The baby food market is predicted to rise in the near future, attributed to the increasing number of working mothers, rising parental concerns about nutrition, the decline in infant mortality rate, growing awareness of advanced baby food products, rapid urbanization, and a surge in the organized retail marketing activities.
Under the product segment, the infant formula category captures the largest revenue share of the baby food industry, and it is projected to retain its dominance in the coming years. It is ascribed to the rising incidences of lactating issues in women, that encourage the milk-based baby food products adoption. In addition, breastfeeding problems with infants are a major driver of the baby food industry.
Under the type segment, the inorganic category holds a substantial share of the baby food market, and it is projected to rise in the near future, led by the increased focus of the major companies to expand the production capacity for inorganic baby food. It is led by the higher production cost of organic food, caused by the hindrances in the inexpensive organic ingredients’ procurement.
Under the distribution channel, the online category is projected to experience the highest sales in the baby food market in the coming years, led by the rising expansion of the e-commerce sector. In addition, the rising preference of customers toward online channels over physical stores, led by the pandemic, contributes to rising baby food sales through online channels for ease of convenience.
APAC is projected to showcase the highest sales of baby food products in the near future, owing to the high birth rates, rising women workforce, the surge in disposable income, and growing awareness among people for baby food products, along with rising R&D activities by numerous baby food companies.
The high demand for organic and natural products is a rising trend in the baby food industry, ascribed to the high risk of health problems due to synthetic ingredients in the inorganic baby products. Therefore, organic and natural baby food products have a higher preference over inorganic, as they provide sustainable and safe nutrition to babies.
As said above, the surge in the women's workforce drives the sales of baby food products, attributed increased focus of women on the nutritional needs of their babies. The enhanced sanitation and increased access to drinking water safe for consumption contribute to the decline in infant mortality rate. The infant mortality rate has experienced a rapid decline from 62.91 infant deaths among 1000 live births in 1990 to 26.05 deaths per 1000 live births in 2020. The rise in the number of infants leads to the high consumption of baby food products.
The baby food industry is consolidated in nature. The major players in the industry are Danone S.A., Reckitt Benckiser Group plc, China Feihe Limited, Abbott Laboratories, HiPP GmbH & Co., China Feihe Limited, China Mengniu Dairy Company Limited, Inner Mongolia Yili Industrial Group Co. Ltd., Hero Group, and Perrigo Company plc.
Therefore, the rise in the women's workforce, lactation problems, and rise in birth rate proliferates the growth of the baby food industry.