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A00030 | Pages: 448 | Charts: 82 | Tables: 147 |
The global baby food market size was valued at $67.8 billion in 2021, and is projected to reach $116.5 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031.
Traditionally, babies are fed with soft home cooked food, a practice that is still popular in underdeveloped and developing countries. However, rapid urbanization and changes in lifestyle have increased the demand for packaged baby food in different societies and cultures. These foods are fed to babies between the ages of four to six months and two years. Rise in awareness toward increased nutritional needs of babies, organized retail marketing, significant surge in female workforce are the key factors that boost the baby food market growth. However, concerns related to food safety, falling birth rates, and the practice of feeding home cooked food to babies are the key restraints of this market.
Increase in urban population and changes in lifestyles due to considerable rise in disposable incomes are the key factors that boost the overall growth of the global baby food market. In addition, increase in female workforce leaves less time for food preparation and breastfeeding the infants, which, in turn, escalate the demand for quality baby food. Packaged baby foods are popular in urban areas, as they provide adequate amount of nutrition for infants.
However, majority of the parents prefer home-cooked baby food compared to packaged baby food for their infants, which hamper the market growth. Moreover, high price of baby food products has restricted their adoption among middle-income groups. Furthermore, home-cooked food is preferred by consumers in the rural and isolated regions, due to lack of awareness about these products. However, promotional campaigns and availability of affordable baby food products are expected to increase in the revenue generation. In addition, time constraints for food preparation due to increased participation of women at workplace and rise in low nutritional value of home-cooked food is anticipated to increase the sale of packaged baby foods, thus strengthening the growth of the global baby food industry.
Furthermore, product innovations play an important role in the growth of the market. Intensive research and development activities have facilitated the launch of innovative products. In addition, 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 safety of these products through process improvements and technological advancements drive growth of the baby food market share.
The retail industry has become more organized in some Asian countries, especially India and China. Improving economic conditions and changing lifestyle of consumers have increased popularity of supermarkets and other organized retail structures. In 2021, supermarkets and health & retail outlets accounted for maximum sales of baby food products in Asia-Pacific.
Sales of milk formula is highly concentrated in Asia-Pacific. Alternatively, the demand for prepared baby food is limited to developed regions. However, the market for prepared baby food in developing regions would pick pace during the forecast period, subsequently leading to the growth of the baby food market in Asia-Pacific.
Supermarkets, hypermarkets, small grocery retailers, and health & beauty retailers are the key distribution channels in the market. Supermarkets are the preferred distribution channel among consumers, followed by health & beauty retailers. However, considering the scenario in few Asian developing countries such as India, small grocery retailers and health & beauty retailers hold significant share. Small grocery retailers account for a comparatively smaller share in the market but would witness rapid growth during the forecast period. Other distribution channels include discounters, non-grocery retailers, and non-store retailing.
The global baby food market analysis into product type, distribution channel, category, and region. On the basis of product type, the market is divided into dried baby food, milk formula, prepared baby food, and others. Depending on distribution channel, it is fragmented into supermarkets, hypermarkets, small grocery retailers, health & beauty retailers, and others. By category, it is bifurcated into organic and conventional. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Spain, Italy, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Indonesia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, United Arab Emirates, South Africa, Saudi Arabia, and rest of LAMEA).
On the basis of product type, the milk formulations segment dominated the global baby food market in 2021, accounting for around half of the overall market revenue. This is attributed to increase in incidence of lactating issues in mothers, which increased the adoption of milk-based baby food products.
[PRODUCTTYPEGRAPH]
By distribution channel, the supermarket segment held the significant share in 2021. This is attributed to the fact that supermarkets are gaining popularity owing to the availability of broad range of consumer goods under a single roof, ample parking space, and convenient operation timings. These stores offer a variety of brands in a particular product category, thus providing more options for consumers. Moreover, some of the supermarkets have company representatives to assist the consumers in their selection of baby food products.
[DISTRIBUTIONCHANNELGRAPH]
Depending on category, the organic segment is expected to grow at the highest rate during the forecast period. As organic baby food is made of fruits, vegetables, and meat from animals with no antibiotics or growth hormones, organic Baby Food Market Demand is expected to surge.
[CATEGORYGRAPH]
Region wise, Asia-Pacific dominated the global market in 2021. High birth rates and rise in purchasing power of population in Asia-Pacific have significantly fostered the demand for baby food and milk formula-based products. In addition, intensive R&D activities by various companies in the baby food segment are expected to help the companies to offer affordable baby food products in this region.
[REGIONGRAPH]
Leading players operating in the market launch innovative and superior baby food products to sustain in the competitive market. Competitive strength of these companies depend on collective analysis of factors such as geographical presence, focus areas of operation and key growth strategies adopted by these companies. Nestle S.A. dominates the global baby food market, with maximum market share, in terms of revenue. The company has adopted product innovation and acquisition as its main growth strategy to increase its market presence and expand its consumer base.
Players in the market have adopted business expansion and product launch as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in the report include Nestlé, Danone, Perrigo Company Plc, Mead Johnson & Company LLC, Abbott Laboratories, Hero Group, Bellamy Organics, Hain Celestial Group, Campbell Soups, and Friesland Campina.
Key Market Segments
Key Market Players