Market Research Report
Organic Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Published by||Mordor Intelligence Pvt Ltd||Product code||613137|
|Published||Content info||132 Pages
Delivery time: 2-3 business days
|Organic Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
|Published: April 21, 2021||Content info: 132 Pages||
The global organic baby food market was valued at USD 3,609.64 million in 2020, and it is projected to register an estimated CAGR of 12.23% during the forecast period, 2021-2026.
Health crises and food scares have a long-term impact on consumer demand during COVID-19. Initially, there was a sales spike as consumers fear for food safety and their personal health drive product purchases. The cumulative import of the infant milk powder from January-March 2020 is around 4,30,000 tonnes, a declined by 5.4% as compared to 2019, as stated by China Custom's data. Besides this increasing sale of infant food products in China via mum-and- baby-store's food for special medical purpose, among others created momentum for premium and organic baby food in the region, witnessed by Feihe's the sales growth of high-end infant formula series including Organic Zhizhi by 16.99% (y-o-y) in 2020, whereas its regular counterpart sales declined by 25.94%.
The market studied is driven by the growing awareness among consumers to limit the baby's exposure to the harmful chemicals used in conventional food production and the awareness of organic products' benefits. Additionally, the rise in the population of working women worldwide largely contributed to the increased size of the prepared organic baby food sector, making it one of the significant growing segment.
The market studied is driven by the trend toward clean label products and cleaner diets. Consumers across the world are increasingly reaching for fresher and healthier food options for themselves, and they are also demanding the same for their children. Meanwhile, innovative packaging and the use of specific organic ingredients that have significant health benefits, primarily focused toward cognitive and physical development, which are some other key trends noticed in the market studied.
Escalating Strategic Investments in Organic Baby Food
The popularity of organic baby food is growing with a dedicated aisle for the category. With the increased disposable income, parents can compensate homemade food with branded organic baby food, posing a great driving factor in the forecast period in both developed and developing countries. Thus, has been a rising number of investments in the organic baby food sector. For instance, in 2021, Neptune Wellness Solutions acquired of 50.1% share in Sprout Foods plant-based baby food company. The consideration includes a USD 6 million cash payment, and the issuance of approximately 6.7 million in Neptune common shares having a value of USD 12 million. The company has registered annual net revenues USD 28 million. Moreover, baby food start-ups are now differentiating their brands based on specific health goals, from better digestion to brain development, baby-led weaning and allergy prevention. For example, NurturMe, a portfolio company of Advantage Capital, was acquired by Grays Peak Capital. NurturMe provides baby food and children's snacks that emphasize healthy digestion.
Asia-Pacific Holds the Largest Share
Organic packaged food consumption was valued at USD 11.8 million in 2018 with a growth rate of 51.28%, as stated by the USDA, thus, creating a tailwind for India's organic baby food market. The relaxation of China's one-child policy may also bring a positive impact on pre-packaged baby foods. The potential of increasing wealth and rising number of newborns give China's baby food and drink manufacturers adequate stimulus to develop packaged organic food products to cater to the consumer demand for better quality and organic baby food and drink. According to Global Organic Trade, the market size for organic package food and beverage in Japan was around USD 597.4 million, with a per capita of USD 4.71 coupled with the rising frequency of use of pre-cooked foods per babies, impacting the market growth.
In the global organic baby food market, companies are focused on developing new marketing strategies and introducing new products based on value-added ingredients, to compete in the market. Some of the major companies in the organic baby food market are Abbott Laboratories, Nestle SA, The Hein Celestial Group, and Danone SA, among others. There exists a wide range of private-label brands as well, particularly the supermarket/hypermarkets chains in the developed markets and traditional grocery stores/convenience stores/specialty retail stores/health stores in the developing economies.