baby food market

Organic Baby Food Market - Size, Trends, and Forecast,
2017-25
Infant milk formula is used as a complete or partial substitute for breast milk. The
milk powder is infused with nutrients that aid the overall development of a baby.
Modern farming techniques utilize a large amount of chemical fertilizers and
pesticides to achieve a good yield. Presence of such chemicals in food causes many
short term and long term consequences on human health. For instance, the
preservative nitrite is converted into carcinogenic compound nitrosamines by the
human body. Demand for organic techniques used for food farming is rising
significantly since chemicals such as potassium chloride, heavy metals, and
ammonium nitrate are not used in this technique. In addition, the demand for organic
baby food is on the rise on account of rising awareness about harmful chemicals and
the adverse effects they pose on infants.
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Online retailing for organic baby food holds huge potential for growth in the market.
Factors such as increasing popularity of internet services, advancements in services
such as 4G and 5G along with smartphones in emerging economies of Asia Pacific
region (mainly India and China) are driving online sales for organic baby food
products. More consumers are opting for online purchase of baby food products
owing to its ease and hassle less nature of online services. Furthermore, rising
emergence of e-commerce companies and innovative strategies adopted by major
players such as channel expansion will fuel growth of online segment in organic
baby food market.
Asia Pacific is the fastest growing market for organic baby food owing to its large
population and high birth rates, especially in countries such as India and China.
According to World Health Organization (WHO), Asia Pacific had around 311 million
of infant population (nearly half of world’s infants) in 2016. Major market players are
looking for opportunities to expand their business in Asia Pacific region owing to
favorable condition it offers for growth of organic baby food market.
North America and Europe dominated the organic baby food market in 2016, with
North America holding the prominent position. The organic baby food market in
North America was valued at US$ 2,092.9 Mn in 2016. Stringent government
regulations pertaining to the quality of baby food coupled with high consumer
awareness regarding the harmful effects of chemicals on infant development has
boosted the growth of the organic baby food market in this region. According to a
report published by the Food and Drug Administration (FDA) of United States, 6 out
of 10 U.S. citizens believe that organic food is better for their health. Stringent
regulatory scenario in the U.S. ensures that the quality of the product is at par with
the required standards. According to Title 21 of the Code of Federal Regulations
(CFR), “the manufacture or distribution of infant formula that will be introduced to the
interstate commerce in the United States must comply with the requirements of the
Federal Food, Drug, and Cosmetic Act (the act), 21 USC 321 et seq., and FDA's
regulations implementing the act”. These factors are highly responsible for the
growth of the organic baby food market in North America.
The organic baby food market in Latin America is highly consolidated with
companies such as The Kraft Heinz Company and Nestle S.A. possessing dominant
market shares. Demand for organic baby food is projected to increase significantly
due to the transition in lifestyle of consumers in terms of their feeding habits and
rising purchasing power of the consumers, among others. The major players are
projected to retain their dominance in this region due to the popularity of their
products and the trust gained through the same. However, local players find it hard
to secure a favorable position mainly due to lack of investments as a result of the
sluggish economic growth in the region. However, as major countries such as Brazil,
Argentina, and Colombia are expected to achieve economic and political stability in
near future, the market scenario will, in turn, change accordingly.
Consumers residing in countries such as the U.A.E., Qatar, and Saudi Arabia exhibit
a high purchasing power due to which they can afford premium quality products such
as organic baby food. Further, the demand for the same is also rising on account of
increasing awareness on the need for good health and wellbeing. Further,
consumers in these countries are aware of the repercussions of inadequate infant
nutrition as well.
The global organic baby food market was valued at US$ 6,516.0 Mn in 2016 and is
expected to expand at a CAGR of 10.8%, in terms of revenue, during 2017 – 2025.
North America dominated the global organic baby food market in 2016 and is
expected to retain its dominance throughout the forecast period. However, Asia
Pacific is expected to project the fastest growth during the forecast period. Rapid
adoption of organic baby food products among the consumers is one of the prime
factors fuelling the growth of the market in Asia Pacific.
Major Players in the Global Organic Baby Food Market
The major players in the organic baby food market are Abbott Laboratories, Groupe
Danone, Nestlé S.A., Kraft Heinz, Company Hero Group, Amara Organics, Baby
Gourmet Foods Inc., Bellamy's Australia, Green Monkey, Healthy Sprouts Foods,
HiPP, Initiative Foods, Little Duck Organics, North Castle Partners, Olli Organic, One
Earth Farms, Tastybaby, and Vitagermine, among others.
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Organic Baby Food Market report categorizes the global market by Product (Infant Milk Formula, Ready to Eat Baby Food, Powder, Liquid), by Distribution Channel and Geography

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