Organic Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Organic Baby Food Market is segmented by Product Type (Milk Formula, Prepared Baby Food, and Dried Baby Food), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The report offers market size and forecast in USD million for the above-mentioned segments.

Market Snapshot

organic baby food market
Study Period: 2016 -2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 12.23 %
organic baby food market analysis

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Market Overview

The organic baby food market was valued at USD 3,609.64 million in 2020, and it is projected to register an estimated CAGR of 12.23% during the forecast period, 2022-2027.

Health crises and food scare had a long-term impact on consumer demand during the COVID-19 pandemic. Initially, there was a sales spike, as consumers feared food safety, and personal health drove product purchases. The cumulative import of infant milk powder from January-March 2020 was around 4,30,000 metric ton, which declined by 5.4% compared to 2019, as stated by China custom's data. The increasing sale of infant food products in China via mum-and-baby-store's food for special medical purposes created momentum for premium and organic baby food in the region, with Feihe's sales growth of high-end infant formula series, including Organic Zhizhi, by 16.99% (Y-o-Y) in 2020. In contrast, its regular counterpart sales declined by 25.94%.

The market is driven by the growing awareness among consumers to limit the baby's exposure to the harmful chemicals used in conventional food production and the awareness of the benefits of organic products. Additionally, the rise in the population of working women worldwide largely contributed to the increased size of the prepared organic baby food sector, making it one of the significant growing segments.​

The market is driven by the trend toward clean-label products and cleaner diets. Consumers worldwide are increasingly reaching for fresher and healthier food options for themselves, and they are also demanding the same for their children.

Scope of the Report

Organic baby foods are grown or processed without synthetic fertilizers or pesticides. The organic baby food market is segmented by product type, distribution channel, and geography. By product type, the segmentation includes prepared baby food, dried baby food, and milk formula. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. Moreover, the study provides an analysis of the organic baby food market in the emerging and established markets worldwide, including North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts are done in value terms of USD million.

By Type
Milk Formula
Prepared Baby Food
Dried Baby Food
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Online Retail Stores
Other Distribution Channels
By Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
France
Russia
Italy
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
South Africa
Saudi Arabia
Rest of Middle East & Africa

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Key Market Trends

Escalating Strategic Investments in Organic Baby Food

The popularity of organic baby food is growing, with dedicated aisles for the category. With the increased disposable income, parents can compensate for homemade food with branded organic baby food, posing a great driving factor in the forecast period in both developed and developing countries. Thus, there are increasing investments in the organic baby food sector. For instance, in 2021, Neptune Wellness Solutions acquired a 50.1% share in Sprout Foods plant-based baby food company. The consideration includes a USD 6 million cash payment and the issuance of approximately 6.7 million in Neptune common shares, with a value of USD 12 million. The company registered annual net revenues of USD 28 million. Moreover, baby food startups are now differentiating their brands based on specific health goals, from better digestion to brain development, baby-led weaning, and allergy prevention. For example, NurturMe, a portfolio company of Advantage Capital, was acquired by Grays Peak Capital. NurturMe provides baby food and children's snacks that emphasize healthy digestion.

organic baby food market revenue

Asia-Pacific Holds the Largest Share

Organic packaged food consumption was valued at USD 11.8 million in 2018, with a growth rate of 51.28%, as stated by the United States Department of Agriculture (USDA), creating a tailwind for India's organic baby food market. The relaxation of China’s one-child policy may also bring a positive impact on pre-packaged baby foods. The potential of increasing wealth and rising number of newborns give China’s baby food and drink manufacturers adequate stimulus to develop packaged organic food products to cater to the consumer demand for better quality organic baby food and drink. According to the Global Organic Trade, the market size for organic package food and beverage in Japan was around USD 597.4 million, with a per capita of USD 4.71, coupled with the rising frequency of use of pre-cooked foods per baby, impacting the market growth.

organic baby food market size

Competitive Landscape

In the organic baby food market, companies are focused on developing new marketing strategies and introducing new products based on value-added ingredients to compete in the market. A few major companies in the organic baby food market are Abbott Laboratories, Nestle SA, The Hein Celestial Group, and Danone SA. There is a wide range of private-label brands, particularly the supermarket/hypermarket chains in the developed markets and traditional grocery stores/convenience stores/specialty retail stores/health stores in the developing economies.​

Recent Developments

In July 2020, the early childhood nutrition leader Gerber expanded its organic snacks line with the introduction of Gerber Organic BabyPops™, a new puffed corn and oat snack in a fun, popcorn-like shape made just the right size for little fingers learning to pick up. BabyPops come in three varieties – Peanut, Tomato, and Banana Raspberry.

In January 2021, Hero Group acquired Baby Gourmet​, a Canadian organic meal and snacks brand for babies and toddlers. The acquisition included Slammers Snacks, a Baby Gourmet-owned organic children’s snacks brand. The financial terms of the transaction were not disclosed.

In March 2021, Sun-Maid Growers of California acquired Plum Organics, a premium, organic baby food and kids snack brand from Campbell Soup Company. Plum Organics offers a wide range of product portfolios for organic foods and snacks to meet the nutritional needs of babies, tots, and kids. Plum Organics’ products are certified organic and non-GMO.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables and Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Milk Formula

      2. 5.1.2 Prepared Baby Food

      3. 5.1.3 Dried Baby Food

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Online Retail Stores

      4. 5.2.4 Other Distribution Channels

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Spain

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 India

        2. 5.3.3.2 China

        3. 5.3.3.3 Japan

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 South Africa

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Position Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Abbott Laboratories

      2. 6.4.2 Nestle SA

      3. 6.4.3 Hero Group

      4. 6.4.4 Danone SA

      5. 6.4.5 Amara Organics

      6. 6.4.6 Sun-Maid Growers of California

      7. 6.4.7 North Castle Partners LLC

      8. 6.4.8 Lactalis

      9. 6.4.9 Hipp Gmbh & Co.

      10. 6.4.10 The Hein Celestial Group Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Organic Baby Food Market market is studied from 2016 - 2027.

The Organic Baby Food Market is growing at a CAGR of 12.23% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Nestle SA, Hero Group, Danone SA, The Hein Celestial Group Inc., Abbott Laboratories are the major companies operating in Organic Baby Food Market.

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