Organic baby food: Key market research findings
- Increasing awareness about health benefits drives market growth
- Organic prepared baby food accounts for majority of the market’s revenue
- Key vendors – Abbott, Danone, Hero, Nestlé, The Hein-Celestial Group
Technavio’s market research analysts predict the global organic baby food market to grow at a CAGR of almost 8% between 2016 and 2020. The demand for organic baby food is augmented primarily by the increasing awareness about its health benefits and the parents’ desire to provide their children with the best. Organic baby food contains organically grown ingredients, which are generally considered safer than conventional counterparts. At present, EMEA dominates the global organic baby food market by accounting for almost 38% of the overall market space. The growing demand for organic prepared baby food and organic milk formula in European countries are some of the factors fueling growth in the organic baby food market in EMEA during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the organic baby food segments based on the product.
“Recently, there has been an increase in the online purchase of organic baby food. The busy lifestyles of consumers is causing a shift towards online shopping, which is convienient and quick. Increased Internet penetration, access to smartphones, and simplified e-banking systems are some of the factors that will augment this trend in the coming years. Some examples of organic food providers include Organicshop.in, Joybynaure.com, FirstCry.com, and shop.plumorganics.com,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
By 2020, the organic prepared baby food segment is expected to dominate the market by accouting for a market share of almost 76%. The growing parental concern about the safety of foods consumed by their children is the drving force behind the increasing popularity of organic prepared baby food. Besides, these ready-to-mix and eat products combine health and convenience and appeal to working mothers. Organic prepared foods are available in jars and are sometimes frozen, depending on the ingredients.
The key vendors in the global organic baby food market include Abbott, Danone, Hero, Nestlé, The Hein-Celestial Group. A large number of untapped regions in APAC and MEA regions dot the global organic baby food market. An increasing number of nuclear families and a growing working women population in these regions pose a significant opportunity for organic baby food manufacturers.
Consumer awareness about the benefits of organic baby food in these regions is relatively low as compared to the west. For instance, though India has the highest population of children in the age group of 0-4 years the per capita consumption of baby food is relatively low. This market research study shows that in India alone organic baby food constituted almost 30% of the overall new baby food products launched in 2014, and it is a trend that will continue to bolster this market until 2020.
A more detailed analysis is available in the Technavio report, Global Organic Baby Food Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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