Global Organic Baby Food Market was valued at $5,834 million in 2016, and is projected to reach at $11,592 million by 2023, growing at a CAGR of 10.1% from 2017 to 2023. Organic baby food has witnessed increased adoption, owing to factors, such as rise in parental concerns over babys nutrition, increase in awareness with respect to the benefits of organic products, improved distribution channels, and eco-friendly farming techniques, which boost the growth of organic baby food products market.
Various government initiatives related to organic food production, increase in working women, and growth of nuclear families have propelled the market growth. However, due to certain government regulations with respect to labeling of these organic baby food products and the premium price of the products hamper the market growth.
The report segments the global organic baby food market on the basis of product, mode of sale, and region. Based on product, it is classified into prepared baby food, dried baby food, infant milk formula, and others. On the basis of mode of sale, it is bifurcated into offline and online. Region-wise distribution of market includes North America, Europe, Asia-Pacific, and LAMEA. The prepared organic baby food segment is expected to grow at a CAGR of 10.5%, owing to the convenience and on the go consumption factor since the number of working mothers in regions, such as the U.S. has increased. The online mode of sale is expected to grow at a CAGR of 12.9%, owing to increase in smartphone penetration and the usage of internet.
Key players profiled in the report are Abbott laboratories, Nestl S.A., Hero Group, Amara Organics, Danone, Plum organics, The Hein celestial group, North Castle Partners, LLC. HiPP GmbH & Co. Vertrieb KG, and Baby Gourmet Foods Inc.
The region-wise analysis of the global organic baby food covers North America, Europe, Asia-Pacific, and LAMEA. Various countries covered under each region are studied and analyzed to identify the major trends demonstrated by these respective regions. Europe dominated the market in 2016, followed by Asia-Pacific.
Global Organic Baby Food Market, By Region, 2016 (%)
Top Impacting Factors
Rise in Parental Concerns
Owing to the demand for best nutrition for the babies, parents avoid the foods containing chemicals, which has 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 harmful effect on the body. Therefore, the trend has been shifted toward the usage of organic baby products, such as organic milk formula, fruits, vegetable blend pouches, and other dried and prepared baby food. The excessive usage of chemicals in the conventional foods is expected to impact the purchasing of products by parents in the near future resulting to, increase in demand for organic baby food products due to their various benefits.
Increase in Working Women Ratio
The number of women as a part of the labor workforce has increased over the past few years due to rise in literacy rate. The ratio is estimated to increase in the near future, owing to the supportive 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, which is expected to boost the market in the forecast period.
Improved Distribution Channels
The online sales market is expected to expand at a higher rate in the near future, owing to the rapid penetration of smartphones, increase in m-commerce sales, and ease in payment options. At present, in North-America, many people prefer organic food due to strong economic base. Moreover, 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 expected 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.
Stringent Government Regulations
It is one of the major challenges for the companies to acquire the organic certificate. United States Department of Agriculture (USDA) has specific requirements for the production of organic food. Various factors, such as soil quality, use of additives, and pest and weed control are followed according to the federal guidelines. The USDA inspects organic food producers to ensure that they meet the standards set for organic products and include ban on conventional fertilizers and pesticides and various antibiotics. Due to all these regulations and strict actions by food authorities, many companies are now implementing organic farming and use ingredients which are free from harmful chemicals and pesticides.
Premium Price of Organic Baby Food Products
According to the U.S Department of Agriculture, organic food generally cost 25-30% more than the conventional foods. For instance, the traditional infant formula costs about $23.50 for a 25.7-ounce container, whereas the organic infant formula costs around $27.50. These products are costly since they require proper pesticide-free storage, requirements of farmer training, and post-harvest handling.
Top Impacting Factors of Organic Baby Food Market
The factors affecting the organic baby food market includes rise in parental concerns, stringent government regulations, premium price of organic baby food products, improved distribution channels, eco-friendly farming techniques, and increase in working women ratio. These major factors have boosted the adoption of organic baby food, owing to their various benefits, such as less chemical content and providing nutrition among babies.
- The report provides an in-depth analysis of global organic baby food industry to identify the potential investment pockets.
- The key drivers, restraints, and opportunities and their detailed impact analysis have been elucidated.
- Porters Five Forces model help to analyze the potential buyers and suppliers and the competitive sketch of the market, which are expected to guide the market players to develop strategies accordingly.
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