Baby Food Market by Type and Geography - Forecast and Analysis 2021-2025

The baby food market share is expected to increase by USD 6.75 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.38%.

This baby food market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers baby food market segmentations by type (prepared baby food, dried baby food, and other baby food) and geographic (APAC, North America, Europe, South America, and MEA). The baby food market report also offers information on several market vendors, including Abbott Laboratories, Cargill Inc., Danone SA, Hero Group, Nestle SA, Perrigo Co. Plc, Reckitt Benckiser Group Plc, Royal FrieslandCampina NV, The Hain Celestial Group Inc., and The Kraft Heinz Co. among others.

What will the Baby Food Market Size be During the Forecast Period?

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Baby Food Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The increasing women's participation in the workforce is notably driving the baby food market growth, although factors such as product recalls may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the baby food industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Baby Food Market Driver

One of the key factors driving the baby food market growth is the increasing women's participation in the workforce. Urbanization and the growth of the middle-class population have encouraged consumers to adopt convenience-oriented lifestyles, which is likely to make baby food products a necessary option among working women. A majority of working mothers return to their jobs shortly after childbirth and are therefore on the lookout for healthy and convenient food options for their babies. This makes baby food products an appealing option as they can combine health and nutrition with convenience. The number of working women in several developed, as well as developing countries, has increased substantially in recent years. According to the Bureau of Labor Statistics, women held approximately 50.04% of American jobs as of December 2019, registering a growth of about 49.7% compared to the previous year. This increase in the number of working women on a global level has also led to an increase in dual-income households and the per capita income of families, thereby strengthening their purchasing power and increasing their affordability. This will be a major factor in driving the growth of the global baby food market during the forecast period.

Key Baby Food Market Trend

Another key factor driving the baby food market growth is the growing packaging innovation. Packaging is often considered to be an extension of a brand's value. Good packaging not only provides better protection and tamper resistance, but it can also be used for marketing. Marketing communication and graphic designs on the surface of the package help garner customer attention. Therefore, baby food manufacturers are adopting innovative packaging strategies to increase the shelf life of their products and attract consumers. Vendors operating in the global baby food market continue to experiment with novel packaging concepts and invest heavily in the development of innovative, eco-friendly, and recyclable alternatives to conventional packaging. In February 2020, Danone announced the launch of Track & Connect, a digitally-enabled service that enables access to new data-driven, personalized after-sales support and services for the company's baby formula brands like Aptamil, Karicare, Laboratoire Gallia, and Nutrilon. The focus of vendors on offering baby food products in attractive packaging, coupled with other packaging innovations in the market, can help increase the sales of baby food products and, subsequently, have a positive impact on the growth of the global baby food market during the forecast period.

Key Baby Food Market Challenge

Increasing number of product recalls is one of the key challenges hindering the baby food market growth. Manufacturers of baby food products issue product recall due to various factors such as product contamination and incorrect labeling. Frequent product recalls can severely affect a company's brand image, sales, and growth. Product recalls increase the operational and financial costs for companies operating in the market. They can adversely affect market growth as consumers lose confidence in the products and the reputation of manufacturers issuing recalls. Manufacturers may also incur additional costs in the form of compensation for settling various legal litigations filed against them. In February 2020, Lidl GB (Lidl) recalled ten different types of baby food of its private brand, Lupilu Organic Baby Food, due to the possible presence of mold in the products. In January 2020, Cow & Gate (a popular brand of Danone), along with Tesco, announced the recall of 15 types of baby food jars as a precautionary measure due to the possible contamination of some jars.

This baby food market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global baby food market as a part of the global packaged foods and meats market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the baby food market during the forecast period.

Who are the Major Baby Food Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Abbott Laboratories
• Cargill Inc.
• Danone SA
• Hero Group
• Nestle SA
• Perrigo Co. Plc
• Reckitt Benckiser Group Plc
• Royal FrieslandCampina NV
• The Hain Celestial Group Inc.
• The Kraft Heinz Co.

This statistical study of the baby food market encompasses successful business strategies deployed by the key vendors. The baby food market is fragmented and the vendors are deploying growth strategies such as new product launches, employing innovative marketing strategies, and various packaging innovations to compete in the market.

Product Insights and News

• Abbott Laboratories  - Through the brand SIMILAC, the company offers diverse line of research driven products that provide the essential protein, minerals, and other nutrients to support an infants growth. It includes SIMILAC PROBIOTIC TRI BLEND, SIMILAC PRO ADVANCE, SIMILAC ADVANCE FOR NEURO SUPPORT etc.
• Abbott Laboratories - In November 2020, the company launched its most innovative infant formula, Similac Pro Advance, which is the first product in Canada.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The baby food market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Baby Food Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the baby food market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by vendors to ensure a sustainable market presence.

Which are the Key Regions for Baby Food Market?

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59% of the market's growth will originate from APAC during the forecast period. China and Hong Kong (SAR) are the key markets for baby food in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The increasing number of working women is leading to a rise in the overall household income will facilitate the baby food market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In December 2019, the novel coronavirus disease (COVID-19), a contagious respiratory disease, was first detected in Wuhan in China. The disease became a pandemic and has, to date, severely impacted the lives of thousands of people in China and across the world. Since the disease has a high human-to-human transmission rate, it is spreading rapidly. A rise in the number of people suffering from different diseases in APAC countries is expected to decrease the volume sales of baby food products, although the demand for them is significantly high. This has hampered the growth of the baby food market in the region in 2020. The outbreak of COVID-19 has negatively impacted the growth of the regional baby food market in 2020 because of the restrictions on distribution channels and disruptions in supply chains during the lockdown period. On the other hand, the rising number of malnutrition cases and health concerns over the overall growth of infants are the key factors driving the global organic baby food market in 2021.

What are the Revenue-generating Type Segments in the Baby Food Market?

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The baby food market share growth by the prepared baby food will be significant during the forecast period. Prepared baby foods are fortified with the necessary amount of iron and other nutrients that are essential for the growth of babies. Globally, demand for prepared baby food is rising, owing to factors such as growing consumer awareness about the health benefits of consuming food products that have fewer pesticide residues.

Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the baby food market size and actionable market insights on post COVID-19 impact on each segment.

 

Baby Food Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 5.38%
Market growth 2021-2025	$ 6.75 billion
Market structure	Fragmented
YoY growth (%)	4.88
Regional analysis	APAC, North America, Europe, South America, and MEA
Performing market contribution	APAC at 59%
Key consumer countries	China, US, Hong Kong (SAR, Russian Federation, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Abbott Laboratories, Cargill Inc., Danone SA, Hero Group, Nestle SA, Perrigo Co. Plc, Reckitt Benckiser Group Plc, Royal FrieslandCampina NV, The Hain Celestial Group Inc., and The Kraft Heinz Co.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Baby Food Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive baby food market growth during the next five years
• Precise estimation of the baby food market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the baby food industry across APAC, North America, Europe, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of baby food market vendors

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