The baby food market is projected to register a CAGR of 3.67% during the forecast period (2024-2029).

During the COVID-19 outbreak, health issues and food scares influenced consumer demand. Initially, there was a surge in sales as customers' concerns about food safety and their health drove purchases. According to China Customs data, the total import of newborn milk powder from January to March 2022 was roughly 4,30,000 ton, down by 5.4% from 2021. Additionally, the increasing sales of infant food products in China via mum-and-baby-food stores for special medical purposes have created momentum for premium and organic baby food in the region. This growth was evidenced by Feihe's sales growth of high-end infant formula series, including Organic Zhizhi, by 16.99% (Y-o-Y) in 2022, whereas its regular counterpart’s sales declined by 25.94%.

The growth is expected in the market amid innovations 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.

In infant nutrition, parents demand the highest safety and quality standards. Key players in the market constantly reform products to make them more appealing to both parents and infants. The rising population of working women and the organized retail market, especially in developing economies, are expected to drive the market's growth over the forecast period.

Key Market Trends

Working Women are Driving the Demand for RTE Baby Food

The demand for organic baby food is expanding due to an increase in the number of working women and a quick shift toward convenience foods, propelling the organic baby food market. There is a paradigm shift in the organization of modern households, with most adults lacking time for home administration, particularly food preparation and cooking. As a result, there has been a rise in the demand for ready-to-eat or packaged foods. Furthermore, working women, particularly new mothers, prefer ready-to-eat meal items. These working mothers choose packaged food items for their children as it saves time and allows them to maintain a work-life balance while still taking care of domestic obligations.

Working women are prioritizing their children's nutritional requirements and choosing manufactured baby meals, thus resulting in the expansion of the baby food sector. According to the Office for National Statistics (ONS), in September 2020, 74% of mothers in England were working, up from 69% in 2013. Furthermore, in 2022, India's labor force included 20.3% of women aged 15 and older. In Australia, women participated in the labor force at a rate of 61.1% in 2021.

Asia-Pacific Holds the Major Share

Asia-Pacific holds a very significant share in the baby food market. It is the largest and the fastest-growing market 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. Moreover, developing countries like India and Indonesia are expected to drive the market's growth in Asia-Pacific.

The rising penetration of modern retail and the awareness of the products, combined with rising disposable incomes and purchasing power, are influencing the growth of the baby food market in the region. Non-grocery specialist retailers, such as drugstores/pharmacies, are the preferred channel for consumers, and online channels are the fastest-growing distribution channel.

Competitive Landscape

The market for baby food is competitive due to the presence of prominent regional and domestic players in different countries. Companies are focusing on mergers, expansions, acquisitions, partnerships, and new product developments to boost their brand presence among consumers. A few of the leading companies in the baby food market are Nestlé SA, Danone SA, Reckitt Benckiser Group PLC, Abbott Laboratories, Feihe International Inc., Royal FrieslandCampina NV, Shijiazhuang Junlebao Dairy Co. Ltd, Ausnutria Dairy Corporation Ltd, Yili Group, and The Kraft Heinz Company. Recently, players have been active in product launches and approvals to gain a substantial position in the infant food business.

• In April 2023, the Kraft Heinz Company developed a plant-based baby food line to give newborns a high-quality vegan diet. The food line includes Saucy Pasta Stars with beans and carrots, Potato Bake with green beans and sweet garden peas, and Risotto with chickpeas and pumpkin.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

• 1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition

  • 1.2 Scope of the Study

• 2 RESEARCH METHODOLOGY

• 3 EXECUTIVE SUMMARY

• 4 MARKET DYNAMICS

  • 4.1 Market Drivers

  • 4.2 Market Restraints

  • 4.3 Porter's Five Forces Analysis

    • 4.3.1 Threat of New Entrants

    • 4.3.2 Bargaining Power of Buyers/Consumers

    • 4.3.3 Bargaining Power of Suppliers

    • 4.3.4 Threat of Substitute Products

    • 4.3.5 Intensity of Competitive Rivalry

• 5 MARKET SEGMENTATION

  • 5.1 By Category

    • 5.1.1 Organic

    • 5.1.2 Conventional

  • 5.2 By Type

    • 5.2.1 Milk Formula

    • 5.2.2 Dried Baby Food

    • 5.2.3 Ready to Feed Baby Food

    • 5.2.4 Other Types

  • 5.3 By Distribution Channel

    • 5.3.1 Drugstores/ Pharmacies

    • 5.3.2 Supermarkets/ Hypermarkets

    • 5.3.3 Convenience Stores

    • 5.3.4 Online Channels

    • 5.3.5 Other Distribution Channels

  • 5.4 By Geography

    • 5.4.1 North America

      • 5.4.1.1 United States
      • 5.4.1.2 Canada
      • 5.4.1.3 Mexico
      • 5.4.1.4 Rest of North America

    • 5.4.2 Europe

      • 5.4.2.1 United Kingdom
      • 5.4.2.2 Germany
      • 5.4.2.3 Spain
      • 5.4.2.4 France
      • 5.4.2.5 Italy
      • 5.4.2.6 Russia
      • 5.4.2.7 Rest of Europe

    • 5.4.3 Asia-Pacific

      • 5.4.3.1 China
      • 5.4.3.2 Japan
      • 5.4.3.3 India
      • 5.4.3.4 Australia
      • 5.4.3.5 Rest of Asia-Pacific

    • 5.4.4 South America

      • 5.4.4.1 Brazil
      • 5.4.4.2 Argentina
      • 5.4.4.3 Rest of South America

    • 5.4.5 Middle-East and Africa

      • 5.4.5.1 South Africa
      • 5.4.5.2 Saudi Arabia
      • 5.4.5.3 Rest of Middle-East and Africa

• 6 COMPETITIVE LANDSCAPE

  • 6.1 Most Active Companies

  • 6.2 Most Adopted Strategies

  • 6.3 Market Share Analysis

  • 6.4 Company Profiles

    • 6.4.1 Nestle SA

    • 6.4.2 Danone SA

    • 6.4.3 Reckitt Benckiser Group PLC

    • 6.4.4 Abbott Laboratories

    • 6.4.5 Feihe International Inc

    • 6.4.6 Royal FrieslandCampina NV

    • 6.4.7 Shijiazhuang Junlebao Dairy Co. Ltd

    • 6.4.8 Ausnutria Dairy Corporation Ltd

    • 6.4.9 Yili Group

    • 6.4.10 The Kraft Heinz Company

• 7 MARKET OPPORTUNITIES AND FUTURE TRENDS

• 8 IMPACT OF COVID-19 ON THE MARKET