Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Baby Food Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The global baby food market was valued at USD 77.85 billion, and it is projected to register a CAGR of 3.67% during the forecast period (2021-2026).

During the COVID-19 pandemic, baby food was tagged as an essential good, and as main retail distribution channels were permitted to remain open, stockpiling drove significant increases in retail sales. Although the above-mentioned trend was observed in both developed and developing economies, slower growth was observed in the latter, attributed to supply chain disruption and consumers spending less during the economic fallout.

The growth is expected in the market amid a flurry of innovation, with key ingredients, such as human milk oligosaccharides (HMOs) and probiotics. Over the long term, manufacturers are expected to develop products that support the immune system from infancy.

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 population of working women and the organized retail market, especially in developing economies, are expected to drive the growth of the market over the forecast period.

Key Market TrendsIncreasing Demand for Organic Baby Food

The rising number of malnutrition cases and health concerns for the overall growth of the babies represent the key factors driving the global organic baby food market. Improved economic conditions resulted in increased expenditure by parents. They are willing to spend on high-quality and expensive products for the wellness of their babies. Organic baby food prevents any kind of pesticides in the baby's system. It is made from fruits and vegetables that are not sprayed with chemical pesticides and meat from animals that are not given antibiotics or growth hormones. It does not contain any artificial flavors, preservatives, or colors. Urbanization and the growing working population, especially women, encouraged convenience-oriented lifestyles, increasing the demand for organic baby food globally and subsequently increasing the sales of baby food.

Asia-Pacific Holds the Major Share in the Baby Food Market

Asia-Pacific holds a very significant share in the baby food market. It is both the largest and the fastest-growing region globally. It is expected to be very dynamic in the coming years, owing to its growing population, hectic lifestyles, and rising consumer spending. China is the largest market in the region. Moreover, developing economies, like India and Indonesia, are expected to drive the growth of the market in the region.

The rising penetration of modern retail and the awareness of the products, combined with rising disposable incomes and purchasing power, are the key factors influencing the growth of the baby food market in the region. Non-grocery specialist retailers, such as drugstores/ pharmacies, are the preferred channel for consumers in the region, and online channels are the fastest-growing distribution channel.

Competitive Landscape

The global market for baby food is competitive, owing to the presence of prominent regional and domestic players in different countries. An emphasis is given on the merger, expansion, acquisition, and partnership of the companies, with new product development as a strategic approach adopted by the leading companies to boost their brand presence among consumers. A few of the leading companies in the baby food market are Nestlé SA, Danone SA, Reckitt Benckiser Group PLC, Abbott Laboratories, Feihe International Inc., Royal FrieslandCampina NV, Shijiazhuang Junlebao Dairy Co. Ltd, Ausnutria Dairy Corporation Ltd, Yili Group, and The Kraft Heinz Company.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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