According to research, only 19% of mothers after the birth of a child use exclusively ready-made milk formulas to feed their babies, about 50% prefer mixed feeding. Gradus experts conducted a study of the sales market for baby milk formulas using the Gradus Retail Index algorithms. As in other product segments, prices for milk formulas showed growth, and buyers naturally switched to more budget-friendly products.
The subsegment of the baby food market - the market for infant milk formulas (IMF) includes special mixtures that replace breast milk and are intended primarily for children under one year of age. In Russia, it is the second largest in terms of sales in ruble terms in the baby food market after the fruit puree category. The share of the milk formula subsegment in the first half of 2024 accounted for 19.4% of the total baby food market. Breast milk substitutes and other infant formulas mainly contain skim milk powder, whey and milk protein concentrate, which can make up 49-69% of the product, since they provide the maximum protein value of the product, as well as demineralized whey, lactose and other components.
The main trends in the infant formula market in Russia and in the world as a whole include:
Growth in demand for IMF, whose composition is not inferior to that of breast milk
Growth in requirements for the environmental friendliness of breast milk substitutes
Changes in the composition of mixtures towards reducing allergenic components
Improvement of packaging and storage technologies for infant formulas
Increase in the safety level of products by infant formula manufacturers
Development of e-commerce and mobile applications for home delivery of baby food.
The largest Russian retail chains offer more than two dozen brands of infant formulas from more than 20 manufacturers from 14 countries. A significant share of sales of breast milk substitutes in Russia for many years came from Russian branches of foreign companies and imported products, but in the last two years the market share of Russian manufacturers has begun to grow.
According to Gradus Retail Index, sales in the infant formula segment showed growth in both monetary and physical terms (+12% in pieces, +14% in kilograms, +25% in rubles), while the average price per package of formula increased by 11%. The average price of a can of formula is about 650 rubles, formulas in the budget segment can be purchased for a price of 200 to 300 rubles, the upper price segment starts from a thousand rubles per unit of goods. In the first half of 2024, 95% of sales of formula in pieces and 94% of sales of this product in rubles were accounted for by only six brands. The largest share of sales of formula in the first half of 2024 (31%) in pieces was accounted for by the NESTOGEN brand from the Swiss corporation Nestle SA. In second place with a share of 19% of sales is the NAN brand, also owned by Nestle SA. Third in sales is the Nutrilon brand, owned by Nutricia, and fourth place is occupied by the domestic brand "Malutka", known since the times of the USSR and having fed more than one generation, with a share of 14% of the market. In annual terms, the share of NESTOGEN in the first half of 2024 increased by a percentage point, the share of the NAN brand increased by 2%, the share of Nutrilon, on the contrary, decreased by 2%, and the share of "Malutka" decreased by 3%. A significant share of the market is also occupied by the Nutrilak (10%) and Mamelle (5%) brands. The share of the Nutrilak brand in the first half of the current year compared to the same period in 2023 increased by 6% at once, while the share of the Mamelle brand did not change.
The top 3 brands by market share showed positive sales dynamics with an average price increase of +15%, according to Gradus Retail Index. The leader in growth was the NAN brand, which demonstrated growth of +28% in pieces and +45% in rubles, while Nestogen and Nutrilon showed a more modest increase of +13% in pieces/+15% in rubles and +3% in pieces/+10% in rubles, respectively. Nutrilak also showed significant dynamics, with sales growing more than twofold (+145% in pieces, +151% in kilograms and +126% in rubles). Such indicators are due to the fact that prices for the brand's products increased insignificantly - only +2%. The leader in decline was the Similac product, which showed negative figures (-85% in pieces, -78% in kilograms and -84% in rubles), which turned out to be natural against the background of a record price increase of +46%. These data can be explained by the fact that the Russian consumer reacts sharply to price changes, but at the same time still trusts Western brands, for example, with a slight increase in price (+6%) for the products of the familiar "Malutka", the sales figures of the brand ended up in the red zone.
The Belarusian trademark "Bellakt" showed unusual dynamics, sales of which in the first half of 2024 increased by 505 times in pieces and by 325 times in ruble terms, which was due to the very low sales volume of the same period in 2023 and a 36% price decrease against the backdrop of rising inflation in Russia, as well as an increased presence of the Belarusian brand's products on the Russian shelf. For the further development of the infant formula market in Russia, it is necessary to resolve the issue of domestic production of all components for this essential product for baby food. Accordingly, the growth rate of the milk formula market may remain high over the next few years, but much will depend on the general demographic situation in the country.
