The demand for organic food has exploded recently as organic food companies have changed their marketing strategies to appeal to discerning consumers. Consumers have become especially concerned about their health and they prefer food free from any additives or chemicals. The organic baby food market has grown by leaps and bounds due to evermore women joining the workforce thereby increasing their purchasing power. It is quite a challenge for working mothers to juggle childcare with their careers and this is where organic baby foods come into play.
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High Obesity Rates in Mexico Make it Ideal for Organic Baby Food Companies to Target
National governments in emerging economies are leading the way in raising awareness about organic foods by investing heavily in advertisement campaigns. The demand for organic food has been particularly high in Mexico as the Latin American nation is facing a serious obesity crisis, forcing the government to initiate educational campaigns about food nutrition laws. Thus, many parents are opting to feed their babies organic foods from the beginning. In 2017, the organic food baby category was one of the fastest growing in Mexico demonstrating the immense potential for companies in the North America organic baby food market. Companies have sought to tap into this by expanding their business into different geographies and product lines. For e.g. – Happy Family Organics, a prominent baby food brand, launched Happy Baby Savory Brands that claims to include organic herbs, spices, and vegetables.
Huge Demand for Organic Milk Baby Formula in China Allow it to Record Robust Growth
North America and Europe hold considerable sway in the global organic baby food market as a result of pervasive product penetration and a higher disposable income. Nonetheless, the APAC region is rapidly catching up as organic milk baby formula has witnessed widespread acceptance in China. Manufacturers opine that there are limitless opportunities for growth in this dynamic economy and have adjusted their investment strategies accordingly. In 2021, Nestle began production of its Gerber puree in China – the first plant of its kind in the APAC region. The company anticipates to produce millions of jars of Gerber puree annually for both domestic consumption and export.
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Focus on Prepared Food Segment For Maximum Profitability in Organic Baby Food Market
There are three types of baby foods in the organic baby food market namely dried baby food, prepared baby food, and milk formula with the prepared baby food segment expected to grow at the fastest rate. Organic baby foods are typically sold in supermarkets, pharmacies, online, and in specialty outlets. COVID-19 has had a monumental impact on consumer purchase behaviours and online shopping is now the norm and not exception with ecommerce players reporting their highest sales volumes in the past decade. For e.g. – Nourish Organics, an Indian producer of baby foods grew by double digits in the year 2020.
Some companies profiled in this informative report include Danone SA, Nestle S.A, Abbott Laboratories, Plum Organics, H.J. Heinz Company, Campbell Soup Company, Hero Group, Bellamy’s Australia Limited, Hipp Gmbh & Co, and Amara Organics.
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