The global organic baby food market size amounted to USD 5.55 billion in 2020. The market size is slated to increase from USD 6.05 billion in 2021 to USD 12.22 billion by 2028 at a CAGR of 10.58% during the forecast period. The market is gaining traction owing to the increasing demand for organic cereals and organic milk formulas for children, states Fortune Business Insights™ in its report titled “Organic Baby Food Market, 2021-2028”.
Organic products continue to gain popularity across the world as consumers seek healthier diet and lifestyle options. Consequently, baby food products with natural and organic ingredients are rapidly becoming mainstream across both developing and developed regions. The market for these products is expanding continuously as baby food brands introduce newer varieties. Availability of a wide range of products across retail outlets, supermarkets, and online platforms will fuel the market development significantly.
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Disruptions in Health Services Sector to Hamper Growth amid Pandemic
The baby food industry experienced tremendous setbacks during the COVID-19 pandemic due to changing demand trends and purchasing behavior of consumers. As per the WHO, almost 90% of countries experienced disruption in the health services sector in mid-2020. In addition, many countries also reported disruptions in malnutrition management in children, antenatal care, and sick child services. Besides these factors, lockdown restrictions and other measures led to a decline in product consumption across many regions. However, increased health consciousness amid the pandemic could cause a surge in product sales in the forthcoming years.
List of Key Players Present in the Market
- Kraft Heinz Canada ULC (U.S.)
- Nestlé S.A. (Switzerland)
- Danone S.A. (France)
- Plum Organics (U.S.)
- HiPP GmbH & Co. Vertrieb KG (Germany)
- Pristine Organics Pvt Ltd. (India)
- Yashili International Group Co., Ltd. (China)
- GMP Dairy (New Zealand)
- Arla Foods (Denmark)
- Kewpie Corporation (Japan)
Type, Distribution Channel, and Region are Studied
Based on type, the market is divided into infant milk formula, wet food, and dry food.
On the basis of distribution channel, the market is split into online sales channels, specialty stores, supermarkets/hypermarkets, and others.
In terms of geography, the market is broken down into North America, South America, Asia Pacific, Europe, and the Middle East & Africa.
The report offers:
- Major growth drivers, restraints, opportunities, and potential challenges for the market.
- Comprehensive insights into the global as well as regional developments.
- List of key industry players.
- Major strategies adopted by the market players.
- Latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints
Increasing Consciousness about Child Health among Parents to Surge Organic Baby Food Demand
The organic baby food market growth is influenced by growing awareness among parents about the types of ingredients used in different products. Parents have become highly conscious about what they are feeding their children. Majority of parents are seeking natural and organic products and ditching products with artificial ingredients. With access to internet and other sources, consumers are more aware about what products are trending and what products are actually good for their kids. These factors will increase the consumption of organic baby food products significantly.
However, the cost of organic products being slightly on the higher side could hamper their adoption.
Presence of Prominent Baby Food Brands to Augment Growth in North America
North America will capture a notable percentage of the global organic baby food market share between 2021 and 2028. The regional demand is driven by the presence of major market players along with increased spending capacity of consumers. Rapid growth of the organic food sector in the region will create tremendous opportunities for established as well as emerging players.
The market in Europe will record a notable CAGR during the projected timeline led by the growing shift toward sustainable and clean-label products. Parents are looking for baby foods that are safer, healthier, and packed with natural and organic ingredients.
Meanwhile, Asia Pacific will be among the fastest developing regions in the world, led by rising disposable incomes of consumers and subsequently changing lifestyles.
October 2021 – Eat Well Investment Group Inc. completed the acquisition of PataFoods, Inc., a leading plant-based baby foods brands in North America.