Infant formula buying decisions are being heavily influenced by television and online advertising. Considering the rising awareness among consumers, leading baby food manufacturers are focusing on educating their consumers on the benefits of their products. Use of social media channels, such as Facebook and Twitter for brand positioning and consumer outreach is gaining traction among the leading companies.
While pharmacy stores remain the preferred buying channel, online sales are also gaining adoption. Online store revenues are expected to grow by 9.7% in 2017 over 2016 and reach nearly $690 mn in revenues. Supermarkets and specialty outlets remain the other key buying channels in the global infant formula market.
Leading players in the infant formula market, including Nestle, Danone, Abbott Nutrition, Heinz, and Mead Johnson will need to focus on broadening their product offerings to include more organic baby food products. Also, having a strong presence in the m-commerce segment can prove to be an effective strategy. Same-day delivery and discounts have proven to be an effective strategy for price-conscious consumers, especially in APEJ, and baby food brands can focus on this aspect to consolidate their position in this robustly growing market.
