by The global baby food market is witnessing significant growth owing to increasing working women population and rising disposable incomes. Baby food products provide complete nutrition to infants and toddlers aged between 6 months to 2 years. These products come in various formats including baby cereals, bottled food and snacks. Baby cereals are usually the first solid foods introduced to babies as they are easier to digest than other options. Bottled baby food is gaining popularity amongst busy parents owing to their convenience. They are available in different varieties such as milk-based, prepared, dried or others. Snacks for babies include biscuits, puffs and rusks having balanced nutritional profile.
The global Baby Food Market is estimated to be valued at US$ 50.47 Bn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the baby food market is the increasing demand for organic and clean-label products. Parents are more aware of ingredients in baby food and want products that are free from artificial preservatives, colors, flavors and sweeteners. Many manufacturers have launched organic product ranges made from non-GMO ingredients to cater to this demand. Another notable trend is the rising popularity of multifunctional baby foods. Products having multiple nutrient-rich ingredients combining cereals with fruits and vegetables are gaining traction. They provide balanced nutrition in a single meal. Manufacturers are also focusing on diversifying product portfolio by adding new formats like pouches, cups and spoonable yogurts to attract toddlers. This is expected to drive the demand for baby food over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as baby food industry requires high capital investment for R&D, marketing and distribution network. However, many smaller players are able to target specific categories or regions.
Bargaining power of buyers: The bargaining power of buyers is high as baby food products are commodity in nature with less product differentiation. Buyers can easily switch between brands based on pricing and promotions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials including cereals, fruits and vegetables are perishable and supplied by numerous small and large farmers.
Threat of new substitutes: The threat of new substitutes is low as baby food has no close substitute and fulfill the crucial nutritional needs of babies and toddlers.
Competitive rivalry: The competitive rivalry is high among existing players due to large number of global and regional competitors catering to same target customers. Players compete on factors like pricing, product innovations, quality and promotions.
Key Takeaways
The global baby food market is expected to witness high growth over the forecast period supported by the increasing working women population, rising disposable incomes and growing awareness about baby nutrition.
Regional analysis- Asia Pacific is expected to dominate the market during the forecast period driven by large population, rapid urbanization and economic growth in countries like China and India. Growing middle class is increasing the spending on baby care in the region.
Key players- Key players operating in the baby food market are Echosens, HISKY Medical Technologies Co., Ltd. and SMEDA Medical Co., Ltd. These companies are focusing on new product launches, acquisitions and enhancing their distribution network to cater to the growing demand. Echosens launched FibroScan family of products to expand non-invasive diagnosis of liver disease.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
