Infant Food Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2027

Global Infant Food Market is anticipated to witness a major leap forward in its revenue from US$ 77,837.3 Mn in 2021 to US$ 114,241.5 Mn by 2027. The market is registering a CAGR of 6.4% during the forecast period 2022-2027. Baby food is a soft food product, specially developed for babies aged between four months to two years to accomplish their nutritious desires. Traditionally, babies were fed soft home-cooked food, a practice that is still popular in underdeveloped and developing countries. However, growing urbanization, a rise in the number of working women, and changing lifestyles have increased the demand for packaged baby foods in different societies and cultures. It is considered to be an ideal substitute for breast milk, owing to the presence of essential nutrients that play a vital role in infants’ growth. Parents nowadays are becoming more aware of the impact of correct nutrition on the child’s overall growth and development.

The growing impetus of the infant food market is attributed to an increase in demand for ready-to-use baby food and the rising demand for infant food in developing economies. Rapid urbanization, growth of the middle class, and rising rates of female participation in the labor force in many developing markets have encouraged the adoption of convenience-oriented lifestyles, making baby formula and prepared baby foods more desirable. Apart from this, due to the increasing consciousness among consumers, manufacturers are introducing organic, premium, and minimally processed baby food and infant formula variants to increase their sales. Organic infant food is an emerging opportunity in the market. However, the growing demand for homemade food will hamper the market growth. 

Report Summary

The study of the Global Infant Food Market considers various market determinants, industry value chain analysis, and competitor analysis of the market. The report discusses the analysis of the infant food industry for the period 2017-2027, where the base year is 2021 and the forecast period is 2022-2027. The report provides a detailed analysis of the global infant food market across 15 Chapters and 192 pages. The report includes data presentation across 40 tables and 93 statistical figures. 

The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein the intensity of rivalry is high. 

The subsequent section provides details of the market analysis based on different segments such as product type, ingredient, category, distribution channel, and region. The report includes a detailed study of the value chain of the industry. It includes raw material providers, infant food manufacturers, distributors, and end-users. The report also covers extensively the key competitors in the market for infant food. 

Key Takeaways from the Global Infant Food Market Report

• Based on product type, baby food cereal has the largest share in the Global Infant Food Market in 2021 and is further estimated to continue its dominance over the forecast period. The rising demand for organic-based baby food cereal is estimated to propel segmental growth during the forecast period.
• In terms of ingredients, milk products hold the highest market share in 2021 and are estimated to have the fastest CAGR during the projection period. The increasing incidence of lactating issues in infants has influenced the increased adoption of milk-based baby food products.
• Based on category, the Global Infant Food Market is segmented into organic and conventional. Among these, the conventional segment has the highest share in the market in 2021; however, the organic segment is projected to have the fastest CAGR during the forecast period. Organic baby food is gaining popularity due to strong concern among parents towards added chemicals, which in turn, is expected to propel the market growth during the forecast period.
• Offline distribution channels such as hypermarkets, supermarkets, and convenience stores among others hold the highest share in the Global Infant Food Market in 2021. However, the online distribution channel is registering the fastest CAGR over the projection period. The rising number of e-commerce sector globally is leading to rising in the online distribution channel in the infant food market.
• The Asia Pacific is the highest shareholder region in the Global Infant Food Market and is further expected to continue its dominance over the forecast period.

Competitive Landscape

The key players in the global infant food market are Nestle SA, DANONE, Mead Johnson, Abbott, H. J. Heinz Company, HIPP, Babylicious Ltd., Dutch LadyMilk Industries Bhd, Perrigo Company plc, Want-Want Group & Leisure Foods Ltd., and Hero, among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip in the stabilized global market scenarios. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Strategies Adopted by Key Market Players

• In 2020, Bubs Organic, LLC raised US$ 28.3 million to accelerate global growth.
• In May 2020, Nutricia announced that it is supporting research by independent medical professionals to define guidelines for nutritional care for COVID-19 patients recovering after ICU discharge.
• In October 2020, Nutricia announced its acquisition with Real Food Blends, to bring even more unique and nutritious options to children and adults with feeding Tubes.
• In October 2020, Little Dish launched 11 new products to highlight required nutrition for kids, maintain sustainability, and offer various flavored combinations with interesting options in kid's snacks.
• In 2020, Sprouts Foods announced to add more veggies to its baby food to help prevent obesity in later life.
• Hain Celestial Group, on January 2021, announced several innovations including expanded product lines, updated packaging, and a fresh advertising campaign.

Segmentation Overview

The following are the different segments of the Global Infant Food Market:

By Product Type segment of the Global Infant Food Market is sub-segmented into:

• Bottled Baby Food
• Baby Food Cereals
• Baby Food Snacks
• Baby Food Soup
• Frozen Baby Food
• Ready to Feed Baby Food

By Ingredient segment of the Global Infant Food Market is sub-segmented into:

• Cereals
• Fruits
• Meat Products
• Milk Products
• Vegetables

By Category segment of the Global Infant Food Market is sub-segmented into:

• Organic
• Conventional

By Distribution Channel segment of the Global Infant Food Market is sub-segmented into:

• Offline
• Hypermarkets
• Supermarkets
• Convenience Stores
• Drugstores/ Pharmacies
• Online

By Region Segment of the Global Infant Food Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America