The increasing number of working women, increasing parental concerns about infant nutrition, rising urbanization rate and organized retail marketing activities, decreasing infant mortality rate, and surging awareness on innovative baby food products are responsible for the growth of the global baby food market. Due to these factors, the industry is expected to generate revenue of $53.9 billion in 2030, advancing at a CAGR of 6.1% during the forecast period (2021–2030).
The lockdowns and partial factory closures had initially negatively impacted the import, export, and distribution of the ingredients used in the manufacturing of baby food. However, with the lifting of the lockdowns and opening of research institutions and manufacturing units, all the halted activities related to baby food across the world have resumed. Moreover, the key manufacturers of baby food have been witnessing a high demand for these products during this period, thus resulting in the growth of the market for baby food.
The baby food market is categorized into infant formula, baby cereals, baby snacks, baby soups, baby pureed food, and others, on the basis of product. Among these, the infant formula category dominated the global baby food market in 2020 owing to the increasing incidence of lactating issues in women and breastfeeding problems with infants.
The market for baby food has been categorized into hypermarkets, supermarkets, drug stores, specialty stores, and online, on the basis of distribution channel. Among these, the online category is expected to be the fastest growing during the forecast period. This will be due to the increasing preference of individuals to purchase products via e-commerce platforms.
Geographically, Asia-Pacific (APAC) region dominated the baby food market in 2020, and it would grow considerably in the foreseeable future. This will primarily be due to the high birth rate, rising purchasing power of the population, and increasing number of working women.
Players in the baby food industry have been involved in product launches and approvals in order to attain a significant position. For instance, in July 2021, The Kraft Heinz Company introduced a new line of products under the brand name HEINZ BY NATURE. These products are made from organic and natural ingredients and acerola cherry. The product line also includes recyclable glass jars for parents looking for more-eco-friendly and transparent packaging.
Some of the key players operating in the baby food market are Nestlé S.A., Danone S.A., The Kraft Heinz Company, Reckitt Benckiser Group plc, Abbott Laboratories, China Feihe Limited, HiPP GmbH & Co. Vertrieb KG, China Mengniu Dairy Company Limited, Hero Group, Inner Mongolia Yili Industrial Group Co. Ltd., Kewpie Corporation, DMK Deutsches Milchkontor GmbH, PZ Cussons (UK) Limited, Perrigo Company plc, and Royal FrieslandCampina N.V.