CAGR: 8.8%Current Market Size: USD 3.8 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global organic baby food market is expected to grow from USD 3.8 billion in 2022 to USD 7.4 billion by 2030, at a CAGR of 8.8% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising birth rate.
Organic infant food is essentially organic food that hasn't been grown or processed with antibiotics, growth hormones, pesticides, or other potentially dangerous substances. The majority of non-organic or conventional baby foods are produced (packed, pureed, or cooked) from ingredients that were grown and cultivated using traditional farming or ranching techniques that include such chemicals. Theoretically, organic baby food sounds like a smart choice to protect a child from early exposure to preservatives and pesticides. However, larger trials are still needed to demonstrate its true impact on the child's developing immunity. Contrarily, organic baby food is a safer option than non-organic baby food. Many medical professionals think that limiting an infant's early exposure to pesticides and other food toxins may aid in developing a stronger immune system. The child may become more susceptible to health problems that could also increase the chance of harming their neurodevelopment as a result of increased exposure to foods containing pesticides. Many medical professionals think that limiting an infant's early exposure to pesticides and other food toxins may aid in developing a stronger immune system. The child may become more susceptible to health problems that could also increase the chance of harming their neurodevelopment as a result of increased exposure to foods containing pesticides.
Sample Request: - Global Organic Baby Food Market
Market Dynamics:
Drivers:
With special aisles for the category, organic baby food is becoming more and more popular. Parent's ability to replace homemade food with branded organic baby food thanks to rising disposable income will be a major driving force in both developed and developing nations over the projected period. As a result, investments in the market for organic infant food are rising. For instance, in 2021, the plant-based infant food producer Sprout Foods purchased a 50.1% stake from Neptune Wellness Solutions. A USD 6 million cash payment and the issuing of about 6.7 million Neptune common shares, each worth USD 12 million, are included in the transaction. The business reported net yearly revenues of 28 million USD.
Restraints:
Organic food items are adopted rather slowly in the developing world, primarily in South Asia and Africa. Temporary demand is generated by a small income group due to the bulk of customers' ignorance and lack of understanding. This has an additional impact on the industry's expansion. Most customers in impoverished countries don't give much thought to eating healthy meals. The majority of developing nations have substantial variations in earning power and are price-sensitive countries. The cost of organic food is higher than that of regular food items. Unaware consumers are reluctant to spend that much money on food. For organic products in these nations, the huge price disparity presents difficulties.
Opportunities:
Over the past few years, the market for organic infant food items has grown significantly. The market is gradually evolving from a small industry category to an important industry category. Depending on the state of the market, each country's product availability varies greatly. Since huge retail chains account for over 70% of all goods sold in developed nations like Germany, the market for organic infant food items is robust. Although these products are more expensive than standard products, shops provide greater discounts, which encourage customers to purchase the goods. A significant driver in the growth of the market in emerging countries is the expansion of supermarkets and hypermarkets in tier 2 and tier 3 cities, as consumers are aware of the products and have been purchasing them for a number of years. The market is anticipated to grow as supermarket and hypermarket expansion occurs in the future years.
Challenges:
Store-bought baby fruits and veggies that have been pureed can be stored in the freezer for up to 6 months or in the refrigerator for up to 48 hours. After cooking, pureed store-bought meat, chicken, or fish can be stored in the refrigerator for up to 24 hours or frozen for up to two months, this hampers the market.
Segmentation Analysis:
The global organic baby food market has been segmented based on product type, service provider, and others.
By Product Type
The product type segment is infant milk formula, prepared baby food, and dried baby food. The infant milk formula segment led the largest share of the Organic Baby Food market with a market share of around 35% in 2022. Since chemical-free, healthy food is becoming more and more popular, market growth is anticipated during the Projection period. Innovative organic products are increasingly popular because they provide newborns with quick, easy, and handy sources of nourishment and energy.
By Service Provider
The service provider segment includes supermarkets & hypermarkets and online. The supermarkets & hypermarkets segment led the Organic Baby Food market with a market share of around 53% in 2022. When buying consumer goods, groceries, and infant care items, consumers increasingly prefer to shop at hypermarkets and supermarkets where they can physically inspect the goods. Due to improved distribution channel networks around the world, supermarkets and hypermarkets are anticipated to maintain their dominance during the Projection period.
Global Organic Baby Food Market- Sales Analysis.
The sale of synthetic biology Product Types expanded at a CAGR of 7.9% from 2016 to 2022.
Over the course of the Projection period, market growth is anticipated to be aided by the expanding organic food and beverage sector and rising consumer expenditure on baby food items. Growing parental concerns about their children's health and nutrition in both industrialized and developing nations have been significant market drivers in recent years. Additionally, consumer knowledge of the advantages of organic food items is growing, which is fueling market expansion. The growing demand for packaged organic food, such as ready-to-eat, foreshadows the expansion of the global industry. Additionally, the expected expansion of the market over the Projection period is attributed to the growing number of working women around the world. Additionally, trends like clean-label production and nutrient-dense infant food regimens are driving the industry.
The COVID-19 pandemic lockdown had a significant impact on the demand and supply chain for organic baby food products all over the world, disrupted transportation, and temporarily halted the supply of raw materials. Following the COVID-19 pandemic, there will be an increase in demand for infant formula products, which will present opportunities for market players. Consequently, a robust market growth rate is anticipated in the future years.
Thus, owing to the aforementioned factors, the global organic baby food market is expected to grow at a CAGR of 8.8% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the Organic Baby Food market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Organic Baby Food market and held a 40% share of the market revenue in 2022.
Global Organic Baby Food Market- Country Analysis:
Germany's organic baby food market size was valued at USD 0.27 billion in 2022 and is expected to reach USD 0.53 billion by 2030, at a CAGR of 8.9% from 2023 to 2030. As the number of working women rises and there is a quick trend toward convenience foods, the demand for baby food is rising, driving the organic baby food market in the country. Modern houses are becoming more disorganized, with most people having less time for household chores, especially cooking and food preparation. As a result, there is a higher demand for ready-to-eat goods.
China’s organic baby food market size was valued at USD 0.39 billion in 2022 and is expected to reach USD 0.78 billion by 2030, at a CAGR of 9.1% from 2023 to 2030. Due to greater modern retail penetration, rising product awareness, rising disposable incomes, and rising purchasing power, the region's organic baby food market is growing.
India's organic baby food market size was valued at USD 0.30 billion in 2022 and is expected to reach USD 0.59 billion by 2030, at a CAGR of 9% from 2023 to 2030.
Being in high demand, organic goods are a significant trend in the infant food industry. According to a 2018 Hindu report, several synthetic compounds included in inorganic infant goods could be harmful to your health. As a result, parents are increasingly selecting natural and organic goods to give their infants a healthy and sustainable diet.
Key Industry Players Analysis:
To increase their market position in the global Organic Baby Food business, top companies focus on tactics such as adopting new Product Type, mergers & acquisitions, Product Type developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
8.8% |
Market Size |
3.8 Billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product Type, By Service Provider, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Nestle SA, The Kraft Heinz Company, Mead Johnson & Company, LLC, Abbott Laboratories, Danone SA, Lactalis, Sprout Organic Foods, Inc., Hipp Gmbh & Co Vertrieb KG, The Hain Celestial Group Inc., Hero Group, Baby Gourmet Foods Inc., Amara Organic Foods |
By Product Type |
|
By Service Provider |
|
Regional scope |
|
Scope of the Report
Global Organic Baby Food Market by Product Type:
Global Organic Baby Food Market by Service Provider:
Global Organic Baby Food Market by Region:
Global organic baby food market size was valued USD 3.8 billion in 2022
Infant Milk Formulas dominated the Organic Baby Food market in Product Type.
Global Organic Baby Food market is growing owing to the increasing working population around the world.
The Asia Pacific region accounted for the highest Organic Baby Food market share.
Political Factors- Political difficulties have a significant impact on the variables that can affect the long-term profitability of the consumer goods industry in a specific country or market. The economy, consumer spending patterns, and international trade rules are all impacted by these policies. Regarding these modifications, the business can do nothing more than follow them. Every nation is required to adhere by its political laws. Which things can be imported, exported, and sold in stores is impacted by the restrictions. Retailers of infant items are required to follow government-proposed health regulations. If they don't, the corporation can face legal issues in addition to having the products removed from the stores. One of the key elements that directly affects corporate growth is political stability.
Economical Factors- The macroenvironmental elements, such as the inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle, impact the economic growth and total investment in a country. A more robust economy enables customers to purchase the goods they desire. rather than simply purchasing what they require. It also signifies that more investors are starting to show an interest in the financial potential of the organic baby food industry. Only when the economy is expanding is this feasible. The cost of capital is also directly influenced by other factors such as interest rates, inflation rates, and others. For example, if the interest rate is greater, the cost of capital will rise, and if it is lower, the cost of capital will fall. This has a direct impact on the organization's growth and profitability.
Social Factor- The organizational culture in a particular location is influenced by the way of life and culture of the society. The primary societal elements influencing the infant stroller sector are consumer preferences. Demographics, financial disparity, consumerism, change in lifestyle, law's impact on social behavior, education levels, and more are additional variables influencing the organic baby food market. For instance, the market is impacted by the distribution of income since this reflects how income is dispersed throughout the economy. It directly affects the buyers' ability to make purchases. And eventually influences whether people consume more or less of the things.
Technological Factors- Examples of technological aspects include R&D work, automation, technology incentives, and the rate of technological advancement. They can set up entrance barriers, determine the minimal effective level of output, and influence outsourcing decisions. Prices, quality, and innovation may also be impacted by technological advancements. The organic baby food sector has benefited significantly from the internet. In addition to streamlining services, this will help us reach a global audience. The majority of businesses have a website. In essence, it serves as a digital inventory of their offerings. Online options are available from well-known companies. Products are either shipped to consumers' homes or made available for pickup at the nearest store.
Environmental Factors- Environmental factors include weather, climate, and climate change, which may have a particularly damaging impact on specific economic sectors like tourism, agriculture, and insurance. Environmental factors also include ecological and environmental factors. The way businesses operate and the products they offer are changing as well as people's awareness of the potential repercussions of climate change, which is both creating new markets and weakening or eliminating those that already exist. Climate change, greenhouse gas emissions, and rising pollution are factors that well-known market firms are successfully managing. Waste management, recycling, and renewable energy sources ought to receive more attention. It should also be conscious of how waste and resources are being used up since this could harm its brand's reputation and customer loyalty.
Legal Factors- The legal aspects of discrimination, consumers, antitrust, employment, and health and safety legislation are among them. These factors could affect a business' operations, costs, and product demand. Consumer goods companies must adhere to very severe legal restrictions. Consumers' rights are protected by law, and if they feel they have been taken advantage of, they can sue the seller. Market participants must follow all laws, obligatory rules, and regulations in order to win consumer loyalty and their confidence in their brand items. Today, regulations governing consumer protection, data privacy, intellectual property rights (IPR), health and safety, and employees and the workplace are required to be obeyed in almost every country. As a result, it becomes crucial for this company to operate legally and ethically in order to avoid facing legal action, fines, or other sanctions from a court of law.
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