Global Organic Baby Food Market - 2021-2028
|出版日期||內容資訊||英文 180 Pages
|有機嬰兒食品的全球市場(2021年∼2028年) Global Organic Baby Food Market - 2021-2028|
|出版日期: 2021年08月12日||內容資訊: 英文 180 Pages||
Organic baby food is the chemical free formula for babies which contain lower residues of pesticides than the conventional baby products. The global organic baby food market is driven by the growing awareness among consumers to limit the baby's exposure to the harmful chemicals used in conventional food production and the awareness of the benefits of organic products. Various government initiatives related to organic food production, increase in working women, and growth of nuclear families have propelled the market growth. Meanwhile, innovative packaging and the use of specific organic ingredients that have significant health benefits primarily focused on cognitive and physical development, which is a key trend in the market studied. The global organic baby food market valued US$ XX billion in 2020 and is estimated to reach US$ XX billion by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
Increasing working women population is driving the growth of the organic baby food market
The number of women as a part of the labor workforce has increased over the past few years due to rise in literacy rate. The ratio is estimated to increase in the near future, owing to the supportive government policies. The ease and convenience provided by these baby products offer parents lesser time in manual preparation of baby foods and simultaneously take care of the babies, which is expected to boost the market in the forecast period. According to a Pew Research Centre study of labour force statistics from 114 nations with data from 2010 to 2016, women make up at least 40 percent of the workforce in more than 80 countries. The median female share of the workforce is 45.4 percent in all of these nations. Women held 50.04% of American jobs as of December 2020, excluding farm workers and the self-employed, according to the Bureau of Labor Statistics. With these growing population of working mothers, there is an anticipation of parallel growth in the organic baby foods market.
Moreover, the popularity of organic baby food is growing, with dedicated aisles for the category. With the increased disposable income, parents can compensate for homemade food with branded organic baby food, posing a great driving factor in the forecast period in both developed and developing countries. Thus, there are increasing investments in the organic baby food sector. For instance, in 2021, Neptune Wellness Solutions acquired a 50.1% share in Sprout Foods plant-based baby food company. The consideration includes a USD 6 million cash payment and the issuance of approximately 6.7 million in Neptune common shares, with a value of USD 12 million. The company registered annual net revenues of USD 28 million. Moreover, baby food start-ups are now differentiating their brands based on specific health goals, from better digestion to brain development, baby-led weaning, and allergy prevention. For example, NurturMe, a portfolio company of Advantage Capital, was acquired by Grays Peak Capital. NurturMe provides baby food and children's snacks that emphasize healthy digestion.
However, high cost of organic baby food is expected to hamper the market growth to a certain extent. According to the U.S Department of Agriculture, organic food generally cost 25-30% more than the conventional foods. For instance, the traditional infant formula costs about $23.50 for a 25.7-ounce container, whereas the organic infant formula costs around $27.50. These products are costly since they require proper pesticide-free storage, requirements of farmer training, and post-harvest handling.
Online sales segment is expected to register highest CAGR of YY% during the forecast period
Owing to the rapid penetration of smartphones, increase in e-commerce sales, and ease in payment options, the online sales segment is expected to grow with highest CAGR. More consumers are opting for online purchase of baby food products owing to its ease and hassle less nature of online services. Furthermore, rising emergence of e-commerce companies and innovative strategies adopted by major players such as channel expansion will fuel growth of online sales segment in organic baby food market.
On the other hand, the purchase of organic baby food from supermarkets is the latest trend in the industry since these are easily accessible and are expected to be found near the residential areas. Moreover, some of the supermarkets have company representatives to assist the costumers in their selection of organic baby food products.
Asia Pacific is expected to grow with highest CAGR of YY% during the forecast period
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. Organic packaged food consumption was valued at USD 11.8 million in 2018, with a growth rate of 51.28%, as stated by the USDA, creating a tailwind for India's organic baby food market. The relaxation of China's one-child policy may also bring a positive impact on pre-packaged baby foods. The potential of increasing wealth and rising number of newborns give China's baby food and drink manufacturers adequate stimulus to develop packaged organic food products to cater to the consumer demand for better quality and organic baby food and drink. According to the Global Organic Trade, the market size for organic package food and beverage in Japan was around USD 597.4 million, with a per capita of USD 4.71, coupled with the rising frequency of use of pre-cooked foods per baby, impacting the market growth.
The North American region accounted for the market revenue share of YY% in the year 2020. The growth of the organic baby food market in this region is fuelled by strict government regulations relating to the quality of baby food, coupled with high consumer awareness of the harmful effects of chemicals on infant development. According to a study released by the United States Food and Drug Administration (FDA), 6 out of 10 people believe that organic baby food is good for baby growth.
The global organic baby food market is highly fragmented and competitive with some of the key players like Nestle SA, Hero Group, Danone SA, The Hein Celestial Group Inc. and Abbott Laboratories. Companies are focused on developing new marketing strategies and introducing new products based on value-added ingredients to compete in the market. They are also focusing on strategies such as acquisitions, mergers and geographical expansions to gain a significant market share. For instance, in 2021, Hero Group acquired Baby Gourmet, a Canadian organic meal and snacks brand for babies and toddlers. The acquisition included Slammers Snacks, a Baby Gourmet-owned organic children's snacks brand. The financial terms of the transaction were not disclosed. In 2019, Danone opened a Nutricia Cuijk production facility in the Netherlands to meet the demand for infant formula. The plant is among the company's largest investments in its European production network in over a decade. It may primarily produce specialized infant formulas that meet the needs of infants diagnosed with specific medical conditions, such as cow's milk protein allergy, and standard infant formulas.
COVID-19 Impact: Pandemic had a negative impact on global organic baby food market
Health crises and food scares have a long-term impact on consumer demand during COVID-19. Initially, there was a sales spike, as consumers fear food safety, and personal health drives product purchases. The cumulative import of the infant milk powder from January-March 2020 is around 4,30,000 metric ton, which declined by 5.4% compared to 2019, as stated by China Custom's data. The increasing sale of infant food products in China via mum-and- baby-store's food for special medical purposes created momentum for premium and organic baby food in the region, with Feihe's sales growth of high-end infant formula series, including Organic Zhizhi by 16.99% (Y-o-Y) in 2020. In contrast, its regular counterpart sales declined by 25.94%. Since organic baby foods need high quality of raw material, the lockdown led to delay in the supply of raw materials, which ultimately resulted in production delay. Due to lockdown, factories remained closed for an indefinite time which led to disruptions in production and supply chain.