The Global Baby Food Market is estimated to be valued at $62 billion US dollars by the end of the year 2022. This market is expected to see a moderate compound annual growth rate of approximately 7 percent between 2017 and 2022. Factors that are expected to fuel the growth of this industry include the increased employment of women, the growth of the population worldwide, and the declining rate of infant deaths on a global scale.
The global baby food market is comprised of products that are specifically manufactured and marketed to meet the nutritional needs of babies. These products are of significant value to parents that are actively seeking new and improved formulas for infants, as well as foods that are easy to digest for their babies.
The global baby food market is among the fastest growing retail products offered in the food and beverage sector. During the coming years, this market will continue to see favorable growth.
Several factors are expected to contribute to the augmentation of the baby food market on a global scale.
The rise in the population of working women worldwide largely contributed to the increased size of this market in 2016. As more women are in the workforce, there is more of a demand for packaged baby foods, as mothers do not have the time to dedicate to making their own baby food at home. This factor is expected to largely contribute to the growth of this market on a global scale during the projected time period.
The increased awareness and concern for proper nutrition for babies is another element that aided in the growth of the global baby food market in 2016. As more people are becoming aware of the importance of proper nutrition for babies and what that entails, they are looking to prepared and packaged baby foods to meet their needs.
The declining rate of infant death also sparked the growth of this industry in 2016. As more babies are living through infancy, there is more of a demand for baby food that meets the nutritional needs of growing babies. During the forecasted time period of 2017 and 2022, the incidence of infant death is projected to decline even further, which will allow for even more growth opportunities in this industry.
Lastly, the increased popularity of prepared and packaged baby foods among high income groups as a part of their status quo, particularly in emerging economies, is also expected to further drive the size of the global baby food market.
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The baby food market is segmented according to product. These products include:
In 2016, the bottled baby foods segment dominated the global baby food industry, accounting for the largest market share. In the coming years, these products are expected to continue leading the growth of the market.
Baby cereals and frozen baby foods are projected to see the highest compound annual growth rate during the forecasted time period.
The global baby food market is also segmented according to type, which includes:
Both of these types are further classified into subgroups, which include substitutes for mother’s milk (formulas), cereal based foods, fruit and vegetable purees and frozen foods, among others.
It is predicted that the organic food segment will see the most growth during the forecasted time period. This will largely be due to the fact that consumers are becoming more inclined to purchase products that are organic, as they are free of pesticides and other harmful products. Moreover, the quality control for organic products is much more stringent than it is for conventional baby food products.
Baby foods are distributed via a several different channels. These distribution channels include:
During the projected time period, all of distribution channels are projected to see growth. However, due to the increased use of the Internet and greater access and availability of smartphones, computers, tablets and other electronics, coupled with simplified e-banking systems, the eCommerce distribution channel is expected to see the largest amount of growth in upcoming years.
The global baby food market is segmented by regions. These regions include:
In 2016, North America dominated the industry, as it accounted for the largest market share during that year. Forecasts predict that North America will continue to dominate the market in terms of revenue between 2017 and 2022.
Asia Pacific is also expected to see significant growth in the global baby food market in the coming years. The growth of this market in this region will largely be due to the increasing size of the population, the growth of emerging economies, the declining rate of infant death, and the increased awareness of the importance of proper nutrition for babies. India, China and Indonesia are expected to be the major contributors to the growth of the baby food industry in Asia Pacific.
The global baby food market is highly competitive. There are several key vendors that operate in this market. Nestle SA has dominated the global baby food market for the past few years and is expected to continue dominating the market in the coming years.
Other key players include
The expansion and development of the baby food market in developing economies, such as China, will make this market even more favorable in the coming years.