Demand for baby food is expected to grow due to progressive awareness about the healthy baby food among the parents
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Types of baby foods include Dried Baby Food, Milk Formula, Prepared Baby Food and Other Baby food such as baby snacks and beverages. Among these food products, the Milk formula segment alone contributes to nearly 2/3rd of the market, in terms of value. Dominance of this product category in the market is primarily supplemented by the global demand for milk formula, growing urbanization, increasing disposable incomes and the changing lifestyles. Further, a significant increase in the count of working women population is a key factor driving the market growth, especially in developing Asian countries. Cow milk based formulas are gaining large adoption in emerging economies.
Prepared baby food is the second largest market globally and is expected to grow the fastest CAGR during the forecast period. Growing time constraints among parents are the key factors propelling the increased adoption of prepared baby food. Presently, the demand for prepared baby food is largely limited to developed countries, however, over the forecast period, a considerable adoption would be witnessed in developing countries. Presently, demand for dried baby foods is moderate and would gain a steady pace over the forecast period. Increasing consumption of dried food with nutritionally balanced content is a key factor driving the demand for dried baby food products market.
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Supermarkets, hypermarkets, small grocery retails, and health & beauty retailers are the key distribution channels operating in the baby food industry. Supermarkets are the primarily preferred distribution channel followed by health and beauty retailers. However, in developing countries like India, small grocery retailers and health and beauty retailers are among the mostly preferred sales channels. Presently, small grocery retailers hold a comparatively smaller share in the global market; however, this segment is expected to witness the fastest growth during the forecast period. Other sales channels in this market include discounters, non-grocery retailers, and non-store retailing.
Key findings of Baby Food Market:
The growth of the baby food market is largely supplemented by the growing awareness for nutrition, rise in organized retail marketing, urbanization and a considerable increase in the count of working women population
The segment of milk formula would go on to occupy the largest market share followed by the product segment of prepared foods
China, India and Indonesia are the most promising markets and would grow significantly over the forecast period
The Asia Pacific region would register the highest CAGR of 7.7% during 2015 2020
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Key players operating in this market are primarily focusing on acquisition as a key strategy to strengthen their market presence. Acquisition is one of the key strategies followed by companies operating in this market. In 2007, Nestle acquired Gerber to expand its business segment in baby food. Also, in the step to make its foot hold in Asia, Danone acquired Wockhardt Nutrition India. Companies like Nestle and Abbott Laboratories are adopting groundbreaking marketing and branding strategies with an aim to strengthening their customer base.
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