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Baby Drinks Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global baby drinks market was valued at USD 77.3 billion in 2022 and is projected to expand at a CAGR of 6.1% from 2023 to 2030. Growing awareness among parents about the health benefits of baby drinks has led to an increase in demand for the products. Baby drinks such as infant formula, follow-up formula, growing-up milk, and others are available in the market to meet the nutritional requirements of infants. Growing demand for organic and natural baby drinks is driving the market. Leading players are focusing to launch organic and natural baby drinks to cater to the changing consumer preferences.
Furthermore, the market is witnessing the launch of innovative products due to the increasing demand from working parents. For instance, in June 2021, Danone launched a new range of baby food under its brand Cow & Gate in the UK. The new range consists of four new products, including a banana, strawberry, and raspberry smoothie. The smoothie is a nutritious snack for babies aged 10 months and older as it is made with fruits, yogurt, and other natural ingredients.
In addition, the market is witnessing a rise in demand for fortified baby drinks. Fortified baby drinks contain essential nutrients such as proteins, carbohydrates, vitamins, minerals, and other compounds that are required for the healthy growth of an infant. For instance, in April 2021, Nestle launched a new range of fortified baby drinks under its brand Bear Brand. The range includes infant formula, follow-up formula, and a growing-up milk brand, which have been specifically designed to meet the nutritional requirements of infants.
Furthermore, the increasing number of working women is driving the demand for baby drinks. This has led to the rise in demand for convenient and easy-to-use products. In addition, the availability of baby drinks in various flavors is boosting the market. For instance, in May 2021, Abbott launched its new range of baby formula under its brand Similac. The range includes Similac Advance and Similac Pro-Advance, available in Vanilla and Unflavored varieties. The new range is fortified with essential nutrients to meet the nutritional needs of infants.
Product Insights
The formula milk segment held the largest share in 2022. According to an article published by the Food and Agriculture Organization of the United Nations in December 2020, formula milk is the most popular food for infants and young children, with a market share of 77%. The growth of the segment is attributed to its nutritional value, convenience, and easy availability. Furthermore, the growing awareness regarding the importance of infant nutrition and the increasing adoption of formula milk among parents has been driving the segment’s growth.
The juices and smoothies segment is anticipated to expand at the fastest CAGR of 8.2% over the forecast period. The segment’s growth is attributed to the growing awareness regarding the health benefits of natural juices and smoothies. Furthermore, the introduction of organic, nutritionally balanced, and preservative-free juices and smoothies for infants and young children has been fueling the segment’s growth. According to an article published by the Centers for Disease Control and Prevention in December 2020, natural juices and smoothies provide essential vitamins and minerals that are important for the development of a baby’s body.
Distribution Channel Insights
Supermarkets & hypermarkets are expected to remain the major distribution channel for baby drinks products. The segment held a share of over 41.3% in 2022. This can be attributed to the fact that parents prefer to buy baby drinks products from supermarkets & hypermarkets due to the convenience and availability of different brands under one roof. In addition, the rising number of large supermarkets & hypermarkets in the region is further propelling the growth of this segment.
Online stores are expected to register the highest CAGR of 12.6% over the forecast period. The rising number of online stores in the baby products industry is the major factor driving the growth of this segment. Online stores provide an extensive range of baby drinks products along with attractive discounts. Moreover, the increasing adoption of smartphones and the rising penetration of internet across the region are further propelling the growth of the online segment.
Type Insights
The cow milk segment held the largest revenue share of 57.3% in the year 2022. Increasing awareness among parents of the health benefits of cow milk, such as providing an excellent source of protein, calcium, and other essential vitamins and minerals, is contributing to the growth of this segment. Furthermore, the growing trend of innovations and product launches by manufacturers, such as the introduction of flavored milks with ingredients that provide additional health benefits such as immunity-boosting and digestion-enhancing properties, is expected to increase the demand for cow milk products.
The soy milk segment is anticipated to expand at the highest CAGR of 10.5% over the forecast period. The increasing awareness about the various health benefits of soy milk, such as the presence of high protein content, is supporting the growth of this segment. Additionally, the increasing popularity of vegan diets among people is further driving the market for soy milk. Furthermore, the rising trend of product launches in the soy milk category by major players, such as the introduction of flavored soy milk products by Danone, is projected to drive the demand for soy milk products in the forecast period.
Regional Insights
Europe held the largest revenue share in the market in 2022, owing to the presence of well-known players, such as Danone, Nestlé and Kraft Heinz. In the region, a growing number of health-conscious parents prefer to choose organic and natural baby food and drinks for their children, thus driving the demand for such products. For instance, in April 2021, Nestlé launched its organic range of baby food and drinks in the UK.
Asia Pacific is projected to register the highest CAGR of 5.8% during the forecast period. High birth rate, changing consumer preferences for healthier food, and the presence of a large base of working mothers are some of the major factors driving the market growth in the region. For instance, in April 2021, Hain Celestial launched its range of organic baby drinks called Happy Baby Organic Apple Juice in China.
Financial Projections
In this part of the baby drinks products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a baby drinks products business comes from the sale of baby drinks products, both through direct sales and through the distribution of products to retailers. In addition, other possible sources of profit include the sale of promotional products and merchandise, and the sale of advertising space.
Projecting Expenses
In this section, all the regular expenses related to keeping the baby drinks products business running will be described. The list of operating expenses includes wages, maintenance and repairs, utilities, insurance policies, advertising, and others. Additionally, expenses related to manufacturing, packaging, and distribution of the products must also be taken into account.
Key companies & market share insights
Some of the key companies operating in the baby drinks market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Nestlé launched a new range of baby drinks under the brand name ‘Nestle Baby’. The drinks are formulated with natural ingredients and are available in three flavors – Vanilla, Chocolate and Fruit.
– In August 2022, HiPP Organic launched the HiPP Organic Baby Drinks range, which includes a range of natural and organic baby drinks such as fruit juices, smoothies, milkshakes and probiotic drinks.
– In October 2022, Danone launched the Organic Baby Food range, which includes cereals, fruit juices, vegetable juices and smoothies.
Some of the prominent players in the baby drinks market include:
– Nestlé
– HiPP Organic
– Danone
– Abbott Laboratories
– Mead Johnson Nutrition Company
– Hero Group
– Sari Husada
– Nutricia
– Farley’s & Sathers
– Campbell Soup Company
Global Baby Drinks Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global baby drinks products market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Infant Formula
– Milk
– Juices
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Drivers of the Baby Drinks Market?
[A]: The major drivers of the Baby Drinks Market are increasing awareness about the health benefits of these products, rising demand for organic and natural food, growing health consciousness among parents, and rising disposable income.
[Q]: What are the Types of Baby Drinks?
[A]: The types of baby drinks include infant formula, follow-on formula, growing-up milk, specialty baby drinks, and other baby drinks.
[Q]: Who are the Major Market Players?
[A]: Major players in the Baby Drinks market include Nestle S.A., Danone S.A., Abbott Nutrition, Mead Johnson & Company LLC, Groupe Lactalis S.A., Kraft Heinz Company, Bellamy’s Organic, HiPP GmbH & Co. Vertrieb KG, and Hain Celestial Group, Inc.
[Q]: What is the Regional Outlook of the Baby Drinks Market?
[A]: Asia Pacific is expected to dominate the market with the largest share in 2020, followed by Europe and North America. The increasing population and rising awareness among parents are driving the growth of the market in this region.
[Q]: What are the Opportunities for New Entrants?
[A]: The Baby Drinks market offers lucrative opportunities for new entrants due to the growing demand for organic and natural products, increasing health consciousness among parents, and rising disposable income. Additionally, new product launches and innovations in packaging are expected to create further growth opportunities for new entrants.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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