Global Baby Food Market Grows Steadily at a CAGR of 6.2%

Introduction

Baby food is soft and easily consumed food prepared for infants aged four to six months until two years. In underdeveloped and developing countries, infants with low household incomes are fed soft home-cooked baby food. However, in developing countries, prepared baby foods have witnessed increased demand due to urbanization and rising disposable income. Additionally, growing awareness of nutrition, improved organized retail marketing channels, and a rising number of women professionals further boost the baby food market.

Market Dynamics

Improved Awareness of Adequate Nutrition and the Growing Retail Industry Drive the Global Baby Food Market

Dietary practices adopted by mothers are the key factor in shaping a baby's health. The rise in the literacy rate of females in developing and developed countries has increased the awareness of the nutritional requirements of newborn babies. In some developed countries, delayed weaning was observed among infants aged 6–7 months. However, these cases of delayed weaning are expected to decrease with the rising awareness among parents.

The retail industry has become more organized in Asian countries, especially India and China. Improving economic conditions and changing lifestyles of consumers have increased the popularity of supermarkets and other organized retail structures. In 2019, supermarkets and health & beauty retail outlets accounted for maximum sales of baby food products in the Asia-Pacific. Hence, such factors are expected to drive market growth.

Product Innovations and Innovative Packaging Strategies Create Lucrative Opportunities for the Global Baby Food Market

Product innovations play an essential role in the growth of the baby food market. Intensive research and development activities have facilitated the launch of innovative products in the market. In addition, the safety of baby food is the prime concern among consumers and manufacturers. Tamper-proof packaging of baby food products ensures optimal safety of its contents. Innovations in improving the safety of these products through process improvements and technological advancements drive the growth of the baby food market.

Regional Insights

Asia-Pacific is the highest shareholder and is estimated to grow at a CAGR of 5.6% during the forecast period. The high birth rate and improving population purchasing power in Asia-Pacific have significantly increased the demand for baby food and milk formula-based products in this region. Intensive R&D activities in the baby food segment are expected to help companies offer affordable baby food products in this region. Baby food products include milk powder, cereals, snacks, ready-to-drink fresh fruits, and vegetable juices. Urbanization, improving lifestyle, and active women participation in the workplace are primary driving forces of the Asia-Pacific baby food market.

LAMEA is the fastest-growing region. The decline in poverty rates and disposable income in Latin American countries have increased the adoption of baby food products in this region. Baby food manufacturers have primarily focused on packaging aspects of products to prolong shelf life and minimize the risks of product contamination. Global baby food companies focus on the emerging LAMEA region, especially Brazil. An increase in the population of women professionals, high disposable income, and time constraints for cooking majorly boosts the baby food market growth in this region.

Europe is the second-largest region and is projected to reach USD 310 million by 2030, growing at a CAGR of 6.4%. According to the Food Safety Agency (SFA), a food trade association in France, food products consumed by adults are inappropriate for babies as they could adversely affect their health. Additionally, traditional foods do not fulfill the nutritional requirements of babies. Manufacturers are refining recipes with more organic and naturally healthy ingredients to improve their customer base. An increase in purchasing power of consumers has also led to growth in overall sales of baby food products.

Key Highlights

• The global baby food market was valued at USD 74 billion in 2021. It is projected to reach USD 128 billion by 2030, growing at a CAGR of 6.2% during the forecast period (2022–2030).
• Product type-wise, the global baby food market is bifurcated into Dried Baby Food, Milk Formula, Prepared Baby Food, and Others. The Milk Formula segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.8% during the forecast period.
• Distribution channel-wise, the global baby food market is bifurcated into Supermarkets, Hypermarkets, Small Grocery Retailers, and Health & Beauty Retailers. The Supermarket segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.4% during the forecast period.
• Region-wise, the global baby food market is segmented across North America, Europe, Asia-Pacific, and LAMEA.Asia-Pacific is the highest shareholder and is estimated to grow at a CAGR of 5.6% during the forecast period.

Competitive Players

1. Nestle
2. Danone
3. Perrigo Company Plc
4. Mead Johnson & Company LLC
5. Abbott Laboratories
6. Hero Group
7. Bellamy Organics
8. Hain Celestial Group
9. Campbell Soups
10. Friesland Campina

Recent Developments

Recent Developments

• June 2022 - De Nieuwe Melkboer (The New Milkman) and FrieslandCampina joined forces to develop a local chain for plant-based dairy alternatives with a good earnings model for the farmer. De Nieuwe Melkboer, an initiative of a FrieslandCampina member, supplies the first soy-based alternatives for milk and yogurt from Dutch soil. The partnership enables De Nieuwe Melkboer to make use of FrieslandCampina's knowledge and expertise and, by doing that, to continue to grow and develop.

• June 2022 - The climate targets set by FrieslandCampina were approved by the highly regarded Science-Based Targets project (SBTi). FrieslandCampina announced its climate strategy with specific reduction objectives for glasshouse gas emissions since the company shares the goal of keeping global warming to a maximum of 1.5 degrees Celsius. Now that SBTi has verified it, FrieslandCampina's 2030 climate targets* conform with the Paris Climate Agreement's upper limit of 1.5 degrees Celsius warming.

• February 2022 - To usher in a new era of comprehensive diabetes management care, Abbott, the world leader in healthcare, announced new partnerships with critical health-tech partners BeatO and Sugar Fit, PharmEasy, GOQii, 1MG, Zyla Health, HealthifyMe, and Fitterfly. Abbott hopes to reach 8 million people with diabetes through these partnerships, 6.5 million of whom will be able to access these solutions through PharmEasy and 1MG. Along with remote consultations, coaching tailored specifically for people with diabetes, and meal planning, the business focuses on maintaining an adequate glucose level.

Segmentation

1. By Product Type
   1. Infant Formula
   2. Snacks
   3. Purees
   4. Cereals
   5. Juice & Smoothies
   6. Dried Baby Food
   7. Milk Formula
   8. Prepared Baby Food
   9. Other Baby Food
2. By Age Group
   1. Infant
   2. Toddler
   3. Pre-Schools
3. By Distribution Channel
   1. Supermarkets
   2. Hypermarkets
   3. Small Grocery Retailers
   4. Health & Beauty Retailers
   5. Online Channels
   6. Convience Stores
   7. Drug Stores/Pharmacies
   8. Others
4. By Categories
   1. Organic
   2. Convential