Organic Baby Food Market Outlook
Organic baby food is food made from natural ingredients that can be good for a baby’s health. The digestive system of a baby is weaker than an adult. Hence, organic baby food is necessary. A new report on the global organic baby food industry, published by Market Research Future (MRFR), evaluates that this market could score gains at 10.37% CAGR between 2020 and 2027. In terms of money value, the market can be worth USD 17839.5 Mn by the end of the forecast period.
The most important market driving factors for the global organic baby food market growth are a rapid inclination towards convenience food, awareness about benefits of organic food items, and rising number of working women. The paradigm shift in modern family structures where most adult members have very limited time for household management, especially cooking meals, is creating demand for ready-to-eat baby food among couples who have newly embraced the parenthood, new parents. Increased pressure to balance work life and household management requires couples to reduce time to arrange and prepare food for baby. The benefits of organic baby food that contribute to the market growth include the absence of synthetic fertilizers or pesticides, artificial flavors, colors & preservatives, in ingredients used for preparing food items.
Other market driving factors include changing lifestyle, increasing health awareness, preference for organic variants, and growing middle-class population. However, factors that can create hurdles in the speedy growth of global organic baby food market include skepticism among parents and strict regulations regarding food quality in the developed countries.
Organic Baby Food Market Segmentation
The global organic baby food market segmentation encompasses distribution channels, ingredients, and product type. MRFR’s take on the market surveys various facets of the market in-depth.
Based on distribution channels, this market has been segmented into store-based distribution channel and non-store-based distribution channel. The store-based distribution channel holds a larger organic baby food market share.
The ingredients-based segmentation of the market covers dairy, fruits, grains & cereals, vegetables, and others. During the forecast period, the grains & cereals segment is expected to stay on top among all segments, holding 31% of the market share. Bread, crackers, pasta, and rice are some of the popular grains and cereals that are used for preparing baby food.
Regarding product type, the market has been segmented into dried baby food, milk formula, ready-to-eat prepared baby food, and others. Among these segments, ready-to-eat prepared baby food segment holds the largest market share.
Organic Baby Food Market Regional Segmentation
A geographical outlining of the global organic baby food market covers North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa (MEA).
North America is the foremost regional market due to availability of advanced technology for food production. The USA has the highest food subsidization. Other factors expanding to the market growth include the presence of key market players, increasing awareness about the benefits of organic baby food, and high disposable income. After USA, Canada and Mexico generate highest revenue in this region.
In Latin America, the availability of technology, food production, food subsidization, and disposable income are not as high as they are in North America. Therefore, Latin America is a small market. Argentina and Brazil are two important country-specific markets in this region.
Europe is the second-largest regional market due to high density of population, heavy imports of food items, increasing awareness about benefits of organic baby food, and high disposable income of consumers. The most powerful country-specific markets in Europe are France, Germany, Italy, Russia, Spain, and the UK.
During the forecast period, the Asia Pacific regional market can grow at 12.36% CAGR due to increase in per capita income, growth of the retail sector, and penetration of ready-to-eat products. The remarkable country-specific markets in this region are Australia, China, India, Indonesia, Japan, and New Zealand.
In the MEA region, the market growth is limited due to lack of food production, lack of awareness, and low disposable income. However, the demand for food items is high and the supply of organic baby food in this region can create a market if a proper distribution system is in place.
Key Players
Big players in the global organic baby food market include Abbott Laboratories (USA), Bellamy’s Australia (Australia), Danone S.A. (France), Hain Celestial Group (USA), Hero Group (Switzerland), Hipp GmbH & Co. Vertrieb KG (Germany), Kraft Heinz Foods Company (USA), Nestle S.A. (Switzerland), Plum Inc (USA), and Sprout Organic Foods Inc. (USA).
Latest Industry News
· Happy Family Organics’ company is not only planning to make food from organic “curated ingredients” that support children at different life stages but to also launch it with eco-friendly packaging. They intend to make organic baby food accessible to as many people as possible by increasing the reach of The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). 21 AUG 2019
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