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Baby Food Packaging in the US

United States baby food packaging market: Volume decline forecast to 1.6 billion units by 2017


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2014-02-17 16:14:02 - Baby Food Packaging in the US - a new market research report on companiesandmarkets.com

Consumer confidence in the safety of infant formula took a knock in late 2011 following the death of two babies from Cronobacter bacteria in December of that year. The deaths led retailers including Wal-Mart to pull Enfamil Premium Newborn powdered infant formula from their shelves. Two other babies also became infected but recovered. On 30 December 2011 the US FDA (Food and Drug Administration) and CDC (Centers for Disease Control and Prevention) stated that they had found no trace of the Cronobacter bacteria in sealed cans of Enfamil formula and that a recall would not be necessary. Unsurprisingly, powder milk formula packaging registered 2% and 1% declines in 2011 and 2012, respectively.

Pouched prepared baby food almost entirely comes in aluminium/plastic

 

 

pouches, which was the fastest-growing baby food pack type in 2012 with a 92% increase in unit sales. The tremendous growth of the pack type in 2012 and in the review period as a whole was largely achieved via premium and organic brands, such as Plum Organics. Recently, however, leading baby food maker Gerber entered pouched baby food, signalling much larger packaging shifts toward aluminium/plastic pouches in the near future due to Gerbers large geographic distribution network.

Toddler milk formula is projected to continue driving packaging growth for milk formula in the forecast period, helping the category grow by a CAGR of 1%. Toddler milk formula sales are expected to grow as manufacturers introduce new products and convince parents that their children can receive a nutritional boost from toddler formula. Parents of many young children are concerned that their fussy eaters do not obtain enough nutrients during the day and are willing to buy products such as PediaSure to supplement their young childrens diets. This, in turn, will further help the growth of HDPE bottles, which are currently projected to grow by 36% over the forecast period.

Key Headlines

- Retail volume sales of baby food packaging decline by 4% in 2012 to 1.7 billion units
- Manufacturers turn to innovation to stimulate baby food sales, offering new products and packaging formats
- Liquid milk formula packaging unit volume sales increase by 1% in 2012, reversing recent declines
- Stand-up pouches experiences unit volume sales growth of 92% as prepared baby food makers opt for this format
- Baby food packaging will likely continue to decline in the forecast period, with a CAGR of -1% expected, falling to 1.6 billion units by 2017

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Author:
Mike King
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