The global organic baby food market size was valued at USD 4.024 Billion in 2021. It is projected to reach USD 11.36 Billion by 2030, growing at a CAGR of 12.23% during the forecast period (2022-2030). Organic baby food is basically food that is produced and processed without using pesticides, growth hormones, antibiotics, or other harmful chemicals. As it is made of fruits, vegetables, and meat from animals that have not received antibiotics or growth hormones, organic baby food prevents the presence of any form of pesticides in the baby's system. Compared to regular produce, organic produce has much fewer pesticide residues. Since babies may be more vulnerable to the potential harm caused by pesticides than adults, some people may choose to buy organic baby food to reduce their babies' exposure to these residues. Additionally, it does not include artificial colors, flavors, or preservatives. As a result, parents are turning away from traditional baby food and toward organic baby food.
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Escalating Strategic Investment in Organic Baby Food
Consumer propensity for healthier food options, whether organic, natural, or even functionally improved, has changed the market's environment, and this trend has spread to the newborn and toddler nutrition business. Additionally, the product portfolios readily available in retail aisles worldwide are increasing the number of claims for protein, fiber, omega 3, DHA, and no added sugar. The demand for conventional and organic baby food products is driven by the need to give newborns the best nutrition possible to support healthy growth and development. As a result, the products must be enriched with naturally present breast milk and nutrients that aid in healthy growth and development.
While there is growing market interest in the protein composition of baby food, Texas-based firm Serenity Kids has introduced a line of baby food similar to the paleo diet and has the highest meat and organic vegetable content of any packaged product. The fortified organic baby food market is driven by rising concerns and understanding about the nutrition content (package label) and pushing attention towards the sustainable, organic food range.
Increasing Incidences of Product Recalls in Organic Baby Food Market to Hamper Sales
The global organic baby food market is very cutthroat. The introduction of new companies into the market is hampered by high capital requirements and the existence of strict government regulations. However, the significant growth potential offers a chance for new competitors to enter the market. Due to the availability of inexpensive baby food products, the threat of substitutions is notably significant. Many conventional baby food items, such as cereals and fruit purees, are available on the market; as a result, most people avoid buying expensive items. Due to the small cost of switching suppliers compared to the high cost of moving firms, suppliers have limited bargaining power. However, there is very little supplier rivalry or the capacity to integrate and eliminate the buyer vertically.
Replacement of Homemade Food with Branded Organic Baby Food
Baby food made from organic ingredients is becoming more and more common, with dedicated aisles for the product. In both developed and developing countries over the anticipated period, parents' capacity to switch from handmade to branded organic baby food will be a significant driving force due to increased disposable income. As a result, investments in the market for organic infant food are rising. Baby food businesses are now differentiating their brands based on particular health objectives, such as better digestion, brain development, baby-led weaning, and allergy prevention. For instance, Grays Peak Capital bought NurturMe, a company part of Advantage Capital's portfolio. Baby meals and kid's snacks from NurturMe place emphasis on digestive health.
The global organic baby food market is segmented by type and distribution channel.
Based on type, the global organic baby food market is bifurcated into milk formula, prepared baby food, and dried baby food.
The prepared baby food segment is the highest contributor to the market and is expected to grow at a CAGR of 12.46% during the forecast period. The prepared baby food is very nutritious and contains crucial ingredients for the baby's rapid and healthy development. They come with extra quantities of elements that promote growth and are available as purees and spoon blends. For Instance, Once Upon A Farm expanded its line of products to include healthy fats like avocado, coconut oil, and chia, essential for sustained energy levels, nutrition absorption, and brain development. A component with a lot of potential is the shifting consumer choice related to the convenience of handling and consuming baby food. As a result, HPP baby foods are available in flexible tubs and on-the-go pouches projected to boost sales and soon dominate the infant food market.
Major market players like Target have recognized the popularity of high-pressure processing for organic baby food and started slowly replacing traditional brands with cutting-edge ones like Pure Spoon and Once Upon a Farm, dedicating entire refrigerators to HPP baby food substitutes, including super smoothies. However, the list of ingredients in prepared infant food is brief and contains few preservatives and flavorings. The requirements of safety and quality related to these baby food products, however, make them remain the most complicated foodstuffs on the market.
Customers who understand the significance of diet on health are attempting to purchase more natural, minimally processed products and are willing to spend more for their kids. Labels that state "organic" or "100% natural" are the deciding factors when comparing items in the US and the EU category. The Food and Agricultural Organization of the United Nations (FAO) also noted that, given the complexity of food safety, consumers need access to timely, accurate, and reliable information to make informed food decisions. Furthermore, according to FrieslandCampina, milk formula is quickly rising to the top of the list of baby-related products parents are most concerned about, especially in light of earlier infant formula controversies in Hong Kong and mainland China. FrieslandCampina introduced organic milk formula with innovative packaging for traceability in 2020.
Additionally, infant formulae have different compositions depending on the age and nutritional needs of the child. Some examples of formulas with specialized uses are lactose-free, hypoallergenic, Hungrier Baby, anti-reflux, and comfortable formulas. These formulas have notions that manufacturers can build their goods around. Manufacturers have yet another chance to appeal to the community of people allergic to cow's milk by offering plant-based formula as an alternative to dairy milk.
Based on distribution channels, the global organic baby food market is bifurcated into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels.
The supermarkets/hypermarkets segment owns the highest market share and is expected to grow at a CAGR of 11.87% during the forecast period. The global market for organic baby food is growing due to abundant retail space, supermarkets/hypermarkets with unique lanes, and the spread of supermarket chains into developing nations like Moldova, Ukraine, Albania, Bosnia and Herzegovina, Macedonia, and others. Additionally, because supermarkets and hypermarkets offer various products under one roof, modern consumers have adapted to them. Now they may pick up a packet of organic baby food for the infant while still purchasing the healthiest groceries for themselves. As a result, the variety of products available through supermarkets will likely increase market sales. Supermarkets feature specific areas for related items from various brands, allowing the customer to examine product labels and make product comparisons to select the best option in terms of price and quality. The joy of doing this type of comparison shopping has already led to an increase in the number of supermarkets worldwide and a corresponding increase in the demand for organic milk formula and baby meals.
Online retail companies that sell products frequently provide promotions that help customers purchase the item of their choice for less money than they would pay at a physical store. Additionally, filter options on internet websites make it simple for customers to select the best product, which boosts organic and use-specific baby foods sales. The infant food sector is projected to transform due to the substantial ties that online retailers are forming with manufacturers of baby care products. For instance, Mothercare and Boots.com collaborated to sell more than 1000 products, including disposable pre-sterilized bottles and microwave-safe sterilizer bags for baby food. The demand for organic oat-meal baby foods and milk formulae is directly impacted by the popularity of these products that are simple to use. For working women, the availability of door delivery, same-day delivery, pre-booking, and self-pickup has further streamlined the infant purchasing experience.
The global organic baby food market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
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Asia-Pacific is the most significant shareholder in the global organic baby food market and is expected to grow at a CAGR of 12.23% during the forecast period. Organic infant food is becoming more popular in India, despite being a niche sector. This development is linked to customers' growing awareness of the benefits of eating organic foods while making meal choices for their infants. In May 2019, Nestle introduced a 100% organic ragi, wheat, milk, and rice baby food product under its Ceregrow brand of cereals for kids over twelve months, in response to the nation's growing demand for organic meals. In addition, China is a lucrative market for organic infant formula and presents potential expansion chances for the major players in the international market. The nation has a sizable market for organic infant food due to product innovation and a preference for imported goods. Pre-packaged infant foods may benefit from China's one-child policy being relaxed. China's baby food and drink producers are sufficiently encouraged by the possibility of expanding wealth and the rise in the number of newborns to develop packaged organic food items to meet customer demand for better-quality and organic baby food and drink.
Europe is expected to grow at a CAGR of 10.9%, generating USD 25 billion during the forecast period. Consumers in the UK generally support advertising campaigns for organic baby food. In this particular industry, producers are already creating creative marketing plans to entice more parents to make impulsive purchases. Customers have no choice but to buy organics because more than half of the infant food products sold in retail stores contain nutritious organic ingredients. The UK's market for infant food is constrained by strict restrictions regarding the substances that can be added, among other things. However, the market is anticipated to develop and grow further due to the popularity of organic, followed by honest, consistent, and transparent labeling, low sugar content, and implied health claims. One of the key factors driving the growth of the organic infant food market in Germany is consumer awareness of the benefits of eating organic food. On the other hand, German consumers are aware of the advantages even though prices are anticipated to remain over 40% more than the typical infant food. Consequently, a more significant portion of disposable income is typically set up for expanding baby feeding options.
North America is anticipated to grow significantly during the forecast period. According to the Organic Trade Association, infant food was the category for which buying organic was most significant. 83% of families in the United States have at least some experience purchasing organic items. As a result, Happy Family Organics® unveiled a new product line, Happy Baby® organics, regenerative and organic baby food. This new range of products is designed for children six months and older and is manufactured with materials cultivated using regenerative farming techniques that can lessen climate change by constructing healthy soil that traps carbon from the atmosphere.
The Canadian company Love Child Organics offers a wide range of products, from pureed organic fruits and vegetables to delicious baby meals that are gluten-free and vegetarian and contain the health benefits of superfoods like quinoa, lentils, chickpeas, and kale. Parents around the nation also favor a combination of homemade meals and store-bought baby food as a supplement. However, makers of clean labels that are organic and frequently consumed by the general public are likely to be impacted by consumers' preference to read labels carefully. With a substantial market share, Heinz Canada is a well-known supplier of infant food in Canada. New competitors in the local market, like President's Choice, are attempting to acquire a competitive edge over international rivals by providing a large selection of organic goods with various natural flavors that cater to babies' preferences.
The Brazilian retail market for organic foods and beverages is expanding at a rate of 20–25%, according to the executive director of the Brazilian Council for Organic and Sustainable Production, and the impending entry of some of the biggest food companies in the world is having a significant effect. So, the market for organic baby food is projected to develop during the forecast period due to the expanding organic food sector. Famous nations like the United Arab Emirates, Qatar, Israel, and Kenya are among the rest of the Middle East and Africa region, which is thought to have the most vibrant consumer marketplaces. In the United Arab Emirates, foreign businesses and brands have recently dominated baby food. They have a well-established global presence, making it challenging for local players to establish themselves in the nation.
The global organic baby food market’s major key players are