Market Trends of Baby Food Industry
This section covers the major market trends shaping the Baby Food Market according to our research experts:
Working Women are Driving the Demand for RTE Baby Food
The demand for organic baby food is expanding due to an increase in working women and a quick shift toward convenience foods, propelling the organic baby food market. There is a paradigm shift in the organization of modern households, with most adults needing more time for home administration, particularly food preparation and cooking. As a result, there is a rise in the demand for ready-to-eat or packaged foods. Furthermore, working women, particularly new mothers, prefer ready-to-eat meal items. These working mothers choose packaged food items for their children as it saves time and allows them to maintain a work-life balance while still taking care of domestic obligations.
Working women are prioritizing their children's nutritional requirements and choosing manufactured baby meals, thus expanding the baby food sector. According to the Office for National Statistics (ONS), in September 2021, 75.6% of mothers in England were working, up from 74% in 2018. Furthermore, as per World Bank data, in 2021, India's labor force increased to 19.23% from 18.6% in 2020.
Asia-Pacific Holds the Major Share
Asia-Pacific holds a very significant share of the baby food market. It is the largest and fastest-growing market globally. It is expected to be very dynamic in the coming years, owing to its growing population, hectic lifestyles, and rising consumer spending. China is the largest market in the region. Moreover, developing countries like India and Indonesia are expected to drive the market's growth in Asia-Pacific. The rising modern retail penetration, product awareness, rising disposable incomes, and purchasing power are influencing the baby food market development in the region. Non-grocery specialist retailers, such as drugstores/pharmacies, are the preferred channel for consumers, and online channels are the fastest-growing distribution channel.
The baby food market is trending towards vegan-based foods. It is considered safe and nutritious for babies to eat vegan-based baby food. Baby food manufacturers are launching vegan-based products to cater to the growing vegan market. For instance, in July 2022, As China's first carbon-neutral product, Nestle launched a stage three formula for toddlers sourced from a Swiss farm that does not use herbicides and growth hormones.
