Organic Baby Food Market
Global Industry Analysis (2017-2020) – Growth Trends and Market Forecast (2021-2025)
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Growing Female Working Demographic Boosts Organic Baby Food Market with Improved Purchasing Power
The demand for organic food has attained a threefold growth in the past few years. The organic processed food products have constantly increased their shelf space in retail outlets by appealing to consumers with intelligent marketing strategies. Through the years, this has strengthened the case for health-conscious consumers, who prefer for food products that are free from chemical or additives. These key trends have set the premise for the global organic baby food market as well, pushing this niche category to achieve higher revenues in recent years.
The organic baby food market has been steadily growing as consumers see a rise in purchasing power with swelling working female demographic. Increasing number of working mothers, trying to balance careers and childcare, have especially fueled the organic baby food market as they are high conscious about their purchases. Changing infant feed practices as family structure predominantly turns nuclear is also expected to have a positive impact on the global market. An overall increase in parents interest towards ensuring the better nutrition for their babies has also been driving the global organic baby food market.
Official Movement Promoting Organic Baby Food Wins Market Steady Consumers
Various government authorities, especially in developing nations, are generating awareness about the benefits of organic food consumption. Investments in campaigns and advertisements have been critical tools in creating awareness. For instance, the demand for organic food in recent past has been relatively high in Mexico. The country has been facing a serious issue of obesity, which promoted the Mexican government to prioritize initiatives through educational campaign about food nutrition laws for schoolchildren.
As a result, a larger chunk of consumers is pursuing healthier lifestyles by opting for organic food products for children right from the start. This has made the country an attractive market for the U.S. exporters of organic products. In 2017, organic baby food was one of the fastest-growing categories in Mexico, reflecting a potential opportunity for the manufacturers.
Meanwhile the key operating manufacturers have responded to this movement with business expansion. For instance, Happy Family Organics, one of the largest baby foods brand, expanded its product portfolio with the launch of Happy Baby Savory Blends.
The product claim to have organic vegetables, herbs, and spices. Continuous product launches and availability of wide product range is further expected to augment market growth over the forecast period. Improvement in prepared baby food, employing convenient and attractive packaging, and listing specific percentage of each ingredient on the pack are few of the key strategies being adopted by players to promote their brands.
Prepared Baby Food Segment is to Create Growth Opportunities
Global organic baby food market is segmented on the basis of type, sales channel, and region. Based on type, the market is segmented into milk formula, prepared baby food, and dried baby food. Out of these, the prepared baby food segment is expected gain relatively largest incremental dollar opportunity over the forecast period. Increased product launches under prepared baby food segment and rising consumer preference toward convenient food products are expected to boost the segment demand by 2025.
By sales channel the market is segmented into supermarket, specialty outlet, pharmacies/drugstores, and online mediums. The COVID-19 lockdown has changed consumer purchasing behavior, shifting it to online sales channel. Online retailers have reported highest growth ever.
For instance, an Indian online retailer Nourish Organics experienced 30% sales rise in 2020. In order offer undisrupted supply of products manufacturers are focused towards offering products through online sales channel. These factors are expected to support the online sales channel growth over the forecast period.
Untapped Opportunity in Asia Pacific Region to Create Demand
Europe and North America collectively hold the largest share in the global organic baby food market. Higher disposable income, increased product penetration, expanding number of health-conscious consumers are key factors contributing towards market growth.
Asia Pacific region is also expected to register a significant CAGR over the forecast period. China is expected to be one of the fastest-growing market for organic baby food in the region. Organic baby milk formula has experienced high adoption rate in the country. Manufacturers believes there is a huge room for growth in the country, which is bringing in investments via business expansion.
For instance, the food and beverages giant, Nestle, in 2021, announced that the company is to begin the production of Gerber purées (an organic baby food brand of Nestle) in China and build the first such plant in the Asia Pacific region. The company has planned to produce 48 million jars of puree annually.
Global Organic Baby Food Market: Key Players
Some of the major players studied in the global organic baby food market are Danone SA, Nestle S.A, Abbott Laboratories, Plum Organics, H.J. Heinz Company, Campbell Soup Company, Hero Group, Bellamy’s Australia Limited, Hipp Gmbh & Co, and Amara Organics.