Baby Food Market Growth Analysis And Market Trends
Category: #business  By Rahul Varpe  Date: 2020-01-15
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Baby Food Market Growth Analysis And Market Trends

Baby food market is estimated to gain traction owing to increase in infant population coupled with growing number of working women across nations. As per World Bank estimates, highest birth rates have been recorded in developing nations: making these geographies a highly profitable growth avenue for baby food market.

Rapid urbanization is resulting in rise in working women population and consequently in the demand for convenient food products. Insufficient time and hectic schedules of working women are driving the adoption of easily prepared food products. Moreover, growing consumer awareness to feed babies with nutrition-rich organic foods will further garner momentous gains in baby food market share.

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Driven by the rising female workforce and changing lifestyle patterns, baby food market size is projected to hit USD 33 bn mark by 2025.

With the expanding demand for infant products, there has been an appreciable surge in new companies venturing in the baby food business. In this regard, a plethora of SMBs, especially at a regional level, have been actively contributing to the growth of baby food market.

Speaking of product landscape, prepared baby food market has witnessed a high demand especially in  North American and European countries where the proportion of working women is relatively high. In 2018, prepared products accounted for 40% of the global baby food market share. However, prepared baby food demands immediate consumption due to limited shelf life, which is in turn driving the demand for dried baby food products. As per estimates, dried baby food market is forecast to register the highest CAGR of 13.4%, owing to its longer shelf life and easy to serve mixes.

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Strict guidelines and standards are set for baby foods as they cater to a very sensitive age group. Right from ingredients to packaging and labelling, the baby food industry is highly regulated. For instance, U.S. FDA has laid down strict regulations regarding content and ingredients that are used in the processing of baby food. Moreover, there are regulations regarding suitable packaging for different types of baby food products pertaining to their shelf-life.

In terms of regional spectrum, North America and Europe are the prominent baby food markets. In 2018, Europe baby food market procured more than 30% of the global landscape.

Besides North America and Europe. Asia Pacific is another promising region providing substantial impetus to baby food market outlook. Growing infant population in APAC countries like India, Pakistan, Thailand, Vietnam, Indonesia will foster baby food market trends. Moreover, strict regulatory structure focused on improving infant mortality rates is further driving the demand for baby food and nutrition products.

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Convenience stores as a distribution channel have gained massive traction in baby food market, especially in countries such as APAC and Latin America. In terms of revenue, the segment is anticipated to register a CAGR of 13.3% over 2019-2025. In addition, supermarkets are forecast to be the fastest growing segment with a CAGR of 13.2%.

Baby food market is highly competitive with participation of renowned market players such as Danone, Mead Johnson Nutrition (now acquitted by Reckitt Benckiser) and Nestle. M&As, strategic collaborations and partnerships and novel product launches are some of the major growth tactics adopted by the industry players.

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About Author

Rahul Varpe

Rahul Varpe    

Rahul Varpe currently writes for Technology Magazine. A communication Engineering graduate by education, Rahul started his journey in as a freelancer writer along with regular jobs. Rahul has a prior experience in writing as well as marketing of services and products ...

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