Press release
Organic Baby Food Market to Witness huge growth by 2025 | Little Duck Organics, North Castle Partners, Olli Organic, One Earth Farms
Organic Baby Food โ Market InsightsInfant milk formula is used as a complete or partial substitute for breast milk. The milk powder is infused with nutrients that aid the overall development of a baby.
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Modern farming techniques utilize a large amount of chemical fertilizers and pesticides to achieve a good yield. Presence of such chemicals in food causes many short term and long term consequences on human health. For instance, the preservative nitrite is converted into carcinogenic compound nitrosamines by the human body. Demand for organic techniques used for food farming is rising significantly since chemicals such as potassium chloride, heavy metals, and ammonium nitrate are not used in this technique. In addition, the demand for organic baby food is on the rise on account of rising awareness about harmful chemicals and the adverse effects they pose on infants.
Online retailing for organic baby food holds huge potential for growth in the market. Factors such as increasing popularity of internet services, advancements in services such as 4G and 5G along with smartphones in emerging economies of Asia Pacific region (mainly India and China) are driving online sales for organic baby food products. More consumers are opting for online purchase of baby food products owing to its ease and hassle less nature of online services. Furthermore, rising emergence of e-commerce companies and innovative strategies adopted by major players such as channel expansion will fuel growth of online segment in organic baby food market.
Asia Pacific is the fastest growing market for organic baby food owing to its large population and high birth rates, especially in countries such as India and China. According to World Health Organization (WHO), Asia Pacific had around 311 million of infant population (nearly half of worldโs infants) in 2016. Major market players are looking for opportunities to expand their business in Asia Pacific region owing to favorable condition it offers for growth of organic baby food market.
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The organic baby food market in Latin America is highly consolidated with companies such as The Kraft Heinz Company and Nestle S.A. possessing dominant market shares. Demand for organic baby food is projected to increase significantly due to the transition in lifestyle of consumers in terms of their feeding habits and rising purchasing power of the consumers, among others. The major players are projected to retain their dominance in this region due to the popularity of their products and the trust gained through the same. However, local players find it hard to secure a favorable position mainly due to lack of investments as a result of the sluggish economic growth in the region. However, as major countries such as Brazil, Argentina, and Colombia are expected to achieve economic and political stability in near future, the market scenario will, in turn, change accordingly.
Consumers residing in countries such as the U.A.E., Qatar, and Saudi Arabia exhibit a high purchasing power due to which they can afford premium quality products such as organic baby food. Further, the demand for the same is also rising on account of increasing awareness on the need for good health and wellbeing. Further, consumers in these countries are aware of the repercussions of inadequate infant nutrition as well.
The global organic baby food market was valued at US$ 6,516.0 Mn in 2016 and is expected to expand at a CAGR of 10.8%, in terms of revenue, during 2017 โ 2025.
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