The birth rate in the U.K. has been on a steady decline over the past ten years, falling from 12.76 births per 1000 people in 2000, to 10.65 in 2009. Following a surge to 12.34 in 2010, as of mid-2011 it had resumed a decline, falling slightly to 12.29 (CIA World Factbook, cited by IndexMundi).
Even with this falling birth rate, the baby food and milk market continues to grow, increasing by 10.6%, in value terms between 2008 and 2009, and 9.9% between 2009 and 2010. The baby food sector as a whole has actually enjoyed steady growth since 2005, and is forecast to be worth over US$1.16 billion by 2015, which would mark an increase of 79% from the market size in 2005.
Increased levels of innovation led by smaller premium players have provided healthy competition in the baby food industry, and forced the big multinational companies to revamp their product offerings.
Changing lifestyles, associated with the growing number of women working outside the home and choosing to start a family later in life, are also amongst the factors contributing to how this market is characterized. A number of findings from a recent Mintel report confirm widespread consumer acceptance, from a very early age, of integrating careers and parenthood (compared to the once-prevailing trend of stay-at-home mothers). Product demands and purchase preferences are in line with maintaining such a lifestyle balance. For example, U.K. consumers have an increasing ability and willingness to pay for high-quality products, some of which are sold at a premium.
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 | 2011-12 |
|---|---|---|---|---|---|
| 3.8 | 4.5 | 12.3 | 10.6 | 9.9 | 3.9 |
Source: Euromonitor, 2011.
