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Baby Food Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global baby food products market was valued at USD 81.4 billion in 2022 and is projected to expand at a CAGR of 5.6% from 2023 to 2030. The growing concern among parents regarding the overall health and well-being of their babies is driving the demand for baby food products. Furthermore, the rising demand for organic baby food products is expected to further support the growth of the market.
Moreover, technological advancements in the food industry are expected to create lucrative opportunities for the market. For instance, in October 2021, Nestle launched an AI-based baby food product line, which is designed to provide a personalized and customized meal plan to the parents. Furthermore, the rising trend of premiumization in demand for baby food products is expected to drive the market growth.
Increasing awareness about the importance of balanced nutrition for infants and toddlers, as well as growing availability of organic baby food products, are driving the growth of the market. Additionally, leading market participants are launching new product portfolios to meet the changing requirements of consumers. For instance, in June 2021, Danone launched a new organic baby food range in the United States that includes organic purees, toddler snacks, and yogurt.
Furthermore, the rising trend of e-commerce is expected to drive the demand for baby food products in the coming years. The increasing penetration of smartphones and internet services, as well as the rising number of working women, are expected to drive the growth of the e-commerce sector. This, in turn, is expected to fuel the demand for baby food products.
Moreover, the increasing focus on the introduction of fortified baby products is projected to propel the market growth. For instance, in October 2020, Abbott launched a new range of fortified baby food products under its Similac brand. The new range contains Similac 2’FL, a patented whey-based formula that helps in the development of baby’s mental, physical, and visual abilities. Additionally, the introduction of new products and flavors is expected to offer lucrative opportunities for the market.
Product Insights
The infant formula segment dominated the market and accounted for a share of around 45.6% in 2022. Factors such as the increasing number of working women, rising disposable income, and increasing health awareness are driving the demand for infant formula globally. According to a report published by the Food and Agriculture Organization of the United Nations, in October 2019, the number of working mothers in Europe is increasing, leading to an increase in demand for infant formula.
The baby snacks segment is anticipated to expand at the fastest CAGR of 8.5% over the forecast period. The rising popularity of convenience products and the growing demand for healthy snacks among infants due to the increasing health consciousness among parents are driving the growth of the baby snacks segment. According to an article published by the American Academy of Pediatrics, in February 2020, the baby food market has seen immense growth in the past few years. Moreover, rising consumer spending on baby food products, especially in the form of snacks, is expected to propel the market growth over the forecast period.
Distribution Channel Insights
The supermarkets and hypermarkets segment held a significant share of the global baby food market in 2022. The rising millennial population in developed countries is causing a shift toward the consumption of convenience food products, leading to the growth of supermarkets & hypermarkets as a distribution channel for baby food products. In addition, supermarkets & hypermarkets provide a range of products, including organic baby food with a wide variety of flavors, which increase the customer base. Furthermore, supermarkets & hypermarkets provide convenience to the customers by offering a variety of products under one roof.
The online segment is anticipated to grow at the highest CAGR of 12.4% over the forecast period. The increasing penetration of the internet, along with the rising adoption of smartphones and tablets, is driving the growth of the e-commerce platform for baby food products. Online distribution channels offer convenience to customers, as they can access a vast range of products from any corner of the world. Moreover, online platforms such as Amazon, Walmart, and Target are offering discounts and promotional deals to attract customers, which is boosting the growth of the segment.
Type Insights
The wet/liquid segment accounted for the largest revenue share of 53.5% in the year 2022. The convenience offered by wet/liquid products such as ready to eat food and easy to carry packaging have increased the demand for these products. Moreover, the increasing number of working women and the growing adoption of western lifestyle are augmenting the demand for wet/liquid products.
The semi-solid segment is anticipated to expand at the highest CAGR of 7.2% over the forecast period. The preference of semi-solid products such as porridge, purees, and mashed fruits over other products is expected to drive the growth of the segment. Besides, the growing awareness about the health benefits of semi-solid products among the parents of babies is expected to propel the segment during the forecast period. Furthermore, the increasing demand for organic semi-solid products is likely to provide a boost to the segment.
Regional Insights
Asia Pacific is expected to witness the fastest growth in the market due to increasing disposable income, rising health awareness, and increasing population. For instance, in India, the booming middle-class population is driving the demand for baby food products. In addition, the rising trend of nuclear families and increasing number of working women are leading to the adoption of ready-to-eat baby food products. Furthermore, in China, the growing trend of time-starved parents who are willing to pay for convenient food products for their infants is expected to propel the growth of the market.
Europe is expected to witness significant growth in the market due to the increasing demand for organic baby food products in the region. The increasing awareness among parents about the health and nutrition benefits of organic baby products is driving the growth of the market in the region. In addition, the increasing presence of leading players in the region is further expected to boost the growth of the market in the region. For instance, in November 2020, Nestlé launched its organic baby food brand, Nestlé Baby, in Europe.
Financial Projections
In this part of the baby food 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 baby food business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a baby food products business comes from the sales of baby food products online, through retail stores, and through wholesale distributors. Here you will find a list with a description of each of them and other possible sources of profit such as subscriptions, advertising, and online marketing.
Projecting Expenses
In this section, all the regular expenses related to keeping the baby food products business running will be described. The list of operating expenses includes rent, wages, ingredients and supplies, packaging, advertising, legal and professional fees, transportation, research, and others.
Key companies & market share insights
Some of the key companies operating in the baby food 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 September 2022, Nestle introduced a range of organic baby food products with no artificial flavors, colors, and preservatives.
– In October 2022, Danone launched a range of baby food products containing fruits, vegetables, and grains with no added sugar.
– In August 2022, Abbott Laboratories launched a range of baby food products containing natural ingredients and no added sugar.
Some of the prominent players in the baby food market include:
– Nestle
– Danone
– Abbott Laboratories
– Kraft Heinz Company
– Hero Group
– Hain Celestial
– Bellamy’s Organic
– Beech-Nut Nutrition Corporation
– Plum Organics
– FrieslandCampina
Global Baby Food 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 food products market based on product, distribution channel, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Dairy Products
– Fruits & Vegetables
– Cereals & Grains
– 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 Leading Companies in the Baby Food Products Market?
[A]: The key companies in the baby food products market are Nestlé S.A., Abbott Laboratories, Danone S.A., Hero Group, and Heinz.
[Q]: What are the Major Drivers of the Baby Food Products Market?
[A]: Factors such as the increasing health consciousness among parents, rising disposable incomes, and a large number of working women are driving the market. Additionally, the increasing number of nuclear families and the growing demand for convenient and healthy food among parents are also driving the market.
[Q]: What is the Growth Potential of the Baby Food Products Market?
[A]: The global baby food products market is expected to grow at a CAGR of 7.2% during the forecast period. This growth is attributed to the increasing demand for organic and natural baby food products, convenience of ready-to-eat baby food, and the increasing number of working women.
[Q]: What are the Major Challenges for the Baby Food Products Market?
[A]: The major challenges for the baby food product market are the presence of counterfeit products, high cost associated with product development, and stringent regulations imposed by the government. Additionally, the increasing awareness about the health benefits of breast-feeding may also hinder the market growth.
[Q]: What Region is Expected to Offer the Most Opportunities for the Baby Food Products Market?
[A]: North America is expected to offer the most opportunities for the baby food products market due to the presence of a large number of baby food manufacturers in the region. Additionally, the growing focus on providing healthy and organic baby food products is also expected to drive the market in the region.
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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