Organic Baby Food Market size is estimated to reach $9.18 billion by 2027, growing at a CAGR of 11.83% during the forecast period 2022-2027. Organic baby foods can be delineated as food that is prepared without any use of chemicals such as pesticides, and antibiotics to feed newly born babies and infants that are aging under 12 months. Generally, baby foods are fabricated from the grinding of fruit and vegetables and grains like maize, oats, millet, and others. There are different categories of organic baby food such as dried baby food, prepared baby food, and infant milk formula. Infants and toddlers have very delicate immunity, and it gets affected at the drop of a hat. Therefore, Organic baby foods are emerging as a better alternative to regular foods because their nutrient-rich nature and absence of chemicals do not pose any digestion complications. Swift modernization, enlarging disposable income are the factors set to drive the growth of the Organic Baby Food Industry for the period 2022-2027.
Organic Baby Food Market Segment Analysis-By Packaging
The Organic Baby Food Market based on the packaging type can be further segmented into Cartons, Plastic bottles and pouches, Glass Jars, cans, and others. The plastic segment held the largest share in 2021. The growth is owing to the massive use of plastic especially polypropylene, polyethylene terephthalate in the packaging industry around the globe due to countless benefits. Its lightweight, durable nature, and sustainability make it more popular among others alternatives. Moreover, the cost of using plastic in the packaging of goods is far less as compared to other mediums which helps the firms to increase their overall revenue. However, the carton paper segment is estimated to be the fastest-growing with a CAGR of 12.5% over the forecast period 2022-2027. This growth is owing to environmental effects associated with it. Furthermore, due to poor management facilities in developing countries, natural habitats are getting devastated. Interestingly, only about 9% of the plastic waste ever produced has been recycled, while around 79% of plastics end up in landfills. Therefore, the demand for using carton packaging ascribing to its easy decomposition and environment-friendly nature.
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Organic Baby Food Market Segment Analysis-By Distribution Channels
The Organic Baby Food Market based on distribution channel can be further segmented into Offline platforms (=Supermarkets/Hypermarkets, Pharmacies, Convenience stores, small retail shops), Online platforms. The offline platforms segment held the largest share in 2021. The growth is owing to a rapid modernization with time. As the world population is on the rise the demand for basic commodities is broadening. Therefore, to meet the accruing demand there has been a massive swell in offline retail platforms in both the developed and developing world. For instance, there has been a precipitous hike in modern retail outlets like Supermarket/Hypermarkets outlets. A report suggests that around 42000 to 45000 supermarkets outlets are present in the US in 2021. The number has witnessed a slight increase of 0.6% as compared to the year 2020. In addition to that, developing countries like India have more than 14 million retail store outlets, and these stores employ around 38-40 million individuals which are 3.3% of the country’s population. However, the online segment is estimated to be the fastest-growing with a CAGR of 12.7% over the forecast period 2022-2027. This growth is owing to instantaneous digitalization ascribing to technological breakthroughs. There are 7.1 billion mobile phone users in the world as of 2021. The number is likely to intensify in upcoming years. On another hand, expanding presence of e-Commerce corporations like Amazon across the continents.
Organic Baby Food Market Segment Analysis-By Geography
The Organic Baby Food Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the rest of the World. The Asia-Pacific held the largest share with 33% of the overall market in 2021. The growth in this segment is owing to factors such as the highest fertility rates among Asian nations than anywhere in the world. A few Asian nations have a fertility rate of over 3 births. For example, with 3.85 Timor-Leste hold the highest fertility rate in the entire Asian continent. Besides Pakistan’s fertility rate stand around a massive 3.6 births per woman. Moreover, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period 2022-2027. This growth is owing to heightening per capita income expanding the buying capacity of the general public. Stimulating modernization and eventful lives are leaving parents with low to moderate time to spend upon traditional methods of food preparation. Moreover, China’s scrapping the one-child policy in 2021 to counter the heightening old-age population was the biggest event and is supposed to stir the demand for the organic baby food market.
Organic Baby Food Market Drivers
Heavy fertility rates, disposable income, and assertiveness of women in the workplace are Anticipated to Boost Product Demand
High fertility rates in Asian countries like India, Pakistan, Laos, Indonesia, and others are fueling the demand for the organic baby food market. The majority of nations have a fertility rate above 2-2.5 births per woman. Furthermore, prospering economies of countries are producing better employment opportunities for people and enlarging their disposable income. Many South Asian nations are witnessing hikes in their per capita income. For example, Bangladesh’s per capita income in the financial year 2020-21 witnessed a 10% hike and reached an all-time high of $2,227. This number was whirling around $2,064 in 2019-20. Moreover, India’s per capita income is anticipated to reach $1850 by the year 2023. In addition to that, women’s involvement in work is increasing. In 2021 working women percentage in India reached 36% which is much higher compared to previous years. All these aforesaid factors are anticipated to drive the growth in the organic baby food market.
Augmenting awareness among customers, accruing baby malnutrition cases is Expected to Boost Product Demand
The malnutrition problems in infants are a concerning issue and over the years countries have recorded several cases. Now, post-COVID-19 the situation is likely to exacerbate the situation as many people around the globe have lost their jobs. According to the Women and Child Development ministry, there are over 1,700,000 (1.7 million) children who are suffering from severe acute malnourishment and more than 1.5 million with moderate acute malnourishment. Moreover, with the growing literacy rate and modern trends, parents are much more aware regarding children’s diet which is another big factor to boost the respective market.
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Organic Baby Food Market Challenges
Sky-rocketing prices with inflation, expanding threats of another pandemic are Anticipated to Hamper Market Growth
Increasing prices of commodities due to heightening inflation can hamper the growth in the organic baby food market. The world economy has taken a huge hit due to COVID-19 lockdowns. Countries around the globe are reeling under the weight of soaring inflation. To tackle the COVID-19 impacts almost every central bank worldwide lowered the interest rate to increase the purchasing power in the hands of the consumer which is emerging as the primary reason behind price swell. Moreover, warnings of another COVID like pandemic can play a significant role in hampering manufacturing facilities in the respective industry.
Organic Baby Food Market Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Organic Baby Food Market. Organic Baby Food Market key companies are-
Baby Gourmet Foods
Abbott
Nestle
North Castle partners
Danone
Plum Organics
The Hein Celestial Group
Hero Group
Hipp GmbH & Co. Vertrieb KG
Lactalis
Recent Developments
In January 2022, Eat Well Investment group announced that its majority-owned portfolio company, Amara Organic Foods has been the fastest-growing baby food brand in America, is now made available in stores across Canada. Further, the company estimates that its revenue from CPG investments would equate to reach 25-35% of the anticipated $90 m-$110 million. Amara’s delicious toddler snacks and baby foods are 100% organic with excellent taste.
In December 2021, Yumi secured $67 million to expand the organic plant-based based baby foods. Yumi has been a D2C company, specializing in organic infant and toddler food. The funding acquired was through a Series B, which ultimately bought the fundings to touch $79 million. the company has experienced phenomenal growth, reportedly now feeding 3% of all babies in the US and anticipating nearly $100 million in sales next year. The company provides subscription-based model weekly delivery- and since the start of the pandemic, the company has provided for more than 10 million meals.
In March 2020, “Plum Organics” a famous California-based organic baby food producer company has been acquired by the world’s largest dry fruit producer “Sun-Maid.” Plum Organics sells a variety of products that are all organic certified. Therefore, according to Sun-Maid, this step is going to help in the growth of its existing products like fruit snacks and diversify its portfolio in the organic baby food market.
Key Takeaways
Geographically, the Asia-Pacific Organic Baby Food Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027.
Proliferating awareness among people regarding food safety is said to be the preeminent driver driving the growth of the Organic Baby Food Market. Extortionate prices of organic options are said to reduce the market growth.
Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Organic Baby Food Market report.
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