Gerber

‒ A&E

‒ The Food Network

‒ Lifetime Movie

‒ Nick at Nite

‒ TBS

‒ TNT

‒ VH1

‒ Other TV Networks

Presence across

major television

networks

Print

campaigns

Med

ia P

latf

orm

s*

Overv

iew

Me

dia

Ag

en

cy

Three DeepEmail

MarketingOverall

Social Media

Presence

SOCIAL MEDIA PRESENCE IMPACT

NA**

Posts: 418

Followers: 138k

Joined: 17 Oct 2005

Subscribers: 17,365

Views: 48,438,156

-

Boards: 7

Followers: 6.4k

Pins: 191

Instagram

**Data Not Available

*Only the key modes have been covered



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USA

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Demand-Supply Assessment of the US Baby Products · PDF fileDemand-Supply Assessment of the US ... believe organic food to be healthy and natural, ... Baby Food Channel Distribution,