Firms must meet the parents

Manufacturers will have to use ingredients that appeal to parents if they are to penetrate the growing children's food and drinks market in the UK, according to Leatherhead Food Research (LFR).

Its report Children's food and drinks in Europe - a guide to markets, products and innovation 2nd edition found that major strategies for targeting parents include naturalness, such as organic foods, exclusion of artificial additives, and the addition of good-for-you ingredients such as vitamins, calcium and wholegrains. "To a lesser extent functional ingredients have also been used, while in some product categories emphasis is also given to salt and fat reduction," said the report.

Recent launches with added parental appeal have included: Puleva's Max Energía y Crecimiento flavoured milk (in Spain), which contains calcium, phosphorus, vitamins and omega-3 fatty acids; Dr Oetker's Paula chilled dessert made with whole milk and no artificial sweeteners or preservatives (in the UK); and Weetabix's Oaty Bars cereal bars (in the UK), which are low in salt and high in fibre.

The strongest player in terms of international presence is Nestlé, which offers cross-border brands in breakfast cereals, chocolate confectionery, flavoured milk products and chilled desserts. Other prominent brands belong to Kellogg, Ferrero, Kraft Foods, Unilever and McCain.

Despite the recession, growth in the child-oriented food and drink market is forecast to be at a stable rate of around 1-2%. Penetration of children's products varies from sector to sector, being as high as 42% in the flavoured milks market, but in value terms, the largest single market for children's foods is that of sugar confectionery at euro 2.67bn, it said.

"A review of product development in Europe in the past couple of years supports the continuing importance of all of these issues in targeting children. However, in the modern climate, where parents are becoming increasingly concerned about their children's health and the rising levels of obesity, manufacturers have reformulated to provide products that will also appeal to parents and that will ultimately provide better nutrition for children," according to LFR.