Organic Baby Food Market Size was valued at USD 10.5 billion in 2022. The organic baby food industry is projected to grow from USD 11.6 Billion in 2023 to USD 20.9 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.37% during the forecast period (2023 - 2030). In both developed and developing countries, parents' growing concerns about their children's health and nutrition have been key market drivers in recent years.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Over the last several years, there has been an increase in worry regarding newborns and young children consuming food products that include artificial substances. Parental concern for the nutrition of their infants and young children has surpassed that of their own adult consumption as a result of increased parental awareness of various food constituents. Given the widespread use of the internet, parents are more willing to spend more on baby food than adult food since they are aware of new products that are suitable for their children. Furthermore, there are more organic goods available in smaller towns, which is a crucial component in the market's expansion. Particularly during the 1990s, organic baby food items have become more and more popular. Given their popularity in the baby food area, big food producers are therefore interested in these items. In March 1996, one of the biggest manufacturers of baby food, H.J. Heinz, bought Earth's Best. After that, in October 1997, Gerber introduced their line of organic baby foods under the name "Tender Harvest." Since then, the industry has seen the entry of numerous major players, and a variety of products are now offered. The market for organic baby food has grown in smaller towns as a result of the greater penetration of these goods in Tier 2 and Tier 3 cities. Thus, this factor is driving the market CAGR for organic baby food.
Furthermore, in recent years, consumers have been more likely to purchase milk formulae due to the rise in the number of working women. Infant formulae made with artificial components, on the other hand, have been found to be devoid of the immune-stimulating substances found in breast milk. The popularity of these milk formulae is growing because they are made with natural ingredients that may still offer essential nutrients. These milk formulae assist in nourishing infants who have certain nutritional requirements. Specialized milk formula products are available for babies with certain dietary demands. Milk formulas are increasingly being chosen as the preferred product by customers, particularly in industrialized nations, due to the multiple advantages of organic ingredients. Thus, it is anticipated that this aspect will accelerate organic baby food market revenue globally.
The organic baby food market segmentation, based on product type, includes prepared baby food, milk formula, dried baby food and others. The milk formula segment held the majority share in 2022 in the market for organic baby food data due to a rise in the number of working women globally. Milk formulas are becoming more and more common as a result of the growing number of working women and the need to offer children with more nutrient-dense diet.
The organic baby food market segmentation, based on ingredients, includes grains & cereals, dairy and vegetables and fruits. The grains & cereals segment dominated the market growth for organic baby food in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Organic infant cereals and grains are frequently one of the first transitional foods for babies all across the world, and for good reason. They give a tonne of calories, carbs, fibre, and protein in addition to vitamins, minerals, and even help the growth of healthy intestinal bacteria.
The organic baby food market data, based on distribution channel, includes store-based and non-store based. The store-based segment dominated the organic baby food industry revenue for organic baby food in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Since a few years ago, supermarket chains have begun to expand from wealthy areas of large cities to much smaller towns. Currently, supermarkets are only available to wealthy consumers. The primary drivers behind the grocery industry's explosive growth include rising earnings, growing urbanization, a rise in the proportion of women in the labour force, and the adoption of western culture.
Figure 1: Organic Baby Food Market, by Distribution Channel, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights for organic baby food into North America, Europe, Asia-Pacific and Rest of the World. North America organic baby food market accounted for USD 4.8 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study period because there are many market players and more consumer spending power in these areas. A growing market for various baby food products has been fueled by the region's booming organic food industry. Leading companies are also utilizing tactical actions to boost sales of their line of baby food products in these areas.
Further, the major countries studied in the market report for organic baby food are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ORGANIC BABY FOOD MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe organic baby food market accounts for the second-largest market share due to the rising demand for infant food products with clean labels and sustainability. Over the past few years, consumer preferences for infant food have evolved towards purchasing safer, healthier, and organic items. Thus, the region's growth will be fueled by the rising demand for items that are organic, non-GMO, lactose-free, and made from plants. Further, the UK mmarket of organic baby food held the largest market share, and the Germany organic baby food industry was the fastest growing market in the region.
Asia Pacific organic baby food Market is expected to grow at the fastest CAGR from 2022 to 2030 because organic products are becoming more popular with consumers. The demand for organic products is being driven by customers' rising disposable budgets and evolving lifestyles. Furthermore, the forecast for the Asia-Pacific region will improve with the growth of the supermarket industry. Moreover, China organic baby food industry held the largest market share, and the India organic baby food was the fastest growing market in the region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the organic baby food market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the organic baby food industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the organic baby food industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, organic baby food industry has provided medicine with some of the most significant benefits. The organic baby food market major player such as Hipp GmbH & Co, Vertrieb KG (Germany), Hero Group (Switzerland), DanonS.A.A. (France), Kraft Heinz Foods Company, Abbott Laboratories, Plum Inc, Hain Celestial Group, Bellamy's Australia (Australia), Sprout Organic Foods Inc and Nestle S.A. (Switzerland).
A French multinational food products company with its headquarters in Paris is Danone S.A. It was established in Barcelona, Spain, in 1919. A yoghurt called Shokti Doi made by Danone Foods Ltd. contains protein, vitamins, iron, calcium, zinc, and other micronutrients that are meant to make up for children's nutritional deficiencies. In 2019, to meet the demand for infant formula, DANONE built a Nutricia Cuijk manufacturing facility in the Netherlands. The facility represents one of the business's largest investments in its European production network in more than ten years. For newborns with particular medical conditions, like allergies to cow's milk proteins, it might primarily provide speciality infant formulae and standard infant formulas to meet their demands.
Located in Vevey, Vaud, Switzerland, Nestlé S.A. is a multinational food and beverage processing conglomerate corporation. According to revenue and other measures, it has been the largest publicly traded food company since 2014. In 2018, the infant meal Nestlé Ceregrow, which is based on multi-grain cereal, increased Nestle's sway over the Indian cereal market. The goal of this expansion was to increase brand recognition in the nation's baby food market.
Organic Baby Food Industry Developments
April 2021: Happy Baby Savory Blends, a new pouch line from Happy Family Organics, was introduced. These goods were designed with babies and toddlers older than six months in mind.
March 2021: Plum Organics, a top-tier, organic baby food and children's snack brand, was purchased by Sun-Maid Growers of California from Campbell Soup Company. Sun-Maid wants to improve its market position in the baby food sector through this acquisition.
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)