Baby Food Market- Trends and Forecast to 2025

Posted by anagha on January 3rd, 2018

Baby food is soft and easily consumed food product, especially developed for infants to toddlers, aging between four months to two years, in order to fulfill their nutritional requirements. Based on the form, baby food is majorly classified into powder, liquid and solid. The powdered form of baby food is used by mixing it with water before feeding the infant and it is the least expensive form of baby food. Further, solid baby food include infant cereals and other bland fare.

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The major factors propelling the growth of this market include rising health awareness to provide nutrition regarding the overall development of the baby. In addition to this, growing number of women in the workforce and lactating problems in women including breast engorgement and nipple infection caused by staphylococcus aureus, have propelled the adoption of baby food products across the globe. Furthermore, rapid urbanization and rising popularity of organic baby food, is supporting the growth of global baby food market.

However, the declining birth rate in developed countries is a major challenge to the market growth of baby food. According to the World Bank Group, birthrates around the world declined by 45% on average, between 1960 and 2013.

Based on source type, organic baby food is expected to record fastest growth, witnessing highest CAGR during the forecast period. This is majorly due to the increasing demand among parents to offer adequate and best nutrition for the babies. The organic baby food is gaining popularity worldwide, as parents are becoming more concerned about the harmful chemicals present in the inorganic baby foods, in the form of artificial colors, sweeteners, flavors, pesticides and fertilizers.

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Based on distribution channel, the market is segmented into hypermarkets, supermarkets, drugstores, online channel, specialty stores and others. Supermarket, contributed the largest share in the global baby food market in 2016. However, the online channel is supposed to grow rapidly during the forecast period, owing to the technological advancements and increasing internet penetration in emerging economies.

In 2016, Asia Pacific dominated the baby food market in terms of revenue and accounted for a share of 37.66%, with China, India, New Zealand, Japan, Australia and Indonesia being the major contributor for baby food market growth in Asia Pacific. China dominated this market in 2016, owing to the increasing demand for safe and quality milk formula in the country. In addition to this, the growing birth rate in China is also expected to support the growth of baby food market. According to the National Health and Family Planning Commission of China, birth rate in China, had increased by 7.9% in 2016 due to the end of one-child policy that was first introduced in 1979 and formally phased out in 2015.

Latin America is anticipated to be the fastest growing market for baby food, witnessing highest CAGR of 7.21% during the forecast period (2017 - 2025). In 2016, Brazil dominated the baby food market and was followed by Mexico and Argentina. According to the Coherent Market Insights, Brazil has the largest child population in the region and recorded a continuous increase in crude birth rate since 2009. The major factors propelling the growth of baby food market in Latin America, include the steadily developing primary and secondary health care applied to marginal urban and rural population. This in turn, reducing the infant mortality in Latin America and thereby contributing in the overall growth of this market in the region. According to the National Center for Biotechnology Information (NCBI), the numbers of deaths under age five years declined fastest in Latin America between 2000 and 2015.

Major companies operating in the global baby food market include Nestle S.A., Groupe Danone, Abbott Laboratories, Hain Celestial Group, Kraft Heinz Company, Bristol-Myers Squibb, Hero Group, Morinaga Milk Industry Co. Ltd., and Cargill Inc.

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