INDUSTRY TRENDS IN INFANT FEEDING
MARÍA MASCARAQUE
Associate - Health and Wellness Research
© Euromonitor International
2
Euromonitor International: Strategic global market research
ABOUT EUROMONITOR INTERNATIONAL
IMPACT OF CONSUMER TRENDS ON MILK
FORMULA SALES
GLOBAL MARKET INSIGHT
FUTURE OUTLOOK
US$46
billion GLOBAL SALES OF MILK FORMULA (2016)
40%GROWTH (2011-2016)
US$13
billion ABSOLUTE GROWTH (2011/2016)
© Euromonitor International
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Working mothers drive milk formula sales
IMPACT OF CONSUMER TRENDS ON MILK FORMULA SALES
Negative impact on milk formula
Increasing employed female population
Short length of maternity leave
Permissive advertising regulations
Increasing breastfeeding rates
Decreasing birth rates
Positive impact on milk formula
© Euromonitor International
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0
5
10
15
20
25
30
35
2010 2011 2012 2013 2014 2015
Reta
il v
alu
e (
US
$ b
illio
n),
co
nsta
nt,
fix
ed
2016 e
xch
an
ge
rate
HW Milk Formula Sales in Developed Countries vs Emerging Countrie 2011-
2016
Emerging and Developing Countries
Developed Countries
Birth rates much higher in developing countries
IMPACT OF CONSUMER TRENDS ON MILK FORMULA SALES
0
5
10
15
20
25
2010 2011 2012 2013 2014 2015
Bir
ths p
er
1,0
00 p
op
ula
tio
n
Birth Rates in Developed Countries vs Emerging Countries 2010-2015
Emerging and Developing Countries
Developed Countries
© Euromonitor International
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Massive discrepancy in breastfeeding rates between countries
IMPACT OF CONSUMER TRENDS ON MILK FORMULA SALES
0
10
20
30
40
50
60
70
80
90
100
% e
xclu
siv
e b
reastf
eed
ing
<6 m
on
ths
Breastfeeding rates: top and bottom countries (2015)
© Euromonitor International
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Weak advertising legislation key advantage for milk formula sales
IMPACT OF CONSUMER TRENDS ON MILK FORMULA SALES
No legal measures
US
Japan
Thailand
Few provisions in law
China
EU
South Korea
Many provisions in law
Mexico
Saudi Arabia
Indonesia
Full provisions in law
Brazil
India
Vietnam
International Code of Marketing of Breast Milk Substitutes
© Euromonitor International
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The increase of working mothers make milk formula more desirable
IMPACT OF CONSUMER TRENDS ON MILK FORMULA SALES
440
460
480
500
520
540
560
580
2010 2011 2012 2013 2014 2015
Millio
n
Head of Household (Female) 2010-2015
1.08
1.10
1.12
1.14
1.16
1.18
1.20
1.22
2010 2011 2012 2013 2014 2015
Billio
n
Global Employed Female Population 2010-2015
© Euromonitor International
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Long maternity leave: An advantage to breastfeed?
IMPACT OF CONSUMER TRENDS ON MILK FORMULA SALES
0
10
20
30
40
50
60
Weeks
Length of maternity leave: top and bottom countries (2015)
IMPACT OF CONSUMER TRENDS ON MILK
FORMULA SALES
GLOBAL MARKET INSIGHT
FUTURE OUTLOOK
© Euromonitor International
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FF milk formula accounts for the majority of milk formula sales
GLOBAL MARKET INSIGHT
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 2015 2016
Reta
il v
alu
e (
US
$ b
illio
n),
co
nsta
nt,
fix
ed
2016
exch
an
ge r
ate
Global Milk Formula Market 2011-2016
Organic Milk Formula
Special Baby MilkFormula
FF Milk Formula
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China alone accounts for 41% of milk formula sales in 2016
GLOBAL MARKET INSIGHT
83 mn children aged 0-4 Exclusive breastfeeding rate (<6 months) 28%
US$19 bn
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Best performance coming from toddler milk formula
GLOBAL MARKET INSIGHT
0
4
8
12
16
20
2011/2 2012/3 2013/4 2014/5 2015/6
% y
-o-y
gro
wth
Milk Formula Value Growth by Type 2011-2016
Standard Milk Formula
Follow-on Milk Formula
Toddler Milk Formula
0% 20% 40% 60% 80% 100%
Asia Pacific
Australasia
Eastern Europe
Latin America
MEA
North America
Western Europe
Regional Breakdown of Milk Formula Value Sales by Type 2016
Standard Milk Formula Follow-on Milk Formula
Toddler Milk Formula
© Euromonitor International
15
0
5
10
15
20
25
Reta
il v
alu
e (
US
$ b
illio
n),
co
nsta
nt,
fix
ed
2016
exch
an
ge r
ate
Sales of Milk Formula by Key Functional Ingredient Advertised in the Label 2016
Nutritional science as a driver of innovation
GLOBAL MARKET INSIGHT
© Euromonitor International
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Convenience key for working mothers
GLOBAL MARKET INSIGHT
• Handy pack sizes for "ready to drink"
Puleva Peques 3
(Lactalis, Spain)
• Individually-packaged liquid milk formula
Haihai Stick Pack
(Wakodo, Japan)
• Solid milk formula cubesMeiji Hohoemi cube
(Meiji, Japan)
IMPACT OF CONSUMER TRENDS ON MILK
FORMULA SALES
GLOBAL MARKET INSIGHT
FUTURE OUTLOOK
© Euromonitor International
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0
10,000
20,000
30,000
40,000
50,000
60,000
2016 2017 2018 2019 2020 2021
Reta
il v
alu
e (
US
$ m
illio
n),
co
nsta
nt,
fix
ed
2016
exch
an
ge r
ate
Milk Formula Performance in Developed Countries vs Emerging Countries 2016-2021
Developed countries
Emerging anddeveloping countries
Growth mainly coming from emerging countries
FUTURE OUTLOOK
© Euromonitor International
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Mimicking breast milk key to fuel milk formula sales
FUTURE OUTLOOK
0
20
40
60
2016 2017 2018 2019 2020 2021
Reta
il v
alu
e (
US
$ m
illio
n),
co
nsta
nt,
fix
ed
2016
exch
an
ge r
ate
Global HW Milk Formula Sales by Type 2016-2021
Organic Milk Formula Special Baby Milk Formula FF Milk Formula
© Euromonitor International
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China will continue leading growth within milk formula
FUTURE OUTLOOK
The end of the “one-child policy”
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Move towards premiumisation in emerging markets
FUTURE OUTLOOK
0
2
4
6
8
10
12
14
16
18
20
2016 2017 2018 2019 2020 2021
Un
it p
rice (
US
$/k
g),
co
nsta
nt,
fix
ed
2016
exch
an
ge r
ate
Milk Formula Unit Price 2016-2021
Growth: 4%
Biostime SN-2PLUSWyeth S-26 Progress Ultima TM3
Illuma 3
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National policies to further fuel breastfeeding
FUTURE OUTLOOK
WHO
Exclusive breastfeeding up to six months of age
Policies strengthened to promote breastfeeding
Objective by 2025
Increase exclusive breastfeeding in the first six
months to at least 50%
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Toddler milk formula outperforms in saturated developed markets
FUTURE OUTLOOK
34.2%
5.4%7.3%
0
5
10
15
20
25
30
35
40
Toddler milk formula Follow-on milk formula Standard Milk Formula
% g
row
th 2
016-2
021,
co
nsta
nt,
fix
ed
2016 e
xch
an
ge
rate
Milk Formula in Developed Countries 2016-2021
© Euromonitor International
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Key recommendations for milk formula manufacturers
FUTURE OUTLOOK
Invest in nutritional science as a driver of innovation to get milk formula as close as possible to breast milk
Improve the convenience of packaging brings a key competitive advantage to manufacturers
Attempting to establish stronger and premium brand images in emerging markets
Focus on toddler milk formula in saturated developed markets
THANK YOU FOR LISTENING
Q&A
María Mascaraque
Associate - Health and Wellness Research
@MascaraqueMaria
https://uk.linkedin.com/in/mariamascaraque
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