The infant nutrition market is estimated to witness a CAGR of 5.9% during the forecast period (2020 - 2025). There are certain factors propelling the growth of the market, which include an increase in working mother population, higher spending on baby health, and the rising demand for organic baby food.
Currently, parents spend more on their babies than in the previous years, owing to several social factors. Presently, children are deemed more worthy of protection than they used to be. According to many surveys, parents spend a high amount of money on their babies, sometimes out of guilt, out of shame, or out of social anxiety.
Over recent years, there has been a healthy growth observed in the number of young working mothers in different jobs. This factor worked as a primary factor in propelling the growth of the infant food nutrition market, as these working mothers are majorly dependent on processed infant nutrition products. Therefore, organic food has been observed as one of the fastest-growing sectors in the food industry. Overall, it has experienced double-digit growth in most developed markets, compared with a single-digit growth rate for conventional food products. The global demand is increasing, owing to factors, like the desire of parents to feed their babies healthier foods.
Additionally, factors, like the growth of the middle class, rapid urbanization, and rising rates of female participation in the labor force in many developing markets, have encouraged the adoption of convenience-oriented lifestyles, making prepared baby foods and baby formula more desirable. The increasing middle-class population in the emerging and developing countries has opened new horizons in the infant nutrition market, as the need for products, compatible with a working mom’s schedule, is growing. Therefore, these factors boost the growth of the infant nutrition market.
Key Market Trends
Prepared Food is Expected to hold its Highest Market Share in the Baby Food Segment over the Forecast Period
- In the product type segmentation of the infant nutrition market, the prepared food sub-segment is expected to have the largest market size, and it is expected to witness good growth over the forecast period.
- The market size of the baby food segment can be attributed to the current busy lifestyle of people and the emergence of a variety of organic and healthy food for infants. The extensive sale of prepared food is mainly attributed to its ease of access. As manufacturers of prepared food, most companies are now producing more organic food products, which is free-from preservatives and residues of fertilizers and pesticides. However, some parents prefer to prepare baby food by themselves for ensuring hygiene and nutrition.
- Therefore, there is also a demand for the dried food that is on a rise, majorly due to the increasing trust of parents upon the quality of food, which is provided by the companies and increasing improvisation that is continuously being done in the food products by the manufacturers. There are other baby foods segment of the market majorly inclusive of the juices and products that are rich in omega-3 DHA and arachidonic acid (ARA), along with other nutritional products.
North America is Expected to Witness the Highest CAGR Throughout the Forecast Period
- The presence of high per capita healthcare expenditure, coupled with high awareness levels and rising disposable income, is contributing to the growth of the market in the region. The average age at which American women are giving birth has been rising as young women are increasingly prioritizing their careers over family planning. Hence, a rise in parental concerns, for baby's health and nutrition, is driving the growth of the North American regional market.
- Moreover, there are consumers, especially in the developed countries, who are willing to pay for premium amounts for such products, owing to the general perception of these products being more healthy and safe, as compared to conventional products.
- There are stringent regulatory scenarios that create high entry barriers for new entrants in the market studied. Moreover, there is a significant investment needed in the R&D sector, which makes small companies be acquired or work in pratnership with big players, which is highly beneficial for the market studied. For example, a collaboration between companies to improve human milk oligosaccharides.
- Some of the companies that are currently dominating the market studied are Abbott Laboratories, Baby Gourmet Foods Inc., Bellamy's Australia Limited, Danone SA, Royal FrieslandCampina NV, Reckitt Benckiser (Mead Johnson), and Nestlé SA.
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