Organic baby food has become ubiquitous over the last few years, driven by increasing awareness among parents about feeding the ‘right’ food to their babies. Although there has been a lot of debate on whether organic baby foods are more nutritious than inorganic food products, sales of organic baby food market products around the globe have skyrocketed in the recent years.
Why Organic Baby Food is Growing in Demand
Rise in consumer awareness about organic products has provided an impetus to the demand for baby food market. Consumers perceive that organic products are healthier and have lesser or no side effects that are associated with inorganic products. While the jury is still out on organic vs inorganic products, this hasn’t stopped stakeholders to aggressively promote their products and convince parents that they have an opportunity of providing ‘healthier’ food to their children.
BRIC Organic Baby Food Market
The demand for organic baby food has been strong in emerging nations, especially Brazil, Russia, India, and China (BRIC). The economic development in these countries has created a strong middle class, with a substantial disposable income. Awareness about issues concerning them, such as politics, business, healthcare, etc. is high among people in middle classes across these countries and people are making conscious decisions, such as the brand they should associate with or the food their babies should eat. This increase in awareness is one of the prime reasons for the growth of the organic baby food market in BRIC.
China and India have some of the highest birth rates in the world. Although this high birth rate puts a strain on the economies of these governments, it is an encouraging statistic for organic baby food companies. The high birth rate in BRIC has created opportunities for organic food manufacturers to sell their offerings, and it is anticipated that this trend will continue to drive the demand in the future as well.
Working Mothers are Looking for Nutritious Baby Food
As discussed previously, economic development has created a strong middle class in BRIC. Brazil, Russia, and China have a healthy women’s workforce participation rate. Although India lags in this aspect, considering the population of 1. 25 Bn, the number of Indian women in the workforce is quite sizeable. High number of women in the workforce has created the demand for baby food products that are not only easy to cook but also provide adequate nutrients to the babies. This is where organic baby food have emerged as a credible alternative, as the overall sentiment around it has been positive.
BRIC Organic Baby Food Market will be Worth US$ 3.53 Bn in 2020
The organic baby food market in BRIC was valued at US$ 1.23 Bn in 2014. According to the research conducted by FMI, the BRIC organic food market will witness a CAGR of 19.5% through 2020 and reach a valuation of US$ 3.52 Bn. Among the industry offerings, prepared organic baby food products and milk formula will continue to have a major share in the market. Consumers in BRIC have a host of options when it comes to purchasing organic baby food products. Leading organic baby food companies have made their products available at supermarkets, drugstores, and speciality outlets. Considering the stupendous growth in online selling, companies are also tying up with prominent e-retailers.
China will Witness Highest Growth
The growth of the organic baby food market in China is anticipated to be the highest among other BRIC nations. Food safety issues in the past have made Chinese consumers more conscious about their choices. This has augured well for the growth of the organic baby food in the country. One of the key findings of our market research on BRIC organic food market is that by 2020, supermarkets will become the dominant distribution channel for organic baby food.
Mergers & Acquisitions: Key Trend in the BRIC Organic Baby Food Market
The BRIC organic baby food market has witnessed a slew of mergers and acquisitions in the past, prominent being the acquisition of Happy Family by Danone and that of Plum Baby Ltd by Plum Organics. Our market research and analysis has forecasted that the market will witness more mergers & acquisitions in the next five years, with big, multinational companies acquiring local companies that are reliable and have a sizeable customer base. Key companies, including Nestle, Heinz, Danone, British Biologicals, Abbott, and Bellamy’s will be on the lookout for expanding their customer base in the lucrative BRIC market.
Browse full Report of BRIC Organic Baby Food Market: http://www.futuremarketinsights.com/reports/details/bric-organic-baby-food-market
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