The Baby Food Market is Extremely Consolidated across Asia with the top 3 players accounting for anywhere between 60% to almost 90% of the market. Over a decade, the share of the top 3 has remained stable.
In India, the category is highly consolidated, at present, with Nestle accounting for over 75% of the category, according to Euromonitor, 2011. Given that India is media dark for baby foods and the product per se cannot be advertised, we don’t see Nestle’s share eroding in the next 5 years.
But over the next decade, we do see other MNCs increasing their presence as they build up scale in the chemist channel, leverage their strengths in doctor detailing and also creating products for the Indian consumer. For example, players like Abbott are gradually getting more aggressive – Abbott opened its R&D center in a tie-up with Biocon to develop products for the Indian palette. Danone acquired Wockhardt’s infant nutrition business, giving it a presence in India.