Organic Baby Food Market size is forecast to reach $9.43 billion by 2025, growing at a CAGR of 10.58% during the forecast period 2020-2025. Rising parental concerns over baby’s nutrition and increase in awareness about the benefits of organic products are the major factors driving the growth of the market. Increasing working women and the growth of nuclear families is set to further enhance the overall market demand for Organic Baby Food Market during the forecast period 2020-2025.
Product – Segment Analysis
The Ready-To-Feed Baby Food held the largest share in the Organic Baby Food Market in 2019 and is estimated to grow at a CAGR of 11.27% during the forecast period 2020-2025 owing to increasing organic infant formula. Ready-To-Feed Baby Food represents one of the most widely consumed product types as it can be served immediately without the hassle of cooking. Busy lifestyle, a growing number of working women, and increasing disposable income among the people are increasing the demand for ready to eat baby food products. With the consumer’s busy, work-oriented, and hectic lifestyle, they have very little time to cook food. Therefore, they prefer ready to feed baby food products. Nowadays, people have become lazy owing to the advancement in technology and therefore don’t want to prepare food for their babies at their home as it needs lots of hard labor and time. Thus, increasing the growth of the ready-to-feed baby food products. Ready-To-Feed baby food is set to be the highest growing segment and is estimated to register the highest CAGR during the forecast period 2020-2025 owing to the high disposable incomes and busy lifestyles of the people.
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Distribution Channel- Segment Analysis
Online Retailers held the largest share in the Organic Baby Food Market in 2019. Growing emerging economies and increasing awareness of the importance of proper nutrition for babies is increasing the demand of organic baby food product. Despite the excessive costs, parents are buying premium products for their children. Online retailing for organic baby food holds huge potential for growth in the market owing to the increasing popularity of internet services, and technological advancements. The rising emergence of e-commerce companies and innovative strategies adopted by major players such as channel expansion is increasing the demand for organic baby food products. Online Retailers are set to be the highest growing segment and are estimated to register the highest CAGR during the forecast period 2020-2025 owing to its ease and hassle less nature of online service.
Geography – Segment Analysis
North America dominated the Organic Baby Food Market in 2019 with a share of more than 37.16%, followed by the Asia Pacific owing to the increased awareness of the importance of proper nutrition for babies. The demand for organic baby food is also rising as they help in limiting the exposure to the harmful chemicals used in conventional food production. Thus, increasing the growth of the organic baby food market in this region.
However, Asia Pacific is estimated to grow at a higher CAGR during the forecast period 2020-2025 owing to the increasing disposable income, rising number of malnutrition cases, health concerns, and improved distribution channels. Various government initiative related to organic food production is also increasing the growth of the organic baby food market in the Asia Pacific region.
Drivers – Organic Baby Food Market
The rise in Parental Concerns and an increase in the number of working women
The rise in parental concerns and an increase in the number of working women is increasing the growth of the organic baby food market owing to the demand for the best nutrition for the babies. Parents avoid the foods containing chemicals, which have harmful effects on the body, such as acrylamide capable of causing cancer in children and infants. The presence of harmful chemicals (pesticides, fertilizers, artificial colors, sweeteners, and flavors) in conventional foods consumed by children exhibit a harmful effect on the body. The usage of organic baby products, such as organic milk formula, fruits, vegetable blend pouches, and other dried and prepared baby food is increasing the demand for the organic baby food market. The excessive usage of chemicals in conventional foods is estimated to impact the purchasing of products by parents soon resulting in increase in demand for organic baby food products owing to their various benefits. The number of women as a part of the labor workforce is increasing owing to the rise in literacy rate and government policies. The ease and convenience provided by these baby products offer parents lesser time in manual preparation of baby foods and simultaneously take care of the babies. Thus, increasing the growth of the organic baby food market during the forecast period 2020-2025.
Improved distribution channels
Improved distribution channels are increasing the growth of the organic baby food market. The ease and convenience provided by the organic baby food products offer parents lesser time in manual preparation of baby foods and simultaneously take care of the babies, increasing the demand if the organic food market. Organic food is being promoted at a large scale by stating its benefits, such as chemical-free and natural. The purchase of organic baby food from supermarkets is the latest trend in the industry since these are easily accessible and are estimated to be found near the residential areas. Moreover, some of the supermarkets have company representatives to assist the costumers in their selection of organic baby food products. Thus, increasing the growth of the organic food market during the forecast period 2020-2025.
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Challenges – Organic Baby Food Market
Stringent government regulations concerning the labelling of the organic baby food products and the premium price of the products
Some of the factors that can impede the growth of the Organic Baby Food Market are stringent government regulations concerning the labelling of the organic baby food products and premium price of the products.
Organic Baby Food Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Organic Baby Food Market. In 2019, the Organic Baby Food Market share is consolidated by the top ten players present in the market. Organic Baby Food, the top 10 companies are Nestle SA, Hero Group, Amara Organics, Danone, Plum Organics, The Hein Celestial Group, Kraft Heinz, Hero Group, Abbott Nutrition, and Baby Gourmet Foods Inc. among others.
In September 2017, Nestle acquired Bottle Cofee and Sweet Earth Foods.
In April 2017, Danone acquired Whitewave to create DanoneWave.
North America dominated the Organic Baby Food Market in 2019 owing to the increased awareness of the importance of proper nutrition for babies and the presence of key players in the region. The Organic Baby Food Market scope for different regions will be provided in the final report.
Rising eco-friendly farming techniques and various government initiatives related to organic food production are likely to aid in the market growth of the Organic Baby Food Market.
Detailed analysis of the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Organic Baby Food Market report.
Stringent government regulations concerning the labelling of the organic baby food products and the premium price of the products are set to create hurdles for the Organic Baby Food Market.
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