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The Baby Food Sector In Brazil Makes An Improving Business Turn Of 35% Retail Sales
The fall in the number of births accelerated in 2016, due to the effects of the Zika virus, although numbers have increased slightly since. Per capita consumption levels remain relatively low, with demand hampered by high poverty levels (exacerbated by the recent economic situation) and competition from family foods. In terms of value, milks are the most important category, accounting for 57% of retail sales in 2018, well ahead of cereals (35%) and wet meals (8%). In volume terms both milks and meals increased, but consumption of cereals has declined. Unit prices have fallen in real terms, as manufacturers have attempted to boost sales. With the opening of Danones baby milk factory in 2016, local production is expected to play a greater role. Nestl already produces a significant proportion of its products locally. It is the clear leader in every category, with an enormous margin over its competitors, of whom Danone is the only one eating into Nestls lead. The expected fall in the number of births will counteract to some extent the effects of an improving economy. The value of the total sector is forecast to rise by 52% between 2018 and 2024, bringing total retail sales to R$5.3 billion. This will equate to volume sales of 95,575 tons, a level 16% higher than in 2019. Milks are expected to show more buoyant growth than cereals or meals.
What else does this report offer?
- Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry.
- Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors.
- Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands.
- Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel.
- Future projections considering various trends which are likely to affect the industry.
- Per capita levels remain relatively low, at 9.3 kg for all baby food; demand continues to be hampered by high poverty levels and competition from adult foods, which many mothers use to feed their babies.
- In terms of value, milks are the most important category, accounting for 57% of retail sales in 2018, well ahead of cereals (35%) and wet meals (8%).
- Since 2012, Baby food retail sales have risen by 38.5%, slightly below the rate of inflation, having been negatively affected by the economic situation.
- Exports of infant milk and cereals have been more or less stable, and in 2017 stood at 8,046 tons, equivalent to approximately US$26 million.
- E-commerce is growing, although online sales of baby food remain low, pharmacies account for the majority of baby milk sales, at over 50% in 2018.
Reasons to buy
- Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
- Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
- Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
- Investigates which categories are performing the best and how this is changing market dynamics.
Category: Food and Beverages
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