Mexico is a hub for the baby food market in the
South American region. It is the second largest market in South America for
baby food, after Brazil, with a worth estimated to be around a billion US
dollars. All this takes shape despite the fact that the country is witnessing
declining birth rates in recent years. According to the study, ‘The Baby Food
Sector In Mexico, 2018’, the baby food market has been growing
at a good pace despite contrary trends.
The main factors that are responsible for the current prosperous
growth of the industry are the increasing number of women joining the workforce
who tend to replace breastfeeding with milk formula at the end of a short
maternity leave. They also tend to start purchasing prepared and dried baby
food in order to save time. Maternity leave in Mexico is generally for twelve
weeks and this short period not only promotes prepared baby food but has also
been noted to negatively affect breastfeeding rates which, according to surveys
are already lower than the WHO standards.
Another observation that has been made is that Mexico is one of the
countries making the fastest progress against child malnutrition and Mexicans
have become especially aware of the importance of feeding their babies with
foods that can meet their nutrient requirements. This observation has been
backed by 2017 statistics too that reveal that almost all of the total baby
food retail sales are in the health and wellness category and the country ranks
first in the South American region for health and wellness baby food retail sales.
Parental concern fuels this sector. In terms of growth organic baby food and
particularly organically prepared baby food recently recorded the strongest
performance despite high unit price. Other types of health and wellness
products that have been developing are lactose free milk and hypo-allergenic
milk formula.
Milk formula is the most popular category among Mexican consumers,
despite all the efforts made by the authorities to promote breastfeeding,
consumer demand for milk formula is still on the rise as reflected by an
important increase in retail sales from 2013 to 2017. Retail sales of milk
formula are almost exclusively in powder form since only two companies offer
liquid milk formula in Mexico. The subcategory of special milk formula has
outperformed other subcategories under milk formula. Special baby milk formula
is designed to nourish babies with allergies, those who cannot digest standard
milk formula or to address specific conditions such as reflux or diarrhea. The
progress of this subcategory is being supported by an increasing number of
pediatricians who prescribe it not only as a treatment but also to prevent
certain conditions.
In Mexico the baby food sector is led by international companies while
domestic brands do not have a significant presence. Nestlé is clearly
dominating the market with more than half the total share in retail sales and
is outperforming its competitors in all categories evident by its control of
nine-tenth proportion of the dried baby food sector and prepared baby food
sector among others. It has recently launched innovative product designs that
explain its position as the leader. Such products include the Apple and
Strawberry Flavored Cereal which is enriched with six vitamins and minerals in
addition to Sodium Free Purified Water for Babies which has a balanced content
of minerals whilst being light on a baby’s stomach and are Kosher certified.
The Mexican birth rate is expected to fall further in coming years but
the baby food market is expected to grow. To encourage breastfeeding the
government has taken steps such as the regulation of promotion of milk formula
which continues to remain the baby food product type with the biggest market. Under
it, special baby milk formula has and is further expected to show considerable
growth. The health and wellness baby food market has been expanding and thus,
many brands are enhancing the nutritional content of their products by adding
vitamins and minerals.
For more information on the research report, refer to
below link:-
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