Increasing Urbanisation to Benefit the Baby Food and Formula Market in the US Through 2020, Reports Technavio
LONDON–(BUSINESS WIRE)–#Baby—Technavio
analysts forecast the baby
food and formula market in the US to grow at a
CAGR of close to 3% during the forecast period, according to their
latest report.
The research study covers the present scenario and growth prospects of
the baby
food and formula market in the US for 2016-2020. The
report also lists prepared baby food, dried baby food, milk formula, and
other baby food, as the four product segments on the basis of which the
market size is calculated.
According to Manjunath Reddy, a lead analyst at Technavio for food
research, “One of the key drivers influencing the market, is the rising
number of working mothers. Widespread presence of retail chains and
urbanization has also led to increased demand for quality baby nutrition
products.”
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Technavio food
and beverage analysts highlight the following five
factors that are contributing to the growth of the baby food and formula
market in the US:
- Increase in working women population
- Rising urbanization and economic development
- Increasing health concerns among parents
- Expansion of product portfolios by vendors
- Impact of advice from reliable sources
Increase in working women population
The increasing number of working women in general, and specifically
mothers, has contributed significantly to the growing demand for baby
food and infant formula. According to 2013 Pew Research Center Analysis
census data, the mother was the sole or primary earner in four out of 10
American households. This figure is the highest on record and has
quadrupled since 1960. Aside from working mothers, single-parent
families have also increased manifold. “Given the fast-paced modern
lifestyles, people are pressed for time and seek convenient and
nutritious feeding options. Baby foods and formulas therefore emerge as
attractive feeding options for infants and toddlers,” says Manjunath.
Rising urbanization and economic development
The US saw a rise in the number of households in urban area as more
people have shifted to urban areas in search of employment and also for
education. In 2015, the US had about 81%-83% of its population residing
in urban areas. Urbanization has led to increased internet use, owing to
high awareness and more access to laptops and smartphones.
This has led to increased awareness among consumers about the benefits
of baby food. Urbanization has also led to growth in the purchasing
power and improved living standards of consumers, owing to their higher
disposable income.
Increasing health concerns among parents
To ensure healthy growth and development of their babies, parents look
to offer optimal nutrition. They opt for packaged baby foods and
formulas to supplement breastfeeding. Extensive marketing and
advertising by leading vendors attracts consumers to major brands.
Increased economic wellbeing and higher disposable incomes have made
high-quality, expensive baby foods more affordable. Organic
labels have also caught on as they are marketed as being safer and
nutritionally superior to conventional foods. In general, the increased
concern of parents toward the health and nutritional requirements of
their babies has significantly contributed to the growth of the market.
Expansion of product portfolios by vendors
Consumers increasingly demand varied options in terms of blends and
flavors to cater to their babies’ nutritional requirements. 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 its non-GMO infant formula
Similac in the US in 2015, which aims to enhance the nutritional values
and increase levels of docosahexaenoic acid (DHA), lutein, and vitamin E
available to babies. It also launched products in the nutrition markets
in China, India, and Europe. Therefore, the extension of product
portfolios by vendors is another driver that is propelling the growth of
the market.
Impact of advice from reliable sources
Most of the advice on baby food and infant formula for parents comes
from family and friends, and it is significantly influential, as
acknowledged by parents. Recommendations that come from health experts
also influence the buying decisions of consumers. Parents are first
introduced to baby food and infant formula by doctors and hospitals, who
are considered reliable by the parents.
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