Baby Food Gaining Momentum in the Czech Republic
Baby Food in the Czech Republic has been gaining interest, specifically in prepared baby food, organic baby food, and powdered baby milk. Parent’s interest in prepared baby food in plastic pouches remains as well as their willingness to pay for premium quality. Therefore, prepared baby food remains the best performer and has a current retail value growth of 9%. Organic baby food (organic prepared food and organic other baby food) continued to have a strong interest among Czech families, with retail value sales increased by 12% in 2017. Powdered milk formula continued to prevail within milk formula. There were few liquid growing-up milk formula products available, with Nestlé Junior the most visible brand. Compared to powder variants, liquid variants lacked promotional support to boost sales and awareness about these products. Nevertheless, liquid growing-up milk formula registered retail volume growth of 1% in 2017.
Health and beauty specialists and hypermarkets remained the most important distribution channels for baby food in 2017 with retail value shares of 36% and 35% respectively. Health and beauty specialists (pharmacies and drugstores) and hypermarkets compete for consumers with frequent price promotions and loyalty baby programmes. Drugstore chains kept consumer loyalty due to their wide offer of good quality private label products in both standard and organic quality at attractive prices
Although Nutricia remains the leader and accounts for 31% of retail value sales, Alnatura Produktions- & Handels GmbH registered the strongest current retail value growth of 19% in 2016. Interest in organic Alnatura baby food line strengthened among local families thanks to the good quality, wide product range and reasonable price. However, the company’s registered current retail value growth of only 1% in 2017 distribution through the drugstore chain dm-Drogerie Markt. Major companies are anticipated to broaden the range of products offered in more convenient packages, as demand for products packed in practical and easy-to-use packaging will develop more significantly over the forecast period. The unstable birth rate will put more emphasis on innovative efforts and clever promotions. Milk formula and prepared baby food groups are expected to offer the most important scope for innovation.