Baby Food Market - Growth, Trends and Forecasts (2019 - 2024)

Baby Food Market - Growth, Trends and Forecasts (2019 - 2024)

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Market Insights

The global baby food market is expected to register a CAGR of 6.7 %, during the period of 2018 to 2023. Currently, health conscious parents are opting for organic baby foods over conventional baby food.

On May, 2016, HappyFamily organic food company, which is part of DANONE company, launched a baby food product with  blend of fruit, whole grains and yogurt. It is well crafted premium organic baby foods. It is available in market in easy-to-eat-from, spouted squeeze pouches. This time packaging is transparent to show the foods material, full serving of organic super fruits and veggie ingredients. This innovation in organic baby food category is expected to create big market space in short period of time.

Menlo Park-based baby food startup Before Brands raised a USD 35 million in a round led by Gurnet Point Capital. Before Brands launched in 2015 with the goal of introducing small amounts of common foods, like eggs and peanuts, into baby food to help children develop their own defenses against food allergies.

Market Dynamics

The global baby food market has experienced significant growth over the past few years, primarily due to rising population of working women, rise in organized retail marketing, and their concern for good nutrition for their babies. Furthermore, manufacturing of baby food under strict health and safety standards has helped creating the awareness about the usefulness of packaged baby foods in providing the required nutrition for babies. This in turn has escalated the demand for baby food in the world market. Additionally, baby food is gaining popularity in the high income groups as a part of their status quo, especially in the emerging markets, which is expected to further drive the baby food market in emerging economies.

Currently, owing to increasing demand for nutrition from the natural sources, the organic baby food segment is growing at a significant pace and several large players are engaging themselves to cash in the untapped markets. Concerns related to food safety, falling birth rates, and the practice of feeding home cooked food to babies are the key restraints in this market. Declining in birth rates and milk intolerance in babies may pose severe challenge for baby food market.

Market Segmentation

As they grow, the baby food available for them varies from infant formula to solid dried baby foods. Baby food product includes baby soups, frozen baby foods, baby snacks, baby cereals and bottled baby foods. Major market share has been held by bottled baby foods, followed by baby cereals. Frozen baby food is expected to have highest growth potential followed by bottled baby food and baby cereals.

The report segments the global baby food market by type, distribution channel and region. The baby food market, on the basis of types, is segmented as conventional baby food and organic baby food. This market is classified into Mother’s milk substitutes, cereal based foods, vegetable and fruit purees, frozen foods and others. The market is also segmented based on constituents into milk, vegetables and fruits, cereals and others. Market study indicated that Mother’s milk substitutes account for the major share of the market. By distribution channels, market is segmented into hyper markets/super markets, convenience stores, dollar stores, online retailers and others.

Milk formula occupies the largest market share followed by the product segment of prepared baby food. However, over the forecast period, product segment of prepared baby food would gain prominent adoption in the global market. Sales of milk formula baby food is highly concentrated in the APAC region. Alternatively, demand for prepared baby food is largely limited to developed regions. However, market for prepared baby food, in developing regions would pick pace over the forecast period, subsequently leading to the dynamic growth of the baby food market in the APAC region.

 

Supermarkets, hypermarkets, small grocery retailers, and health & beauty retailers are the key distribution channels in the baby food industry. Increased Internet penetration, access to smartphones, and simplified e-banking systems will lead to more purchase through the online channel.

Regional Analysis

The market is geographically segmented into North America, Europe, Asia-Pacific, South America and Africa. Asia-Pacific has the largest consumer base followed by Europe, and North America. North America is the largest markets in terms of revenue. The growing population and rising consumer spending in Asia-Pacific makes this the region to look at for investments and expansion. However, it is a price sensitive market and consumption depends on perceived value. Emerging markets such as India, China and Indonesia are the major growth contributors in the growth of baby food market in Asia-Pacific.

Competitive Environment

Nestle SA have been dominating the global baby food market. Key players operating in baby food market are, Danone, Mead Johnson, Abbott laboratories, Hero-Group, Perrigo Company, Bellamy Organics, Hain Celestial Group, Campbell soups, Friesland Campina, H.J. Heinz, Bristol-Myers Squibb, Numico, Wyeth, East Asiatic co Ltd, Ella's Kitchen, Beech-Nut Nutrition Corporation , DMK Deutsches Milchkontor GmbH, DSM, Dumex, HiPP GmbH & Co., Koninklijke DSM N.V., Meiji Co Ltd etc
The baby food market is experiencing changes due to increasing consumer spending, especially in the developing nations. Consumers are now more aware of the positive effects of scientifically prepared baby food which is likely to create more opportunities in the market in the future. Expansion and investment in developing markets like China are the major strategies followed by the companies.

Investment Opportunities

Bubs Australia added key pharmacy wholesalers in Australia to its customer base, giving Bubs immediate access to over 5,000 pharmacies nationwide. The company develops and markets innovative Australian-made organic baby food and infant milk formula products.

 

Reasons to Purchase this Report

  • Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
  • Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
  • Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
  • Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
  • Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
  • 3 months analyst support along with the Market Estimate sheet in excel.

Customization of the Report

  • Value chain analysis
  • Volume of the Global Baby Food Market
  • Consumer behavior analysis in country level

This report can be customized to meet your requirements. Please connect with our analyst, who will ensure you get a report that suits your needs.

1. Introduction

                1.1 Key Deliverables of the study

                1.2 Study Assumptions

                1.3 Market Definition

2. Research Approach & Methodology

                2.1 Introduction

                2.2 Research Designs

                2.3 Study Timelines

                2.4 Study Phases

                                2.4.1 Secondary Research

                                2.4.2 Discussion Guide

                                2.4.3 Market Engineering and Econometric Modelling

                                2.4.4 Expert Validation

3. Key Findings

4. Market Dynamics

                4.1 Drivers

                                4.1.1 Increasing proportion of women in workforce

                                4.1.2 Increasing awareness about nutritional needs of infants

                                4.1.3 Preference to science over conventional wisdom

                                4.1.4 High incidence of malnutrition in infants

                                4.1.5 Development in retail infrastructure

                4.2 Constraints

                                4.2.1 High product cost in under-developed and developing countries

                                4.2.2 Declining birth rates

                                4.2.3 Safety concerns due to lack of proper regulatory framework

                4.3 Opportunities

                                4.3.1 Consumer preferences for packaged baby products

                                4.3.2 Preference for organic foods

                                4.3.3 Increasing consumer spending

                4.4 Porter's Five Forces Analysis

                                4.4.1 Bargaining Power of Buyers

                                4.4.2 Bargaining Power of Suppliers

                                4.4.3 Degree of competition

                                4.4.4 Threat of new entrants

                                4.4.5 Threat of substitutes

5. Market Segmentation

                5.1 By Type

                               5.1.1 Milk Formula

                               5.1.2 Dried Baby Food

                               5.1.3 Prepared Baby Food

                               5.1.4 Others

               5.2 By Distribution Channel

                               5.2.1 Supermarkets/Hypermarkets

                               5.2.2 Drugstores/Pharmacies

                               5.2.3 Convenience Stores

                               5.2.4 Others                           

                5.3 By Geography

                                5.3.1 North America

                                                5.3.1.1 U.S.

                                                5.3.1.2 Canada

                                                5.3.1.3 Mexico

                                                5.3.1.4 Others

                                5.3.2 Europe

                                                5.3.2.1 Spain

                                                5.3.2.2 U.K.

                                                5.3.2.3 France

                                                5.3.2.4 Germany

                                                5.3.2.5 Russia

                                                5.3.2.6 Italy

                                                5.3.2.7 Others

                                5.3.3 Asia-Pacific

                                                5.3.3.1 China

                                                5.3.3.2 Japan

                                                5.3.3.3 India

                                                5.3.3.4 Australia

                                                5.3.3.5 Others

                                5.3.4 South America

                                                5.3.4.1 Brazil

                                                5.3.4.2 Argentina

                                                5.3.4.3 Others

                                5.3.5  Africa

                                                5.3.5.1 South Africa

                                                5.3.5.2 Others

6. Competitive Landscape

                6.1 Major Strategies by Key Players

                6.2 Most active companies in the past five years

                6.3 Market Share Analysis

7. Company Profiles   

               7.1 H. J. Heinz Company (U.S.)

               7.2 Abbott Nutrition

               7.3 Beech-Nut Nutrition Corporation (U.S.)

               7.4 DMK Deutsches Milchkontor GmbH (Germany)

               7.6 Dumex

               7.7 Hain Celestial Group (U.S.)

               7.8 Hero Group (Switzerland)

               7.9 HiPP GmbH & Co. (Germany)

               7.10 Progress OAO (Russia)      

               7.11 Mead Johnson

               7.12 Meiji Co Ltd (Japan)

               7.13 Milupa S.A. (Switzerland)

               7.14 Morinaga Milk Industry Co (Japan)

               7.15 Nestle

8. Appendix

                8.1 Sources

                8.2 Disclaimer

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