Organic baby food are formulated using organic ingredients which are produced without synthetic pesticides and fertilizers. Organic baby food products including infant formula, dried baby food, prepared baby food and other baby food items helps to nourish the nutrition demand of babies. The demand for organic baby food is increasing among health conscious parents and caregivers as these products are free from artificial preservatives, colors, and flavors.
The global Organic Baby Food Market is estimated to be valued at US$ 7219.73 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Parents are increasingly conscious about the ingredients and nourishment content of baby food products. Organic baby food produced using100% organic ingredients without GMOs, artificial preservatives or synthetic chemicals address the key nutrition and health aspects sought by modern parents. The ‘clean label’ and natural positioning have increased acceptance of organic baby food products. The organic baby food producers are expected to leverage this opportunity by enhanced marketing and promotional activities emphasizing on natural and wholesome nourishment through organic products.
Porter’s Analysis
Threat of new entrants: The organic baby food market has medium threat of new entrants due to established brand image, access to distribution channels and economies of scale enjoyed by existing players. However, start-ups can leverage advantages of organic certification and target niche segments.
Bargaining power of buyers: Buyers have medium bargaining power due to availability of various organic baby food brands and product substitutes. However, brand loyalty and awareness about nutrition propels repeat purchases.
Bargaining power of suppliers: Suppliers of raw materials like fruits and vegetables have medium bargaining power due to availability of substitutes and dominance of few buyers in the market.
Threat of new substitutes: Threat of substitutes is medium as consumers are becoming increasingly aware of organic certification and benefits over conventional options. However, substitutability is limited across categories.
Competitive rivalry: Strong due to presence of global and regional players operating with established brand names, funds for marketing campaigns and private label offerings from retailers.
SWOT Analysis
Strength: Wide variety of organic products and formats catering to diverse nutritional needs. Increased awareness about health benefits and toxin-free nutrition is driving demand.
Weakness: Higher costs compared to conventional foods limits accessibility. Vulnerable to environmental factors affecting crop yields. Supply chain integrity and quality control challenges for some players.
Opportunity: Growth in working women population and birth rates in developing regions provide new consumer base. Focus on natural, clean label products with functional ingredients presents opportunities.
Threats: Stringent regulatory norms and certification requirements increase compliance costs. Supply side inflationary pressures can squeeze margins. Intense competition from private labels.
Key Takeaways
The Global Organic Baby Food Market Size is expected to witness high growth. The market was valued at US$ 7219.73 Mn in 2024 and is projected to reach ~US$ 10000 Mn by 2030, registering a CAGR of 4.4% during the forecast period.
Regional analysis: Asia Pacific excluding Japan emerging as the fastest growing regional market attributed to increasing disposable incomes, expanding middle class and growing awareness about organic products. North America currently dominates the global market owing to stringent regulations supporting organic certification along with media promotions influencing consumption patterns.
Key players operating in the organic baby food market are Bio-Rad Laboratories, Inc, Thermo Fisher Scientific Inc., BTX ( a division of Harvard Bioscience), Celetrix, LLC., Gamma Biosciences, Merck KgaA, Eppendorf SE, MaxCyte, Inc. BEX CO.,LTD., Lonza, Altogen Biosystems, Ala Scientific Instruments, Inc., BioEra Life Sciences Pvt. Ltd., and Ichor Medical Systems. These companies maintain a strong distribution network and introduce new product lines focused on clean label ingredients as per evolving consumer demands.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it