Organic Baby Food Market: Positive long-term growth outlook 2018-2025

The global organic baby food market was valued at US$ 6,516.0 million in 2016, according to a new report on Organic Baby Food Market, by Product (Infant Milk Formula (Starting MF, Follow On MF, Toddlers MF, Special MF) Ready to Eat Baby Food, Powder, Liquid, Others), by Distribution Channel (Hypermarkets, Supermarkets, Specialty Stores, Convenience Stores, Online) published by Coherent Market Insights. Organic baby food is considered to be a healthier alternative to conventional baby food. High income and awareness among consumers make it a popular choice among the consumers, which has resulted in burgeoning market growth for the same. North America and Europe are the prime markets for organic baby food products. High consumer awareness about the benefits offered by such products, stringent regulations imposed by the government, and widespread availability of such products across all channels are some of the major factors fueling the growth of organic baby food market in these regions. The organic baby food market is projected to exhibit a CAGR of 10.8% over the forecast period.

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Key Trends and Analysis of the Organic Baby Food Market:

Infant milk formula dominated the product type segment in 2016 and is expected to retain its dominance throughout the forecast period, according to Coherent Market Insights. China has witnessed a significant growth in the infant milk formula segment due to the influence of western culture, in terms of feeding habits, and rising concerns about domestic dairy produce. Supermarkets are the preferred distribution channel for organic baby food among consumers. However, the online channel is expected to project the fastest growth during the forecast period. Rising consumer inclination toward online purchases is one of the major factors responsible for rapid growth of this segment.

Key Takeaways of the Market:

North America dominated the organic baby food market in 2016 and is expected to retain its dominance during the forecast period. The toddler and infant population in the U.S. stood at 22.9 million in 2016, which is expected to boost the demand for organic baby food in North America. Further, in Western Europe, the infant population stood at 27.1 million in 2016. High living standards coupled with increasing awareness among the populace in these regions has resulted in an increasing demand for chemical-free nutritious food. The organic baby food market in North America was valued at US$ 2,092.9 million in 2016.

India, despite having a sizeable infant population, lags behind other countries mainly because of the high preference toward homemade food. Due to the rapid growth of female working population in India, China, and ASEAN countries, the demand for ready to eat organic baby food is rising. The ease and flexibility of ready to eat foods are compatible with the hectic lifestyles of 21st century working parents. However, stringent regulations make it difficult for any new player to enter this market. The organic baby food market in Asia Pacific was valued at US$ 1,408.1 Million in 2016.

Africa is a swiftly growing market due to population boom. According to the UN, the population of Africa is expected to reach 1.3 billion by 2050. Africa has a huge investment potential and the market is slated to grow at a very fast rate as the region develops further economically. South Africa has witnessed a significant growth in the organic baby food market over the past few years and is expected to maintain the same growth path throughout the forecast period. Further, apart from the international players, the growth of this market is expected to intensify due to the emergence of several local players as well. Baby food in South Africa is required to meet the South African Infant Feeding Regulations.

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Abbott Laboratories, Groupe Danone, Nestlé S.A., Kraft Heinz Company, Hero Group, Amara Organics, Baby Gourmet, Bellamy’s Australia, Green Monkey, Healthy Sprouts Foods, HiPP, Initiative Foods, and Little Duck Organics are a few key players operating in the global organic baby food market. Some of the major strategies adopted by these players to ensure long-term sustenance in the market include product and packaging innovations, tactical mergers & acquisitions, and joint ventures, among others. In 2013, Groupe Danone acquired the U.S.-based Happy Family in order to increase its presence in North America. In addition, in 2015, Groupe Danone invested US$ 286 million to set up a baby food production plant in the Netherlands.

 

 

 

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