Seattle, WA -- (SBWIRE) -- 09/27/2019 -- Infant milk formula is a partial or complete substitute for breast milk. The milk powder is also used, which is infused with nutrients that help to develop a baby.
In modern farming, various pesticides and fertilizers are used for better yield. However, excessive use of these chemicals can lead to short-term as well as long-term consequences of human health. For instance, preservative nitrite gets converted to carcinogenic compound nitrosamines inside the human body. Since these chemicals have adverse effect on human body, demand for organic farming has increased in the recent past. Moreover, the demand for organic baby food is also increasing, owing to increasing awareness about harmful effects of chemicals on the infants.
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Online retailing is one of the fastest growing channel for organic baby food. This is owing to increased usage of internet among populace, technological advancements such as 4G and 5G, and emergence of smartphones in Asia Pacific. Furthermore, a lot of customers are potting for online purchase of baby food products, due to ease of purchase and hassle-free delivery. Moreover, rising emergence of e-commerce companies and novel strategies adopted by key players in the industry is expected to drive growth of online segment in global organic baby food market.
Detailed Segmentation:
Global Organic Baby Food Market t, By Product Type:
Infant Milk Formula
-Starting MF
-Follow On MF
-Toddlers MF
-Special MF
Ready-to-Eat Baby Food
Powder
Liquid
Others
Global Organic Baby Food Market, By Distribution Channel:
Hypermarkets
Supermarkets
Specialty Stores
Convenience Stores
Online
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Among regions, Asia Pacific is the fastest growing market for organic baby food. This is owing to its large population and high birth rates, especially in emerging economies such as India and China. According to World Health Organization (WHO), Asia Pacific had around 311 million of infant population (nearly half of world's infants) in 2016. Key players in the market are looking for opportunities to expand their business in Asia Pacific region, owing to favorable conditions available for growth of organic baby food market.
North America and Europe held dominant position in the global organic baby food market in 2016, with North America accounting for significant share. The organic baby food market in North America was valued at US$ 2,092.9 Mn in 2016. Stringent government regulations associated with the quality of baby food along with increasing consumer awareness regarding the harmful effects of chemicals on infant development has led to growth of the organic baby food market in this region. According to the U.S. Food and Drug Administration (FDA), 6 out of 10 U.S. citizens believe that organic food is better for their health. Moreover, stringent regulatory scenario in the U.S. ensures the quality of the product is within the deified standards. According to Title 21 of the Code of Federal Regulations (CFR), "the manufacture or distribution of infant formula that will be introduced to the interstate commerce in the United States must comply with the requirements of the Federal Food, Drug, and Cosmetic Act (the act), 21 USC 321 et seq., and FDA's regulations implementing the act". These factors are highly responsible for the growth of the organic baby food market in North America.
The organic baby food market in Latin America is highly saturated with presence of key companies such as The Kraft Heinz Company and Nestle S.A. accounting for dominant market shares. Rising purchase power and changing lifestyle of consumers is expected to increase the demand for organic baby food during the forecast period. Furthermore, major players in the market are expected to retain their dominance due to popularity of their products. However, local players are finding it difficult to penetrate the market due to heavy investments and lack of popularity for their products. Emerging economies in Latin America such as Brazil, Argentina, and Columbia are expected to attain political and economic stability in the near future, which is expected to drive the market growth.
Consumers from the Middle East exhibit high purchasing power, wherein they can offer premium organic baby food. Moreover, demand for organic baby food is increasing, owing to rising awareness about good health and wellbeing, which is expected to drive the market growth in the region.
The global organic baby food market was valued at US$ 6,516.0 Mn in 2016 and is expected to expand at a CAGR of 10.8%, in terms of revenue, during 2017 – 2025.
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The major players in the organic baby food market are Abbott Laboratories, Groupe Danone, Nestlé S.A., Kraft Heinz, Company Hero Group, Amara Organics, Baby Gourmet Foods Inc., Bellamy's Australia, Green Monkey, Healthy Sprouts Foods, HiPP, Initiative Foods, Little Duck Organics, North Castle Partners, Olli Organic, One Earth Farms, Tastybaby, and Vitagermine, among others.
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