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Organic Baby Food Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic baby food products market was valued at USD 4.3 billion in 2022 and is projected to expand at a CAGR of 5.9% from 2023 to 2030. The demand for organic baby food products is driven by the increasing awareness among parents regarding the health benefits of organic ingredients for infants. Organic baby food has a high nutritional value, as it is prepared from the freshest organic ingredients and does not contain any preservatives or artificial ingredients. This factor has triggered the demand for organic baby food products in the market.
Furthermore, the increasing trend of premiumization is expected to support the growth of the market. For instance, in June 2021, Sanitarium Health & Wellbeing launched a new range of organic baby food products, including purees, finger foods, and snacks. The products are made from certified organic ingredients and natural flavors and colors. Additionally, the product range is free from gluten, dairy, and nuts, making it suitable for parents who are looking for organic products for their infants.
The increasing number of product launches is expected to fuel the demand for organic baby food products in the coming years. For instance, in March 2021, Danone launched a new range of organic baby foods in India, targeting the growing demand for organic baby food products. The product range includes cereals, snacks, and Purees for infants aged zero to three years. In addition, Nestlé also launched a new range of baby foods in April 2021, targeting the growing demand for organic products. The product range includes cereals, snacks, and purees for infants aged zero to three years.
The rising popularity of online retail platforms is expected to further boost the growth of the market. With the help of online retail platforms, manufacturers are able to reach a wider customer base and increase their sales. Additionally, the increasing use of social media for marketing organic baby food products is expected to drive the market growth. For instance, in November 2021, Beech-Nut launched a new campaign on social media to promote its organic baby food products.
The growing demand for organic baby food products from developing countries is expected to support the growth of the market. Moreover, the increasing disposable income of consumers and the growing awareness about the health benefits of organic baby food products is expected to further drive market growth. Additionally, manufacturers are introducing new flavors and ingredients to meet the growing demand from customers. For instance, in October 2021, Ella’s Kitchen launched a new range of organic baby food products in India, targeting the growing demand for organic baby food products. The product range includes cereals, snacks, and purees for infants aged zero to three years.
Product Insights
The cereals segment dominated the market and accounted for a share of around 34.3% in 2022. Increasing health consciousness among parents, combined with rising demand for organic food products, is driving the growth of the global organic baby food market. According to a survey published by the American Academy of Pediatrics, in December 2019, 87% of the parents are conscious about their infant’s diets and prefer organic food products. Furthermore, increasing disposable incomes of households, especially in emerging countries such as India and China, are expected to boost the demand for organic baby food products over the forecast period.
The snacks segment is anticipated to expand at the fastest CAGR of 10.2% over the forecast period. This can be attributed to the growing popularity of nutritional snacks and increasing demand for nutritious and healthy snacks among mothers. Furthermore, manufacturers are introducing innovative snacks that are free of artificial flavors and preservatives, which are expected to fuel the market growth over the forecast period. Additionally, rising demand for snacks that are easy to carry and store is driving the market growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest share in 2021, accounting for over 39.6% of the market. Increasing consumer preference for organic baby food products is the primary factor driving the segment’s growth. Supermarkets and hypermarkets provide a wide assortment of organic baby food products, and they are easily accessible to consumers. Moreover, the presence of in-store promotions, discounts, and loyalty programs are likely to play a key role in driving the segment forward.
The online segment is expected to register the highest CAGR of 12.5% over the forecast period. The rapid growth of e-commerce and increasing internet penetration are the primary drivers for this segment’s growth. Moreover, the convenience and availability of a wide range of organic baby food products online are likely to further fuel the segment’s growth. In addition, the availability of discounts and loyalty programs offered by online retailers are likely to drive the segment’s growth.
Type Insights
The organic baby food segment accounted for the largest revenue share of 67.2% in the year 2022. The growing awareness among parents regarding the health benefits of organic foods has increased the demand for organic baby foods. The growing demand for organic products among millennial parents has increased the demand for organic baby food products. Furthermore, the rapidly increasing number of health-conscious parents in developing countries are propelling the demand for organic baby food.
The prepared baby food segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. The convenience provided by the ready-to-eat products has made them an attractive option for busy parents. The increasing preference for convenience-based products among parents is likely to boost the demand for prepared baby food in the forecasted period. Furthermore, the growing number of working women in developed countries has increased the demand for ready-to-eat baby food.
Regional Insights
North America was the largest regional market for organic baby food and accounted for a share of more than 34.6% in 2022. This can be attributed to the presence of major players such as Nestle, Kraft Heinz, and Abbott in the region. Moreover, increased awareness about the health benefits associated with products made from organic ingredients has resulted in the growth of the market in the region. In April 2021, Hain Celestial, a leading natural and organic food and personal care products company, added new products to its Earth’s Best Organic infant formula range.
Europe is expected to witness the second-highest growth in the coming years. Increasing demand for organic baby food due to the rising health awareness among parents is a key factor driving the growth of the market. For instance, in August 2021, Bio-Kinetics Food Innovation, a Netherlands-based organic infant formula producer, launched its new organic infant formula range in Europe.
Financial Projections
In this part of the organic baby food products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These projections typically cover a 5-year period.
Revenue Assumptions
The primary source of revenue for this organic baby food business will come from retail sales. Potential outlets could include supermarkets, online retailers, and specialty stores. In addition to retail sales, other sources of income may include private labeling, licensing agreements, and bulk orders.
Projecting Expenses
The list of operating expenses includes ingredients, packaging materials, labor costs, marketing and advertising, shipping costs, and other overhead expenses. Additionally, you will need to account for any costs associated with product development, website design and maintenance, and customer service. Finally, you will need to set aside funds for research and development to ensure the quality of your products and stay ahead of the competition.
Key companies & market share insights
Some of the key companies operating in the organic 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 June 2022, Happy Family Brands launched new organic toddler meals, designed to provide balanced nutrition for children between the ages of one and three.
– In August 2022, Ella’s Kitchen launched a range of organic baby cereals, designed to provide nutrition for babies and toddlers.
– In October 2022, Plum Organics launched a range of organic baby snacks, designed for toddlers and young children.
Some of the prominent players in the organic baby food market include:
– Plum Organics
– Happy Family Brands
– Ella’s Kitchen
– Beech-Nut
– Gerber Products Company
– Nurture Inc.
– Hain Celestial Group
– Campbell Soup Company
– Earth’s Best
– Sprout Organic Foods
– Hero Group
Global Organic 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 organic baby food products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Fruit & Vegetable
– Dairy Products
– Cereal & Grains
– Meat & Fish
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Pharmacies
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Ready to Eat
– Ready to Cook
– Ready to Serve
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Outlook for the Global Organic Baby Food Market?
[A]: The global organic baby food market is expected to grow at a CAGR of 10.5% from 2020 to 2027. Increasing health awareness, demand for natural and organic products, rising disposable incomes, and changing dietary preferences are expected to drive the global organic baby food market during the forecast period.
[Q]: Who are the Key Players in the Organic Baby Food Market?
[A]: The key players in the global organic baby food market include Danone SA, Nestlé SA, Organic Valley, Earth’s Best, Hain Celestial Group, HiPP GmbH & Co. Vertrieb KG, Plenish, Plum Organics, and The Hain Celestial Group.
[Q]: What are the Factors Driving the Organic Baby Food Market?
[A]: Factors such as increasing health awareness, rising disposable incomes, and changing dietary preferences are driving the global organic baby food market. Additionally, the growing preference for natural and organic products and the growing demand for convenience foods are further boosting the market growth.
[Q]: What Regions Offer the Largest Opportunity for Sales of Organic Baby Food?
[A]: North America is expected to hold the largest share in the global organic baby food market due to the increasing demand for organic products. Asia-Pacific is expected to witness the highest growth during the forecast period due to the increasing awareness regarding healthy eating and the growing demand for convenience foods.
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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