Nestlé projects growth in infant nutrition despite challenges in 2023.

The year 2023 was a challenging year for the infant nutrition segment in Peru, with a negative impact derived from economic decline and fluctuations in household consumption habits. However, despite this adverse outlook, the multinational Nestlé remains optimistic and projects growth in the sector for the current year. Paola De la Torre, director of the company's infant nutrition business, noted that one of the most affected segments was that of formulas and growing-up milks, especially stage 3 aimed at children from two years old onwards. This contraction was reflected in a shift towards smaller packaging formats, which implied an increase in purchase frequency but a decrease in the volume acquired. However, there was growth in formulas for newborns and positive performance in categories such as infant cereals and healthy snacks. In order to diversify its presence in the market, Nestlé has ventured into a new category of supplements and food complements for minors. The company recently introduced two new products, Asenda and Nancare, targeting children aged 2 to 10, with the aim of achieving a 15% market share in this segment over the next five years. These launches represent an effort to expand the company's product offering and attract a wider audience, including mothers who use infant formulas and those seeking alternatives in vitamin supplements. Furthermore, Nestlé plans to expand its portfolio in the category of baby purees and healthy snacks, where it currently holds a 40% market share with the Gerber brand. The company will also continue to strengthen its presence in established categories such as infant cereals, with brands like Nestum and Cerelac, without expanding its portfolio in the short term, but focusing on increasing market penetration and communicating the nutritional benefits of its products. Overall, Nestlé projects a growth of between 5% and 8% in the infant nutrition segment for this year, driven by its foray into new categories, consolidation in existing sectors, and its ability to adapt to market demands with a diversified portfolio. With this strategy, the company aims to maintain its leadership position in a key sector for the well-being of the youngest children.