Technavio’s research study segments the global organic baby food market into the following regions:
The organic baby food market in the Americas is expected to reach USD 2.7 billion by 2020, growing at a CAGR of over 11%. In 2015, the US dominated the organic baby food market in the Americas in terms of revenue. The organic prepared baby food segment saw the highest demand while the demand for organic milk formula is also rising.
Numerous regional players have entered the market with innovative offerings. In 2013, Pure Spoon, a US-based company that provides organic food for children, introduced a range of high pressure-packed organic purees. In high-pressure packaging (HPP), pressure, instead of heat, is used to eliminate harmful microorganisms. In 2014, Little Spoon Organic, another US-based company, launched its high pressure packaged organic baby food blends in flavors including apple, mango, and pear.
Improved living standards and a rise in the number of middle-class families with higher disposable incomes are factors that have resulted in the increased ability to spend on organic baby foods. Latin America is one of the most urbanized regions in the world, with nearly 9 out of 10 people expected to live in urban areas by 2050. High annual incomes in the area, have made organic baby food more affordable.
The market in APAC is expected to reach USD 2.6 billion by 2020, growing at a CAGR of over 16%. The organic baby food market in APAC is growing primarily due to increasing awareness about the benefits of these products. Government support for regulating organic farming in many countries and increasing product availability have also had a positive impact on the demand for organic baby food.
A large number of children in the age group of 0-4 years too, has contributed to the demand for baby food in general and organic baby food in particular. With the Indian economy estimated to grow at 7% and the Chinese economy at 7.8% year-over-year, APAC accounts for two of the fastest growing economies in the world. Nearly 45% of the population in the region was from the urban areas in 2015, and we estimate this to increase to 56% by 2030 and 64% by 2050. Rising disposable incomes and urbanization will further boost the market in this region during the forecast period.
The market in EMEA is expected to reach USD 2.5 billion by 2020, growing at a CAGR of over 7%. The organic baby food market in EMEA will see growth over the next five years primarily due to the growing demand for organic prepared baby food and organic milk formula.
According to WHO reports, the number of breastfed babies in Europe is far below the global average, which gives organic milk formula manufacturers a significant opportunity for growth. Supermarkets and hypermarkets are the primary distribution channel for the organic baby food market in Europe. However, the online channel too is gaining popularity among consumers in countries like Germany and France. “Rising urbanization, increasing disposable incomes, and growing awareness about the benefits of organic food are some factors that will propel the growth of the market in this region,” says Arushi.
The top vendors in the global organic baby food market highlighted in the report are:
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.