Clean labels, convenience drive baby food

The baby products category has long been under pressure from online players, but grocery
retailers are seeking to compete by offering convenient services of their own, price promotions that encourage larger purchases, and on-trend products that appeal to today’s consumers.

Grocery industry leaders report that baby food remains at the forefront of the clean-label trend, as new parents increasingly shun unnecessary additives and potentially harmful ingredients.

“We’re seeing shoppers request and turn to more organic, whole-grain baby food items with no added ingredients, such as steroids, hormones, antibiotics or GMOs,” said Jasmin Ruiz, associate category manager at KeHE Distributors.

At Downers Grove, Ill.-based Fresh Thyme Market, plant-based, wholesome, and clean-ingredient baby foods have been trending, said Bianca Thompson, associate category manager, general merchandise and consumables.

“With the recent pandemic and lifestyle changes, trends in buying have certainly changed,” she said.

For example, Thompson said more parents are making their own baby foods at home.

“Moms have dialed in on health and wellness more now than ever,” she said.

Karla Goris, category merchant at FreshDirect, the New York-based online grocery division of Ahold Delhaize, said
FreshDirect shoppers tend to be more engaged with organics across all center store categories, and that is especially true in the baby category. In addition,
consumers have also shown increasing interest in baby foods with unique
ingredients and added nutritional value, such as added proteins and ancient grains. Consumers also have become more interested in perishable baby foods, she said.

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“I think many people still think of baby food as a shelf stable product,” said Goris. “Following trending innovation, we’re seeing exciting growth in refrigerated baby food and frozen baby food, despite the fact that the latter is still a very small segment.”

Ruiz of KeHE noted that while the 

overall trend toward plant-based eating is having some impact on the baby food and beverage category, most plant-based products in this space do not fully eliminate meat.

“With these products, we are seeing an increase in items that primarily point out the added plant-based benefits and follow it up with the added ingredients that often include a type of meat byproduct,” she said.

The baby food category is also seeing innovation in form of new products offering a variety of flavors and textures, according to Ruiz.

“Instead of the soft, mush-like baby foods we traditionally see in the market, more brands are introducing products that have different consistencies, ingredients, and flavors,” she said.

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She cited as an example the baby food maker Globowl, which has launched food for babies and toddlers that is focused on early allergen introduction — as a means to mitigate food allergies — through internationally inspired cuisine, including recipes such as pad Thai and veggie tikka masala.

Buying in bulk

Goris of FreshDirect said customers also are buying baby products in larger formats, noting that sales growth for larger pack sizes is outpacing the growth of the category overall. FreshDirect also has implemented a multi-buy promotional strategy across the baby food category — for example, “buy X number of units and save up to 40%”— to offer savings for customers, she said.

In addition, the ecommerce retailer creates content supporting the category that it features periodically on its home page and in emails. It also promotes the category with targeted ads, including emails, push notifications, and banners, based on previous purchases.

Fresh Thyme Market, meanwhile, is seeing bulk purchases primarily for diapers and wipes, “as those are hot commodity items,” Thompson said.

She noted that baby foods and products, unlike any other category, are promoted year-round at Fresh Thyme.

“Being correctly priced and having an everyday low cost is key at Fresh Thyme Market,” she said. “We work closely with our vendor partners to make sure our parents are getting the best product and price possible.”

Ruiz of KeHE agreed that retailers can partner with suppliers to compete more effectively.

“While the marketplace is often competitive for grocery retailers competing against the online retailers and mass merchants, these retailers can partner with their suppliers to offer more direct deals and promotions to help drive in-store purchases,” she said. “Additionally, with many shoppers looking for new flavors or products to try, retailers can lean into new, emerging, or local brands to be first-to-market in their area.”

Sales data indicate the baby food category has been hit hard by inflation, and also point to the trend toward the purchase of larger pack sizes. According to NIQ, dollar sales in the baby feeding category, which includes baby food, nursery water, oral electrolytes, and toddler food, were up 6.8% across all channels in the 52 weeks through April 29, totaling $2.66 billion. Unit sales, however, were down 6.7% in that time period.

Sales of diapering needs, which includes disposable diapers, wipes, and other products, followed a similar pattern, with dollar sales up 6.1% and unit sales down 2.7%.

Focus on convenience

Thompson of Fresh Thyme noted that the 71-unit retailer’s new grocery pickup service should have particular appeal for families with infants and toddlers.

“With ease and convenience being at the forefront of our values, Fresh Thyme is always looking for ways to help balance parents’ lifestyles,” she said. “We are in a new world of convenience, and saving time shopping is key for all parents.”

Fresh Thyme’s new ecommerce pickup platform, in which the retailer’s own store employees shop for customers’ orders in-store, also “alleviates the battle of shopping with your children by being able to order whatever you need at your fingertips,” Thompson added.

Similarly, Goris of FreshDirect said the company’s focus on providing both convenience and value on key baby products is key to its appeal among families.

“We think that we can be an important solution for time-strapped parents,” she said. “FreshDirect always operates with convenience in mind.”