Organic Baby Food market to Eyewitness Huge Marginal Growth by 2028

Posted by Mrudula Anil Karmarkar on March 1st, 2023

The global organic baby food market size is expected to reach USD 6.34 billion by 2028, registering a CAGR of 8.7% from 2022 to 2028, according to a new report by Grand View Research, Inc. The rising parental concerns over the baby’s health and nutrition in developing and developed countries are major driving factors of the market over the last few years. Moreover, the increasing awareness about the benefits of organic food products among consumers is further propelling the market growth. Moreover, a lockdown situation has been observed during the COVID-19 pandemic, and it showed a negative impact on the market due to the suspended or delayed supply of raw material used for preparing organic packaged food products. However, it significantly impacts on demand and supply chain of organic baby food products. Moreover, increasing demand for infant formula products after the COVID-19 pandemic will create opportunities for the market players.

The infant milk formula segment is expected to register the highest CAGR of 8.9% from 2022 to 2028. The increasing popularity of organic packaged food products due to chemical-free healthy food has projected market growth in the forecast period. The rising consumption of innovative organic baby food products as these products are convenient and quick sources of energy and nutrition for the babies is the major driving force of this segment.

The online retail segment is expected to grow with a higher CAGR of 9.8% from 2022 to 2028 in the global market. The growth of online distribution channels is attributed due to the availability of online platforms via shopping portals and mobile apps. It is also observed companies, distributors and retailers are adopting the online platform to sell organic baby food. As a result of this, the online segment is gaining traction compared to offline.

The Asia Pacific dominated the market with a revenue share of around 45% in 2021. Factors such as increasing per capita consumption, disposal income, and people's concern about baby’s health are contributing to the growth of this market. Especially China, India, and Japan have a huge consumer base for the consumption of organic food products, which creates demand for organic baby food in the forecast period.

The market players are looking to gain customer loyalty and uphold their brand image by providing innovative products as per customer specifications and analyzing consumer behavior patterns. Manufacturers of organic baby food products are offering an innovative combination of new products and the growing trend of clean labeled production and nutritious diets of baby food which is propelling the market growth.The growing organic food and beverages industry and increasing spending on baby food products are expected to promote market growth over the forecast period. The rising parental concerns over the baby’s health and nutrition in developing and developed countries are major driving factors in the market over the last few years. Moreover, the increasing awareness about the benefits of organic food products among consumers is propelling market growth.

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The increasing demand for organic packaged food like ready-to-eat is anticipating the growth of the global market. In addition to this, the rising population of working women globally has projected the growth of the market over the forecast period. Furthermore, the market is driven by trends like clean labeled production and nutritious diets of baby food.

The manufacturers are providing the product with infant milk formula, prepared baby food, and dried baby food. However, stringent government rules and regulations regarding labeling of the products coupled with the high cost associated are hindering the growth of the market. Meanwhile, government guidelines in countries such as the U.S., Germany, U.K., China, and India are expected to maintain the quality of organic baby food. For instance, in the U.S., government agencies such as the Organic Baby Food Market Report Highlights

• The Asia Pacific is expected to register the largest market share of around 45% in 2021 owing to the rising number of newborns in China and India
• The infant milk formula segment is expected to foresee the fastest growth, with a CAGR of 8.9% from 2022 to 2028 due to the increasing popularity of organic packaged food products owing to chemical-free healthy food.
• Supermarket/ hypermarkets distribution channel held the largest market in share in 2021, contributing more than 40% of the total revenue due to the traditional way of selling products compared to the online distribution channel
• Europe is expected to register the fastest growth of 9.1% CAGR from 2022 to 2028 due to the rising consumption of ready-to-eat products

U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA) impose multiple federal regulations and guidelines for organic food product manufacturers. The published federal guidelines and rules ensure the quality of organic baby food products up to the hygienic standards for consumption.  

The lockdown announced during the COVID-19 pandemic had disturbed transportation and suspended the supply of raw materials for a short duration as well as significant impacts on the demand and supply chain of the organic baby food products across the globe. The increasing demand for infant formula products after the COVID-19 pandemic will create opportunities for the market players. Thus, the market is expected to witness a healthy market growth rate in the upcoming years.

List of Key Players of Organic Baby Food Market

• Nestle SA
• Abbott Laboratories
• Danone SA
• The Kraft Heinz Company
• Mead Johnson & Company, LLC
• Lactalis
• The Hain Celestial Group Inc.
• Hero Group
• Sprout Organic Foods, Inc.
• Hipp Gmbh & Co Vertrieb KG
• Baby Gourmet Foods Inc.
• Amara Organic Foods