Rising Awareness of the Benefits of Organic Baby Food to Drive the Global Organic Baby Food Market Through 2020, Says Technavio

organic baby food market
is expected grow at a CAGR of more than
11% during the period 2016-2020, according to Technavio’s latest report.

In this report, Technavio
covers the market outlook and growth prospects of the global organic
baby food
market for 2016-2020. The report
categorizes the market into four product segments, and five distribution
channels, providing a detailed analysis of each individual segment.

“Increasing awareness about the benefits of organic food, growing
urbanization, and larger disposable incomes have contributed to the
growth of this market. The organic baby food market is expected to
experience heightened demand in emerging economies such as India and
China,” says Arushi Thakur, an industry expert at Technavio for food

Technavio’s research study segments the global organic baby food market
into the following regions:

  • Americas
  • APAC
  • EMEA

Americas: rising urbanization to boost growth of the market

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.

Ask for a sample of this report: http://goo.gl/jm9C30

APAC: fastest growing market for organic baby food

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.

EMEA: growing awareness about the benefits of organic food to propel

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:

  • Abbott
  • Danone
  • Hero
  • Nestlé
  • The Hein-Celestial Group

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is a leading global technology research and advisory company. The
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value chain, including vendors, service providers, distributors,
re-sellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 208 123 1770