Global Baby Food (Milk Formula, Prepared Meals, Dried, Others) Market Overview, 2022-2027

Global Baby Food (Milk Formula, Prepared Meals, Dried, Others) Market Overview, 2022-2027

Baby food is mainly specialty nutrition with well-balanced nutrition quality intended at mimicking breast milk as closely as possible. It is a pre-prepared solid food containing an easily chewable or soft food that is mostly meant for infants, new-borns, toddlers or pre-schoolers and is available commercially. Generally, baby food contains nutrients, such as carbohydrates, protein, essential fatty acids (ARA and DHA), iron, minerals (Zinc, Calcium, and others), and vitamins (A, B, C, D, and E). The increasing infant population across the globe is a major factor driving the baby food market growth during the projected period. For instance, according to the National Center for Health Statistics, the birth rate in 2021 increased by 1% from 2020 with a recorded birth of 3,659,289 babies.

According to the report titled, “Global Baby Food Market Overview, 2027”, published by Bonafide Research the market is bifurcated on the basis of product type and sales channel. The product type category consist of segments like milk formula, dried baby food, Cereals and other segments. While on the basis of sales channel the market is segmented into Hyper/Supermarket, Pharmacy/ Drugstore, Convenience store and online channel. The Baby food market across the globe is driven by factors like rising disposable income in different region, along with increase in working women in many different countries. These factors have enabled the global baby food market to achieve the value of around USD 80 Billion in 2021. Further, the rapid urbanisation taking place across the globe will sustain the future growth of the market with an expected CAGR of Around 5% till 2027.

Globally, the milk formula segment is the largest in terms of market share, but the dried baby food is the segment growing with one of the fastest CAGR of almost 6%. This high growth rate is attributed to the fact that dried baby food have higher nutritional value from natural sources along with other health benefits to the babies. While traditional points of sales like hyper/supermarket have had the majority of the market share globally, recently with increasing internet penetration and advancement in mobile technology the market is observing a shift to e-commerce, which is the online sales channel. The rising adoption of organic baby food owing to rising parental concerns over the baby’s nutrition and health in developed & developing countries will accelerate the global baby food market growth in the coming few years. For instance, according to a survey by the Organic Trade Associations, about 84% of parents prefer organic food for their babies. Foods that have undergone less chemical exposure during cultivation are much preferred and safer options for baby meals. Additionally, existing hunger and malnutrition issues of the infants in many developing and underdeveloped countries also reveals the bigger market for baby food. According to United Nations International Children’s Security Fund (UNICEF), it is estimated that half of all deaths in children under the age of 5 are because of an alarming level of malnutrition across the globe. Eco-friendly packaging and major safety concerns help companies to differentiate the products in the baby food market. companies seek to design the packaging of the baby food products by recyclable raw material. This helps the company to promote baby food products baby green marketing techniques. Baby product innovation and aggressive marketing of baby food products also result in the rise of the baby food market.

However, shifting preferences of the peoples towards the fact that homemade food is trustworthy for infants and toddlers affects negatively the baby food market. According to CNN Health, 95% of tested baby food contains toxic metals which leads to damage to the brain development of the children’s results in significantly reduces demand for baby food. In infant nutrition, parents demand the highest safety and quality standards. Key players in the market constantly reform products to make them more appealing to both parents and infants. The rising phenomenon of the organized retail market, especially in developing economies, are expected to drive the market's growth over the forecast period. There is a paradigm shift in the organization of modern households, with most adults lacking time for home administration, particularly food preparation and cooking. As a result, there has been a rise in the demand for ready-to-eat or packaged foods.

Recent Developments
• In 2021, Danone announced the launch of the first-ever formula milk in the United Kingdom to be sold in a pre-measured tab format in response to the parent's desire for greater convenience and ease when preparing formula milk feeds.
• In 2020, Danone SA acquired Murray Goulburn Dairy (Qingdao) Co. Ltd from Saputo Dairy Australia. This transaction includes a registered infant milk formula brand and a facility located in Qingdao, and it was completed in June 2020. Danone now has its first production facility for infant milk formula in China.
• In April 2021, the Kraft Heinz Company developed a plant-based baby food line to give newborns a high-quality vegan diet. The food line includes Saucy Pasta Stars with beans and carrots, Potato Bake with green beans and sweet garden peas, and Risotto with chickpeas and pumpkin.

COVID-19 Impact
The pandemic affected many different industry Verticals across the globe including the baby food market. With the initial outbreak of the virus a certain fear amongst the consumer in some regions relating to food availability the market observed a slight boost in terms of revenue. But after the advent of lockdowns and travel restriction across the globe the consumers shifted to homemade meals for their babies which created a negative impact on the market. With the pandemic a shift in consumer behaviour was observed which led to more health-conscious practices and eliminating of baby food consumption.

Major Companies Included: The Hain Celestial Group, The Kraft Heinz Company, Perrigo Company plc, Reckitt Benckiser Group plc, Hero Group, HiPP GmbH & Co. Vertrieb KG, Arla Food, Danone, Ella's Kitchen, Friesland Campina, Ausnutria, Beingmate, Sun-Growers of California

Considered in the report
• Geography: Global
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027

Region covered:
• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Aspects covered in the report
• Market Size by Value for the period (2016-2027F)
• Market Share by Product Type (Milk Formula, Dried Baby Food, Cereals, Others)
• Market Share by Channel Sales (Hyper/Supermarket, Convenience store, Pharmacy/ Drugstores, Online)
• Market Share by Region
• Market Share by Country
• Market Share by Company

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Consumer goods and Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.