"The Baby Food Sector in the Czech Republic 2018", is an analytical report by GlobalData which provides extensive and highly detailed current and future market trends in the Czech Republic market.
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Nutricia AS (Danone)
Hipp Czech SRO
Hero Czech SRO
Nestlé ?esko SRO
Hamé AS (Orkla)
The baby food sector has performed relatively well, particularly over the last two or three years, boosted by higher birth numbers, a better economy and a decrease in VAT. The country continues to produce a significant quantity of baby food as consumers have positive attitude to industrially prepared baby food.
The Czech market is accustomed to fruit-based baby meals, but savory lines, especially meat-based varieties, are more recent innovations, which have grown strongly in popularity in recent years.
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Health concerns have led to higher sales of organic food. In 2015, sales of organic foods rose by 11.4% baby food are one of the most purchased types of organic food.
It is expected that the market for baby food will rise by 4.8% over the next six years, with volume growth expected in all the sectors.
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- Baby Food sector demand increased with reduction in VAT level in January 2015, the impact of manufacturer price increases negated much of the benefit. All sectors saw stable prices in 2016, apart from meals.
- Milks accounts for 39.7% of retail sales. In terms of volume, wet meals and juices are more dominant, claiming 61.4% of consumption in 2016, compared with 24.8% for milks (dried weight).
- Imports of baby food have increased slightly overall, and in 2016 stood at 12,028 tons. The majority, 71% of imports comprise cereals and milks.
- Exports are considerably higher than imports, and in 2016 stood at 29,809 tons. Exports are dominated by meat and sweet meals.
- Danone leads in all three of the main categories. The only other two companies of significance are Nestlé and Hamé, which from early 2016 has been owned by Orkla.
- Supermarkets/hypermarkets now control the largest share of volume sales, at 70.3% in 2016, ahead of pharmacies and drugstores with 20.7%, while the share of other grocery outlets has now slipped to under 10%. Internet shopping is beginning to be a feature of the Czech market.
- The highest growth rate will be seen in the milks sector, with breastfeeding rates unlikely to pick up significantly in the near future.
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- Investigates which categories are performing the best and how this is changing market dynamics.
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