Baby Food Market Report

Increasing medical complications during the pregnancy and the postpartum such as preeclampsia, preterm labour restrains the mothers to feed infants and further amplifying the demand for baby food. Many companies are developing novel formulations, that mimic closely to breast milk’s composition. For instance, in November 2023, nestle announced the launched of milk solution containing HMOs (human milk oligosaccharides) for early nutrition as important component for gut and immune health as well as cognitive development in infants. In addition, in August 2022, Abbott restarted production of Similac infant formula having 2'-FL†, an immune component ingredient present similar to the structure found in to breast milk, helping in improving infants' digestive health while providing essential nutrients enabling companies to enhance their customer base and expands the market growth.

However, the global baby food product market is witnessing a shift toward organic baby food due to increasing allergy and digestive issues, to meet the consumers demand for natural, plant-based, allergen-free products, players are focusing on providing novel products.  For instance, in July 2022, Danone Marks industry launched dairy and plant-based blend baby formula, for infants, consisting 60% plant based and 40% dairy based protein, with high-quality non-Gmo soy milk and 40% comes from casein and whey protein. It also contains key dairy ingredients lactose as an important source of carbohydrates and essential nutrient in breast milk with fully recyclable packaging contributing 30% lower carbon footprint.

Prices of baby food are comparatively higher and act as barrier in low-income and middle-class population as majority of parents preferred home cooked baby food compared to packaged food for their infant, which hampers the market growth.  In addition, to this the shelf-life of baby food varies having over 48-72 hours and commercial jar having 1-3 days after opening, this act as major impact on sales of nutriment since, low shelf life results in wastage of resources. However, in contrast to ingredients in standard infant formulas are ultra-processed, often leading to side effects and undesired symptoms such as allergies and concerned related to antibiotics, hormones and others such as soy protein formula constituting 5% of the market, resulting side effects and contains high levels of phytoestrogen as well as GMOs. Furthermore, many side effects have been reported against manufacturers led to ban of products by FDA and is affecting the market growth. For instance, in March 2024, FDA product recall to Dairy Manufacturers Inc., due to increasing injuries and adverse reaction in 0-12 months infants, after consuming crecelac Infant and Farmalac.

High prevalence of digestive problems among toddlers & infants and prone to foodborne illness, parents are opting for baby food Owing to this, many companies are introducing baby food with outmost care and natural ingredients. For instance, in September 2022, CEREGROW Grain Selection for toddlers made of ragi, mixed fruits and ghee, fortified with iron providing balanced nutrients and age appropriate vitamins and minerals resulting into healthy development of brain, height and immunity and increasing opportunities for market players.

However, the increasing parental concern about health and nutrition due to birth defect conditions such as galactosemia and unable to breastfeed is enhancing the market growth as major players are developing nutrient rich baby food formula to increase healthy growth and overall development. For instance, in January 2024, Danone India announced the introduction of AptaGrow, containing 100% milk protein, calcium, Vitamin A, C, D to support brain and height gain with 37 nutrients and prebiotics for better absorption of vital nutrients and DHA, Iron, Folic Acid & Iodine to support immunity development. It is a low-fat flavoured drink promoting overall development of children.

Growing working female population in the US and quick delivery services offered by pharmacies and convenience providing consumers to shop from home via e-commerce platform resulted in market expansion. In addition, with increasing demand for anti-allergic and organic ingredients for babies, the key companies are developing clean-label specialized milk formula specifically for allergies and digestive issues as well as the rising prevalence of complexities during pregnancies is further augmenting the demand for this food and enhancing the Baby Food Market. Milk formulas are becoming essential for children who are unable to breastfeed due to birth defects conditions such as galactosemia, led to increased parental concerns about the health and nutrition of their children. Major shift has been seen towards vegetarian food in Europe leading to increasing demand for plant-based baby food. Many companies such as Beech Nut Nutrition are collaborating at e-commerce level to expand the customer base and introduce plant-based foods and many partnerships are going to increase the production. For instance, in November 2023, Else partnered with Aptamil to increase the production of plant-based baby food made from almonds, buckwheat and tapioca helping companies to enhance their consumer base related to the general well-being of infants. Hence, resulting in growth of organic baby food products.

However, the rising internet penetration and the adoption of digitalization by the manufacturing companies in Asia-pacific is increasing sales through the online channel leading to market expansion. In addition, growing birth rate and Increasing consumers spending on new borne baby product are also driving the market.