Europe Baby Drinks Market: Snapshot
The Europe baby drinks market is anticipated to display a steady growth in the upcoming years on account of several favorable factors. Amongst a few, the increasing acceptance of formula milk as a substitute to breast milk is one of the key factors stoking growth of Europe baby drinks market. Infant formula contains vital nutrients that are needed for baby’s growth, because of which it is either complemented or sometimes substituted with breast milk. Water is added to dry milk to be fed to babies.
Along with this, the availability of a number of products, an increasing number of women in the workforce, and active marketing by baby drinks manufacturers are aiding the growth of Europe baby drinks market.
On the flip side, high sugar content in baby drinks that may have a negative impact on baby’s heath, is proving to be a deterrent to the market’s growth.
As per a report by Transparency Market Research, the Europe baby drinks market is expected to rise at a CAGR of 3.5% for the forecast period between 2015 and 2021vis-à-vis revenue. At this rate, the market will become worth US$20,402.9 mn by the end of 2021 increasing from US$15,930.9 mn in 2014. In terms of volume, the Europe baby drinks market is expected to increase at a CAGR of 3.2% for the period between 2015 and 2021. Progressing at this rate, the market will increase from 1953 kg million in 2014 to 2439.6 million by the end of 2021.
Rising Acceptance to be close to Breast Milk Makes Infant Formula Leading Segment
On the basis of product, the Europe baby drinks market is segmented into infant formula and baby juice in this report. The segment of infant formula held the leading share of the market in 2014 in terms of revenue. Infant formula is considered to be close to breast milk containing vital nutrients needed for baby’s growth. This, along with recommendations from pediatricians will account for the infant formula product segment to hold on to its dominant position in the years ahead too.
The baby juice segment is further sub-segmented into baby juice and concentrated baby juice. The growth of this segment is mainly because of an increasing demand for ready-to-drink baby juices. However, factors such as high sugar content in baby juices that make them less preferred among parents and weak distribution channels of baby juices are some of the restraints of the product segment.
Large Number of Women in Workforce Makes France Leader
The Europe baby drinks market is studied across the U.K., Spain, France, Germany, Italy, Sweden, and Rest of the Europe in this report. In 2014, France led with 18.50% of the overall market on the basis of revenue. This is mainly because of both partners in the workforce, favorable government policies, and increasing acceptance of infant formula to be the best substitute for breast milk. The U.K. stood as the second close accounting for 16.30% of the market in the same year.
In the coming years, the U.K. and Spain are expected to contribute substantially to the Europe baby drinks market. This is because introduction of baby drinks that are close to all-natural products is driving their sales. Parents are ready to pay premium prices for improved quality products, as the quality significantly influence purchase decisions.
Leading players in the Europe baby drinks market include Nestle SA, H.J. Heinz Company, Danone, Hipp GmbH & Co., Mead Johnson Nutrition Company, and Vertrieb KG.
Baby drinks consists of infant formula and baby juice. Baby juice refers to all types of natural fruit juices specially prepared for babies up to three years of age. Heinz All Ages and Gerber Ready-To-Drink Pear Juice are some of the major baby juice products. Infant formula is prepared from dried milk. Water is added into the dry milk for rehydration purpose. Infant formula contains all the vital nutrients and is a perfect complement of breast milk.
Baby drinks market in Europe is estimated to be affected by various patterns of demand in the different countries of Europe. Changes in lifestyle and high nutrition content of infant formula are the main reasons for consumer preference towards infant formula. In addition to that, increase in number of working mothers have increased the demand for infant formula as they do not have enough time to breast feed their babies. Major factors responsible for the growth of infant formula includes busy lifestyles, high nutrition content and infant formula as a substitute for breast milk in the major countries of Europe. Major countries include U.K, France, Germany, Italy, Sweden and Spain among others. The distribution channel of baby juice is not so well established as infant formula with low penetration rate. Moreover high sugar content of baby juice makes it a less preferable option.
New product portfolio and increasing health consciousness among parents coupled with rigorous promotions by baby drinks manufacturers are the key drivers propelling to the growth of the baby drink market in Europe. Infant formula is the most popular category of baby drink among different kinds of baby drinks, as it is a well established substitute of breast milk and parents are becoming more conscious about the health of their babies and nutrition content of baby drinks.
Baby drink market in Europe is segmented by product type into infant formula and baby juice. Baby juice market is further segmented into ready to drink baby juice and concentrated baby juice. The market for ready to drink baby juice is larger than concentrated baby juice market due to no preparation time involved in it. Infant formula dominated the baby drink market in 2014 and this trend is expected to continue throughout the forecast period of 2015 to 2021. Understanding of volume (Kg million) and value (USD million) of baby drinks is provided in the report. The study also provides forecast from 2015-2021 and highlights current and future market trends. Analysis of distribution channel and brand shares of baby drinks in Spain, U.K, France, Germany, Italy, Sweden and Rest of Europe is also provided in the report.
Geography wise, the market has been segmented into Spain, U.K, France, Germany, Italy, Sweden and Rest of Europe. Sweden is expected to experience the highest growth rate over the forecast period. Branded baby drinks and high nutrition content of infant formula is expected to drive the baby drink market in Sweden as the parents are eager to provide a well balanced diet to their babies. Moreover, lifestyle changes and increase in number of women who are working is also estimated to drive the demand for baby drinks.
Breast milk alone is not sufficient for providing all the nutrition requirement of growing babies. Hence, baby drinks serves as perfect complement of breast milk. This factor is expected to propel the demand for baby drinks as all the vital nutrients essential for the growth of babies is included in it. In addition to that, the company market share analysis of major players and suppliers in these regions are included in the report. Moreover, baby drinks type in Spain, U.K, France, Germany, Italy, Sweden and Rest of Europe are covered in the report.
Leading players included in the report are Mead Johnson Nutrition Company, HiPP GmbH & Co, Nestle S.A., Danone and H.J. Heinz Company among others. Baby drinks in Europe is mainly distributed through convenience stores hypermarkets, pharmacies and supermarkets.