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Organic baby food carry the organic label and meet the strict regulation set by USDA’s National Organic Program. This means the raw materials used for the production of organic food such as vegetables and fruits have not sprayed or expose to pesticides and meat from an animal that have been provided with antibiotics. Moreover, the organic baby food does not contain any artificial flavor, preservatives, and colors. Organic baby food reduces the level of exposure to pesticides in infants and other harmful contaminants. Studies have suggested that exposure to pesticide and other conventional food can make babies more vulnerable to various health problems such as neuro-development since babies' brains are at a crucial stage of development.

BRIC organic baby food market is estimated to account for around US$ 2,915.6 million in terms of value in the year 2019 and it predicted to grow at a CAGR of  18.2% during the forecast period (2020-2027).

Driver

Rising urbanization along with a growing number of working mothers has increased the demand for organic baby food. According to the Coherent Market Insights analysis, over 80% of the population in BRIC countries reside in urban areas and consumers in such areas tend to have a busy and hectic schedule and prefer healthy, packaged food options. Therefore, rapid urbanization is expected to augment the market growth of organic baby food.

Market Opportunities

Expanding retail sector in the BRIC region is expected to provide immense growth opportunities to the market of organic baby food. According to the India Brand Equity Foundation, the retail industry reached US$ 950 billion in 2018 at CAGR of 13 percent and expected to reach US$ 1.1 trillion by 2020. India is the world’s fifth-largest global destination in the retail space. Therefore, expanding retail sector in the BRIC region will favor market growth.

Market Restraint

The high cost of organic food products is limiting product acceptance among consumers, especially in middle-class consumers. This is expected to hamper the market growth of organic baby food. The production process of organic products is complex and also packaging process of organic products includes high initial cost, this results in an overall high price of the final product which is further expected to hamper the market growth.

Key Takeaways

On the basis of the countries, China dominated the BRIC organic baby food market in 2019 with a 59.3% of market share in terms of value, followed by Brazil and others.

On the basis of the distribution channel, the supermarket segment dominated the BRIC organic baby food market in 2019 with a 39.4% of market share in terms of value, followed by specialty outlet and others.

Market Trends

Rising demand for products with health benefits as well as convenient packaging in Brazil region is expected to accelerate the market growth of organic baby food. Organic baby foods are produced from cereals fortified with vitamins, minerals, and proteins and organic fruit. In terms of convenience packaging, consumers highly prefer jars or pouches rather than other packaging types. Hence, the rising demand for convenient packaging is projected to accelerate market growth.

Competitive Section:

Company Names 

  1. Nestlé S.A.
  2. H.J. Heinz Company
  3. Groupe Danone
  4. Pristine Organics Pvt Ltd.
  5. British Biologicals
  6. Abbott Laboratories
  7. Otsuka Holdings Co., Ltd.
  8. Campbell Soup Company
  9. Hero Group
  10. Bellamy’s Australia Limited
  • Few Recent Developments

Nestlé S.A.

  • In May 2019, Nestle launched an organic product within its Ceregrow brand of cereals for children over the age of 12 months, made from 100% organic ragi, wheat, milk, and rice. The product is produced at the company’s Samalkha factory in Haryana, using locally grown ingredients.

Segmentation

By Product Type

  • Ready to Feed
  • Prepared
  • Milk Formula
  • Dried
  • Others (fresh organic fruits and vegetables, desserts, organic eggs)

By Distribution Channel

  • Supermarket
  • Specialty Outlet
  • Drugs Stores & Pharmacies
  • Internet
  • Others (direct selling, general stores)

By Countries

  • Brazil
  • Russia
  • India
  • China
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