The North American baby food market was valued at USD 23.2 billion in 2022 and is projected to expand at a CAGR of 5.5% from 2023 to 2030. The increasing number of working mothers and the growing demand for convenience foods are major factors driving the market. Furthermore, the rising trend of premiumization, with customers being willing to pay a premium for products with better quality, is also driving the market growth. Manufacturers are launching new products with premium ingredients, such as organic baby foods, to cater to the customer needs. For instance, in August 2021, Nestle launched two new organic baby food products in the US, which include organic baby cereal and organic toddler snacks.

The rising trend of health consciousness among parents is propelling the demand for organic baby food. The growing demand for organic baby food with clean label ingredients is being driven by the increasing awareness among parents regarding nutrition, ingredients, and additives. Organic baby food products are free of artificial colors, preservatives, and flavors, and are produced and packaged according to the organic standard guidelines. Furthermore, the increasing number of product launches and the rising demand for ready-to-eat baby food products are anticipated to drive the market growth in the near future.

The increasing number of health-conscious parents is propelling the demand for fortified baby food products. Baby food products enriched with vitamins, minerals, and nutrients, such as iron, zinc, and probiotics, are gaining popularity among parents. For instance, in October 2021, Danone launched a new range of fortified baby food products in North America, targeting health-conscious parents. The new product range includes organic baby food cereals, non-GMO baby food products, and fortified baby food products, such as cereals and purees.

The increasing trend of premiumization and the growing demand for convenience are driving the demand for ready-to-eat baby food products. Baby food products in the ready-to-eat form help save time, which is why they are gaining popularity among working mothers. Furthermore, manufacturers are launching new products targeting customers who are looking for convenience. For instance, in June 2021, Beech-Nut launched a new range of ready-to-eat baby food products in the US. The new range includes baby food pouches and jars with natural ingredients and no added sugar.

Moreover, the increasing demand for plant-based baby food is also driving the market growth. The growing number of vegan and vegetarian consumers is increasing the demand for plant-based baby food. Furthermore, the increasing awareness regarding health benefits associated with plant-based diets is propelling the demand for plant-based baby food. For instance, in October 2021, Ella’s Kitchen launched a new range of plant-based baby food products in the US, targeting vegan and vegetarian consumers. The product range includes plant-based purees, smoothies, and snacks.

The dried baby food segment accounted for the largest share of around 32.2% in 2020. Dried baby food is convenient and provides easy storage and long shelf life. It is comparatively cheaper than other baby food products. Moreover, the rising health consciousness among parents and the increasing trend of organic baby food products are some of the key factors driving the segment growth.

Organic baby food is expected to experience the highest CAGR of 8.5% during the forecast period. Organic baby food is free from any chemicals, additives, and synthetic hormones, making it a preferred choice of parents. Increasing awareness among parents regarding the health benefits of organic baby food is driving the demand for organic baby food in the market. Furthermore, rising technological advancement in the process of manufacturing organic baby food products is expected to propel the segment growth.

The supermarkets and hypermarkets segment is expected to remain the major contributor in 2022, accounting for a share of over 33.3%. This segment is driven by the convenience of shopping in these stores and the availability of a wide range of baby food products. The ease of payment and availability of discounts and promotional offers further adds to the attractiveness of the segment. Moreover, the presence of fresh and organic products offered by the stores has further helped to increase their popularity among consumers.

The online segment is anticipated to register the highest CAGR of 14.2% over the forecast period. The increasing penetration of internet and smartphones, along with the convenience of shopping from the comfort of one’s home, are the major factors driving the growth of this segment. Moreover, the availability of discounts and promotional offers further adds to the attractiveness of the segment. In addition, the rising trend of online subscription services for baby food products has further helped to increase their demand among consumers.

The shelf-stable segment accounted for the largest revenue share of 52.3% in the year 2022. The convenience offered by shelf-stable baby food products for busy families, along with the convenience of being stored without requiring refrigeration, has increased their demand. Manufacturers are introducing new shelf-stable products with a better shelf life. For instance, in April 2021, Nestlé S.A. launched a new range of shelf-stable baby food products under the Gerber brand. This range includes mac & cheese and mashed potatoes.

The refrigerated segment is anticipated to expand at the highest CAGR of 13.1% over the forecast period. Refrigerated baby food products such as fruits and vegetables are gaining popularity among parents due to their natural ingredients and organic formulations. The increasing introduction of refrigerated baby food products by key companies is propelling the segment growth. For instance, in May 2021, Nestlé S.A. launched a new range of refrigerated baby food products, such as pouches of mashed fruits, mixtures of fruits and vegetables, and fruit & vegetable purees.

North America held the largest market share in 2021 and is expected to maintain its dominance in the coming years. The presence of a large number of baby food products manufacturers and increasing expenditure on baby foods in this region are some of the key factors driving the market growth in the region. Additionally, the growing demand for organic and specialty baby food products, rising awareness about the health benefits offered by the baby food, and increasing the number of working mothers are some of the other factors contributing to the market growth in this region.

In addition, the presence of a large number of online stores and retail outlets in countries, such as the US and Canada, is also augmenting the market growth. For instance, in March 2021, Walmart launched an online store for baby food in the US. This store offers several baby food products, such as baby food pouches, snacks, breakfast cereals, and others, from various brands, such as Gerber, Earth’s Best, and Plum Organics.

In this part of the North America 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 North America Baby Food Products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main sources of revenues for a North America Baby Food Products business come from the sale of baby food products, either directly to retail outlets or via wholesalers. Other sources of income include private label contracts, online sales, promotional campaigns, and other related services.

Projecting Expenses
In this section, all the regular expenses related to keeping the North America Baby Food Products business running will be described. The list of operating expenses includes cost of goods sold, administrative costs, payroll, marketing and advertising, rent, license and permit fees, legal and professional fees, insurance, and other miscellaneous expenses.

Some of the key companies operating in the North America 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 SA launched a range of fortified infant cereals, including oat, millet and barley varieties, in the US.

– In October 2022, Abbott Laboratories introduced the Similac Organic line of baby food with no added preservatives or artificial colors.

– In November 2022, Danone SA launched the ‘Happy Biobaby’ line of organic baby food in the US.

Some of the prominent players in the North America baby food market include:

– Nestle SA
– Abbott Laboratories
– Danone SA
– Campbell Soup Company
– Kraft Heinz Company
– Plum Organics
– Hain Celestial Group
– Bellamy’s Organic
– Beech-Nut Nutrition Corporation
– Happy Family Brands

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 North America baby food products market based on product type, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Milk Formula
– Snacks & Cereals
– Fruits & Vegetables
– Meats & Eggs
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– U.S.
– Canada
– Mexico

[Q]: What are the Key Players in the Baby Food Products Market?
[A]: Key players operating in the North America baby food products market include Danone SA, Abbott Laboratories, Nestle SA, Kraft Heinz, Mead Johnson Nutrition Company, Beech-Nut Nutrition Corporation, Hero Group AG, The Hain Celestial Group, Inc., Campbell Soup Company, and Plum Organics.

[Q]: What Factors are Driving the Baby Food Products Market?
[A]: Factors such as the increasing number of health-conscious consumers and rising disposable income are expected to drive the market for baby food products in North America. Additionally, the growing awareness about the benefits of baby food for infants has also been a major factor driving the market.

[Q]: What is the Potential of Product Innovation?
[A]: Technological advancements and product innovations are expected to be key drivers for the North America baby food products market. Companies operating in the market are focusing on developing new and innovative products to meet consumers’ needs and preferences. In addition, manufacturers are also introducing organic and natural products to the market, which is fuelling the market growth.

[Q]: Which Region Offers the Largest Opportunity for Sales of Baby Food Products?
[A]: The U.S. is expected to offer the largest opportunities for sales of baby food products in North America. The U.S. baby food market is driven by the increasing number of working parents, rising health consciousness among consumers, and the growing demand for organic baby food products.