As local stores have increased in importance over the past few years with the pandemic and the wider trend towards shopping and living more locally, the baby products category has emerged as one where a well-stocked and -curated range can be a very good revenue earner for independents.
Baby wipes, baby food and children’s medicines are three sub-categories that are growing faster in the convenience channel than the total UK market (see Table), and the channel’s share of the total UK market in each category, except for baby food, is greater than its share of total UK grocery market (1.6 per cent, Kantar). Essentially, the baby products category is becoming a well-performing section in the local stores, with plenty of room for growth.
This is a category where macro trends, such as falling birth rates, exert significant influence. Unsurprisingly the market for baby care products saw ups and downs since 2010, and the market value of the baby care industry in the UK has been on decline since 2018, with the retail sales value going down from £1.52 billion in 2018 to £1.40bn in 2020, according to a report by market researcher GlobalData.
The numbers show there are plenty of opportunities for enterprising retailers in the baby and toddler category.
The convenience channel is over-indexing the wider market when it comes to growth in baby wipes, baby food and children’s medicines, and the channel’s share of the total UK market in each category, except for baby food, is greater than its share of total UK grocery market (1.6%, Kantar 12w/e 16.04.23).
Category
Size, Symbols & Independents
Growth (YoY) in Symbols & Independents
Size, Total UK market
Growth (YoY), Total UK market
Share of Symbols & Independents
Nappies1
£6.4m
+3%
£389.0m
+7%
1.64%
Baby wipes2
£9.6m
+21%
£190.8m
+10%
5.03%
Baby Toiletries3
£2.3m
-10%
£109.3m
-3%
2.10%
Baby Milk4
£11.4m
+2%
£342.6m
+7%
3.32%
Baby Food5
£4.1m
+17%
£307.9m
+6%
1.33%
Children’s Medicines6
£12.6m
+55.8%
£165.9m
+43.7%
7.59%
Sources:
1: IRI – Diapers– Symbols & Independents (MAT Jan 2023) and Total UK (MAT Feb 2023)
2: IRI – Baby & Kids Wipes– Symbols & Independents (MAT Dec 2022) and Total UK (MAT Feb 2023)
3: Nielsen– Impulse and Total Market (MAT 18.06.22)
4&5: IRI – Baby Feeding Total– Convenience GB excl. Major Mults and BT SD WL and All Outlets GB incl. Chemists (52w/e 25.02.23)
6: Nielsen– Impulse and Total Market (MAT: 08.10.22)
However, there could be some positive impact in the category in the near future, which has already become visible in the recent market data, as most sub-categories are showing year-on-year growth. For the first time since 2015, the number of live births in England and Wales increased annually in 2021, rising by 1.8 per cent from the previous year. This is of course mainly due to the pandemic impact on people’s decisions to become pregnant in early 2020,which led to lower births in the year, as the 2021 figures is still lower than the number of pre-COVID-19 births in 2019 andin line with the long-term trend of decreasing live births.
But, there is another pandemic trend that could prove more significant to the category. The total fertility rate (TFR) increased to 1.61 children per woman in 2021 from 1.58 in 2020; the first time TFR has risen since 2012.
While fertility rates increased overall, younger age groups saw declining fertility rates while older age groups saw fertility rates increase. The largest decrease was seen among those aged under 20 years (16 per cent), whereas older women, aged 35 to 39 years, saw fertility rates increase by five per cent.
iStock image
Having children later in life means parents with greater spending power, and coupled with the rise of working mothers, the baby care category is poised to witness a pronounced shift. In April to June 2021, three in four mothers with dependent children (75.6 per cent) were in work in the UK, reaching its highest level in the equivalent quarter over the last 20 years (66.5 per cent in 2002), according to ONS figures. The employment rate was higher for mothers than either women or men without dependent children and has been since 2017.
The UK Families and the Labour Market 2021 report by the ONS, published in July last year, also found that from 2020, in families where both parents are employed, it has become more common for both parents to work full-time, rather than a man working full-time with a partner working part-time.
Personalised service
With more demands on their time, working parents would be looking for quality baby care products at convenience, and local stores should be looking to recruit them to their loyal customer base, by just doing what they do best, adding that personal touch to their service. By offering expert advice, personalised recommendations, and exceptional customer service, independent retailers can build strong relationships with their customers and create a loyal following.
“The proportion of full-time working parents is on the increase, so families with young children have less and less spare time. Product quality is a key driver for baby care shoppers, and many are brand-loyal,” commented Matt Stanton, Head of Insight at DCS Group.
Young families spend significantly more than the average grocery shopper, so attracting these shoppers will help grow the sales, he said, adding that: “Less than half of their extra spend is on the baby categories themselves, so these shoppers will help you grow sales across your whole grocery range.”
Three numbers to keep mind
Young families with children spend 38% more than the average UK shopper (IRI, 52w/e 18.01.20)
62% of baby care shoppers will move to another store when they can't find their usual brand (MSL Study, Danone)
86% of families with young children plan shops in advance at stores they know stock their brands (Shopper IQ Advantage Data)
Stanton also stresses that baby care shoppers are amongst the most brand loyal. “When these shoppers cannot find their usual product on shelf, 62 per cent of them will switch to another store… and they will take their entire basket with them,” he says. “Brand loyalty is even higher on baby milk specifically, where 70 per cent of shoppers would rather switch to another store than switch to a different brand.”
Offering the one-stop shop is also key to retaining the baby care shoppers, as shoppers generally are still making fewer shopping trips compared to before the pandemic, looking to get as much as they can all in one place.
“What is more, families with young children are busy, and 86 per cent of them plan their shopping missions in advance, so they will plan to shop in store they know stocks their usual brands,” Stanton adds.
Alex Winyard, UK FMCG Sales Manager at The Cheeky Panda, points to the impact of the cost-of-living crisis, but notes that baby products is an area where shoppers aren't always willing to compromise on quality and look for value options.
“The most recent data shows that while own and value label products are increasing in market share, this still only makes up about 30 per cent of total market value/volume. Ensuring your offering has a range of both branded and value lines is key to sales success,” he adds.
He highlights the need to understand the customer-base and their shopping habits and needs, adding that: “C-stores in particular should cater for top-up sales rather than bigger bulk and multi-pack formats.”
Sustainable and sensitive
Parents make specific journeys to buy nappies, more so than in many other categories, and they tend to visit a store they know has their usual product or brand in stock.
“For baby nappies shoppers, preventing unexpected nappy leaks is high on the agenda because of the inconvenience, disruption and discomfort a leak can cause. With this in mind, product quality is of paramount importance and shoppers will buy a product or brand that they know they can trust,” Stanton explains.
He notes that the biggest trend in the nappies market is the shift from taped nappies into untaped or “pants”.
“For very small stores, taped nappies are still the core recommendation, but if you have enough space, you should definitely range pants alongside the regular taped nappies,” he suggests.
Winyard highlights the growing demand for baby products that are eco-friendly and sustainable.
“Shoppers are growing increasingly aware of the need to buy sustainable options and are looking for products that are kind to the planet and their skin. In fact, 82 per cent have tried to be more sustainable with their consumption habits, and 63 per cent of shoppers look for products which are kind to sensitive skin even when used repeatedly,” he notes.
The Cheeky Panda offers a range of babycare products which can tap into both of these consumer needs. Made from FSC certified sustainable bamboo, the range includes nappies (in five sizes) and biodegradable wet-wipes. The nappies are dermatologically tested, Vegan Society approved and offer up to 12 hour dryness and leak protection. The wet-wipes are 99 per cent water, contain no plastic or harsh chemicals and are fully biodegradable. They have also been certified by FSC, Vegan Society and Cruelty Free International.
Accrol Group, a Lancashire-based leading tissue converter supplying toilet tissues, kitchen rolls, facial tissues, and wet wipes, has successfully launched its range of baby wipes with Unitas wholesale, offering independent retailers the opportunity to stock a high-quality product at a competitive price point.
Ashley Taylor, Sales Director for Accrol Group, said their Little Heroes Sensitive baby wipes have the same claims and credentials as market-leading brands, at a more attractive price point, making it a must-have for all independent retailers.
The price-marked packs communicate better the price and value position that shoppers desire while maintaining strong margins for retailers.
“Consumers shouldn’t have to hold back from buying great value daily essentials till their next supermarket ‘big shop’,” Taylor says. “They should be able to access great products at a great price from their local convenience retailer. That’s why I’m thrilled to bring Little Heroes Sensitive baby wipes to the convenience market.”
Little Heroes offers baby wipes that have been approved by paediatricians, dermatologists and gynaecologists making them safe for people of all ages to use, including babies and those with sensitive skin.
In addition, all packaging is 100 per cent recyclable and can be recycled alongside plastic bags at stores, making it easy for consumers to dispose of them responsibly. They’re also made right here in the UK.
Mark Warriner, Senior National Account Manager for wholesale at Accrol, adds: “Increasingly convenience retailers are choosing to stock Accrol brands making them more readily available to UK consumers. They’re proving to be popular and the introduction of Little Heroes Baby Wipes into this channel further demonstrates this.
Accrol’s branded product rang include Elegance Toilet Tissue, Magnum Kitchen Towel and Softy Facial Tissue.
It is so important to stock a comprehensive core range of baby care products, but independent retailers can also look to specialise in a particular area within the baby products category, such as organic and natural products, sustainable products, or personalised items. By offering a unique selection of products that meet a specific need or interest, they can differentiate themselves from larger competitors and attract a loyal customer base.
Independent retailers can also offer a carefully curated selection of products that meet the needs and preferences of their local customer base. By understanding the specific needs and preferences of their customers, they can offer a selection of products that are relevant, high-quality, and tailored to their customers’ tastes.
Snacking giant pladis has announced David Murray, currently leader of its UK and Ireland enterprise, will transition to the newly created position of global chief commercial officer.
After five years at the helm of pladis UK&I, Murray’s new role will see him take ownership of the company’s global platform and brand strategy along with its commercial transformation.
Mete Buyurgan will become the new managing director of pladis across Britain and Ireland effective 6 April.
Buyurgan, a pladis veteran of eight years, joins the Anglo-Irish division of the company from its Turkish, Eastern Europe and Central Asian operations which he ran since 2016.
Under his stewardship, pladis Türkiye, Eastern Europe and Central Asia grew revenue and profit despite significant headwinds and positioned itself at the forefront of the sustainability debate.
“While our brands like McVitie’s and Ülker have been part of peoples’ lives for decades, pladis is still a young business having started life nine years ago,” Geraldine Fraser, chief human resources officer, said.
“We have made tremendous progress together on our mission to build one of the world’s fastest growing snacks companies. Today, we take another step on that journey to evolve our business and position us for continued growth in an ever-changing retail and consumer landscape.”
Founded in 2016, pladis’ 16,000-strong team makes food across 27 bakeries and factories in 11 countries with its brands, like McVitie’s, Ülker and Flipz sold in more than 110 nations. pladis group revenue topped £2.7 billion in its most recent financial year ending 2023.
More than £20,000 worth of illicit tobacco and vapes were seized from multiple premises in an one-day operation in Meir by Trading Standards team along with officers from Stoke-on-Trent City Council and Staffordshire Police.
The operation is the latest across the city that resulted in 13 shops being closed in the last 12 months, and forms part of Operation Cece, which is a National Trading Standards initiative in Partnership with HMRC to tackle illegal tobacco.
Under the latest one day action, officers raided three shops in the area after reports of underage sales of illegal vapes and tobacco to children as young as 12.
The significant operation seized 1,084 packets of cigarettes, over 1,500 vapes and 165 large pouches of rolling tobacco.
The retail value was estimated at more than £20,000, plus more than £12,000 in evaded duty. Officers also seized 12 key rings that were either unsafe or had trademark issues.
Several people with no right to work in the UK, and other immigration issues, were found and their cases passed to the Home Office.
Councillor Amjid Wazir OBE, Stoke-on-Trent City Council’s cabinet member for city pride, enforcement and sustainability - said, “We will not tolerate the sale of illegal tobacco and vapes, which put residents at risk and cheat the taxpayer out of public money.
“Our Trading Standards teams are working round the clock to get illegal tobacco and vapes off the streets, and out of the hands of children. All forming part of corporate strategy and specifically helping to reclaim our streets.
Inspector Rebecca Price, from the Stoke South local policing team, said, “We’re working closely with the city council and wider partners in Stoke-on-Trent to tackle issues affecting local communities as part of our ongoing Making Great Places initiative.
“Retailers not complying with the law and putting local people at risk of harm are being targeted robustly on a proactive basis as part of this commitment, and I can assure local communities that similar enforcement alongside our colleagues will continue.”
The premises are now under investigation, and are facing possible criminal prosecutions including under the Licensing Act.
The Trading Standards work forms part of the city council mission to be a cleaner, greener and safer city for all who live, work and visit Stoke-on-Trent.
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Don Julio Tequila, owned by Diageo. The spirits giant sells billions of dollars worth of tequila and Canadian whisky in the US.
Photo by Anna Webber/Getty Images for Flipper's Boogie Palace
Spirits giant Diageo has suggested the US government consider tougher rules of origin requirements in trade agreements as an alternative to tariffs, a letter to the US Trade Representative showed.
In the March 11 letter, Diageo, the world's top spirits maker caught in the crossfire of US president Donald Trump's effort to remake global trade, argued that new rules of origin could support his aims and benefit the industry.
Such rules could give preference to goods, including alcoholic drinks, in which all ingredients and subcomponents are substantially sourced within the US or via its key trading partners, Alden Schacher, vice president of government relations at Diageo North America wrote.
This would deepen US supply chains, prevent "foreign adversaries" from using US trade partners to circumvent tariffs and support the administration's policy objectives such as growing the US economy, said the letter, one of hundreds published by the USTR from firms and trade associations about tariffs.
Diageo's proposed rules of origin would require that plants or grains used in the production of imported alcohol come from the US or the territory of a strategic trade partner - any country that has a trade agreement with the US, such as Mexico and Canada.
The company also suggested that the rules ensure the distillation also occurs in the US or the territory of the same partner, with any barrels used in ageing also sourced from one of those places.
Diageo sells billions of dollars worth of tequila and Canadian whisky in the United States. Executives have warned Trump's threatened 25 per cent tariffs on Mexico and Canada could deal a $200 million hit to operating profit in the company's second half alone, before mitigation measures.
In the letter, Schacher wrote that trade in distilled spirits is largely reciprocal and therefore actions to address imbalances are not necessary.
Schacher pointed out that Diageo employs thousands of US workers, has 11 US manufacturing sites, and spends $650 million every year on US inputs including barrels, glass and cans.
(Reuters)
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Asda Express stores offset sales dip at the supermarket
Asda on Friday reported a decline in its annual sales for the 2024 financial year, but the retailer has seen profits rising on margin gains.
The supermarket chain said its total revenue for the year to 31 December 2024 declined by 0.8 per cent to £21.7 billion, while like-for-like sales (excluding fuel) were lower by 3.4 per cent.
Asda grew adjusted EBITDA after rent by 5.8 per cent to £1.14bn during the year, driven by improved gross margins, particularly in non-food reflecting the strength and scale of its George business, as well as a full year of profit from the 356 Asda Express convenience stores and forecourt sites acquired from EG Group.
“Everyone is focused on making Asda the number one choice again for busy hard-working families who demand value. This is what’s driving all of our actions across pricing, ranging, merchandising and every part of the business,” Allan Leighton, Asda’s executive chairman, said.
Since the year end, Asda stepped up its investment in value by bringing back its Rollback to Asda Price proposition. Launched at the end of January, with an average reduction of 25 per cent across 4,000 popular products, Rollback has now been expanded to roughly a quarter of Asda’s entire range.
Asda said it will add thousands more products to Rollback at regular intervals during the year as part of its strategic shift to move its entire product range to a new low ‘Asda Price’ by the end of 2026.
Asda delivered £0.6bn in free cashflow during FY24, which helped reduce net leverage to 2.9x (FY23: 3.0x). The retailer said this enables it to invest in new value propositions like Rollback and Asda Price.
During the year Asda refinanced the vast majority of its 2025 and 2026 maturities of £3.2bn, including paying down £0.3bn from cash. This pushed out all the remaining maturities into the next decade.
“Looking ahead we still have plenty of work to get our business firing on all cylinders again,” Leighton said.
“While regaining customers’ trust will take time, we will undertake a substantive and well backed programme of investment in price, availability and the shopping experience to deliver this. This will materially reduce our profitability this year, which we expect to reverse as our market share recovers and improves over time.”
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Henry Westons Vintage 500ml is the number one cider SKU in the convenience channel
The unstoppable rise of crafted apple cider is setting the benchmark for success in the UK’s £1.1 billion off-trade cider market, according to the latest Westons Cider Report.
The leading cider producer advises that convenience retailers who prioritise premium products and strategic ranging will be best placed to drive sales in 2025.
Despite crafted cider thriving across the broader market, its share in convenience still lags slightly behind (20% vs. 24%). This gap presents an exciting opportunity for convenience retailers to tap into the premium crafted cider trend and unlock significant revenue.
Westons Cider’s milestone report reveals that, while total cider sales have edged up by just 0.1 per cent YOY, crafted cider is experiencing remarkable growth with a significant 14.6 per cent surge in convenience alone.
As consumers increasingly seek authenticity, quality, and heritage, premium crafted ciders are becoming essential for retailers eager to drive long-term success.
A decade of transformation in cider
Westons Cider predicted the rise of crafted cider in 2018 and, seven years on, the numbers prove just how transformative this shift has been. Back then, crafted cider made up just 9 per cent of apple cider sales — today, it accounts for nearly a quarter of the total cider market, adding an impressive £26.3 million to the category in the past year alone.
While the overall cider category has edged forward (+0.1%), crafted cider has surged ahead, growing at ten times (11.1%) the rate of the total market. This unwavering momentum cements crafted cider’s place as the fastest-growing segment in the industry.
This shift reflects a fundamental change in consumer preferences. A decade ago, cider was a broader, more fragmented category, featuring more brands and greater variety. Today, the focus has shifted — fewer brands, stronger premium offerings, and an emphasis on quality over quantity.
Crafted cider: A major untapped opportunity in convenience
Despite commanding a premium price of £4.32 per litre in convenience, compared to £2.76 for the total category, crafted cider remains underrepresented in this channel, with distribution at 95.4 per cent compared to 98.4 per cent across the total market. Bridging this gap could unlock an impressive £3.7m in value sales.
Even with limited shelf space, crafted cider continues to show a solid 5.8 per cent YOY growth, highlighting a strong and growing consumer appetite for high-quality options.
“Shoppers are looking for premium cider options in convenience, and retailers who give crafted cider the prominence it deserves will reap the rewards,” said Tim Williams, insight and innovation manager at Westons Cider.
“With crafted cider delivering strong margins and demonstrating double-digit growth, giving it prime position in chillers and on shelves will drive greater profits. The demand is already there – retailers just need to back the right brands.”
Key growth opportunities for 2025
The opportunity to recruit younger drinkers is ripe for the taking. While cider remains a household staple, penetration has slipped to 40.9 per cent, down from 43.9 per cent in 2022, showing that the category must evolve to stay relevant.
However, younger shoppers, particularly those under 45, are actively trading up to premium drinks, making crafted cider an aspirational yet accessible choice. Crafted cider is already gaining traction with affluent consumers, with ABC1 shoppers now accounting for 65.8 per cent of spend — up from 61 per cent last year.
Notably, crafted cider has the highest proportion of younger shoppers, with under-45s making up a larger share of spend compared to any other cider segment. This clear shift towards quality and authenticity presents a huge opportunity for convenience retailers to refresh their cider range and attract a new wave of consumers.
Apple cider remains the core of the category
Apple cider remains the core of the category. Accounting for nearly two-thirds (63.7%) of market value, apple cider continues to dominate. While pear cider’s overall share remains small at 4 per cent, premium crafted pear ciders are seeing renewed interest. Henry Westons Vintage Pear has added £550,000 in sales over the last year, alongside growth in other premium pear offerings. This suggests a clear opportunity for retailers to premiumise the pear cider segment, tapping into the same consumer demand that has propelled crafted apple ciders to success.
With limited chiller space in convenience, ensuring crafted apple cider has adequate facings is crucial to maximising sales. Stocking the right mix of single-serve formats for impulse purchases and larger multipacks for planned consumption will help capitalise on both shopper missions.
Shoppers are trading up across the drinks aisle, and cider is no exception. The crafted cider segment’s growth of over 10 per cent highlights the increasing willingness of consumers to pay more for quality, taste, and heritage. Convenience retailers who prioritise premium SKUs stand to gain the most from this trend.
Convenience category spotlights:
Crafted cider’s Southern stronghold: Crafted cider is particularly strong in the South, accounting for 73 per cent of volume in the five most southern TV regions. Convenience retailers in these areas should allocate more shelf space to premium crafted options to maximise sales.
British weather may be unpredictable, but cider sales don’t have to be: While summer remains cider’s peak season, unpredictable British weather has led to inconsistent sales patterns in recent years. June 2024 was unseasonably cool, leading to a 20.5 per cent drop in cider volume sales YOY, while August saw more rainfall than previous years, pushing volume down 12.5 per cent versus 2022. However, sales rebounded slightly compared to August 2023, which had particularly poor weather. Given this volatility, retailers should double down on major selling moments — like bank holidays and sporting events — where demand remains strong regardless of weather conditions.
No & low is pouring into the mainstream: The segment has grown 8.4 per cent YOY, highlighting increasing moderation trends. Stocking low/no alcohol apple and fruit ciders ensures a complete range to meet evolving consumer needs.
Independent retailers are outperforming the market: While total convenience cider value is up 2.1 per cent YOY, independent retailers are growing even faster, at 4.4 per cent YOY. This shows a particularly strong opportunity for crafted cider, which still holds only 17 per cent share in independents versus 20 per cent across total convenience. There is clear potential for independent retailers to expand their crafted cider offering and close this gap.
“As Westons celebrates 145 years of cider-making, it’s remarkable to reflect on how much the category has evolved,” Darryl Hinksman, head of business development at Westons Cider, said.
“What’s also clear is that authenticity and provenance matter more than ever. The past decade has seen major brewers attempt to capitalise on cider’s popularity with brand extensions, yet these failed to resonate with consumers in the long term. This reinforces a key lesson — shoppers are looking for genuine cider brands with real heritage, not just big names entering the category.
“Looking ahead to the next decade, we expect this refinement to continue, with cider becoming even more premium-driven. Shoppers are actively seeking authentic, high-quality options, and convenience retailers who align their ranges with these consumer trends and prioritise best-selling premium ciders, like Henry Westons and Stowford Press, will be the ones to unlock growth and maximise their cider sales.”
Top ten cider SKUs in the convenience channelWestons Cider Report
Henry Westons Vintage 500ml is the number one SKU in the convenience channel, more than twice the size of the second-placed product and in strong growth (+8.2%). Thatchers Gold 500mlx4 was ranked eighth last year and has risen to second. Inch’s is new to the top ten this year in eighth place.
Pack sizes are smaller in this channel with singles and four packs dominating the top ten. Larger packs have a role, however, as Strongbow Dark Fruit 10 pack is the third highest ranked pack.
The full report – including impartial stocking advice for retailers – is also available for digital download here.
All data Westons Cider Report 2025, Circana 52 w/e 28 December 2024 and Kantar, 24 December 2024.