Growing demand for organic food drives market growth, with increasing consumer awareness of health benefits and sustainable farming practices

AUSTIN, TX, UNITED STATES, February 14, 2024 /EINPresswire.com/ -- The organic baby food market's growth is intricately tied to changing consumer preferences, a focus on nutritional enrichment, innovative product offerings, the clean label trend, sustainability concerns, the impact of the COVID-19 pandemic, the rise in the working women population, and the broader shift towards cleaner diets and health consciousness. As these factors continue to shape consumer behavior, the market is poised for sustained growth and evolution.
The latest report from SNS Insider reveals that the 𝐎𝐫𝐠𝐚𝐧𝐢𝐜 𝐁𝐚𝐛𝐲 𝐅𝐨𝐨𝐝 𝐌𝐚𝐫𝐤𝐞𝐭 was valued at USD 3.97 billion in 2022. Projections indicate substantial growth, with an anticipated value of USD 7.89 billion by 2030, reflecting a commendable CAGR of 8.95% over the forecast period from 2023 to 2030.

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Market Report Scope
Consumer preferences for healthier food options have significantly influenced the landscape of the newborn and toddler nutrition business. This trend towards healthier choices has extended to the baby food market, with an increasing demand for organic and naturally enriched products. The growing availability of product portfolios boasting claims for essential nutrients such as protein, fiber, omega-3, DHA, and no added sugar underscores the evolving consumer mindset towards prioritizing nutrition for their infants.
Organic baby food products are sought after for their commitment to providing newborns with the best possible nutrition to support healthy growth and development. These products are enriched with naturally occurring nutrients akin to those found in breast milk, ensuring optimal nourishment for infants.

Organic Baby Food Market Challenges:
• Limited availability: One of the major challenges faced by the organic food market is the limited availability of organic products. Organic farming practices require specific certifications and adherence to strict regulations, which can be a barrier for many farmers. As a result, there may not be enough supply to meet the growing demand for organic food.
• Higher prices: Organic food tends to be more expensive compared to conventionally grown produce. This is primarily due to the higher costs associated with organic farming practices, such as organic fertilizers, pest control methods, and certification fees. The higher prices can deter some consumers from purchasing organic products regularly, limiting market growth.
• Consumer perception and awareness: Despite the increasing popularity of organic food, there is still a lack of awareness and understanding among consumers about its benefits and value proposition.

Market Analysis
The Organic Baby Food Market has witnessed a surge in demand, driven by several key factors. Health crises and food scares during the COVID-19 pandemic prompted consumers to prioritize food safety and personal health, leading to an initial spike in sales. This heightened awareness among consumers has translated into a growing demand for organic products, driven by concerns about limiting babies' exposure to harmful chemicals commonly used in conventional food production.
The rise in the global population of working women has significantly contributed to the expansion of the prepared organic baby food sector. As more women join the workforce, the need for convenient and nutritionally balanced food options for infants has surged, propelling the growth of the market segment.
Furthermore, the trend towards clean-label products and cleaner diets has propelled the demand for organic baby food. Consumers worldwide are increasingly seeking fresher and healthier food options for themselves and their children, driving the demand for organic baby food products that align with their dietary preferences and values.

Segment Analysis
• The market is segmented into wet food, infant milk formula, and dry food. Wet food dominates the segment, accounting for 60-70% of products in the portfolio of market players. Parents prefer liquid food for its ease of consumption and digestion, driving the dominance of this segment. With an increasing variety of fruit flavors in puree blends, the wet food segment is expected to retain its dominance in the type segment.
• The infant milk formula segment is poised for significant growth, driven by the rising population of working women globally. As the need for nutritionally stable food options for infants grows, milk formulas have gained popularity. Dry food is expected to grow steadily as demand for organic baby food continues to rise.
• Supermarkets/hypermarkets dominate the distribution channel segment, expanding rapidly to cater to a broader consumer base. Rising incomes, urbanization, and the adoption of western culture have contributed to the expansion of supermarket chains. The online sales channels segment is expected to grow the fastest, driven by increasing internet penetration worldwide, offering easy accessibility to consumers. Specialty stores and other segments will experience slower growth due to lower discount offers.

Growth Factors
• The Organic Baby Food Market is experiencing robust growth due to a significant shift in consumer preferences towards healthier and more sustainable food choices. Modern parents are increasingly conscious of the impact of nutrition on their infants' health and development. As a result, there is a growing inclination towards organic baby food products that promise natural and nutrient-rich ingredients, devoid of harmful chemicals or additives commonly found in conventional baby food.
• Parents' heightened awareness of the critical role of nutrition in early childhood development is a pivotal factor driving the organic baby food market. The demand for organic baby food is spurred by the need to provide infants with optimal nourishment for healthy growth. Products enriched with essential nutrients such as protein, fiber, omega-3, and DHA are gaining popularity as parents prioritize comprehensive nutrition for their babies. The focus on mimicking the nutritional content of breast milk in organic baby food underscores the industry's commitment to supporting healthy development in infants.

Impact Of Covid-19 on Organic Baby Food Market :
• The impact of Covid-19 on the organic food market has been significant and multifaceted. On one hand, the pandemic has led to a surge in demand for organic food products as consumers prioritize their health and well-being. This increased focus on personal health has prompted many individuals to seek out organic options due to their perceived benefits of being free from pesticides, hormones, and genetically modified organisms.
• Furthermore, the pandemic has also highlighted the importance of sustainable and resilient food systems. As people become more conscious of the environmental impact of their choices, there has been a growing interest in supporting local farmers and purchasing organic produce that is often associated with sustainable farming practices.
• However, despite the increased demand for organic food products, the industry has faced several challenges during the pandemic. Supply chain disruptions caused by lockdowns and restrictions have affected both domestic and international trade of organic goods. Farmers have struggled with labor shortages due to travel restrictions and social distancing measures, leading to potential delays in harvesting and processing organic crops.

Key Regional Development
The Asia-Pacific region holds the largest share of the Organic Baby Food Market, driven by factors such as high fertility rates and increasing per capita income. The region offers lucrative opportunities for market players, supported by modernization and improving lifestyles. China's decision to abolish the one-child policy in 2021 has further fueled demand in the market, as parents seek high-quality organic food options for their children.

Key Takeaways
• The Organic Baby Food Market is projected to exceed USD 7.89 billion by 2030, fueled by growing consumer awareness and demand for healthier food options.
• Increasing concerns about food safety and personal health, coupled with the rise in the global population of working women, are driving market growth.
• Wet food dominates the type segment, while supermarkets/hypermarkets lead in distribution channels, with the Asia-Pacific region emerging as a key market.

Recent Developments
In April 2022: Gerber introduced an organic plant-based line called Plant-tastic, certified carbon neutral by the Carbon Trust.
In March 2021: Sun-Maid Growers of California acquired Plum Organics, a premium organic baby food brand, further expanding its product portfolio in the organic food segment.

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Table of Contents
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 COVID-19 Impact Analysis
4.2 Impact of Ukraine- Russia war
4.3 Impact of ongoing Recession
4.3.1 Introduction
4.3.2 Impact on major economies
4.3.2.1 US
4.3.2.2 Canada
4.3.2.3 Germany
4.3.2.4 France
4.3.2.5 United Kingdom
4.3.2.6 China
4.3.2.7 Japan
4.3.2.8 South Korea
4.3.2.9 Rest of the World
5. Value chain analysis
6. Porter’s 5 forces model
7. PEST analysis
8. Global Organic Baby Food Market segmentation, by Product:
8.1 Prepared Baby Food
8.2 Dried Baby Food
8.3 Infant Milk Formula
8.4 Others
9.  Global Organic Baby Food Market segmentation, by Distribution Channel:
9.1 Supermarkets/Hypermarkets
9.2 Pharmacies
9.3 Department Stores
9.4 E-Commerce
9.5 Others
10. Global Organic Baby Food Market, by region/ country
10.1 Introduction
10.2 North America
10.2.1 USA
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 The Netherlands
10.3.7 Rest of Europe
10.4 Asia-Pacific
10.4.1 Japan
10.4.2 South Korea
10.4.3 China
10.4.4 India
10.4.5 Australia
10.4.6 Rest of Asia-Pacific
10.5 The Middle East & Africa
10.5.1 Israel
10.5.2 UAE
10.5.3 South Africa
10.5.4 Rest
10.6 Latin America
10.6.1 Brazil
10.6.2 Argentina
10.6.3 Rest of Latin America
11. Company profiles
11.1 Abbott
11.1.1 Financial
11.1.2 Products/ Services Offered
11.1.3 Swot Analysis
11.1.4 The SNS View
11.2 Danone S.A.
11.3 Nestlé S.A.
11.4 Hero Group
11.5 The Kraft Heinz Company
12. Competitive Landscape
12.1 Competitive Bench Marking
12.2 Market Share Analysis
12.3 Recent Developments
13. Conclusion

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