Healthy eating baby food INSIGHT

HEALTHY EATING

BABY MARKET

&TRENDS

AROUND THE WORLD

• Half (50%) of global respondents believe they are overweight, and half (50%) are trying to lose weight.

• Consumers seek fresh, natural and minimally processed foods.

• Beneficial ingredients that help fight disease and promote good health are also important.

• Health attributes are most important to emerging-market respondents, who are also most willing to pay a premium for health benefits.

• Younger consumers are most willing to pay a premium for health attributes.

• Healthy categories are growing faster than indulgent categories, but there is still room for occasional treats in consumers’ diets.

MAJORITY OF CONSUMERS RELY ON DIET AND EXERCISE TO LOSE WEIGHT

MAJORITY ARE EATING FEWER FATS

AND SUGARY SWEETS, MORE FRESH

FOODS

Ways people are changing the diet to loose weight




•Majority rely on methods to lose weight—diet and exercise

•Eating smaller portions in diet

•Consuming more natural and fresh foods

•Nearly two-thirds (65%) are cutting down on fats ,consumption of fewer processed

food

•Few are opting for commercial skimming programmes.

What's across the globe?

PERCENTAGE THAT RATE EACH

HEALTH ATTRIBUTE VERY

IMPORTANT

IN PURCHASING DECISIONS

• Foods with all natural ingredients and those without genetically modified

organisms (GMOs) are each considered very important

• Absence of artificial colors and flavors and foods made from vegetables/fruits are

very important.

• Consumers are looking for functional foods that provide benefits that can either

reduce their risk of disease and/or promote good health.

• Foods that are high in fiber as very important, high in protein

• Fortified with calcium ,vitamins ,or minerals .

• Foods are low in cholesterol ,salt ,sugar and fat .

• Environmental and socioeconomic concerns also factor into purchase

decisions(Organic ingredients)

Findings

WILLINGNESS TO PAY A

PREMIUM IS HIGHEST IN

DEVELOPING MARKETS

PURCHASE

DECISIONS FOR ALL

AGE GROUPS

Average daily intake of calories in

selected countries as of

2014 (in kcal)

• The average daily calorie intake per capita in the United States is 3,641

kilocalories (kcal) per person.

• The prevalence of obesity has increased in countries like the United States

and the United Kingdom in the last decade.

• An increased daily caloric intake has been positively associated with this

international problem.

Calorie Issue

Average daily intake of calories per

person in selected countries as of

2014

Gap between those that think healthy

attributes are very important and their

willingness to pay a premium for them

• Percentages are lowest among Silent Generation (aged 65+)

• Health attribute ratings are highest among Millennials (21-34), followed by

Baby Boomers (50-64), Generation X (35-49) and Generation Z (under 20)

• Willingness to pay a premium for health attributes also declines with age.

GENERATION Z AND MILLENNIALS ARE MOST WILLING TO PAY A

PREMIUM

FINDINGS

Health and Wellness Food and Beverages

Comprise a 170-180 billion INR market in India

• Health and wellness food and beverages includes three sub-segments:

-- Fortified foods and beverages (FFB)

-- Naturally healthy (NH) products

-- Better for you (BFY) products

• FFB constitutes the largest slice of the market while BFY is the fastest

growing sub-segment.

• Increasing penetration of organised retail, growth of packaged foods

andimproving availability of products that are palatable to Indian taste are

driving growth.

• Players are positioning themselves on the combined platform of health andtaste.

Ex:The entire portfolio of Britannia is trans-fat free, and over55% is fortified.

PepsiCo aims to reduce sugar content by 25% and saturated fat content by 15%

in its products by 2020.

STRATEGIES

FOR

SUCCESS

MORE EDUCATION ABOUT HEALTH/WELLNESS CLAIMS :

• Packaging labels are a key source of information for consumers.

• Three-quarters of global respondents say they read packaging labels carefully.

• Manufacturers and retailers need to provide easy-to-understand and clear

nutritional information to help respondents take control of their health.

GREATER TRANSPARENCY ABOUT HEALTH/WELLNESS CLAIMS

• Consumers view food with a skeptical eye, and the industry must be more

transparent about the contents and source of foods, providing stronger

scientific support for health claims to build consumer trust.

FOOD AS MEDICINE

• Weight loss and management products are an in-demand area for product

innovation.

• Manufacturers should also explore new product formats that incorporate fruits and

vegetables, fiber and protein.

RESPECTING REGIONAL

DIFFERENCES

•Consumers around the world approach health differently, and these

attitudes and behaviors require different strategies and approaches.

•Manufacturers and retailers need to provide solutions that are compatible

with the preferences and requirements of each region.

Competition Space

nutritionally balanced, perfectly portioned meal delivery service.

Mumbai

• They provide a wide variety of freshly cooked calorie-counted meals to

individuals across Mumbai.

• Team of creative chefs and dieticians work together to ensure that your meal

is not just healthy, but also tasty and varied.

• The meals are individually packed in hygienic, contamination-proof packages

with a clear account of the nutritional content printed on each package.

•

They also provide healthy catering options to offices.

• The meals are a lifestyle choice - providing balanced nutritious meals

designed for thebody's needs.

• Each meal is designed to provide balanced nutrition - a judicious mix of

carbohydrates and proteins, a high fibre content, low fat content and minimal

cholesterol content.

ABOUT CALORIE CARE

How It works?

Kitchen view

• Meals are cooked and packed in own health kitchen spread over 1800 sq ft.

• The ingredients are carefully weighed and cooked as per Calorie Care's

recipes.

• Non-vegetarian food is cooked in a separate section and the supplies are

stocked separately to ensure that vegetarian and non-vegetarian food is not

mixed.

• Salads and Fruit bowls are prepared in an air conditioned environment and

the food is not touched by hand while packaging.

• All the customers are welcome to visit the kitchen at any time, with or

without prior notice.

Weekly Menu

Weight Loss Weight Gain Diabetic Hyper tension

Muscle meals Juices

Menu

Healthy, balanced food matching life styles

FitGo

(Banglore)

• Banglore based diet plans services company.

• End-to-end service from dietitian consultation to portion-

controlled meal deliveries at door step

About FitGo

Plans

• Low Calorie Weight Loss Plan

• Stress Buster Plan

• Night Meal Plan for Working

Professionals

• Executive Meal Plan

• Weight Loss Plan

• Long term systematic weight loss plan

• Muscle Building and Workout Plan

• High Fiber Low Cholesterol Diet

• Appetite Builder and Weight Gain Plan

• Weight Gain Plan

• Holistic Immunity Booster Plan

• Long Term Immunity Enhancement Plan

• Post Pregnancy Weight Loss Plan

• PCOD Control Plan

• Diabetes Nutrition Plan

• Personalised Weight Management Plan

• Obesity Control Plan

• Thyroid Nutrition Plan

• Kids Nutrition Plan

• Pre & Post Pregnancy Nutrition

• Immunity Nutrition Post-Cancer

Fit Go Menu

BABY FOOD MARKET

AROUND THE WORLD

• Almost half of baby food (46%) value sales come from North America and

Europe, while Asia-Pacific accounts for 49% of baby food and 53% of sales.

• Sales of baby food pouches and organic products are growing strongly, increasing

28% and 26%, respectively from 2014

• Word-of-mouth communications is the most commonly cited source for information

about baby food/formula.

• Brand name, nutrition and safety are the most important purchase criteria for

baby food.

• Price is an important purchase consideration in developed markets.

HOMEMADE Vs COMMERCIAL BABY FOOD

•until the middle of the 19th century, infant food was generally made at home.

•Recipes and instructions for feeding babies were sometimes found in cookbooks.

• Finely ground grains (oats, rice, barley) mixed with a liquid was common as baby food

across cultures.

•The first mass-produced baby foods were invented by scientists/nutrition experts and

manufactured in the mid-19th century by innovative companies.

• These were infant formulas, substitutes for mother’s milk.

BABY FOOD MARKET

• Rapidly expanding emerging economies such as in India and China, the baby food

market is witnessing intensifying demand.

• India is the potential destination for baby food manufacturers with huge untapped

market.

• Pricing is the major concern for baby food manufacturers in India where only one

fourth of the population belongs to upper middle class and high class.

• China is the second largest baby food and infant formula market in the world and

largest in Asia.

• Over the past few years, a number of large and small new baby food companies

have introduced high quality baby food products to meet the market need for quality

baby food products.

• Baby food forms the largest segment and account for 50.52 percent of the total retail

sales of baby food and formula market.

Global baby food

market size in

2010 and 2015

Forecasted market value of the

baby food industry in India from

2013 to 2017

Indian baby food market was forecasted to reach approximately 222.3

million U.S. dollars in 2017

Baby Food and

Formula sales share

Driven primarily by consumers shifting to e-commerce and baby-specialty stores

• Today, 49% of baby food value sales come from Asia-Pacific

• 27% from Europe

• 19% from North America.

Baby Food and Formula sales

BABY FOOD MARKET IS LESS CONCENTRATED IN DEVELOPING COUNTRIES

BABY FORMULA IS GROWING MOST IN SMALLER STORE FORMATS

• As many working mothers return to their jobs shortly after giving birth, prepared

baby foods and formulas provide an appealing alternative for working mothers,

• Their desires for healthy, nutritious food with their need for convenience.

• The rising middle class in the developing world has opened new opportunities in

the baby care market

• The need for products that are compatible with a working mom’s schedule is

growing

• in many countries, the cache of premium products is an important symbol of

one’s social status.”

Baby Food Demand

PACKAGING INNOVATION AND ORGANIC OPTIONS DRIVE SALES

• products in tubs or glass make up the vast majority of baby food

• when it comes to growth, pouches (containers with plastic spouts at the top from

which food can be sipped)

• The popularity of pouches is largely driven by their ease and flexibility

• The organic sector is also experiencing strong growth

• Consumers are increasingly health conscious and looking for natural, minimally-

processed foods, and the stakes are even higher when it comes to their babies

ORGANIC BABY FOOD

• The organic sector is also experiencing strong growth

• Consumers are increasingly health conscious and looking for natural, minimally-

processed foods, and the stakes are even higher when it comes to their babies

• More parents are seeking foods that set their children up for a healthy life—even if

it comes at a premium.

ORGANIC BABY FOOD IS SHOWING STRONG GROWTH

Sources for

influencing

purchases

• Advice about the best baby food/formula information is taken from the friends

and family.

• Recommendations of health experts are also highly influential.

• TV ads are also an important source of information, but their influence on

decision-making is notably lower

Sources for influencing purchases

Most important baby food

purchase attributes

• Trusted brand

• Good overall nutrition

• Safe ingredients/processing (

Most important baby food purchase attributes

PRICE IS AN IMPORTANT BABY

FOOD PURCHASE DRIVER

Most important reasons

for switching baby food

brands

• Most of the consumers switch because of feedback from family and

friends,

• Consumers are also switching brands for health-related reasons.

• Positive word-of-mouth is particularly important in Asia-Pacific .

• Price is a critical purchase selection factor in developed markets, it is also

a key brand-switching driver in these markets

Most important reasons for switching baby food brands

Competition Space

Major Players In different segments

Food Skincare Toiletries & Diapers Hair care

Market Shares

Baby FoodDiapers

Over all

Competition Overview

• Johnson and Johnson is the market leader in total baby care market with

80% market share.

• Leading brands in baby food market: Nestle Cerlac & Nestum,Wockhardts

Farex.

• Baby Toiletries: Dominated by imported brands.

Organized Vs Unorganized Market

Segment Product Penetration

Baby Milk Medium

Baby Foood Baby Cerals Medium

Baby Snacks Low

Soap High

Massage oil High

Skin care Powder High

Cream Medium

Lotions Medium

Baby wash(Liquid) Low

Diapers Low

Toiletries& Diapers Wipes Low

Hair Hair oil Medium

Shampoo Medium

Baby Food-The Largest Market

Market Players and

Product offerings

Company Food Skincare Toiletries Haircare Major Business

Baby and Adult diapers.otherhygiene products

Baby Milk powder

Made with ayurvedic herbs/plant extracts(Dabourlaltel,Jammaginti,Gripe water)

Oil,Soaps,Talcompowder,cream,lotion,shampoo

Diapers(Snuggy)


Diapers(Koochies brand).Indore based company.

chennai based company(Anakkubrand)

All baby care

Baby oil,nappy cream,smmothingskin powder,soaps.

Diapers(Huggies)


Nido,Lactogen,Cerlac,Nestum

Nobel Hygiene

Diapers(Teddy)-Mumbai based company

Diapers

Diaper(Pampers)

Raptacosbreat & Co

Infant milk(lactodex)


Farex,Dexolac,Nusobee

Diaper,soaps,oil,talcom powder

Growth drivers

Cater to changing market demographics and tastes:

Tastes vary around the world, and what’s popular in one region doesn’t necessarily

hold true in another.

Consider partnering and leveraging individual strengths:

When introducing new product lines or entering new categories, a partner with a strong

brand name can lend credibility and expertise

Be transparent:

Parents want to know what is going into their children’s mouths, so labels should detail

all of the ingredients in the product. Including their relative proportions is even better.

Highlight safety first:

• Consumers need to feel like a company values their children’s health above

everything and that they’re willing to take action at the first sign of a problem.

• Manufacturers should highlight their safety record on packaging and in ads.

• They should regularly engage with consumers through their websites and social

media to address questions and concerns.

Go natural:

• Simple is beautiful, and many consumers are looking for the simplicity of homemade

without the fuss.

• Manufacturers should look for opportunities to remove or replace undesirable

ingredients like added sugar, sodium and preservatives.

• There is strong potential for growth in the organic segment, particularly in Asia-

Pacific, but manufacturers need to educate consumers about the benefits of going

organic.

Highlight health:

• Health claims can be a strong differentiator between brands and should be a key

innovation pillar,

• With food intolerances and allergies on the rise in industrialized countries in

particular, manufacturers should look for ways to better serve this growing segment.

THE BABY DIAPER

MARKET AROUND THE

WORLD

Share of 2014 value sales

and growth in select

markets

NORTH AMERICA LEADS THE WAY IN DIAPER SALES

GROWTH IS HIGHEST IN LATIN AMERICA

• North America and Europe together account for 51% of sales around the

world (34% and 17%, respectively).

• Asia-Pacific and Latin America each claim 23% and 21%, respectively).

Highest Sales

Regional value sales share by

type of diaper in select

markets

• The diaper pants segment account for high sales .

• largely concentrated in Asia-Pacific and Europe

Diaper Sales

value sales share by

type of diaper in

select markets

OPEN DIAPERS DRIVE SALES, BUT DIAPER PANTS ARE GROWING

RAPIDLY

diaper value sales and growth by channel in select markets

DIAPER CATEGORY IS HIGHLY CONCENTRATED IN DEVELOPED MARKETS, BUT SMALL FORMATS GROWING FASTER

Sources used to learn about diaper products and for influencing purchases

WORD-OF-MOUTH AND TRADITIONAL ADVERTISING ARE MOST IMPACTFUL DIAPER SOURCES

Most important diaper

purchase attributes

SKIN PROTECTION AND COMFORT ARE TOP DIAPER

PURCHASE ATTRIBUTES

Most important reasons

for switching

diaper brands

WORD-OF-MOUTH COMMUNICATIONS IS THE BIGGEST SWITCHING DRIVER FOR DIAPERS

Growth Drivers

Innovate, innovate, innovate:

• Research and development efforts should be centered on the three key attributes

identified by consumers: superior skin protection, comfort and absorption.

• Thinness is also an important objective because it is a way to ensure optimal

comfort and minimize material and freight costs and environmental impact; plus,

thinner products take up less shelf space, which is appealing for retailers.

Control costs:

• Innovation can help, but manufacturers should also look for ways to reduce

operating costs by optimizing production and improving supply chain efficiencies

Understand and appeal to what drives consumers:

• Consumers’ reasons for purchasing diapers differ around the world.

• For example, while convenience may be appealing in one region, marketers may

need to focus on the sleep and developmental benefits diapers provide in another.

• It’s also important to recognize regional differences in product preferences and

adapt product lines accordingly.

• .

E-COMMERCE

Percentage who say they have purchased a baby care product online

Growth Strategies

Go mobile:

Optimize mobile compatibility and consider developing a mobile app to take advantage

of the growing m-commerce segment.

Innovative with delivery: T

o increase convenience and keep prices low, get creative with delivery.

In India, Amazon has partnered with traditional trade stores to offer same-day delivery

of food and other essentials.

Offer flexible payment:

To reach unbanked consumers, retailers and manufacturers should experiment with

innovative payment methods such as cash-on-delivery or mobile payments.

Make it easy:

• The fewer clicks, the better.

• Provide links to dedicated baby care pages on the homepage and make it easy for

customer to reorder a previous purchase. Many retailers have taken this a step

further, offering online subscription models that automatically replenish an order at

a specified time period.

Bundle baby care products:

• Bulky item like diapers are expensive to ship and leave little in the way of profits.

• Therefore, online retailers should focus on increasing sales in baby care

categories with higher profit margins like beauty products and bottles.

• They should also use technology to look for efficiencies in packaging and delivery

as retailers such as diapers.com have done.

Work in progress………….

Healthy eating baby food INSIGHT

Education