Market Snapshot
| Study Period: | 2016 - 2026 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | 12.23 % |
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Market Overview
The global 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, 2021-2026.
Health crises and food scares have a long-term impact on consumer demand during COVID-19. Initially, there was a sales spike, as consumers fear food safety, and personal health drives product purchases. The cumulative import of the infant milk powder from January-March 2020 is 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 studied 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 studied 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. Meanwhile, innovative packaging and the use of specific organic ingredients that have significant health benefits primarily focused on cognitive and physical development, which is a key trend in the market studied.
Scope of the Report
Organic baby foods are grown or processed without synthetic fertilizers or pesticides. The global 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 supermarket/hypermarket, 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 and Africa. For each segment, the market sizing and forecasting are done in value terms of USD million.
| By Type | |
| Milk Formula | |
| Prepared Baby Food | |
| Dried Baby Food |
| By Distribution Channel | |
| Supermarket/Hypermarket | |
| Convenience Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
| Geography | |||||||||
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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 start-ups 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.
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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 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 and 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.
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Competitive Landscape
In the global 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/hypermarkets chains in the developed markets and traditional grocery stores/convenience stores/specialty retail stores/health stores in the developing economies.
Recent Developments
In 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 2019, Danone opened a Nutricia Cuijk production facility in the Netherlands to meet the demand for infant formula. The plant is among the company’s largest investments in its European production network in over a decade. It may primarily produce specialized infant formulas that meet the needs of infants diagnosed with specific medical conditions, such as cow’s milk protein allergy, and standard infant formulas.
In 2018, Nestle expanded its presence in the Indian cereal market with the launch of Nestle Ceregrow, a multi-grain cereal-based baby food. This expansion was done to gain more prominence in the baby food category in the country.
Table of Contents
1. INTRODUCTION
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Milk Formula
5.1.2 Prepared Baby Food
5.1.3 Dried Baby Food
5.2 By Distribution Channel
5.2.1 Supermarket/Hypermarket
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Italy
5.3.2.6 Spain
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Position Analysis
6.4 Company Profiles
6.4.1 Abbott Laboratories
6.4.2 Nestle SA
6.4.3 Hero Group
6.4.4 Danone SA
6.4.5 Amara Organics
6.4.6 Sun-Maid Growers of California
6.4.7 North Castle Partners LLC
6.4.8 Lactalis
6.4.9 Hipp Gmbh & Co.
6.4.10 The Hein Celestial Group Inc.
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Organic Baby Food Market market is studied from 2016 - 2026.
What is the growth rate of Organic Baby Food Market?
The Organic Baby Food Market is growing at a CAGR of 12.23% over the next 5 years.
Which region has highest growth rate in Organic Baby Food Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Organic Baby Food Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Organic Baby Food Market?
Nestle SA, Hero Group, Danone SA, The Hein Celestial Group Inc., Abbott Laboratories are the major companies operating in Organic Baby Food Market.
