According to the report, rise in parental concerns with respect to baby's health and nutrition, increase in awareness about the benefits of organic products, eco-friendly farming techniques, rise in disposable income of consumers, and growth in standard of living, are factors encouraging the adoption of organic baby food products. Additionally, improved distribution channels in the industry have driven organic baby food market growth. However, premium price and certain government regulations for the approval of organic food & beverage hamper the organic baby food market growth, Allied Market Research said. Various government initiatives and investment from government and private investors in the organic baby food industry are expected to provide numerous growth opportunities for the catagory. Also, the report found an increase in working women and growth of nuclear families have led to use organic baby food products.
In 2016, the prepared organic baby food segment accounted for the maximum revenue share in the overall organic baby food industry due to the convenience in usage and time saving factor for preparation of the food product. Moreover, prepared baby food products, such as purees and vegetable & fruit blends, are available in variety of flavors, such as mango, banana, peach, and others thereby providing taste and nutrition. Additionally, other organic baby foods, such as puffs, rusks, and biscuits are expected to grow at a CAGR of 9.93% during the forecast period. The prepared organic baby food market is expected to grow, thanks to the products convenience and nutritional value.
The offline segment accounted for the maximum share in the global organic baby food market with around 81.55% in 2016. Offline stores, such as supermarkets and hypermarkets, are preferred by consumers purchasing these products. However, more consumers are beginning to purchase organic baby food online due convenience factors. Online sales are expected to grow at a CAGR of 12.94% during the forecast period.
Europe accounted for the major share of the global organic baby food market in 2016, and is expected to maintain its dominance during the forecast period, as a result of health-conscious consumers demanding chemical-free baby food products. Asia-Pacific is estimated to grow at the highest rate due to a rise in birth rates and increased awareness of the benefits of such products.
Other key findings from the report include:
- In 2016, the offline mode of sale segment accounted for the maximum revenue, and is projected to grow at a notable CAGR of 9.4% during the forecast period.
- The organic infant milk formula market accounted for 12.2% share in the global organic baby food market.
- China is the major shareholder in the Asia-Pacific organic baby food market, accounting for more than 28% share in 2016.