Growing Popularity of Organic Baby Food to Aid in the Growth of the Global Baby Food and Infant Formula Market Through 2020, Reports Technavio

30 Mayo 2016, 00:00 AM EDT

LONDON–(BUSINESS WIRE)–#BabyFood–Technavio’s latest report on the global
baby food and infant formula market provides an analysis
on the most important trends expected to impact the market outlook from
2016-2020. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.

The top four emerging trends driving the global baby food and infant
formula market according to Technavio food
and beverage research analysts are:

Packaging and innovation
Growing popularity of organic baby food
Expansion of product portfolios by vendors
Increase in online purchasing

Packaging and innovation

In terms of packaging, products in glass or tubs contribute to the
majority of baby food sales. However, fast growth is experienced by
pouches, i.e., containers with plastic spouts on the top from which food
can be sipped. The popularity of pouches is mainly attributed to their
ease and flexibility. Baby food pouches are convenient and portable
nutrition, as they are extremely compatible with consumers’ on-the-go
lifestyles and significantly promotes independent feeding.

Baby food pouches act as food-grade barrier film that aids in keeping
the content inside the pouch fresh for longer. In addition, parents feed
their baby in small portions and seal the food back in the pouch for
later use. Baby food pouch storage is convenient in comparison to box
and glass counterparts, as pouches do not occupy much space in diaper
bags or the home pantry.

Growing popularity of organic baby food

With environmental conditions deteriorating globally, there is a rising
anxiety as to the safety of the products we use and, even more so, the
food we consume. “A growing trend towards organic products is witnessed,
which stems from a concern for our health and general wellbeing and,
even more so, that of our children. Organic baby products, food in
particular, have therefore garnered much attention in recent years,”
says Vijay Sarathi, a lead analyst at Technavio for food
research.

Organic baby food products are in demand due to its many benefits. It
contains no chemicals, pesticides, preservatives, hormones, or
antibiotics. Many stipulations govern the manufacture, packaging, and
labeling of organic baby food. All the cereals must be grown without
using chemical fertilizers or pesticides. Dairy and poultry products are
derived from livestock, which are fed organic feed and not administered
growth hormones. The foods, once prepared, contain no preservatives,
artificial flavors or colors, or other additives.

Expansion of product portfolios by vendors

Consumers increasingly demand varied options in terms of blends and
flavors to cater to their babies’ nutritional requirement. Leading baby
food manufacturers continually update their product lines to include new
and unique products that set them apart from the competition. In July
2013, Plum Organics launched a toddler snack range, Mighty 4, a range of
blended organic fruits, vegetables, and grains.

Furthermore, it is believed that offering different variants and flavors
of vegetables, fruits, and cereals will help develop the food habits of
babies as they grow. In addition, companies are continuously developing
their products to improve them, as parents prefer to give healthy and
tasty food to their babies. Abbott launched non-GMO infant formula
Similac in the US in 2015. In addition, it contains OptiGRO, which
significantly helps in the development of babies’ brains and eyes. It
also launched products in the China, India, and Europe nutrition
markets. Therefore, the extension of product portfolios by vendors is
another driver that is propelling the growth of the market.

Increase in online purchasing

E-commerce retailers are competing with physical stores in terms of
convenience and price, as the online platform reduces and eliminates
physical infrastructure. In addition, online platform, in some cases,
eliminates links in supply chain, helping them to provide products at a
reduced cost. The online platform offers busy parents of compelling
proposition of shopping whenever and wherever possible. Approximately
18% of parents have brought baby food online in 2015.

“Around one-third of people in APAC have ordered baby food through the
online platform. Hong Kong and South Korea are the key leading regions
in terms of purchasing baby food and infant formula through the online
platform,” says Vijay.

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Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.

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