WorldWide Baby Food Market, Industry / Sector Analysis Report, Regional Outlook & Competitive Market Share & Forecast, 2019 - 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Baby Food Market

Industry / Sector Trends

Global Baby Food Market size was more than USD 14 billion in 2018 and will witness substantial growth around 13.5% CAGR during the forecast timespan.
 

U.S. baby food size, by product, 2014 - 2025 (USD Million)
 

Increasing demand for organic food accompanied with increasing infant population across the globe will primarily drive baby food market demand over the forecast timeframe. Rising awareness of organic products among the consumers and agriculture companies & farmers coupled with expanding availability of organic products are two major factors responsible for growth of the market. Also, there is significant increase in organic ingredients used in baby food production will positively impact product demand growth in coming years. According to Research Institute of Organic Agriculture (FiBL) and IFOAM report land under organic farming globally was 30 million hectares in 2004 and reached 69.8 million hectors in 2018. Improved economic conditions globally along with increased expenditure on high quality and expensive organic baby food by parents shall drive growth. According to UN, world population will reach to 8.6 billion in 2030 adding roughly 83 million people to the world’s population yearly. There were over 670 million babies ranging 0 to 4 years in age in 2015 and shall surpass 700 million by 2020. Thus, increasing penetration of organic baby food along with increasing infant population over the forecast timeframe will boost industry growth.
 

Although organic baby food are high in quality and have more nutritional value, they are expensive at the same time. This could play major setback factor for the organic baby food demand. Additionally, stringent government regulations and quality standards governing baby food industry will have negative impact on overall growth of industry. Government initiatives to increase awareness of breastfeeding among the mothers and their emphasis on home cooked food may affect baby market growth negatively during forecast period. However, growing number of working women populations across the world and rising preference to use baby food which are readily available and instant to make has emerged as an important factor for growth of baby food industry in past few years.
 
Market Segmentation, Outlook & Regional Insights: Baby Food Market


Baby food, By Product

On the basis of product market is segmented into prepared, dried and other baby food product. In 2018, globally, prepared baby food segment accounted largest market share by revenue. It mainly includes porridge, purees, squash and other food items which are ready to eat. This segment will have augmented growth due to increasing working women population in rising economies across the world. The dried baby food segment includes dried fruits & vegetables, cereals, etc. This segment shall witness enormous growth with over 13% CAGR during forecast timespan mainly due to shelf life of these products and easiness of preparation.
 

Baby Food, By Distribution Channel

Baby food market is divided on the basis of distribution channel hypermarkets, supermarkets, convenience stores, online and others. Supermarket segment held a largest market share of close to 35% of the overall market size. Supermarkets growth in Asia Pacific coupled with their rising popularity among people will propel product demand during forecast timespan. Competition among the product manufacturers for the top spots in supermarkets shelves led to aggressive marketing and lucrative pricing schemes. Other fastest growing segment is online distribution channel having CAGR of 13.2% during forecast period. Convivence of online shopping and increasing awareness of nutrition reach baby food among the mothers is likely to positively influence product demand in coming years.
 

Baby Food, By Region

Global Baby Food market size by region, 2018
 

Asia Pacific generated revenue of over USD 4 billion in 2018 and shall exhibit promising gains from 2019 to 2025. This forecast growth is associated with rising working women population coupled with increasing awareness of baby nutrition & health. Additionally, variety of baby food and strong marketing & distribution of product by big players likely to drive product growth during forecast period.
 

Global baby food market was led by Europe in 2018 and accounted for more than 30% of global demand by volume. Large number of product manufacturers and corresponding raw material providers present in the region was main reason towards such massive demand in the region. Tight competition among manufacturers coupled with stringent regulations enforced by the EU has forced manufacturers to diversify their product portfolio and to raise food’s nutritional value. Furthermore, significant demand of organic baby food from customers has opened many avenues for the product manufactures in the region as well as globally.
 

Key Players, Recent Developments & Sector Viewpoints: Baby Food Market


Industry is highly competitive and there are several big players operating in the baby food market. Some of the notable players are Reckitt Benckiser, Nestle, Danone, Abbott, Kewpie Corporation, Hero Group, The Kraft Heinz Company, HiPP, DMK Group GmbH, PZ Cussons, etc. These players have very strong distribution network and they utilize almost all formats of distribution channels to their benefit.
 

They are actively engaged themselves in mergers & acquisitions due to high competitiveness of baby food market. For instance, Danone, A French multinational food-products corporation, acquired WhiteWave Foods in 2017, this is to expand its product portfolio. Danone Manifesto Ventures, an investment venture by Danone, is planning to acquire 20-25 food startup companies in coming years to expand the market share.
 

Global players tend to have partnerships with local small and medium retailers & enterprises to understand requirements and demands of local/regional customers and their preference for baby food. To sustain the competition these companies, spend large portion of revenue on marketing and getting product more visible to customers through different media outlets such as newspaper adds, digital media, TV commercial and magazines.
 

Industry Viewpoint

 

Baby food is a huge industry with players ranging from multinational to local. The industry is highly regulated, and companies must adhere by the food and safety standards regulations. This is due to babies consuming these products still developing their immune system and so contaminants can cause irrevocable harm to child. Quality of final product heavily depend on raw materials thus industry players are very cautious while selecting raw material suppliers and these raw materials goes through multiple quality checks before ending up in final production. Raw materials for baby food industry are dairy, meat, vegetables, fruits, grains, corn flakes, etc

Key Insights Covered: Exhaustive Baby Food Market
1.  Market size (sales, revenue and growth rate) of Baby Food industry.
2. Global major manufacturers' operating situation (sales, revenue, growth rate and gross margin) of Baby Food industry.
3. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Baby Food industry.
4. Market size (sales, revenue) forecast by regions and countries from 2019 to 2025 of Baby Food industry.

Research Methodology: Baby Food Market

Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among others.