The baby food market has seen significant growth in the last decade, driven by a rise in the number of working women and dual-income households globally. Baby foods are easy-to-prepare, ready-to-eat or drink products that fulfill a baby’s nutritional needs. They are available in multiple forms such as baby cereals, bottled food, and spoonable pouches. Advancements in baby food formulations have ensured that processed baby foods provide balanced nutrition for infants and toddlers. The globalization of baby food production has made premium international brands accessible to parents across income levels and geographies.
The global Baby Food Market is estimated to be valued at US$ 50.47 Bn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the baby food market is an increasing demand for organic and clean-label products. The generation of millennials is more conscious about food ingredients and source of production. They prefer baby food products that are free from colors, preservatives and other artificial ingredients. Hence, major baby food manufacturers are focusing on developing organic and clean-label products to meet evolving consumer preferences. For example, Hero Group, one of the leading players in Europe, has launched organic pouch lines under its brand name ‘Baby Hero’. Similarly, companies like Hipp Organic and Holle are exclusively producing organic baby foods. This trend towards organic and natural baby foods is expected to continue and drive the market growth during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as this is a growing market. However, it requires huge capital investments to establish manufacturing facilities and distribution networks.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are many established brands in the market providing variety of products at competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate since key ingredients like fruits and vegetables are agricultural commodities and easily available.
Threat of new substitutes: The threat of substitutes is low as direct home-cooked baby food is not a feasible option for most parents given their busy lifestyles.
Competitive rivalry: The rivalry is high among existing players to gain market share and maintain leadership through product differentiation, innovation and focus on quality.
Key Takeaways
The Global Baby Food Market Growth is expected to witness high. The global Baby Food Market is estimated to be valued at US$ 50.47 Bn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the global baby food market owing to rising birth rates, growing working women population, and rising disposable incomes in many developing countries of the region. Key players in the Asia Pacific region such as Nestle and H.J. Heinz have established strong distribution networks across major countries to cater to the rising demand from India, China and others. North America and Europe are other major markets for baby food driven by high awareness regarding baby nutrition.
Key players operating in the baby food market are Echosens, HISKY Medical Technologies Co., Ltd. and SMEDA Medical Co., Ltd. Echosens specializes in technologies for non-invasive assessment of various liver conditions. HISKY Medical Technologies offers portable ultrasound systems for obstetrics/gynecology and other clinical uses. SMEDA Medical manufactures devices for cardiology, internal medicine and other applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it