Baby food market surges

Banker Farhana Akter came to Jatrabari wholesale market to buy baby food of a certain brand for her baby. Acknowledging the fact that there is no alternative to breastfeeding, she told The Business Post that because of her hectic office schedule and absence of any daycare centre there, she fails to breastfeed her baby.

“I have no other option but resorting to the common baby food item available in the market,” she added.

Like Farhana, many women in the country are now resorting to baby food, especially for infants and toddlers, as an alternative to breastfeeding that significantly widened the market in Bangladesh over the past few years.

The baby food market size in Bangladesh now amounts to Tk 4,000 crore, according to the industry insiders. In 2014, the baby food market in Bangladesh was just $55 million, according to the London-based market intelligence firm Euromonitor International.

The baby food market is growing despite Bangladesh being number one in breastfeeding. In Bangladesh, 65 per cent of women exclusively breastfeed their babies up until the babies are five months old, the highest in the world.

Till now, the baby food market in Bangladesh is totally imported-dependent and local entrepreneurs are somewhat reluctant to invest in the sector.

The yearly demand for baby food is around 10,000 – 12,000 tonnes, said Debabrata Roy Chowdhury, director (legal, corporate and regulatory affairs) at Nestle Bangladesh Ltd.

Among the products available in the market, Lactogen and Cerelac cereals are key brands of Nestle Bangladesh Ltd. Abul Khair Group entered into the baby food market in 2005 with the brand Mother’s Smile. Other brands like Biomil of Fasska, Baby Care of Maeil, and My Boy of Friesland are also available in the market.

Debabrata Roy Chowdhury said Nestle is dominating the market with more than 50 per cent of the share. “Our baby food is a suitable solution for those who are unable to breastfeed their baby. In the past two years, our business growth remained nearly 8 per cent,” he added.

Debabrata also alleged that a number of baby food brands are being imported illegally, most of them carry very limited expiry dates, and dishonest traders sell out the expired products after attaching new labels with new dates. 

Bangladesh imported around 9,025.11 tonnes of baby food at a cost of Tk 427.08 crore in the 2020-21 fiscal year, while around 8,065.66 tonnes valued Tk 334.14 crore in the 2019-20 FY and around 7,826.18 tonnes worth Tk 305.52 crore in the 2018-19 FY, and 2,447.16 tonnes at Tk 88.41 crore in the 2017-18 FY and 6,936.28 tonnes worth Tk 264.16 crore in the 2016-17 FY, shows the National Board of Revenue data.

Reason behind the market growth

Increasing purchasing power of the people, increased number of working mothers in every sector alongside an aggressive marketing policy of the companies contributed to the significant rise in the market, said the industry people.

A 2017 workforce survey found that Bangladesh’s total workforce stood at 6.35 crore people, and of them, 2 crore are women. A 2019 ILO report said 38 per cent of women are involved in the workforce. Despite Bangladesh being ranked number one in the world breastfeeding trends initiative, the market for baby food is burgeoning and the market size reached to Tk 4,000 crore for the economic progress, an increasing number of working women and growing consciousness about baby health, said noted vocalist Naquib Khan, who once worked as corporate affairs director at Nestle Bangladesh Ltd. 

“Cow milk or full cream milk powder is not suitable for the first year of the baby considering the health and nutrition ground which enhanced the market gradually,” said Nestle Director Debabrata Roy Chowdhury.

Why local investors reluctant

In Bangladesh, there is a scarcity of fresh liquid milk, and it is not enough to set up a factory, which stands as a block for the investors, said Naquib Khan.

“Unsuitable infrastructure and the unfriendly atmosphere also create hindrance to further expanding the baby food industry here,” he added.

Bangladesh must take a long-term preparation to create a congenial atmosphere with policy support to the dairy farms for resolving the crisis of liquid milk, he said, adding, “As we do not have vast meadows for catering livestock like New Zealand and Australia, we have to increase our milk production using the limited land.”

Health concerns

A joint study by UNICEF and the World Health Organisation said progress in breastfeeding is undermined by aggressive milk formula marketing, with more than half the pregnant women and parents in Bangladesh saying they have been targeted. The study, funded by the Bill and Melinda Gates Foundation, found that 51% of parents and pregnant women surveyed for the report said they have been targeted with marketing from formula milk companies, much of which is in breach of international standards on infant feeding practices.

Dr Sharmin Rumi Alim, a professor at the Institute of Nutrition and Food Science at Dhaka University, told The Business Post that nothing can be compared to breastfeeding.

Prof Dr Shakil Ahmed, a paediatrician at Dhaka Medical College and Hospital, said there is no alternative to breastfeeding as it enhances the cognitive capabilities of the baby compared to those who take processed food.

“On the other hand, processed food creates many diseases like diarrhoea, pneumonia and hair-disease,” he said.