Rise in parental concerns with respect to baby's health and nutrition, increase in awareness about health benefits of organic products, eco-friendly farming techniques, rise in disposable income of consumers, growth in standard of living encourages the adoption of organic baby food products, and improved distribution channels in the industry drive the organic baby food market growth. However, premium price and certain government regulations for the approval of organic food & beverage may hamper the market growth. Various government initiatives and investment of government and private investors in the organic baby food industry are expected to provide numerous growth opportunities for the market players. Moreover, increase in working women and growth of nuclear families have led to the adoption of organic baby food products.
The COVID-19 pandemic in 2020 resulted in a spike in the demand for the organic baby food. This sudden growth in demand is attributed to the panic buying from consumers followed by the lockdown restrictions imposed by the government to contain the spread of the virus. The closure of stores and low production owing to the lack of labor and disruptions in supply chain caused difficulties in raw materials procurement. The e-commerce channels emerged as a boon for consumers and suppliers that maintained the demand and supply for the organic baby food across the globe."
According to the organic baby food market analysis, the market is segmented on the basis of product, distribution channel, and region. On the basis of product, it is divided into prepared baby food, dried baby food, infant milk formula, and others. On the basis of distribution channel, it is bifurcated into supermarkets/hypermarkets, pharmacies, department stores, e-commerce, and others.
According to the organic baby food market forecast, on the basis of product, the prepared baby food was the leading segment, garnering around 72.2% of the organic baby food market share in 2020. The prepared baby foods are rich in vitamins and include antioxidants, which nurture a baby's health, thus, driving parents to purchase these nutritional products. Owing to increase in working women and growth of nuclear families, customers tend to prefer the less processed prepared food for their baby to avoid effects of harmful chemicals.
As per the organic baby food market trends, on the basis of distribution channel, the e-commerce segment is expected to be the fastest-growing segment. The easy accessibility offered by online platforms boosts their adoption in the organic baby food market, thus, becoming a popular medium for the purchase of organic baby food. Easy availability of information about the ingredients used in organic products, time-saving feature, and the facility of home delivery contribute to the growth of online sales.
Depending on the region, North America was the dominant market in 2020. Change in lifestyle patterns of consumers and increase in participation of women in workforce fuel the market growth. Parents prefer to feed organic baby products to their infants, as they contain all necessary nutrients, iron, vitamins, and proteins necessary for baby's growth.
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