The baby food market - Italy

1.1 Definition and scope of the study

The baby food market includes all food products for infants and children. The market is structured around two main segments:

• powdered milk for infants
• diet diversification (the gradual introduction of solid foods other than milk, usually between the fourth and sixth month of life)

The main issues in this market are nutritional and health issues, both in terms of marketing and regulation.

The global market is dominated by sales in China and the United States, two particularly promising regions. Italy ranks only 11th in the industry's 2018 revenue ranking. In fact, sales are declining in the domestic market and this is a direct consequence of the plummeting birth rate. The baby food market in Italy is mainly controlled by the two giants Danone and Nestle, which account for about 80 percent of the overall market.

However, there are also players with a more local dimension trying to exist despite the weight of the industry champions. As for private brands, they remain on the margins to the extent that the brand plays a key role in inspiring consumer trust and confidence. Market characteristics depend largely on geographical and cultural circumstances. The birth rate or the practice of breastfeeding varies in different regions of Italy. For example, women breastfeed more in the northeast of the country than in the south. In recent years, the industry has faced the return of breastfeeding and the increasing substitution of industrial products with "homemade" products. Brands are responding by developing new ranges, particularly organic ones.