The demand for Organic Baby Food is anticipated to increase by three-folds by 2023
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Rise in parental concerns with respect to babys health and nutrition, increase in awareness about benefits of organic products, eco-friendly farming techniques, rise in disposable income of consumers, growth in standard of living encourages the adoption of organic baby food products, and improved distribution channels in the industry drive the organic baby food market growth. However, premium price and certain government regulations for the approval of organic food & beverage hamper the organic baby food market growth. Various government initiatives and investment of government and private investors in the organic baby food industry are expected to provide numerous growth opportunities for the global organic baby food market. Moreover, increase in working women and growth of nuclear families have led to the adoption of organic baby food products.
In 2016, the prepared organic baby food segment accounted for the maximum revenue share in the overall organic baby food industry due to the convenience in usage and time saving factor for preparation of the food product. Moreover, prepared baby food products, such as purees and vegetable & fruit blends, are available in variety of flavors, such as mango, banana, peach, and others thereby providing taste and nutrition. Moreover, the other organic baby foods, such as puffs, rusks, and biscuits are expected to grow at a CAGR of 9.93% during the forecast period. The prepared organic baby food market is expected to grow, owing to the benefits of these food products in terms of nutritional value.
The offline segment accounted for the maximum share in the global organic baby food market with around 81.55% in 2016. Offline stores, such as supermarkets and hypermarkets, are mostly preferred by the costumers to purchase organic food products. However, the trend is shifting toward purchasing products online due to ease and convenience provided by these online portals. The online mode of sale is expected to grow at a CAGR OF 12.94% during the forecast period.
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Europe accounted for the major share of the global organic baby food market in 2016, and is expected to maintain its dominance during the forecast period, owing to health-conscious costumers and demand for chemical-free baby food products. Asia-Pacific is estimated to grow at the highest rate due to rise in birth rates and growth in awareness related to beneficial effects of these food products.
The organic baby food market in Asia-Pacific is expected to grow at the highest rate during the forecast period, owing to growth in urbanization, rise in birth rates, and improvement in living standards of the consumers. Furthermore, continuous economic development in countries, such as India, China, and Australia, are expected to provide numerous growth opportunities to the market.
Key Findings of the Organic Baby Food Market:
In 2016, the offline mode of sale segment accounted for the maximum revenue, and is projected to grow at a notable CAGR of 9.4% during the forecast period.
The organic infant milk formula market accounted for 12.2% share in the global organic baby food market.
China is the major shareholder in the Asia-Pacific organic baby food market, accounting for more than 28% share in 2016.
The key players profiled in the organic baby food market include Abbott Laboratories, Nestl S. A, Hero Group, Amara Organics, Danone, Plum organics, The Hein celestial group, North Castle Partners, LLC. HiPP GmbH & Co. Vertrieb KG, and Baby Gourmet Foods Inc. Market players have adopted various strategies, such as product launch, collaboration & partnership and acquisition, to expand their foothold in the market.
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