Baby Food Market Poised to Surge from USD 53.31 Billion in 2015 to USD 76.48 Billion, Globally by 2021 – ZionMarketResearch.Com

Sarasota, FL, Aug. 23, 2016 (GLOBE NEWSWIRE) -- Zion Market Research has published a new report titled “Baby Food Market (Bottled baby food, Baby food cereals, Baby food snacks, Baby Food Soup, Frozen baby food): Global Industry Perspective, Comprehensive Analysis and Forecast, 2015 - 2021.” According to the report, the global baby food market accounted for USD 53.31 Billion in 2015 and is expected to reach USD 76.48 Billion by 2021, growing at a CAGR of around 6.2% between 2016 and 2021.

Baby food is either a total or partial substitute for breast milk for infants or toddlers of under two years. It is a soft food, which can be easily consumed by infants and babies. To meet the nutritional requirements of the baby, baby foods are especially designed by the manufacturers. Generally, baby food is prepared with required amount of proteins and iron, so that it properly helps in the baby’s growth and initial body development. The baby food market is classified into various segments which include product, health benefits and basic ingredients.

Browse 8 Market Tables and 19 Figures spread through 110 Pages and an in-depth TOC on "Baby Food Market - Global Size, Shares, Trends, Segment & Forecast to 2021”

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There are mainly three forms of baby food, which are liquid concentrate, powder, and ready-to-feed. Powder is the least expensive form and it is used by mixing with water before feeding the infant. In case of ready-to-feed form of baby food, there is no need of addition of any liquid and mother can feed this directly to the baby. Furthermore, sub categories of baby foods include dried baby food, milk formula, prepared baby food and other baby food such as baby snacks and beverages. Cow milk-based formulas are gaining large adoption in emerging economies in the past few years. Increasing population base, rising disposable income level of individual and growing urbanization, are some of the major reasons, which are expected to be driving the baby food market in all across the globe. Decline in birth rate in developed countries can act as a major challenge for the growth in baby food market within the forecast period.

North America was the largest regional segment in the baby food market followed by Europe, Asia Pacific, Latin America and Middle East & Africa. Major players have been targeting the emerging and populous economies such as China, India and Vietnam, because of the low growth opportunities in Europe and the North America due to static market conditions and low birth rates. Asia Pacific is expected to be largest potential market due to the growing urbanization in this region. In Europe; Germany was the major producer of baby food products in 2015 while in terms of consumption China dominated the Asia Pacific region.

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Socio-demographic factors are expected to be driving the growth of baby food market in Africa and the Middle East. Demand for organic and more premium products is increasing in developed economies, where the birth rate is low, mothers tend to be older and spending power per baby is higher. However, in developing economies, despite lower average spending power there are huge opportunities to be found because of higher birth rate and younger mothers.

In Indonesia alone there are more than 22 million infants. Indonesia is the key country that is driving the market growth in Asia Pacific. Indonesia is world’s fourth largest populated country with around 22 million under the age of 4. Indonesia is also Asia’s second highest country in terms of birth rate and rising wealth. Hence, to meet the increasing demand of rising population, multinational companies are likely to build new production amenities in this region. In order to start the production of powdered milk and its Milo drink, Nestlé invested $200 million in 2011. Baby milk powder producers are linking the health benefits of milk with both mental and physical health, which appeals to their target group of middle-class parents. Since malnutrition had caused the death of millions of young children in Indonesia, the Government has encouraged exclusive breast-feeding from birth until 6 months. However, this is expected to be a challenge for women in the modern society as more women are choosing powdered milk as an alternative.

Indian baby food market was dominated by Nestlé and Heinz in 2015. In Asia, India has the largest population of 0-4 year old kids. However, Indian baby food market is smaller as compare with China and Indonesia. Japan is specialized by innovative use of ingredients, such as specific milk protein fractions and prebiotics in the baby food products. This trend is also speedily developing in other parts of Asia. As compared to any other country retail prices are much more expensive in Japan. This helps manufacturers to invest in research and development for sophisticated products. The Japan is more technology driven market, while other markets are more consumer driven.

The Middle East and Africa region especially has high growth in female labor participation. As of 2015, the baby population is nearly to 200 million in Middle East and Africa. These two facts hold the key to explaining strong market growth in this region. The government of Iran has direct control over the distribution of baby products hence in Iran, it is very hard for women to buy baby food products like powder milk. Mothers are only allowed to purchase it if they have obtained a certificate from their doctors stating they need formula milk or powder milk. Each year, pharmaceutical companies or their agents seek the tenders invited by the Ministry of Health for the right to sell baby food products. The government decides on the brand mix and the quantities to be imported. Saudi Arabia is by far the largest market in the region and has seen double-digit growth for the past few years. As mothers have gained increasing awareness of their children’s nutritional needs, the demand for food products that are natural, fortified and offer health benefits has been rising. This trend is expected to continue within the forecast period.

In South America, baby food products like baby milk powder have been present for decades and are usually included as a supplement in babies’ diets. As more women have entered the workforce, they get less time to spend at home and breastfeed their babies hence regular use of powdered milk has become increasingly popular. In Latin America mothers are given short maternity leave periods – in Mexico, mothers are given only 45 days of maternity leave sooner than they must return to full time employment. Hence, in nearby future baby food market would be never ending demand segment. Improving economic conditions mean that more consumers can afford regular purchases.

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Some of the major companies in the baby food market are Abbott Laboratories, Bledina SA, Danone SA, Hain Celestial Group, H. J. Heinz Company, Ella's Kitchen Group Ltd, Nestlé S.A., Semper AB, Mead Johnson Nutrition Company and Morinaga Milk Industry Co., Ltd.

This report segments the global baby food market as follows:

Global Baby Food Market: Product Segment Analysis

  • Bottled baby food
  • Baby food cereals
  • Baby food snacks
  • Baby Food Soup
  • Frozen baby food

Global Baby Food Market: Regional Segment Analysis

  • North America
    • U.S.
  • Europe
    • UK
    • France
    • Germany
  • Asia Pacific
    • China
    • Japan
    • India
  • Latin America
    • Brazil
  • Middle East & Africa

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