Zion Market Research has published a new report titled “Baby Food Market (Bottled baby food, Baby food cereals, Baby food snacks, Baby Food Soup, Frozen baby food): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2015 - 2021.” According to the report, the Global Baby Food Market accounted for USD 53.31 Billion in 2015 and is expected to reach USD 76.48 Billion by 2021, growing at a CAGR of around 6.2% between 2016 and 2021.
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Baby food is either a total or partial substitute for breast milk for infants or toddlers of under two years. It is a soft food, which can be easily consumed by infants and babies. To meet the nutritional requirements of the baby, baby foods are specially designed by the manufacturers. Generally, baby food is prepared with the required amount of proteins and iron, so that it properly helps in the baby’s growth and initial body development. The baby food market is classified into various segments which include product, health benefits, and basic ingredients.
There are mainly three forms of baby food, which are liquid concentrate, powder, and ready-to-feed. The powder is the least expensive form and it is used by mixing with water before feeding the infant. In the case of the ready-to-feed form of baby food, there is no need of addition of any liquid and mother can feed this directly to the baby. Furthermore, subcategories of baby foods include dried baby food, milk formula, prepared baby food and other baby food such as baby snacks and beverages. Cow milk-based formulas are gaining large adoption in emerging economies in the past few years. Increasing population base, rising disposable income level of individual and growing urbanization, are some of the major reasons, which are expected to be driving the baby food market in all across the globe. The decline in the birth rate in developed countries can act as a major challenge for the growth in baby food market within the forecast period.
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Growth in the baby food or formula market is also driven by an increase in numbers of women working outside the home. As many working mothers return to their jobs shortly after giving birth, prepared baby foods and formulas provide the tempting substitute for working mothers, bridging their desires for nutritious, healthy food with their need for convenience. Hypermarkets, supermarkets, small grocery retails, and health & beauty retailers are the key distribution channels serving in the baby food industry. Among all supermarkets are the primarily preferred distribution channel followed by health and beauty retailers. However, in developing countries like India, small grocery retailers and health and beauty retailers are among the most preferred sales channels. At present, small grocery retailers hold a relatively smaller share of the global market. Other sales channels in this market include discounters, non-store retailing and non-grocery retailers.
Asia Pacific market is prominent and one of the fastest growing markets for baby food among various regions due to population growth in China and India. Hence, in Asia-Pacific region, China and India hold an extensive share in the baby food market. Nestlé India Ltd maintained the lead the market accounting for a major share in the market in 2015. The company has continued to leverage the reputation of its leading brands including Cerelac, Lactogen, Nestum, Nan, and Nestogen. The company is focusing on enlarging its penetration to smaller cities of India.
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North America was the largest markets for baby food in 2015. In North America region, the U.S. accounted account the largest share in the baby food market. However, the market for baby foods in North America is expected to witness stagnant growth due to the low birth rate and less demand for baby food. The debate over legislations regarding food labeling and its advertisements are poised to exhibit challenges for baby food products sales. Parents are opting for natural ingredients and no additives containing food with major attraction on organic baby food products.
Some of the main companies operating in global baby food market are Abbott Laboratories, Bledina SA, Danone SA, Hain Celestial Group, H. J. Heinz Company, Ella's Kitchen Group Ltd, Nestlé S.A., Semper AB, Mead Johnson Nutrition Company, Morinaga Milk Industry Co., Ltd.
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