Infant Food Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

Global Infant Food Market is anticipated to witness a major leap forward in its revenue from US$ 83.0 Bn in 2022 to US$ 148.8 Bn by 2031. The market is registering a CAGR of 6.7% during the forecast period 2023-2031. 

Baby food is 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, rise in 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 the 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 of 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 has 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, growing demand for homemade food will hamper market growth. 

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Market Dynamics 

Drivers:

Increasing Population of Working Women:

The increasing population of working women is a significant driver of growth in the global infant food market. According to a report by the International Labor Organization, the global female labor force participation rate increased from 51.2% in 1990 to 55.5% in 2019. As more women enter the workforce, they have less time to prepare home-cooked meals for their infants, and thus they turn to infant food products that offer convenience and meet their nutritional requirements. This trend is expected to continue as the number of working women continues to rise.

Working mothers often face a time crunch when it comes to preparing meals for their infants. With the availability of various infant food products in the market, they can easily provide their infants with a nutritious meal without spending too much time in the kitchen. Infant food products are also available in a wide range of varieties, catering to different nutritional requirements and tastes. This has further increased the demand for infant food products among working mothers.

Rising Awareness about Infant Nutrition:

There is a growing awareness about the importance of proper infant nutrition among parents across global infant food market. Proper nutrition in the first 1000 days of a child's life, from conception to the age of two, is critical for their growth and development. According to the World Health Organization, malnutrition during this period can have long-term consequences, including stunted growth, cognitive impairment, and increased susceptibility to chronic diseases.

As a result, there has been an increased demand for infant food products that provide the necessary nutrients for infants. Infant food products are designed to meet the specific nutritional needs of infants and are available in different forms such as cereals, purees, and snacks. With more parents understanding the benefits of early childhood nutrition, the demand for infant food products is likely to continue increasing.

Restraints:

High Cost of Infant Food Products:          

One of the major restraints in the global infant food market is the high cost of infant food products. The cost of infant food products is significantly higher than the cost of regular food products. This makes it difficult for low-income families to afford infant food products. This could limit the growth of the market as families may look for cheaper alternatives.

The high cost of infant food products is due to the use of high-quality ingredients, extensive research and development, and strict manufacturing processes. Infant food products are also subject to stringent regulations and standards, which further adds to the cost of production. The high cost of infant food products may also lead to concerns about affordability and accessibility, especially in developing countries where malnutrition is a significant problem.

Concerns about the Safety and Quality of Infant Food Products:

Another restraint in the global infant food market is concerns about the safety and quality of infant food products. There have been instances where infant food products have been found to contain harmful ingredients or have been contaminated. For example, in 2022, the U.S. Food and Drug Administration (FDA) issued a warning to parents to avoid using certain infant food products due to high levels of toxic metals such as arsenic, lead, and cadmium.

Such incidents have led to a loss of trust among consumers and may limit the growth of the market if these concerns are not addressed. Manufacturers of infant food products need to ensure that their products are safe and of high quality. They need to implement rigorous quality control measures to ensure that their products are free from harmful ingredients and contaminants. This will help restore consumer confidence in infant food products.

Challenge:

Changing Regulations and Standards:

One of the challenges faced by the global infant food market is changing regulations and standards. Governments around the world are implementing stricter regulations and standards for infant food products, which may increase the cost of production and limit the availability of certain ingredients. This could lead to a decline in the variety of infant food products available in the market and may affect the growth of the market. 

Manufacturers of infant food products need to keep up with changing regulations and standards and adapt their products accordingly to remain competitive in the market. They also need to ensure that their products are compliant with the regulations and standards of different countries to expand their market reach. As regulations and standards continue to evolve, staying abreast of these changes will be crucial for the success of the infant food market.

Segmental Analysis of the Infant Food Market 

By Product Type

The baby food cereal segment dominates the Global Infant Food Market in 2022, accounting for the largest market share. This segment is further estimated to continue its dominance over the forecast period. The rising demand for organic-based baby food cereal is expected to propel segmental growth during the forecast period. With the increasing awareness about the benefits of organic baby food, parents are more inclined towards purchasing organic baby food cereals that are free from harmful chemicals and preservatives.

By Ingredients

In terms of ingredients, milk products hold the highest market share in 2022 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.

Milk products are highly nutritious and provide the necessary nutrients to support the growth and development of infants. Additionally, manufacturers are introducing milk-based baby food products with added vitamins and minerals to cater to the growing demand for highly nutritious baby food products.

By Category

Based on category, the Global Infant Food Market is segmented into organic and conventional. The conventional segment holds the highest share in the market in 2022; however, the organic segment is projected to have the fastest CAGR during the forecast period. 

Organic baby food is gaining popularity due to strong concerns among parents towards added chemicals, which in turn, is expected to propel market growth during the forecast period. Organic baby food is free from pesticides, hormones, and other harmful chemicals, making it a safe and healthy option for infants.

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By Distribution Channels

Offline distribution channels such as hypermarkets, supermarkets, and convenience stores hold the highest share in the Global Infant Food Market in 2022. However, the online distribution channel is registering the fastest CAGR over the projection period. The rising number of the e-commerce sector globally is leading to a rise in the online distribution channel in the infant food market. With the increasing popularity of online shopping, parents are now opting for online platforms to purchase baby food products, owing to the convenience and ease of access to a wide range of products.

Regional Analysis 

The Asia Pacific region accounted for the largest share of the global infant food market in 2022, with a share of over 45%. The report also forecasts that the region will continue to dominate the market over the forecast period. The Asia Pacific region is the highest shareholder in the global infant food market, accounting for a significant share of the market. The region is home to a large population, and countries such as China and India have witnessed a significant increase in the number of working women in recent years. As a result, there is a growing demand for infant food products in the region.

The Asia Pacific infant food market is also witnessing significant growth due to rising awareness about the importance of proper infant nutrition. Parents in the region are increasingly aware of the need to provide their infants with proper nutrition, which has led to an increased demand for infant food products.

China is the largest market for infant food products in the Asia Pacific region, accounting for a significant share of the market. The country has witnessed a significant increase in the number of working women in recent years, which has led to a growing demand for infant food products.

India is another major market for infant food products in the Asia Pacific region. The country has witnessed significant growth in the number of young parents who are increasingly concerned about the nutritional needs of their infants. On the other hand, the Southeast Asia region is also witnessing significant growth in the infant food market. Countries such as Indonesia, Thailand, and Vietnam are witnessing an increase in the number of working women and a shift towards Western-style diets, which has led to a growing demand for infant food products in the region.

Competitive Landscape

The global infant food market is dominated by key players such as 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. These companies are leading the market due to their strong brand recognition, extensive distribution networks, and high-quality product offerings.

To remain competitive in the market, these key players have adopted various competitive strategies such as merger and acquisition. This allows them to strengthen their market position and gain a foothold in new regions. For instance, in 2021, Nestle SA announced the acquisition of a majority stake in a leading Chinese infant formula manufacturer, Yinlu Foods Group. This acquisition allowed Nestle to expand its presence in the rapidly growing Chinese infant food market.

List of Key Companies Profiled:

• Abbott (Abbott Nutrition)
• Babylicious Ltd.
• Babynat
• Beech-Nut Nutrition Corporation
• Bristol Myers Squibb
• Bubs Organic, LLC
• DANONE
• Dutch LadyMilk Industries Bhd
• Earth's Best (The Hain Celestial Group, Inc.)
• Ella's Kitchen
• FASSKA
• H. J. Heinz Company
• Hero Baby
• HiPP
• Little Dish
• Nestle SA
• Nutricia
• Plasmon
• Perrigo Company plc
• SMA Nutrition
• Sprout Foods, Inc.
• Want-Want Group & Leisure Foods Ltd.
• Other Prominent Players

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 to 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:

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

By Ingredient:

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

By Category:

• Organic
• Conventional

By Distribution Channel:

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

By Region:

• 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