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Organic Baby Food Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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  • 132 Pages
  • August 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4828289
The Organic Baby Food Market size is expected to grow from USD 4.55 billion in 2023 to USD 8.10 billion by 2028, at a CAGR of 12.23% during the forecast period (2023-2028).

Health crises and food scare had a long-term impact on consumer demand during the COVID-19 pandemic. Initially, there was a sales spike, as consumers feared food safety, and personal health drove product purchases. The cumulative import of infant milk powder from January-March 2020 was around 4,30,000 metric ton, which declined by 5.4% compared to 2019, as stated by China custom's data. The increasing sale of infant food products in China via mum-and-baby-store's food for special medical purposes created momentum for premium and organic baby food in the region, with Feihe's sales growth of high-end infant formula series, including Organic Zhizhi, by 16.99% (Y-o-Y) in 2020. In contrast, its regular counterpart sales declined by 25.94%.

The market is driven by the growing awareness among consumers to limit the baby's exposure to the harmful chemicals used in conventional food production and the awareness of the benefits of organic products. Additionally, the rise in the population of working women worldwide largely contributed to the increased size of the prepared organic baby food sector, making it one of the significant growing segments.​

The market is driven by the trend toward clean-label products and cleaner diets. Consumers worldwide are increasingly reaching for fresher and healthier food options for themselves, and they are also demanding the same for their children.

Organic Baby Food Market Trends

Escalating Strategic Investments in Organic Baby Food

The popularity of organic baby food is growing, with dedicated aisles for the category. With the increased disposable income, parents can compensate for homemade food with branded organic baby food, posing a great driving factor in both developed and developing countries during the forecast period. Thus, there are increasing investments in the organic baby food sector. For instance, in 2021, Neptune Wellness Solutions acquired a 50.1% share in Sprout Foods plant-based baby food company. The deal included a USD 6 million cash payment and the issuance of approximately 6.7 million in Neptune common shares, valued at USD 12 million. The company registered annual net revenues of USD 28 million.

Baby food start-ups are now differentiating their brands based on specific health goals, from better digestion to brain development, baby-led weaning, and allergy prevention. For example, NurturMe, a portfolio company of Advantage Capital, was acquired by Grays Peak Capital. NurturMe provides baby food and children's snacks that emphasize healthy digestion.

As a result of rising investments in developing and promoting organic food and beverages (including infant food), sales have witnessed a rise in demand over the past few years. As per data published by the Organic Trade Association, in 2021, the United States sold roughly USD 57.5 billion worth of organic food. Nevertheless, companies are investing in R&D to produce products by the standards, which are anticipated to enhance the growth of the organic baby food market during the forecast period.

Asia-Pacific Holds the Largest Share

The relaxation of China’s one-child policy may also positively impact pre-packaged baby foods. The potential of increasing wealth and the rising number of newborns give China’s baby food and drink manufacturers adequate stimulus to develop packaged organic food products to cater to the consumer demand for better quality organic baby food and drink. Other Asian countries like India and Australia are anticipated to exhibit strong growth in demand for organic infant food products. Thus, many start-ups have come forward to take advantage of the lucrative opportunities offered by the market. In February 2023, Timios, an Indian start-up with headquarters in Bengaluru that sells packaged nutritious snacks for kids, entered the baby food industry by introducing its new made-to-order organic porridge variety for infants and toddlers. The new line, which came in 12 variations, was created with the nutritional needs of infants between the ages of 6 and 8 months in mind.

As per the Global Organic Trade, the market for organic packaged food and beverage in Japan was worth around USD 597.4 million, with a per capita income of USD 4.71. This market size and the increasing prevalence of pre-cooked foods for babies also impacted the market for organic baby food.

Organic Baby Food Industry Overview

In the organic baby food market, companies are focused on developing new marketing strategies and introducing new products based on value-added ingredients to compete in the market. Some major organic baby food-producing companies are Nestle SA, The Hain Celestial Group Inc., Hero Group, Sun-Maid Growers of California, and Danone SA. There is a wide range of private-label brands, particularly the supermarket/hypermarket chains in developed markets and traditional grocery stores/convenience stores/specialty retail stores/health stores in developing economies. The growing demand from the Asia-Pacific region is expected to change the market dynamics in the coming years, as many private-label players are entering the region. Hence, the market studied is fragmented in nature. The players in the market have been using strategies like product innovations, mergers, and acquisitions to thrive in the market studied.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Type
5.1.1 Milk Formula
5.1.2 Prepared Baby Food
5.1.3 Dried Baby Food
5.2 Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America United States Canada Mexico Rest of North America
5.3.2 Europe United Kingdom Germany France Russia Italy Spain Rest of Europe
5.3.3 Asia-Pacific India China Japan Australia Rest of Asia-Pacific
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle East and Africa South Africa Saudi Arabia Rest of Middle East and Africa
6.1 Strategies Adopted by Leading Players
6.2 Market Position Analysis
6.3 Company Profiles
6.3.1 Abbott Laboratories
6.3.2 Nestlé SA
6.3.3 Hero Group
6.3.4 Danone SA
6.3.5 Amara Organics
6.3.6 Sun-Maid Growers of California
6.3.7 North Castle Partners LLC
6.3.8 Groupe Lactalis
6.3.9 Hipp Gmbh & Co.
6.3.10 The Hein Celestial Group Inc.
6.3.11 Neptune Wellness Solutions (Sprout Organic Baby Food)

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Abbott Laboratories
  • Nestlé SA
  • Hero Group
  • Danone SA
  • Amara Organics
  • Sun-Maid Growers of California
  • North Castle Partners LLC
  • Groupe Lactalis
  • Hipp Gmbh & Co.
  • The Hein Celestial Group Inc.
  • Neptune Wellness Solutions (Sprout Organic Baby Food)