International

Markets
Bureau
MARKET INDICATOR REPORT | MARCH 2012

Consumer Trends
Baby Food in Brazil

Source: Shutterstock.

Consumer Trends
Baby Food In Brazil

EXECUTIVE SUMMARY

INSIDE THIS ISSUE

Brazil is the largest country in South America with

203.4 million1 people. The countrys lower- to middle-class
population is growing steadily, while the poverty rate
continues to decline. Brazils strengthening economy
contracted slightly in 2009 due to the global economic
downtown but bounced back in 2010, recording its fastest
rate of annual growth in the past 25 years.

Executive Summary

Consumer and Market Trends

Market Segmentation

Competition

Babies and toddlers aged 0-4 years represent 7.5% of the

countrys total population (15.2 million2), and the Brazilian
baby food sector recorded sales of US$1.2 billion in 2010. In
the same year, Brazil imported US$13.7 million of baby
cereals, flour, starch and milk for retail sale.

Innovation

Contacts

Annex: Definitions

The largest category in the Brazilian baby food market is

dried food, which consists primarily of cereals and was
valued at US$607 million in 2010 (Euromonitor). Bottled
products also represent a significant portion of the market,
with sales of US$66 million in the same year (Datamonitor).
Bottled vegetable-based and bottled fruit-based segments
each recorded a compound annual growth rate (CAGR) of
over 6% from 2005 to 2010, with predictions that both will
grow by around 4% to 2015. This may reflect growing health
consciousness among Brazilian parents, following corporate
advertising campaigns promoting the importance of nutrition
for infants.
Innovation in the baby food industry focused primarily on
new packaging options in 2010, both in size and composition.
Of the 39 new baby food products launched on the Brazilian
market between October 2010 and September 2011, just 9
were completely new products, while new formulations and/or
new packaging accounted for the rest.

Source: Shutterstock.

Euromonitor is predicting that multinational players, who

continue to dominate the baby food industry in Brazil, will
focus on diversifying their product portfolios to better meet
the unique dietary needs of babies (and their conscientious
parents). Brazilians are having smaller families, allowing
them to focus even more on the nutritional quality of their
childrens food. Following such trends, milk formula sales are
expected to grow faster than other baby food categories in
the coming years, especially in formulations for babies under
one year of age.

As of July 2011. (CIA World Factbook, 2011.)

As of January 1, 2010. (Euromonitor, 2011.)

PAGE 2

CONSUMER AND MARKET TRENDS

The global baby food industry is increasingly reliant on emerging markets such as Brazil,
whose baby food market grew by 17% in 2010, to foster overall sales growth.
Per household spending on baby food in Brazil has been steadily climbing from US$12.50 in 2006 to
US$22.30 in 2010, reflecting both increased demand and rising prices.
The number of Brazilian women working outside of the home is growing, and while the total number of
households in the country is on the rise, most families are having fewer children. Combined, these factors
are resulting in higher disposable incomes and increasing time constraints, accelerating demand for baby
food products that are convenient and nutritious. Many parents are turning to packaged food options which
they perceive as healthy alternatives to breast milk, driving up sales of milk formula by 41% in 2010.
However, this trend is somewhat in conflict with the views of the Brazilian government, which passed a law
in 2006 restricting the advertising of baby food for children aged 3 years and under. The Brazilian
government recommends breastfeeding children in their first year of life to ensure optimal nutrition.
According to Euromonitor, the other baby food category, while a
small proportion of the total market, recorded the highest annual
growth rate from 2009 to 2010 in value terms at 197.5%, and is
expected to maintain the leading position until 2015 (see graph on
page 4). The milk formula, dried baby food and prepared baby food
categories grew by 55.4%, 12.5%, and 8.4%, respectively from
2009 to 2010.
Brazilian parents show an overwhelming preference for prepared
baby food in jars, as opposed to cans.
Organic baby food sales are negligible, as such products are not
presently sought by Brazilian parents.
Sales of baby snacks in Brazil are minimal, with no visible consumer preferences between the segmented
offerings of rusks, rice cakes, biscuits, or cereal bars.
Baby food is mainly distributed through supermarkets/hypermarkets, representing 80% of retail value sales
in 2009. Pharmacies and drugstores accounted for 14% of retail sales in the same year, followed by
independent retailers with a 3% share.
Brazilian Baby Food Market Historic/Forecast Retail Value US$ Millions Current Prices
Category

2006

2007

2008

2009

Baby Food

643.4

777.3

883.8

985.9 1,237.9 1,459.0 1,530.9 1,594.0 1,661.0 1,721.4

Dried Baby Food

375.9

464.7

525.3

539.9

607.2

676.3

674.9

673.1

664.2

651.2

Milk Formula

164.9

197.2

231.1

309.5

480.8

604.4

667.9

724.1

791.6

858.7

Prepared Baby
Food

102.6

115.4

127.1

135.5

146.9

173.3

181.2

188.1

194.8

199.7

0.3

1.0

2.9

5.0

6.9

8.7

10.4

11.8

Other Baby Food

2010

2011

2012

2013

2014

2015

Source: Euromonitor, 2011.

PAGE 3

CONSUMER AND MARKET TRENDS (continued)

Year-on-Year Growth (%) of the Brazilian Baby Food Market by
Category Historic and Forecast Based on Retail Value Sales
300.0
Dried Baby Food

% Growth

250.0

Milk Formula
Prepared Baby Food

200.0

Other Baby Food

150.0
100.0
50.0
0.0
2006-07

2007-08

2008-09

2009-10

2010-11

Year

2011-12

2012-13

2013-14

2014-15

Forecast Period

Source: Euromonitor, 2011.

MARKET SEGMENTATION
The data in this section was derived from Datamonitor, which uses a different categorization system, separating
baby food from baby drinks. Datamonitor figures are used here to provide a more detailed analysis of the baby
food market, however, the total market value will appear slightly different from the Euromonitor table on the
previous page, due to the way the information is collected.
Brazilian Baby Food and Baby Drinks Sales Breakdown by Segment US$ Millions
Segment

2005

2006

2007

2008

2009

2010

Baby Food*
Baby Cereals
Cereal
Porridge
Bottled Baby Food
Vegetable Based
Fruit Based
Other
Others
Baby Fruit Pots
Baby Yogurts
Toddler Ready Meals
Baby Drinks
Infant Formula
Starting
Follow On
Special
Toddler
Baby Juice
Ready to Drink

408.7
356.6
253.5
103.2
48.7
20.4
18.9
9.4
3.4
2.2
0.8
0.4
264.5
263.3
105.2
82.7
55.2
20.2
1.2
1.2

452.0
396.3
282.6
113.7
52.2
21.9
20.3
10.1
3.4
2.2
0.8
0.5
283.2
281.9
111.9
89.6
59.2
21.2
1.3
1.3

495.3
436.2
312.5
123.7
55.6
23.4
21.6
10.7
3.5
2.2
0.8
0.5
303.7
302.4
120.4
95.8
64
22.1
1.3
1.3

537.2
474.8
341
133.7
58.9
24.8
22.8
11.2
3.6
2.3
0.8
0.5
323.4
322
127.8
103.5
67.5
23.2
1.4
1.4

577.2
511.3
367.7
143.5
62.3
26.3
24.1
11.9
3.6
2.3
0.8
0.5
342.9
341.5
135.6
110.5
71.1
24.3
1.4
1.4

616.3
547.0
394.0
153.0
65.6
27.7
25.4
12.5
3.7
2.4
0.8
0.5
362.8
361.3
143.6
117.5
74.9
25.4
1.5
1.5

CAGR**
2005-2010
8.6%
8.9%
9.2%
8.2%
6.1%
6.3%
6.1%
5.9%
1.7%
1.8%
0.0%
4.6%
6.5%
6.5%
6.4%
7.3%
6.3%
4.7%
4.6%
4.6%

Source: Datamonitor, 2011.

*The baby food market also consists of Canned Baby Food and Baby Snacks, which both have inconsequential sales data for this period.
**CAGR: Compound annual growth rate.
PAGE 4

MARKET SEGMENTATION (continued)

Forecast Brazilian Baby Food and Baby Drink Sales Breakdown by Segment US$ Millions
Segment

2011

2012

2013

2014

2015

Baby Food*
Baby Cereals
Cereal
Porridge
Bottled Baby Food
Vegetable Based
Fruit Based
Other
Others
Baby Fruit Pots
Baby Yogurts
Toddler Ready Meals
Baby Drinks
Infant Formula
Starting
Follow On
Special
Toddler
Baby Juice
Ready to Drink

655.6
583.0
420.8
162.2
68.8
29.1
26.6
13.1
3.8
2.4
0.9
0.5
764.4
761.3
302.5
248.6
157.4
52.9
3.1
3.1

694
618.3
446.9
171.4
71.8
30.4
27.7
13.6
3.8
2.5
0.9
0.5
804.7
801.5
318.4
262.5
165.5
55.1
3.2
3.2

731.4
652.9
473
180
74.6
31.6
28.8
14.2
3.9
2.5
0.9
0.5
844.9
841.7
334.3
276.4
173.5
57.4
3.3
3.3

766.8
685.6
497.4
188.2
77.2
32.8
29.8
14.6
4.0
2.5
0.9
0.5
885.3
881.9
350.2
290.3
181.6
59.8
3.4
3.4

804.4
720.2
523.3
197.0
80.2
34.1
30.9
15.2
4.0
2.6
0.9
0.5
925.5
922.0
366.1
304.2
189.7
62.1
3.5
3.5

CAGR**
2011-2015
5.3%
5.4%
5.6%
5.0%
3.9%
4.0%
3.8%
3.8%
1.3%
2.0%
0.0%
0.0%
4.9%
4.9%
4.9%
5.2%
4.8%
4.1%
3.1%
3.1%

Source: Datamonitor
*The baby food market also consists of Canned Baby Food and Baby Snacks, which both have inconsequential sales data for this period.
**CAGR: Compound annual growth rate.

COMPETITION
According to the Global Trade Atlas, Brazilian imports of cereals, flour, and starch or milk for infant use put
up for retail sale totalled US$13.7 million in 2010. This was an increase from the US$12.5 million recorded
in 2009.
The majority of imported products originated from Argentina, which accounted for US$11.6 million in 2010.
The Netherlands, Ireland, and the United States (U.S.) were the only other import sources in 2010, with
totals of US$1.6 million, US$0.9 million, and US$466.00, respectively.
In 2010, baby food unit prices ranged from US$7.12 for products from the Netherlands, to US$3.86 for
products from the U.S., with an overall average unit price of US$5.02. Interestingly, unit prices fell for
products from Argentina and the Netherlands from 2009 to 2010, but products sourced from the U.S.
increased in unit price by 40.7%.

PAGE 5

COMPETITION (continued)
Brazilian Baby Food Market Brand Shares (by Umbrella Brand Name) % Breakdown
Brand

Company name (GBO)

2006

2007

2008

2009

2010

Mucilon

Nestl SA

26.0

27.0

26.9

24.9

22.6

Nan

Nestl SA

9.9

9.8

9.8

11.8

13.9

Ninho

Nestl SA

9.1

9.1

9.4

10.6

13.9

Nestl
Farinha
Lctea

Nestl SA

17.2

18.0

16.8

15.2

13.2

Nestl

Nestl SA

16.0

14.9

14.4

13.7

11.9

Nestogen

Nestl SA

4.8

4.8

4.8

5.4

6.2

Aptamil

Danone, Groupe

0.9

1.2

1.7

2.2

Nutribom

Nutrimental SA Indstria e Comrcio

de Alimentos

2.3

2.0

1.8

1.6

Nutrilon

Nutrimental SA Indstria e Comrcio

de Alimentos

2.2

2.1

1.9

1.7

1.5

Arrozina

Unilever Group

1.2

Nutricia

Danone, Groupe

0.1

0.1

0.9

1.2

Cremogema

Unilever Group

1.1

Similac

Abbott Laboratories Inc

0.3

0.8

1.0

Maizena

Unilever Group

2.7

2.8

2.7

2.5

Nutriton

Nutrimental SA Indstria e Comrcio

de Alimentos

6.3

Aptamil

Royal Numico NV

1.0

Gerber

Novartis AG

0.7

Nutron

Nutrimental SA Indstria e Comrcio

de Alimentos

0.1

Mococa

Royal Numico NV

Nutrilon

Royal Numico NV

Nutriton

Royal Numico NV

Private label

Private Label

0.5

0.5

0.5

0.4

0.4

Others

Others

3.5

7.9

9.4

8.4

8.1

Source: Euromonitor, 2011.

PAGE 6

INNOVATION
There were 39 new baby food products launched in Brazil between October 2010 and
September 30th, 2011 according to the Mintel Global New Products Database (2011).
Nestl dominated the sector with 20 new product launches. Nutrimental had the second
highest number of product launches at 4, followed by Unilever, Abbott Labs,
Bristol-Myers, and Danone, who each launched 2 new products.
In regards to broader claim categories (which represent groupings of several
product-specific claims), convenience and ethical-environmental were the most popular,
with 17 and 16 products, respectively.
In regards to product-specific claims, gluten-free (25), low/no/reduced allergen (25), and
vitamin/mineral fortified (24) were the three most popular.

Overall, the most popular flavour of new baby food products (including blends) was
unflavoured/plain, found in 28 of the 39 launches.
Of the 39 new product launches, only 9 were completely new to the market. The
majority of the product launches reflected new packaging, a new variety, or a
new formulation.
New Baby Food Product Launches in Brazil, October 2010 to September 2011
Format
Type

Pack
Size

Package
Type

# of
Products

Baby Cereals

n/a

200g

Carton

Baby Cereals

n/a

200g

Flexible

Baby Cereals

n/a

230g

Flexible

Baby Cereals

n/a

400g

Can

Baby Cereals

n/a

400g

Tub

Baby Cereals

n/a

600g

Flexible

Baby Formula (for 0-6 months)

Powder

400g

Can

10

Baby Formula (for 0-6 months)

Powder

400g

Composite

Baby Formula (for 6-12 months)

Powder

400g

Can

Baby Formula (for 6-12 months)

Powder

400g

Composite

Baby Formula (for 6-12 months)

Powder

800g

Can

Baby Fruit Products, Desserts

and Yogurts

n/a

120g

Jar

Baby Juices & Drinks

n/a

190ml

Carton

Baby Savoury Meals and Dishes

n/a

115g

Jar

Baby Savoury Meals and Dishes

n/a

250g

Jar

Product Sub-Category

Total
Source: Mintel, 2011.

39

Source for all:

Mintel, 2011.

PAGE 7

CONTACTS
International Infant Food Manufacturers Association (IIFMA)
Association members include national and international companies, with operations in the
United States, Canada, Europe, Africa, the Middle East, Latin America and Asia.
IIFMA Headquarters, Chemin Louis Dunant 7-9, 1211 Geneve 20, Switzerland
Email: [email protected]

Jessy El-Choueiry
Senior Market Development Officer, Americas Division
Market and Industry Services Branch, Agriculture and Agri-Food Canada
Tel: 613-773-2085
Fax: 613-773-1616
Ottawa, Ontario
Email: [email protected]

ANNEX: DEFINITIONS
Baby Food : the aggregation of milk formula, prepared, dried, and other baby food.
Dried Baby Food : products which require the addition of water before consumption, and which are usually
sold in packets. Cereals and dehydrated soups are also included. Leading global brands include Nestl
(Nestl), Cerelac (Nestl), Gerber (Novartis), Mucilon (Nestl), Milupa (Royal Numico), Nestum (Nestl), Heinz
(Heinz), Quaker (PepsiCo), and Nutricia (Royal Numico).
Milk Formula : the aggregation of standard, follow-on, toddler and special milk formula. Note: Vlling, vaelling,
gruel or any milk formula products containing cereals/wheat/oat or the like are excluded from this category.
Prepared Baby Food : products sold in jars, cans or retort flexible pouches which do not require any cooking
preparation other than heating. This category includes pureed food, yogurts, chilled desserts, soups, desserts,
and ice cream marketed for babies. Leading global brands include Gerber (Novartis), Plasmon (Heinz), Bldina
(Danone), Hipp (Hipp GmbH & Co Vertrieb KG), Nestl (Nestl), Heinz (Heinz), Mellin (Royal Numico), and
Nipiol (Heinz).
Other Baby Food : any other products marketed for babies are included here, such as baby rusks, teething
biscuits, baby fruit juices, etc. Leading global brands include Gerber (Novartis), Plasmon (Heinz), Milupa
(Royal Numico), Hipp (Hipp GmbH & Co Vertrieb KG), Nestl (Nestl), and Alete (Nestl).

PAGE 8

The Government of Canada has prepared this report based on primary and
secondary sources of information. Although every effort has been made to
ensure that the information is accurate, Agriculture and Agri-Food Canada
assumes no liability for any actions taken based on the information
contained herein.

Consumer Trends: Baby Food in Brazil

Her Majesty the Queen in Right of Canada,
represented by the Minister of Agriculture and Agri-Food Canada (2012).
ISSN 1920-6615
AAFC No. 11710E
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the rights holders.
All images, unless otherwise noted, are copyright
Her Majesty the Queen in Right of Canada.
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please contact:
Agriculture and Agri-Food Canada
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E-mail: [email protected]
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