- The market for baby food in Portugal has stalled in recent years, due both to the very poor economic situation and to the low level of births.
- The supply of baby food in Portugal is now in the hands of two major manufacturers, Nestlé and Danone /MilupaComercial SA
Ken Research announced its latest publication on, “Industry Forecast Report: Baby food in Portugal’, which provides detailed information on the current market trends in the baby food market. In addition, the publication also includes the information regarding current scenario and challenges faced by the industry. Insights regarding changing consumer’s preferences and the leading players in the market.
Baby meals formed the largest sector within the total baby food market. The sector posted a strong performance between 2006 and 2008. In 2009 and 2010, however, sales fell back due to the economic situation and the sharp downturn in the number of births in 2009.
As in many corners of the industrialized world, Europe has faced a gradual decline in birthrates since the 1960s. But in a number of the hardest-hit countries, a modest rebound during the 2000s – when European governments welcomed immigrants and rolled out cash benefits for young couples starting families – has now gone into reverse. Birthrates are falling again. Since the market for babies’ and children’s products depends on two major factors – the number of babies and children, and the purchasing power of parents. Therefore, the market for baby food in Portugal has stalled in recent years, due both to the very poor economic situation and to the low level of births. Overall baby food consumption in 2015 is 18.4% less than in 2009
Despite the first signs of a slight recovery in the overall economy, unemployment and therefore a low consumer confidence index remained an obstacle to family planning. Birth rates thus declined further, to reach 7.6% in 2015, versus 7.8% in 2014. This automatically led to a structural decline in baby food in Portugal. On a different note, the rate of breastfeeding is increasing, due not only to parental perception that it offers superior nutrition, but also that it is cheaper. This hindered growth of milk formula. Additionally, Consumption was also badly affected in 2011 and 2012, not only by the low number of births but also by the increase in VAT on jarred meals, from 13% to 23%, at the beginning of 2012.
Although mothers increasingly recognize the benefits of breastfeeding, those who need to resume working quickly still rely on infant formula, which is a major driver of the baby food market. Packaged or canned baby food, such as baby rice and fruit, is a convenient substitute or supplement for home-made baby food when infants are weaned. For baby food, a strong emphasis is placed on the functionality and, more importantly, the safety of the product. In this context, nutritional science plays a vital role in building up brand image and health credentials as well as setting apart from other products.
Thus, baby food industry consists of companies that manufacture packaged foods for babies; it is ready to eat and readymade .There are different types in which baby food is packaged; different types of containers to different food types, such as baby snacks, bottled baby food, canned baby food, cereals, fruits and vegetables, and meat.
Nestle Portugal; Danone/Milupa Commercial SA; Alter SA; LaboratoriosVitoria SA; Mead Johnson, are some of the largest manufacturers in the baby food market. However, the supply of baby food in Portugal is now in the hands of two major manufacturers, Nestle and Danone /MilupaComercial SA.
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Ankur Gupta, Head Marketing & Communications