South Africa Baby Food Market - Forecasts from 2022 to 2027

South Africa Baby Food Market - Forecasts from 2022 to 2027

South Africa's baby food market was valued at a market size of US$618.999 million in 2020 and is expected to grow at the compound annual growth rate of 4.89% to reach a market size of US$864.499 million in 2027.

The growth is attributed to the rising disposable income and the unwillingness to compromise on baby products. The presence of key market players in the region is also a factor boosting the baby food market growth.

Baby food is perceived as a safe substitute for breastfeeding. They consist of milk formula, prepared baby food, and dried baby food. Instead of substitutes, these products are also considered additional nutritional supplements by many parents in the region. Baby food is mainly consumed by infants in the age group of 6 months to 4 years. These foods also include fruits, cereals, and vegetables as ingredients. These ingredients are very essential for the developmental growth of infants.

Key Market Drivers

As baby food is one of the prime substitutes for breastfeeding, the demand for baby food is mainly from working women with infants. And the share of working women in South Africa has been rising in the last few years. According to a World Bank report, the total percentage of labor females increased to 45.3% in 2019. And due to a suitable educational environment, this share is anticipated to increase in upcoming years. Thus, the demand for baby food from this population is expected to grow at the same pace. Because of this, the baby food market is expected to grow during the forecast period as well.

In addition to this, the overall population of South Africa has also been rising at a faster pace in the last few years. According to the World Bank report, the total population of South Africa was 59 million in 2020. This population growth is expected to drive the demand for baby products with rising demand for baby food products, which is projected to boost the market value of the baby food market in upcoming years.

Restraints

The South African government has put forth regulations on promoting breastfeeding in the country. Hence, the advertisement of infant formula is not supported due to such regulations. For instance, Nestle arranged a webinar on “Free Stokvel Mom and Child Forum” in August 2021. But the health experts raised objections against this webinar as it violated the 2012 National Regulation on the Prohibition on the Manufacturing and Distribution of Foodstuffs for Young Children and Infants. Hence, it is one of the factors predicted to hamper the growth of the baby food market in South Africa. Regional analysis

The demand for baby food products is anticipated from the urban areas of the country. Areas like Cape Town are projected to hold a prominent share in the baby food market in South Africa. Hence, it is expected to grow its market share during the forecast period.

Recent Developments

Nestle, one of the prominent suppliers of baby food in South Africa in March 2021, announced a launch of bio-based lids and scoops for infant formula. These new products are made up of sugar cane and its by-products.

COVID-19 impact on the South Africa baby food market

Due to the outbreak of COVID-19, many retail stores had to shut down for around a year. Additionally, many industrial activities were also restricted to follow the social distancing norms. This affected the overall industrial sector. However, by the end of 2020, due to the lifting of restrictions in South Africa, the demand for baby food is expected to increase. This is predicted to lead to baby food market growth in South Africa during the forecast period.

Market Segmentation:

By Type

Organic Baby Food
Non-organic Baby Food

By Product

Dried Baby Food
Milk Formula
Prepared Baby Food
Others

By Distribution Channel

Online
Offline