Market Research Report
Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: May 13, 2021
Mordor Intelligence Pvt Ltd
Content info: 110 Pages
Delivery time: 2-3 business days
The global baby food market was valued at USD 77.85 billion and the market is projected to register a CAGR of 3.67% during the forecast period (2021-2026).
During the COVID-19 pandemic, baby food was tagged as an essential good, and as main retail distribution channels were permitted to remain open, stockpiling drove significant increases in retail sales. Though the above trend was observed in both developed and developing economies, slower growth has been observed in the latter which can be attributed to supply chain disruption and consumers spending less during the economic fallout.
Growth is expected in the market amid a flurry of innovation with key ingredients such as human milk oligosaccharides (HMOs) and probiotics. Over the long term, manufacturers are expected to develop products that support the immune system from infancy.
Concerning infant nutrition, parents demand the highest safety and quality standards. Key players in the market are also constantly reformulating products to make them more appealing to both parents and infants. This coupled with the rising population of working women and the organized retail market, especially in developing economies is expected to drive the growth of the market over the forecast period.
Increasing Demand for Organic Baby Food
The rising number of malnutrition cases and health concerns for the overall growth of the babies represent the key factors driving the global organic baby food market. Improved economic conditions have resulted in increased expenditure by the parents. Therefore, they are willing to spend on high-quality and expensive products for the wellness of their babies. Also, organic baby food prevents the presence of any kind of pesticides in the baby's system as it is made of fruits and vegetables that are not sprayed with chemical pesticides, and meat from animals that are not given antibiotics or growth hormones. It also does not contain any artificial flavors, preservatives or colors. Furthermore, urbanization and the growing working population, especially women, has encouraged convenience-oriented lifestyles, which is increasing the demand for organic baby food globally and subsequently increasing the sales of baby food.
Asia-Pacific Holds the Major Share in the Baby Food Market
The Asia-Pacific region holds a very significant share in the baby food market. It is both the largest and the fastest-growing region globally. It is expected to be very dynamic in the coming years, owing to its growing population, hectic lifestyles, and rising consumer spending. China is the largest market in the region, which along with developing economies like India and Indonesia are expected to drive the growth of the market in the region.
Rising penetration of modern retail and awareness of the products, combined with rising disposable incomes and purchasing power, are few key factors influencing the growth of the baby food market in the region. Non-Grocery specialist retailers such as drugstores/ pharmacies have been observed to be the preferred channel for consumers in the region and online channels the fastest-growing.
The global market for baby food is competitive, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Few of the leading companies in the baby food market are Nestle S.A., Danone S.A., Reckitt Benckiser Group plc, Abbott Laboratories, Feihe International Inc, Royal FrieslandCampina N.V., Shijiazhuang Junlebao Dairy Co., Ltd., Ausnutria Dairy Corporation Ltd, Yili Group, and The Kraft Heinz Company.