Modern farming techniques utilize a large number of chemical fertilizers and pesticides to achieve a good yield. The presence of such chemicals in food causes many short-term and long-term consequences on human health. For instance, the preservative nitrite is converted into carcinogenic compound nitrosamines by the human body. Demand for organic techniques used for food farming is rising significantly since chemicals such as potassium chloride, heavy metals, and ammonium nitrate are not used in this technique. In addition, the demand for organic baby food is on the rise on account of rising awareness about harmful chemicals and the adverse effects they pose on infants.
Driver
Online retailing for Organic Baby Food holds huge potential for growth in the market. Factors such as the increasing popularity of internet services, advancements in services such as 4G and 5G along with smartphones in emerging economies of the Asia Pacific region (mainly India and China) are driving online sales for organic baby food products. More consumers are opting for online purchases of baby food products owing to the ease. Furthermore, the rising emergence of e-commerce companies and innovative strategies adopted by major players such as channel expansion will fuel the growth of the online segment in the organic baby food market.
Asia Pacific is the fastest-growing market for organic baby food owing to its large population and high birth rates, especially in countries such as India and China. According to the World Health Organization (WHO), Asia Pacific had around 311 million infant population (nearly half of the world’s infants) in 2022. Major market players are looking for opportunities to expand their business in the Asia Pacific region owing to favourable conditions it offers for the growth of the organic baby food market.
North America and Europe dominated the Organic Baby Food Market in 2022 with North America holding a prominent position. The organic baby food market in North America was valued at US$ 2,092.9 Mn in 2022. Stringent government regulations pertaining to the quality of baby food coupled with high consumer awareness regarding the harmful effects of chemicals on infant development have boosted the growth of the organic baby food market in this region. According to a report published by the Food and Drug Administration (FDA) of the U.S, 6 out of 10 U.S. citizens believe that organic food is better for their health. A stringent regulatory scenario in the U.S. ensures that the quality of the product is at par with the required standards. According to Title 21 of the Code of Federal Regulations (CFR), “the manufacture or distribution of infant formula that will be introduced to the interstate commerce in the United States must comply with the requirements of the Federal Food, Drug, and Cosmetic Act (the act), 21 USC 321 et seq., and FDA's regulations implementing the act”. These factors are highly responsible for the growth of the organic baby food market in North America.
Market Trend
The organic baby food market in Latin America is highly consolidated with companies such as The Kraft Heinz Company and Nestle S.A. possessing dominant market shares. Demand for organic baby food is projected to increase significantly due to the transition in the lifestyle of consumers in terms of their feeding habits and the rising purchasing power of consumers, among others. The major players are projected to retain their dominance in this region due to the popularity of their products and the trust gained through the same. However, local players find it hard to secure a favourable position mainly due to a lack of investments as a result of the sluggish economic growth in the region. However, as major countries such as Brazil, Argentina, and Colombia are expected to achieve economic and political stability in the near future, the market scenario will, in turn, change accordingly.
Consumers residing in countries such as the U.A.E., Qatar, and Saudi Arabia exhibit a high purchasing power due to which they can afford premium quality products such as organic baby food. Further, the demand for the same is also rising on account of increasing awareness of the need for good health and well-being. Further, consumers in these countries are aware of the repercussions of inadequate infant nutrition as well.
The global organic baby food market was valued at US$ 6,516.0 Mn in 2022 and is expected to expand at a CAGR of 10.8%, in terms of revenue, during 2023–2030.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2022 | Market Size in 2022: | US$ 6,516.0 Mn |
| Historical Data for: | 2017-2021 | Estimated Year: | 2023 |
| Forecast Period 2023 to 2030 CAGR: | 10.8% | Forecast Period: | 2023-2030 |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Abbott Laboratories, Groupe Danone, Nestlé S.A., Kraft Heinz, Company Hero Group, Amara Organics, Baby Gourmet Foods Inc., Bellamy's Australia, Green Monkey, Healthy Sprouts Foods, HiPP, Initiative Foods, Little Duck Organics, North Castle Partners, Olli Organic, One Earth Farms, Tastybaby, and Vitagermine, among others |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Restraints:
Organic food products adoption rate is very slow in developing market, mainly in South Asia and Africa. Temporary demand created due to lack of awareness and knowledge among consumers. Organic food is costly than conventional food products. In developing countries safe food is not a concern for consumers, Majority of developing countries has diversity in earning power and consumer hesitate to spend on these products. This difference of prices poses challenges for organic products in countries.
Figure 1. Global Organic Baby Food Market Share (2022), By Region
North America dominated the global organic baby food market in 2022 and is expected to retain its dominance throughout the forecast period. However, Asia Pacific is expected to project the fastest growth during the forecast period. The rapid adoption of organic baby food products among consumers is one of the prime factors fuelling the growth of the market in Asia Pacific.
Figure 2: Global Organic Baby Food Market, share by product, 2022
Organic Baby Food Market- Impact of Coronavirus (Covid-19) Pandemic
Covid-19 impacted on developing countries more than developed countries, Organic food is costly and due to covid-19 its demand has decreased in developing country. Lot of people faced problems in Covid-19 and no one is ready to buy costly organic food, People just wanted to survive in poor countries.
Recent Development:
The major players in the organic baby food market
Abbott Laboratories, Groupe Danone, Nestlé S.A., Kraft Heinz, Company Hero Group, Amara Organics, Baby Gourmet Foods Inc., Bellamy's Australia, Green Monkey, Healthy Sprouts Foods, HiPP, Initiative Foods, Little Duck Organics, North Castle Partners, Olli Organic, One Earth Farms, Tastybaby, and Vitagermine, among others
Organic baby foods are manufactured using the highest-quality manufacturing techniques to maintain good quality and prevent traces of chemicals in these products. The advantages of consuming organic food include less exposure to chemical residues, more vitamin intake, and a fair presence of various minerals and omega-3 fatty acids. In addition, fresh and nutritious food will help boost the overall development of the infant, resulting in a robust immune system. A major driver for the global organic baby food market is high birth rates in developing regions. According to the United Nation, there were 675 million infants in 2022, which defines a massive scope for this market. The relaxed regulatory scenario regarding the quality check of baby food products in emerging economies is one of the major factors hindering the growth of the global organic baby food market at present. Further, increasing inclination toward homemade food in countries such as India is also a major market restraint.
Market Dynamics
A population boom has been observed in the two largest populated countries in the world — India, and China. Asia Pacific was host to around half of the world’s infant population i.e., 311 million, in 2022. Further, according to the UN, the total population of Africa is expected to reach 1.3 billion by 2050. Due to the high demand for organic baby food products, the market is slated to grow at a very fast pace since the political and economic turmoil in the region is expected to decline by the end of the forecast period.
North America and Europe are the dominant regions for global organic baby food. The high purchasing power of the consumers coupled with rising awareness about infant nutrition is a prominent factor bolstering the demand for global organic baby food market in these regions.
Market Taxonomy
The global organic baby food market, which holds a significant market share in the overall baby food market, is segmented on the basis of product type and distribution channel. Online channel is expected to witness rapid growth during the forecast period on account of rising consumer inclination toward such modes of purchase. Supermarkets and Hypermarkets are the leading distribution channels since consumers prefer a tactile experience before purchasing the product.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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