Kids' Food And Beverage Market Is Growing Like A Weed
By Alec Italiano, contributing writer
Expected to become a $30 billion industry within the next five years, food makers are looking into diving further into products marketed toward children
The kids ‘market in the food and beverage sector, estimated to be worth around $23.2 billion according to a recent report by Report Buyer, is a difficult one to tap. Accounting for roughly 3.5 percent of sales in the entire $639 billion food and beverage market, the kids’ food and beverage market has outpaced total market growth. Up 4.4 percent from 2012-2013, compared to 2.9 percent of growth in the overall market, the kids’ food and beverage market, still in its infancy, is expected to reach $29.8 billion by 2018. Proper marketing in this segment has the potential to have a huge influence on this growing market gaining even more traction.
The report categorized the kids’ market into seven different categories that primarily target kids: dairy, snacks, frozen foods, beverages, cereal, shelf-stable meals, and produce. The recent growth of the kids’ sector has prompted packagers and producers to expand product lines and liven up graphics in an effort to adapt to kids’ desires.
The reason this market can be so difficult to capitalize on is that when appealing to children, packagers must make two groups of people happy, and both parties want different things. The parents (especially millennial parents) want to see healthy brand positioning, a socially responsible company, and a product that they feel is tailored toward their child. On the other hand, their child may want the exact opposite in the form of a sugary product, and cares very little if the company is socially responsible or not.
When it comes to innovation in this market, capturing more customers is largely achieved through packaging, marketing, and formulation. Formulation refers to the actual shape, size, and taste of the food that would appeal to kids. But, pushing the boundaries of the formula means losing nutritional points with mom and dad. Public health officials are paying attention too, as they are concerned with childhood obesity and the unhealthy diets and lifestyle coming along with it.
Packaging trends for this market revert back to three attributes: convenience, portion control, and playability. Kids love to snack. Whether that be a quick bite after school or a meal-on-the-go before a baseball game, convenience plays such an important role because kids are likely not going to cook. Portion control appeals more to the parents than it does the kids, but children are aware of the obesity problems too, and keeping kids preoccupied with a toy or game on/in the package is another thing to keep in mind while marketing to children.
Overall, this market is broad and complex spanning many categories and product segments. A package that can appropriately convey a taste that kids love, nutritional value for the parents, and entertainment for the short attention span of a child is a package that will do will in this market. It is ideal to possess all three of these characteristics, but with a growing market there is a lot to accomplish.