Baby food market. Description of the consumer segment. List of used sources of information

Market baby food increases positively. Even despite the general slowdown in consumption and the crisis of 2015 and early 2016, sales of baby food are increasing. Growth is driven by supply and demand drivers. This category of the food industry is considered essential products, based on this, baby food is absolutely well supplied with sales through all retail and wholesales.

The baby food market is divided by the type of product and by the age of the child.

The production of baby food is divided into several segments:

• · Puree.
• · Porridge.
• · Dairy and fermented milk products.
• · Milk mixtures.
• · Children's juices.
• · Tea.
• · Water, etc.

The popular segments are puree (27.1%) and 20% mixes, children's fermented milk products and fruit juices are in third place in popularity with 17.2% and 16.2% shares. In fact, formula and fermented milk products for children are specialized clinical nutrition that is most in demand on the market.

Breast milk substitutes are the largest segment in monetary terms. But only because of the high price. As you can see, in physical terms, this is not the largest segment. But this segment is also the leader in terms of growth rates of + 9.4% in 2015 in physical terms.

The segment of baby water is growing very actively - 11.3% in volume terms and by 18.2% in value terms. And it has comparatively less competition than other segments of baby food.

Market growth, as before, is provided to a greater extent (72%) due to imported products. Growth russian consumption in 2015 amounted to about 10-12%.

“... Considering that the embargo in 2014 did not affect baby food from Europe, then, undoubtedly, the leaders remained in the same composition:

Switzerland is in first place (up to 40% of all imports).

The second is the Netherlands (up to 25%).

On the third - Germany (up to 10%).

In 2014, the top three export countries of Russian baby food were held by Kazakhstan - 50%, Ukraine - about 25%. Kyrgyzstan -15% ".

The competitive situation on the baby food market can be called quite tense. Several domestic companies and importers are leading here. The market is consolidating, gradually trying on western modelwhen there are only a few large players on a national scale in the industry.

There are 41 enterprises from 26 regions of Russia on the market. (tab. 3.1).

Tab. 3.1. Enterprises focused on the production of baby food

Manufacturer		Range
OJSC "Baby food" Istra - Nutricia "(Moscow region) Netherlands, Holland	Frutapura Nutricia, Nutrilon, Baby Boy, Ton-Ton	Adapted milk formulas for baby food on a milk and soy basis of the following brands: "Babilak", "Babilak 2", "Babilak soya", "Baby with improved recipe", "Baby from 6 months", "Baby", "Baby Istra" (instant). Enriched dairy and dairy-free cereals "Nutricia-Malysh" (instant).
CJSC "Company" Nutritek "(Moscow region)	"Nutrilak", "Vinnie", "Baby"	Formulas - breast milk substitutes, baby water, mashed potatoes, cereals.
LLC "Nestle Russia" (Moscow region) Poland, USA, Switzerland, Netherlands	Nestle, Nestogen, Gerber, Nan	Dairy-free cereals, milk porridges, mixtures, mixtures with prebiotics, fruit and vegetable purees, meat purees and vegetables with meat.
Russia - Kaliningrad, Germany, Austria		Porridge, mixes, tea, mashed potatoes
Germany		Basic and medicinal milk mixtures, herbal teas for babies and mothers, milk and dairy-free cereals, vegetable fruit and meat purees, children's drinking water
FrieslandCampina Netherlands		Milk mixtures, milk.

• The 4 largest brands are market drivers:
  • Danone - dairy and fermented milk products,
  • Nestlé - mixes, cereals,
  • PepsiCo - juices,
  • · Progress.

They produce 70% of baby food products.

Importers occupied the niche of breast milk substitutes by 90%, since there are practically no domestic producers in Russia. The primary reason for this is that Russian raw materials are not enough for these products, and customs duties for imported raw materials higher than fees finished products.

New organizations for the production of baby food in 2014 were:

“… September 2014 - Danone bought and reconstructed a dairy plant in Yekaterinburg. Lines for the production of baby food were supplied. Investment level - over 800 million rubles.

OJSC "Modest" in the Altai Territory. Serves demand Altai Territory, Novosibirsk and Kemerovo regions... In 2014, the company increased its production capacity by 22.2%. The modernization of the lines cost over 25 million rubles.

Nestle, the city of Vologda. Launch of new lines - 20 types of children's cereals. Investments 2.5 billion rubles.

Enterprise "Leader-A", the city of Gudermes in Chechnya. In 2015, it was planned to open a workshop for the production of baby food. The planned production capacity is 15 thousand cans per hour. "

New factories are opening, and global brands also invested in Russia in 2015, despite the political problems in the country. There is a course for full import substitution in the country, and for imported products, russian production will allow you to slightly reduce the cost of your products. After all, the price influence forces readers to reconsider their tastes and choose by no means the products of the market leaders.

This is clearly seen, as at the beginning of 2015 in the ratings of the Internet the TOP-5 consumer preferences showed:

• 1. Humana.
• 2. Topic.
• 3. Friso.
• 4. Heinz.
• 5. Grandmother's Lukoshko.
• 6. Nanny (Bibicol).

Products russian manufacturers it costs one and a half to two times cheaper than that of importers, so now the reader increasingly trusts domestic manufacturers that meet the price-quality criteria.

In the baby food market, the segment of products with an average price has an advantage.

In 2015, sales of mid-segment brands in the baby food market amounted to about 50%. The entire middle segment mostly consists of Russian products.

Analysis of average wholesale prices for baby food products in 2015, in general, showed a rise in prices by 6-10%. According to the employees of the Union of Consumers of the Russian Federation, one must be prepared that food prices will still grow by at least 1.5-2 times.

The baby food market in Russia, even during the crisis, is growing dynamically. The main directions of development is import substitution. New production of baby food was opened, lines at existing enterprises were modernized and expanded.

Market growth will also be driven by increased demand due to rising birth rates and an increase in the number of children under 4 years of age. In addition, the employment of women and men has been increasing recently, and, consequently, the material well-being of parents is improving. AND this trend changes readers' attitudes towards mass-produced baby food. Today it is easier for a young family to buy ready-made food for the baby and to save time on their own preparation.

The key problem in the Russian baby food market is still an acute raw material issue. According to Rosstat and the Federal Customs Service, in Russia, due to the depreciation of the ruble in 2015, the prices for fish, fruits and vegetables supplied from abroad increased by 24%. Inflation has affected not only imported food products, but also domestic products that are made from imported raw materials.

If, nevertheless, the embargo in 2016 affects the receipt of baby food from Europe, then the growth of domestic production indicators will have to grow. Firstly, foreign suppliers will acquire a Russian location and build factories in Russia in order not to lose market share. Secondly, small local businesses will be able to provide narrow market niches.

As of the beginning of 2015, fruit purees, cereals, juices, dairy and fermented milk products were well-developed segments. There is room for development in the segments: dry mixes, vegetable purees and baby water.

The dry mix business is a market niche with high barriers to entry, not for small businesses - expensive equipment, and large competitors in the market that have built their plants in the Russian Federation, etc.

In the niche of children's waters, there are a large number of substitutes - manufacturers of ordinary drinking water.

Marketing research of the baby food market in Russia from SuccessBrandManagement. From the material, you will learn the key parameters of the industry: market capacity, major players, forecasts, as well as how interesting this segment is to small businesses and whether it makes sense to engage in the production of baby food in the current market conditions.

 

The baby food market is growing positively. Even despite the overall slowdown in consumption and the 2014 crisis, sales of baby food are increasing. Growth is driven by supply and demand drivers. This category of the food industry is essential products, therefore, baby food is provided with maximum sales through all retail and wholesale channels.

Briefly about the market

The baby food market is segmented by product type and consumer age.

The production of baby food is divided into several segments:

• Dairy and fermented milk products
• Milk mixtures
• Baby juices
• And etc.

Diagram 1. Production of baby food by segments, as of 2014,% of production, thousand tons. Source: According to Rosstat

In physical terms, the leading segments are puree (27.1%) and mixtures of 20%, children's fermented milk products and fruit juices ranked third with 17.2% and 16.2% shares. In fact, formula and fermented milk products for children act as specialized clinical nutrition that is most in demand on the market.

Breast milk substitutes are the largest segment in terms of money, but only because of their high prices. As you can see, in physical terms, this is not the largest segment. But this segment is also the leader in terms of growth rates of + 9.4% in 2014 in physical terms.

The segment of baby water is growing very actively - 11.3% in volume terms and by 18.2% in value terms. And it has comparatively less competition than other segments of baby food.

Juices and tea have the lowest growth rates (1.7% in physical terms).

Market indicators

Market growth, as before, is provided to a greater extent (72%) due to imported products.

Diagram 2. Market size, thousand rubles, 2011-14 Source: federal Service statistics and calculations SBMgroup.biz

The growth of Russian consumption in 2014 amounted to about 10-12%.

Import

Considering that the embargo in 2014 did not affect baby food from Europe, then, undoubtedly, the leaders remained in the same composition:

1. Switzerland (up to 40% of all imports)
2. Netherlands (up to 25%)
3. Germany (up to 10%)

Mainly dry mixes and vegetable purees are imported.

Export

In 2014, the top three export countries of Russian baby food were held by Kazakhstan - 50%, Ukraine - about 25%. Kyrgyzstan -15%.

Competition

The competitive situation on the baby food market can be called quite tense. Several domestic companies and importers are leading here. The market is consolidating, gradually adopting the Western model, when there are only a few large players on a national scale in the industry.

There are 41 enterprises from 26 regions of Russia on the market.

Manufacturer		Range
OJSC "Baby food" Istra- Nutrition " (Moscow region) Netherlands, Holland	Frutapura Nutricia, Nutrilon, Baby, Baby, Top-Top	Adapted formula for milk-based baby food and soy-based of the following brands: "Babilak", "Babilak 2", "Babilak soya", "Baby with improved recipe" "Baby from 6 months", "Kid Instrinsky" (instant). Enriched dairy and dairy-free cereals "Nutricia-Malyshka" (instant).
CJSC "Company" Nutritek " (Moscow region)	"Nutrilak", "Vinnie", "Baby"	Formulas - breast milk substitutes, baby water, puree, cereals, juices
Nestlé Russia LLC (Moscow ob) Poland, USA Switzerland, Netherlands	Nestogen, Gerber	Dairy-free porridge Milk porridge Mixtures with prebiotics One- and multicomponent purees Vegetable and fruit purees Puree with cottage cheese, yogurt, cream, Meat puree Vegetables with meat
Russia - Kaliningrad, Germany, Austria
Germany		Basic and medicinal milk formulas Herbal teas for babies and mothers Dairy and dairy-free cereals Vegetable, fruit and meat purees Drinking baby water
FrieslandCampina Netherlands		Milk mixtures
New Zealand	Nannie (Bibicol)	Milk mixtures
CJSC "Heinz-Georgievsk" (Moscow region)		Milk mixtures Puddings for pregnant and lactating mothers Milk and dairy-free cereals Fruit, vegetable, dairy, yoghurt and meat purees biscuits (6 cereals) Children's vermicelli
LLC "Factory of baby food" Faustovo "(Moscow region)	Grandma's basket	children food canned vegetables canned meat and vegetable
OJSC "Company Unimimilk" (Moscow region)	Bio Balance Prostokvashino Summer day	Biotvor Bioyogurt Juices and fruit drinks Baby milk Meat puree Meat puree Vegetable puree Fruit and milk puree Fruit puree
JSC "Sady Pridonya" (Volgograd region)	"Golden Russia", "Sady Pridonya", "My", "Juicy World", "Speleonok"	Juices, nectars, juice drinks Plant-based puree Cereal cocktails Baby puree Mineral water Dry instant porridge
LLC Ivanovsky baby food factory		Puree (fruit, fruit and vegetable, fruit with cottage cheese, with yogurt, with cream, vegetable, meat and vegetable, fish and vegetable) Porridge (milk, milk with fruit, low-allergen porridge, porridge without milk) Juices (clarified, juices with pulp, nectars)
Experimental baby food factory, Wimm-Bill-Dan branch (Kursk region)		Fermented milk baby food Vegetable puree Fruit, fruit and vegetable puree homogenized for the nutrition of young children Reconstituted fruit juices for the nutrition of young children
	Teddy bear	Dairy and fermented milk products

The 4 largest brands are market drivers:

• Danone - dairy and fermented milk products,
• Nestlé - mixes, cereals,
• PepsiCo - juices,
• Progress.

They produce 70% of baby food products.

Importers occupied the niche of breast milk substitutes by 90%, since there are practically no domestic producers in Russia. The primary reason for this is that there is not enough Russian raw materials for these products, and customs duties on imported raw materials are higher than fees for finished products.

New organizations for the production of baby food in 2014

• September 2014 - Danone bought and reconstructed a dairy plant in Yekaterinburg. Lines for the production of baby food were supplied. Investment level - over 800 million rubles.
• OJSC "Modest" in the Altai Territory. Serves the demand of the Altai Territory, Novosibirsk and Kemerovo regions. In 2014, the company increased its production capacity by 22.2%. The modernization of the lines cost over 25 million rubles.
• Nestle, Vologda. Launch of new lines - 20 types of children's cereals. Investments 2.5 billion rubles.
• Enterprise "Leader-A", Gudermes, Chechnya. In 2015, it is planned to open a workshop for the production of baby food. The planned production capacity is 15 thousand cans per hour.

New factories are opening, and global brands also invested in Russia in 2014, despite the political problems in the country. There is a course towards complete import substitution in the country, and for imported products, Russian production will slightly reduce the cost of its goods. Still, price influence forces consumers to reconsider their tastes and choose not the products of the market leaders.

This is clearly seen, as at the beginning of 2015 in the ratings of the Internet the TOP-5 consumer preferences showed:

1. Humana
2. Friso
3. Heinz
4. Babushkino Lukoshko
5. Nannie (Bibicol)

Products of Russian manufacturers cost one and a half to two times cheaper than those of importers, therefore, now the buyer increasingly trusts domestic producers that meet the price / quality criteria.

Prices

In the baby food market, the segment of products with an average price has an advantage.

Chart 4. Price segmentation of the baby food market in the Russian Federation,%, 2014

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Description

The marketing research contains up-to-date information on the state and prospects of the Russian baby food market in 2017.

During the study, the following blocks of issues were considered: the volume and dynamics of domestic production, foreign trade operations, the consumption of baby food and producer prices. The characteristic of the current market conditions is given and the forecast of its development for the medium term is constructed. Particular attention is paid to the factors that have a significant impact on the state of the industry - its drivers and stop factors.

In a separate block expanded version of the study, a competitive analysis of the largest market participants was made: manufacturers, exporters, importers and trading companies... In this section, for each of the companies considered (where possible), data on the volume of production and / or import / export, market share, promising projects are indicated, as well as background information from the official financial statements (company card, balance sheet, income statement, etc.) losses, etc.).

Product group covered in the report: Canned fruits and vegetables, meat and fruit for baby food; fruit and vegetable juices and nectars for baby food; dry cereal-based products for baby food; liquid and pasty dairy products for baby food; powdered milk and powdered milk formulas for baby food

Geography of research: Russia

Period: statistical data from 2013 to 2016, forecast up to 2025

Research will help you answer the questions:

• How has the volume of baby food production changed in 2016?
• What is the presence of foreign products on the Russian market?
• Which regions dominate in production and consumption?
• Who are the main manufacturers in the Russian market?
• How has the price level in the market changed?
• How will the market change in the medium term?

Research methodology:

• Analysis of materials from open sources
• Collection and analysis of secondary market information
• Analysis of materials received from market participants
• Study of financial and economic activities of market participants
• Desk work of IndexBox specialists
• Expert survey of market participants (only for the extended version of the report)

The report is presented in two versions :

• Basic version

Contains all the necessary information to analyze the current state of the market and assess the prospects for its development.

• extended version

In addition to the Basic version, it includes the Application: Competitive analysis key market participants. Use this information to analyze the competitiveness of your company in the market and build a marketing strategy.

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Content

1. SUMMARY

2. RESEARCH METHODOLOGY

3. CLASSIFICATION OF BABY FOOD

4. THE MARKET OF BABY FOOD IN THE RUSSIAN FEDERATION

4.1. Apparent consumption in 2013-2016 Forecast for 2017-2025

4.2. Market structure: production, export, import, consumption

4.3. Consumption structure by federal districts in 2013-2016

4.4. Balance of production and consumption

4.5 Average per capita consumption in 2013-2016

5. PRODUCTION OF BABY FOOD IN RF

5.1. Production volume in 2013-2016

5.2. Production structure by federal districts in 2013-2016

5.3. Investment projects in the industry until 2025

6. PRICES ON THE BABY FOOD MARKET IN RF

6.1. Average producer prices in 2013-2016

6.2. Average export price in 2013-2016

6.3. Average import price in 2013-2016

7. FOREIGN TRADE OPERATIONS IN THE BABY FOOD MARKET IN 2013 - 2016

7.1. Volumes of foreign trade operations in 2013-2016

7.2. Trade balance in 2013-2016

8. IMPORT OF BABY FOOD IN RUSSIA

8.1. The volume of imports of baby food in 2013-2016

8.2. Producing countries leading supplies to the Russian Federation in 2016

9. EXPORT OF BABY FOOD FROM RF

9.1. Export volume of baby food in 2013-2016

9.2. Recipient countries russian exports baby food in 2016

10. FORECAST OF DEVELOPMENT OF THE BABY FOOD MARKET

10.1. Factors influencing market development

10.2. Development scenarios for the Russian economy

10.3. Scenarios for the development of the baby food market until 2025

LIST OF USED INFORMATION SOURCES

ABOUT INDEXBOX

INDEXBOX: QUALITY CONTROL

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Illustrations

Figure 1. The volume and dynamics of visible consumption of baby food in 2013-2016. in physical terms and forecast until 2025 (within the framework of the baseline development scenario)

Figure 2. The volume of visible consumption of baby food in value terms 2013-2016. and forecast until 2025 (within the baseline development scenario)

Figure 3. Dynamics and structure of the baby food market in 2013-2016

Figure 4. Structure of the baby food market by origin in 2016

Figure 5. Consumption structure by federal districts in 2013-2016

Figure 6. Dynamics of average per capita consumption of baby food in 2013-2016

Figure 7. Annual production of baby food in 2013 - 2016

Figure 8. Production of baby food in 2015 - 2016 by month

Figure 9. Structure of baby food production in 2016 by types in physical and value terms

Figure 10. Structure of baby food production by federal districts in 2013-2016, in kind

Figure 11. Average import prices in 2013-2016

Figure 12. Average export prices in 2013-2016

Figure 13. Comparison of average baby food producer prices by federal districts in 2016

Figure 14. Annual dynamics of imports of baby food in the Russian Federation in 2013-2016.

Figure 15. Annual dynamics of Russian exports of baby food in 2013-2016

Figure 16. The volume of foreign trade operations in the baby food market in 2013-2016

Figure 17. Trade balance in 2013-2016

Figure 18. Structure of imports of baby food in the Russian Federation by country of origin in 2016, in volume and value terms

Figure 19. Structure of baby food exports by country of origin in 2016, in physical terms and value terms

Figure 20. Structure of Russian exports of baby food by country of receipt in 2016, in physical and value terms

Figure 21. Dynamics of the physical volume of GDP in market prices in the Russian Federation in 2010 - 2016, in% of the previous year

Figure 22. Dynamics of real disposable money income of the population in the Russian Federation in 2013-2016, in% to the previous year of the previous year

Figure 23. Dynamics of nominal and real wages population of the Russian Federation in 2010 - 2016

Figure 24. The structure of the population of the Russian Federation by income level in 2016, in% of the total

Figure 25. Dynamics of nominal and real turnover retail in the RF in 2010 - 2016, billion rubles

Figure 26. Structure of retail trade turnover by type of product in 2010 - 2016, in value terms

Figure 27. Forecast of consumption of baby food in the Russian Federation in physical terms under the baseline scenario in 2017-2025.

Figure 28. Forecast of consumption of baby food in the Russian Federation in physical terms under the optimistic scenario in 2017-2025.

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Tables

Table 1. Key indicators in the baby food market in 2013 - 2016

Table 2. Classification of baby food according to OKPD

Table 3. Classification of baby food according to TN VED

Table 4. Volume and dynamics of the baby food market in 2013-2016 and forecast up to 2025 (within the baseline development scenario)

Table 5. Balance of production and consumption in the baby food market in 2013-2016. and forecast up to 2025

Table 6. Production of baby food in 2013-2016,

Table 7. The volume of production of baby food by type in 2013 -2016.

Table 8. Production of baby food by federal districts in 2013 - 2016

Table 9. Investment projects in the industry in 2017-2025

Table 10. Average prices of manufacturers of baby food in the Russian Federation in 2013 - 2016

Table 11. The volume of imports of baby food by country of origin in 2016, units. rev.

Table 12. Volume of imports of baby food by country of origin in 2016, thousand US dollars

Table 13. The volume of Russian exports of baby food by country of receipt in 2016, units. rev.

Table 14. Volume of Russian exports of baby food by country of receipt in 2016, thousand US dollars

Table 15. Dynamics of the resident population in 2010-2016, million people

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Issues

Baby food market 2016: The monthly dynamics of the production of homogenized baby food in 2015 did not have an unambiguous trend, and a slight increase in January-April 2016 does not give confidence that production will continue to grow. Discussions are currently underway to ease the food embargo on baby food production. According to Indexbox experts, these measures will bring revival to russian market baby food.

Russian enterprises have shown an unstable downward trend in baby food production over the past 12 months. According to the analysis, the production index compared to the previous month balanced near zero throughout 2015. The volume of production of baby food in April 2016 in physical terms decreased by 11% yoy.

The cumulative drop in production volumes in 2015 was 4% YoY. The decrease in the production of baby food was caused by a sharp jump in prices in this segment, on the one hand, and a decrease in the purchasing power of the population, on the other. IndexBox specialists note a significant drop in demand from the population: real incomes for 9 months of 2015 decreased by 3.3% y / y, there is a transition to a saving consumption model.

Dynamics of baby food production in Russia

The dynamics of the production of baby food in physical terms until 2015 was characterized by an increase, and starting from 2015 - a decline. In 2016, there has been a slight increase so far.

The volume of production of baby food in Russia

Among the most important enterprises branches can be distinguished: JSC "SADY PRIDONYA" from the Volgograd region, JSC "PROGRESS" and LLC "LEBEDYANSKY" from Lipetsk region, JSC "DP" ISTRA-NUTRITSIYA "and LLC" PLATINUM ABSOLUT "from the Moscow region. As well as JSC" INFAPRIM "from Moscow and LLC" IVANOVSKY FACTORY OF CHILDREN'S FOOD ".

Baby food market in Russia 2016: geography of production

The largest production volume among all federal districts falls on the Southern Federal District: in 1 sq. In 2016, 210 mln. Conv. Were produced there. ban. baby food, accounting for 79.3% of the total. The Central Federal District is in second place with a share of 20.3%; the North-Western Federal District demonstrates a very small volume of production with a share of 0.5%. Together, these federal districts account for 100% of the Russian production volume. The stable distribution of shares in the total production volume shows the even intra-annual capacity utilization in all federal districts.

Currently in agriculture and dependent industries, there is a tendency for domestic prices to rise. This is due to both the restriction of imports and the rise in the cost of material and technical resources and borrowed funds. For example, the producer price index of food products in January - December 2015 compared to the corresponding period of 2014 amounted to 119.6%. In the context of falling incomes of the population, manufacturers have to reduce the cost of production by using cheap, lower quality raw materials. At the same time, it should be borne in mind that the basic demand for baby food as one of the many products of the industry is most dependent not on economic shocks, but on fertility rates. During a crisis, enterprises could use this product to stabilize their sales.