Baby Food and Formula Market in the US 2016-2020

Overview of the baby food and formula market in the US

Technavio’s market research analyst predicts the baby food and formula market in the US to grow at a CAGR of around 2% by 2020.  Parents are looking for foods that offer optimal nutrition for the healthy growth and development of their babies. They are also choosing packaged baby foods and formulas to supplement breastfeeding. The growing wellbeing concerns and higher disposable incomes have propelled parents to procure high-quality and expensive baby foods. Additionally, vendors have also come up with organic baby food products that are safer and nutritionally better when compared to conventional foods. The growing health and nutritional requirements of parents for their babies will increase the sale of baby foods and formulas over the next four years.

Owing to their busy lifestyles and hectic schedules, consumers are opting for online shopping for baby food products. Factors such as increased internet penetration, access to smartphones, and simplified e-banking systems have increased purchases through the online channel. Retailers are increasingly using social media platforms to connect with customers and gather feedback, understand trends, track brand and product reviews, and launch marketing campaigns. Some of the popular online baby food companies are Oh Baby Foods, Bellamy's Organic, and Plum Organics.

Segmentation by product and analysis of the baby food and formula market in the US

• Prepared food
• Dried food
• Milk formula

The prepared food segment will continue to dominate the market during the forecast period and is expected to occupy more than 71% of the overall market share by 2020. Prepared baby foods only require heating and include products like pureed foods, yogurts, chilled desserts, soup, and ice cream marketed for babies. Prepared foods are gaining preference among working parents who are pressed for time as they require minimal preparation. Growing innovations in products and new product launches will augment the demand for these food products in the coming years.

Segmentation by distribution channel and analysis of the baby food and formula market in the US

• Supermarkets and hypermarkets
• Speciality stores
• Small grocery stores

During 2015, the supermarkets and hypermarkets segment dominated the market and accounted for around 58% of the total market revenue. These stores are equipped with multiple options and varieties of baby food and are located near houses. The market is expected to witness a surge in the number of supermarkets and hypermarkets in the US during the forecast period, which will inevitably increase the sale of baby food and baby formulas.

Competitive landscape and key vendors

The market is highly fragmented because of the presence of numerous small and large vendors who compete on the basis of factors such as price, quality, innovation, reputation, and distribution. Intense competition prevails in the market as it is subject to rapidly changing consumer demands and preferences.

Key vendors in the market include -

• Abbott's
• Danone
• Hero
• Kraft Heinz
• MJN
• Nestlé

Other prominent vendors in the baby food and formula market in the US are Amara Baby Food, Baby Gourmet, Friso, Green Monkey, Healthy Sprouts Foods, Initiative Foods, Little Duck Organics, Morinaga, North Castle Partners, Nurture (Happy Family), One Earth Farms, Parent's Choice, Plum Organics, Sprout Foods, Stonyfield Farm, and Tastybaby.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the baby food and formula market in the US?
• What are the key market trends impacting the growth of the baby food and formula market in the US?
• What are the challenges to market growth?
• Who are the key vendors in the baby food and formula market in the US?
• What are the market opportunities and threats faced by the vendors in the baby food and formula market in the US?
• Trending factors influencing the market shares of the US.
• What are the key outcomes of the five forces analysis of the baby food and formula market in the US?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Baby Food and Infant Formula Market 2016-2020
• Global Organic Baby Food Market 2016-2020
• Global Baby Health and Personal Care Market 2015-2019

Baby food and formula market primarily comprises infant formula and baby food products. Infant formula is either a partial or complete replacement for breast milk for infants. It is available in concentrated liquid, powder, and ready-to-use forms. It is provided to meet the nutritional needs and encourage the healthy physical and mental development of infants. Baby food products are offered to children up to four years of age. These are easy to prepare and have the right nutrient content for the overall development of babies. The different kinds of baby foods include cereals, soups, juices, and snacks comprised of grains, vegetables, and fruits in mashed form to enable easy consumption.

The report, baby food and formula market in the US, is part of Technavio’s food and beverage research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as alcoholic beverages, food, food service, and non-alcoholic beverages. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.