World Baby Food Market- CBME China News, Shanghai Children Baby Maternity Industry Expo

Release date:2018-09-26

Baby Food Market size in 2014 was valued at $50.7 billion and is expected to garner $72.7 billion by 2020, registering a CAGR of 6.4% during the forecast period 2015-2020. Traditionally, babies are fed with soft home cooked food, a practice that is still popular in underdeveloped and developing countries. However, growing urbanization and changing lifestyles have increased the demand for packaged baby foods in different societies and cultures. These foods are fed to babies between the ages of four to six months and two years. Growing awareness for nutrition, rise in organized retail marketing, urbanization paired with a significant increase in the count of working women population are key factors that boost the baby food industry growth. Concerns related to food safety, falling birth rates, and the practice of feeding home cooked food to babies are the key restraints in this market.

The world baby food market is segmented based on product type, distribution channel and geography. Based on product type, the market is segregated into dried baby food, milk formula, prepared baby food, and other baby food. Presently, milk formula occupies the largest market share followed by the product segment of prepared baby food. However, over the forecast period, product segment of prepared baby food would gain prominent adoption in the global market. Sales of milk formula baby food is highly concentrated in the APAC region. Alternatively, demand for prepared baby food is largely limited to developed regions. However, market for prepared baby food, in developing regions would pick pace over the forecast period, subsequently leading to the dynamic growth of the baby food market in the APAC region.

Supermarkets, hypermarkets, small grocery retailers, and health & beauty retailers are the key distribution channels in the baby food industry. Supermarkets are the primarily preferred distribution channel among consumers, followed by health and beauty retailers. However, considering the scenario in few Asian developing countries such as India, small grocery retailers and health & beauty retailers hold significant share considering sales in the region. Small grocery retailers account for a comparatively smaller share in the baby food market but would witness rapid growth over the forecast period. Other distribution channels include discounters, non-grocery retailers, and non-store retailing.

The world baby food market has been analyzed on the basis of four geographical regions, which include North America, Europe, Asia-Pacific and LAMEA. Asia-Pacific is leading the market in terms of adoption of new and innovative baby food products launched by various companies, followed by the European region. Asia Pacific is the largest market for milk formula and occupies more than half of the overall world baby food market share. Larger demand would be observed in the LAMEA region over the forecast period. The population of infants and toddlers in the age group of 0-4 years increased by 53 million in 2010, which showed high potential in baby food market. Declining poverty rates and rising disposal income of some of the countries in Latin America have boosted the adoption of baby food products.

Key players operating in baby food market are, Nestle, Danone, Mead Johnson, Abbott laboratories, Hero-Group, Perrigo Company, Bellamy Organics, Hain Celestial Group, Campbell soups, Friesland Campina. Market players have adopted various strategies such as product launch, acquisition, collaboration, and partnership, thereby enhancing their baby food market share.

Top Impacting Factors of Baby Food Market

Baby food market trends includes increasing awareness on adequate nutrition, growing population of women professionals, food safety concerns, and rising urbanization. However, declining birth rates, popularizing breastfeeding through government initiatives and home cooking are the factors responsible for restraining the growth of the baby food market. Use of advanced technologies, innovations in baby food products and heavy investments in the emerging economies would drive the growth of the market. The top factors affecting the growth of the baby food market are as follows:

Awareness on adequate nutrition

Infants and toddlers require adequate amount of nutrition in their daily diet. Hence, there is an increase in the demand of packaged baby foods with balanced nutrition value. The key market players launch innovative food products offer products with minimal preservatives and adequate nutritional content. In addition, these products are prepared with utmost care and hygiene to prevent contamination and ensure safety of the infants. Baby food manufacturers in the market need to adhere to the guidelines laid by the competent authorities to manufacture optimal quality products.

Increasing number of working women

Mother's milk is the best source of nutrition for infants until the age of 6 months. However, increasing population of women professionals has led to time-constraints for breast-feeding and preparing homemade food for infants. Lactating problem among working women has also led to the adoption of baby food products.

Increased breastfeeding activity due to government initiatives

Governments and other health organizations in various countries have launched campaigns to promote the advantages of breastfeeding in infants. Breastfeeding is generally considered as the best source of nutrition for infants up to the age of 6 months. Growing population of female professionals and lactating problems in women have fostered the adoption of baby food products.

Source: Allied Market Research

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