Organic Baby Food Market Demand and Opportunity Analysis, 2017-25

A Story by Anagha

Organic Baby Food Market report categorizes the global market by Product (Infant Milk Formula, Ready to Eat Baby Food, Powder, Liquid)

Organic foods are farmed by avoiding the use of manmade fertilizers, pesticides, additives and growth regulators. The advantages of feeding organic food are less exposure to chemical residue, and are highly enriched in vitamins, minerals and omega-3 fatty acids. In addition, fresher and more nutritional food will help boost the overall development of the infant, resulting in a strong and robust immune system.

The major drivers for organic baby food are the increased awareness about traces of chemicals in baby food, which may have negative effect on the healthy growth of the baby. According to UN, there are 675 million infants in 2016, which defines the major scope of this market. The major challenge this market faces is commercialization and globalization. The product shelf life of organic baby food is low, as no preservation agents are added. Hence, this market is unable to penetrate local barriers.

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Organic Baby Food Market Taxonomy

On basis of sales channel

Online
Brick and Mortar Shops

Hypermarkets
Supermarkets
Convenience Stores

On basis of product type

Dried Baby Food
Prepared Organic Baby Food
Infant Milk Formula
Others

Online sales are boosting organic baby food sales due to convenience and ease of payment. Moreover, increased internet and smartphone availability in the emerging countries of Asia Pacific has augmented growth. Brick and Mortar shops though hold the largest market share. Local produce is usually sold in supermarkets, as customers prefer a tactile experience before buying a product. In this way customers can ensure the freshness and quality of the product they are buying.

Drying fruits and vegetables rather than cooking, helps lock the nutrients which makes the food healthier and more nourishing. Also, preparations of organically farmed foods are healthier compared to conventional counterparts, due to freshness of organically produced food. Infant milk formula is used as complete or partial substitute for breast milk. The milk powder is infused with nutrients, which aids the overall development of the baby.

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Organic Baby Food Market Outlook

Asia Pacific is the fastest growing market for organic baby food. This region has countries with the highest populations and birth rates in the world. This region holds roughly half of the world’s infant population of around 311 million. Increasing awareness about infant nutrition and health has augmented organic baby food market growth. China has witnessed a growth in the milk formula segment due to westernization and doubts over domestic dairy production. India despite having a sizeable infant population, lags behind due to a traditional predilection towards freshly prepared food.

North America and Europe with their stringent regulatory policies have driven growth of the organic baby food market. Organic baby food is considered to be a healthier alternative to conventional food, as high incomes and awareness among consumers makes it a popular choice among the consumers, which has resulted in burgeoning market growth.

Africa is a swiftly growing market due to population boom. According to UN estimates the population of Africa is projected to increase by 1.3 billion people by 2050. With such a large potential, the market is slated to grow at a very fast rate as the region develops further economically.

Latin American market is highly consolidated with companies such as GBO Kraft Heinz and Nestle having a dominant market share. As the population in countries of this region get richer the need for high quality food products increases. Major players are projected to retain their dominance in this region due to continued trust of the public in their products.

Middle East region has people with high disposable incomes due to which high-end organic foods are in demand. This demand is rising due to increased health and nutrition awareness among the people of this region which has seen an unfortunate growth of lifestyle related diseases (diabetes, obesity) in recent years.

The major players in the organic baby food market are Abbott Laboratories, Danone, Nestlé, GBO Kraft Heinz, Hero, Amara Baby Food, Baby Gourmet, Bellamy's Australia, Green Monkey, Healthy Sprouts Foods, HiPP, Initiative Foods, Little Duck Organics, North Castle Partners, Olli Organic, One Earth Farms, Tastybaby, and Vitagermine.

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