Baby Food Market1

Global Baby Food Market Report Distribution
Channel and Geography - Trends and Forecast to
2025
Baby food is soft and easily consumed food product, especially developed for infants
to toddlers, aging between four months to two years, in order to fulfill their nutritional
requirements. Based on the form, baby food is majorly classified into powder, liquid
and solid. The powdered form of baby food is used by mixing it with water before
feeding the infant and it is the least expensive form of baby food. Further, solid baby
food include infant cereals and other bland fare.
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The major factors propelling the growth of this market include rising health
awareness to provide nutrition regarding the overall development of the baby. In
addition to this, growing number of women in the workforce and lactating problems in
women including breast engorgement and nipple infection caused by staphylococcus
aureus, have propelled the adoption of baby food products across the globe.
Furthermore, rapid urbanization and rising popularity of organic baby food, is
supporting the growth of global baby food market.
However, the declining birth rate in developed countries is a major challenge to the
market growth of baby food. According to the World Bank Group, birthrates around
the world declined by 45% on average, between 1960 and 2013.
Based on source type, organic baby food is expected to record fastest growth,
witnessing highest CAGR during the forecast period. This is majorly due to the
increasing demand among parents to offer adequate and best nutrition for the
babies. The organic baby food is gaining popularity worldwide, as parents are
becoming more concerned about the harmful chemicals present in the inorganic
baby foods, in the form of artificial colors, sweeteners, flavors, pesticides and
fertilizers.
Based on distribution channel, the market is segmented into hypermarkets,
supermarkets, drugstores, online channel, specialty stores and others. Supermarket,
contributed the largest share in the global baby food market in 2016. However, the
online channel is supposed to grow rapidly during the forecast period, owing to the
technological advancements and increasing internet penetration in emerging
economies.
In 2016, Asia Pacific dominated the baby food market in terms of revenue and
accounted for a share of 37.66%, with China, India, New Zealand, Japan, Australia
and Indonesia being the major contributor for baby food market growth in Asia
Pacific. China dominated this market in 2016, owing to the increasing demand for
safe and quality milk formula in the country. In addition to this, the growing birth rate
in China is also expected to support the growth of baby food market. According to
the National Health and Family Planning Commission of China, birth rate in China,
had increased by 7.9% in 2016 due to the end of one-child policy that was first
introduced in 1979 and formally phased out in 2015.
Latin America is anticipated to be the fastest growing market for baby food,
witnessing highest CAGR of 7.21% during the forecast period (2017 - 2025). In
2016, Brazil dominated the baby food market and was followed by Mexico and
Argentina. According to the Coherent Market Insights, Brazil has the largest child
population in the region and recorded a continuous increase in crude birth rate since
2009. The major factors propelling the growth of baby food market in Latin America,
include the steadily developing primary and secondary health care applied to
marginal urban and rural population. This in turn, reducing the infant mortality in
Latin America and thereby contributing in the overall growth of this market in the
region. According to the National Center for Biotechnology Information (NCBI), the
numbers of deaths under age five years declined fastest in Latin America between
2000 and 2015.
Major companies operating in the global baby food market include Nestle S.A.,
Groupe Danone, Abbott Laboratories, Hain Celestial Group, Kraft Heinz Company,
Bristol-Myers Squibb, Hero Group, Morinaga Milk Industry Co. Ltd., and Cargill Inc.
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Latin America is expected to project the fastest growth in the global baby food market during the forecast period, owing to the increasing awareness among people regarding the health benefits of feeding baby food to infants and babies.

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