CAGR: 9.3%Current Market Size: USD 3.56 billion Fastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The Global Baby Food market is expected to grow from USD 3.56 billion in 2021 to USD 7.12 billion by 2029, at a CAGR of 9.3% during the Projection period 2022-2029. The rise in the number of working women professionals and increased awareness about adequate baby nutrition have primarily driven the market's growth.
Baby foods have continued to become among the highest-growing retail products in the global food & beverage sector. Baby food products cater to the nutritional requirements of babies. Usually, baby food is a soft and consumable food other than breastmilk which is used for feeding human babies between the ages of four and six months to two years old. Moreover, baby food safety is the prime concern among consumers and manufacturers. Hence, tamper-proof packaging of baby food products is being used to ensure optimal safety of its contents. In addition, innovations in improving the safety of these products through process improvements and technological advancements are being observed around the globe.
Furthermore, product innovations play an important role in the global baby foods industry. Also, extensive research and development (R&D) activities have further facilitated the launch of innovative products in the market.
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Market Dynamics:
Drivers:
The rise in working women leaves less time for them to breastfeed their babies or prepare healthy baby foods at home. This has significantly increased the adoption of prepared baby food among working professionals. According to the United Nations, there has been a significant increase in the number of working women during the last decade. In 2019, the female employment rate stood at 47.8%, which was an increase in the trend in the past few years.
Dietary practices adopted by mothers are the key factor responsible for shaping a baby's health. The rise in the literacy rate of females in developing and developed countries has increased awareness of babies' nutritional requirements. However, delayed weaning was observed among infants, especially during the age of 6–7 months, in some developed countries. However, these cases of delayed weaning are expected to decrease gradually with rising in awareness among parents.
Restraints:
Breastfeeding is a prerequisite for infants during the first 6 months of birth, as it contains nearly all essential nutrients required for a baby's growth. Collaborative initiatives of various organizations, such as the WHO and UNICEF, have increased overall awareness about breastfeeding among women. Awareness programs such as “World Breastfeeding Week,” celebrated during the first week of August every year in more than 120 countries, is a major initiative for these organizations to encourage breastfeeding among lactating mothers. This, in turn, limits the overall revenue generation for the global baby food market.
Opportunities:
Emerging economies of the world offer lucrative opportunities to players operating in the baby food market. Major factors responsible for growth in such opportunities in developing economies are lifestyle changes and birth rate increase. As an attempt to diversify the consumer group, companies are implementing region-based strategies. For instance, companies operating in India have launched affordable products to tap the lower-income groups. Companies such as Nestle S.A are investing in product development activities by setting up new R&D centers in India. Changing lifestyle and growth in working females is setting the stage for growth in demand for baby food in developing countries. Moreover, the increase in birth rates in countries such as China and India further propels market growth.
Challenges
The baby food industry depends majorly on the birth rate of a country. In developed countries such as the U.S., the birth rate is comparatively lower than that of developing or underdeveloped countries. Socioeconomic factors across developed countries have inadvertently affected the reproduction rate in various countries. Factors such as delayed pregnancy and late marriages have also led to a decline in the birth rate in many countries. This, in turn, declines the adoption of baby food and restrains market growth.
Segmentation Analysis:
The global baby food market has been segmented based on product, packaging, baby category, distribution channel, and region.
By Product
The product segment includes baby food cereals, baby food snacks, baby food soup, milk formula, and frozen baby food. The baby food soup and milk formula segment led the Baby Food market with a market share of around 54.8% in 2021. This segment comprises milk-based food for babies up to the age of 12 months. Some health organizations have approved for the use of milk formulations along with mothers’ milk for the proper growth of babies. The most commonly used baby milk formulations available in the market include cow milk-based products, soya-based milk formulations, and hydrolyzed protein formulations.
Breastfeeding problems in women are the major factor driving the market's growth. Nowadays, women professionals prefer prepared milk-based baby food, owing to lack of time due to the rise in professional women. Moreover, several manufacturers promote these formulas as a supplement to breast milk. Hence, companies are launching milk formulations in different tastes and flavors to increase their brand awareness among consumers.
By Distribution Channel
The distribution channel segment includes shopping malls, supermarkets, convenience stores, hypermarkets, and online retail. The supermarket segment led the Baby Food market with a market share of around 35.8% in 2021. The ability of supermarkets to have wide-ranging options for baby food products in terms of type and ingredients has mainly driven the growth of this segment. In addition, most consumers prefer supermarkets as they can examine the product before making a purchase decision.
Moreover, supermarkets display a variety of baby food products of different brands. In North America and Europe, supermarkets are the most preferred retail outlets for purchasing consumer goods. The rise in urbanization, the increase in the working-class population, and competitive pricing propel the popularity of hypermarkets in developed and developing regions.
By Regional Analysis:
The regions analyzed for the Baby Food market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia-Pacific region dominated the Baby Food market and held the 43.08% share of the market revenue in 2021.
Global Baby Food Market- Country Analysis:
Germany's Baby Food market size was valued at USD 0.36 billion in 2021 and is expected to reach USD 0.70 billion by 2029, at a CAGR of 9.1% from 2022 to 2029.
Germany is one of the leading nations in the Europe Baby Food market. This is mainly attributed to changing lifestyles, increasing disposable incomes of the population, and rising trends of e-commerce across the country. This country's sales of baby food products is projected to grow due to an increase in the spending capacity of consumers and growth in awareness of proper nutrition for babies.
However, the market's growth in this country is slightly affected by falling birth rates and an increase in breastfeeding due to strict governmental initiatives.
China's Baby Food market size was valued at USD 0.71 billion in 2021 and is expected to reach USD 1.38 billion by 2029, at a CAGR of 8.9% from 2022 to 2029. China is one of the largest consuming and exporting countries of baby food. The Government of China relaxed and replaced its one-child policy with the two-child policy in 2015. This has led to an upsurge in the birth rate. This factor has further contributed to the growth of the Baby Food market.
Moreover, the factors such as rapid urbanization, rising nutrition awareness, and the ongoing trend of e-commerce sales in the baby care sector have further boosted the market's growth.
India's Baby Food market size was valued at USD 0.18 billion in 2021 and is expected to reach USD 0.37 billion by 2029, at a CAGR of 9.7% from 2022 to 2029. India is one of the strongest growing economies in Asia. Significant demand for Baby Food from the increasing working women professional population in the country has driven the market growth in this country.
In addition, the country is seeing rapid growth in the influence of social media and changing lifestyles. This has encouraged modern mothers to use Baby Food. On the other hand, the birth rate in this country in 2021 was about 17.377 births per 1000 people. Such factors have altogether contributed to the India Baby Food market.
Key Industry Players Analysis:
To increase their market position in the global Baby Food business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
9.3% |
Market Size |
3.56 billion in 2021 |
Projection period |
2021-2029 |
Projection unit |
Value (USD) |
Segments covered |
Product, packaging, baby category, distribution channel , and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Abbott Laboratories, Bellamy’s Organic Pty Ltd., Campbell Soup Company., Danone., Hero Group., Mead Johnson & Company, LLC., Nestle S.A., Perrigo Company Plc, Royal Frieslandcampina N.V., and The Hain Celestial Group, Inc. among others |
By Product |
|
By Packaging
|
|
By Baby Category
|
|
By Distribution Channel
|
|
Regional scope |
|
Scope of the Report
Global Baby Food Market by Product:
Global Baby Food Market by Packaging:
Global Baby Food Market by Baby Category:
Global Baby Food Market by Distribution Channel:
Global Baby Food Market by Region:
Global Baby Food market worth was USD 3.56 billion in 2021 expected to reach USD 7.12 billion by 2029, at a CAGR of 9.3% from 2022 to 2029.
Global Baby Food Market worth will be USD 7.12 billion by 2029 with growth rate of CAGR of 9.3% from 2022 to 2029.
Supermarkets segment led the baby food market with a market share of around 35.8% in 2021
Rise in the number of working women professionals and increased awareness about adequate baby nutrition is primarily driving the growth of the Baby Food market.
Leading market players active in the global Abbott Laboratories, Bellamy’s Organic Pty Ltd., Campbell Soup Company., Danone., Hero Group., Mead Johnson & Company, LLC., Nestle S.A., Perrigo Company Plc, Royal Frieslandcampina N.V., and The Hain Celestial Group, Inc., among others.
Political Factors- Political factors are important in the market's growth. The manufacturers should be well-versed with regional laws and legislation, rules, and regulations, import and export policies, etc. The concerned regional agencies provide guidelines to manufacturing companies regarding the procurement of materials and specifications for their use in making dark chocolate sauce. Government bodies such as regulating authorities and policymakers are working hard to make manufacturers understand the importance of the packaging material of dark chocolate sauce.
Economical Factors- Dark chocolate comprises considerably higher Cacao content. This Cacao content is expensive, which makes dark chocolates costlier. On the other hand, the quantity of about 30-60 grams of dark chocolate per day is recommended to be healthy. However, its excessive consumption may lead to increased caffeine levels in the blood, which causes increased heart rate, dehydration, nausea, and insomnia. Hence, dark chocolate's high cost and side effects may hamper the market's growth to some extent during the Projection period. For instance, the per capita average chocolate consumption in this country is about 100g to 200g per person.
Social Factor- An upsurge in demand for dark chocolate-based and chocolate-flavored products in the region drives the market growth. Furthermore, various factors, including the growing population, rising awareness about chocolate sauce products, changing lifestyles, and rising consumer disposable income in Asia-Pacific, fuel the growth of the dark chocolate sauce market. The increased popularity of dark chocolate products in this region is the major factor contributing to the market growth. In addition, consumer preference for high-quality dark chocolate sauce products that are good for health and the environment has further boosted the market's growth. On the other hand, Western Europe is one of the major consumers of dark chocolate, creating lucrative growth opportunities for the market.
Technological Factors- The continuous research and development activities in the dark chocolate market are propelling the market’s growth. AI technology is helping dark chocolate consumers ensure they're buying the premium quality that drives its premium price. The latest technological advancement also ensures that consumers receive authentic dark chocolate sauce.
Environmental Factors- The increasing concern for the environment and rising global warming is a challenge for the market’s growth. Several manufacturers of dark chocolate sauce and prominent players in the market are focusing on using environmentally friendly packaging to reduce pollution. However, most of the market players still use non-decomposable and are affecting the environment to a great extent. So to curb these issues, the government is taking several strict measures and initiatives. Recently the Indian government banned the use of single-use plastic.
Legal Factors- Sunday Night Foods, an award-winning baker from Iowa, U.S., launched a product line of shelf-stable chocolate premium dessert sauces. These sauces are made in small batches with enhanced quality pure ingredients. The Hershey Company, an American multinational chocolate company, acquired Lily’s, the low-sugar and better-for-you (BFY) confectionery products provider, in a $425m deal. Lily’s product range comprises milk and dark chocolate style bars, peanut butter cups, and baking chips, among other confectionery products.
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