Organic Baby Food in India: Past and Future Trends

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The India organic baby food market stood at US$223 Mn in 2014 and is expected to be worth US$638 Mn by 2020. India’s economy has been on the rise post the commencement of economic liberalization policy in 1990. Today, India is one of the world’s fastest developing nations. The transformation of the Indian economy has had a profound impact on the sales of consumer goods.

Baby food includes milk formula, ready to eat baby food, dried baby food, prepared baby food, and others. With increasing consciousness to keep good health, consumers around the world are paying considerable attention to what they eat and what they feed to their children. With the emergence of newer food choices for health and nutrition reasons, the demand for organic foods which include baby food as well has increased considerably. 

Rise in Economic Prosperity of Women Bodes Well for India Organic Baby Food Market

The increasing number of female population in the workforce and rising urbanisation has led mothers to shift to baby foods for the convenience quotient. These foods provide the necessary nutrition for babies that are available in conventional baby foods. Furthermore, the increasing availability of branded baby food products in urban areas in India is also boosting the sales of baby foods. A large percentage of women, especially in urban areas work full-time jobs. This has allowed them to have a high disposable income and also the freedom to make independent buying decisions. The Government of India is also endorsing the utilisation of ready baby foods through awareness programmes for nutritional needs of babies. This is also anticipated to boost the growth of the organic baby food market in India.

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The baby food market witnessed a period of slump during the 2008-09 financial meltdown. The dip in the job market and reduced consumer confidence adversely impacted sales of consumer goods, of which baby food is a major one. This prompted industry players to find newer ways of marketing their products. However, it is do-it-yourself (DIY)-ers who realized that preparing their own baby food was cost effective and healthier as well for their babies. It didn’t take long for big market players to step in and after a series of mergers and acquisitions and business alliances, the organic baby food market is now witnessing a period of sustained growth.

Large Population of BRIC Nations Advantageous for Manufacturers of Organic Baby Food

The demand for organic baby food is on a consistent rise, especially in the emerging economies of Brazil, Russia, India, and China (BRIC). There are several factors for the increasing popularity of organic baby foods in BRIC. As the raw materials used in the production of organic food items are mostly obtained from domestic sources, this has resulted in strengthening of the procurement chain in the region. Organic farming is well established in Brazil and China, and this enables the easy availability of raw materials for product manufacturers.

The BRIC region is home to two of the most populous regions in the world. With more than 2.8 billion people, the region accounts for 40% of the world’s population. An increasing middle-class population in the region with disposable income to spend on lifestyle products is auguring well for the growth of organic baby food market in this region. The strong demand for organic foods among consumers in this region for health reasons and peer pressure bode well for both international and local brands.

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The expansion of the modern retail channel has also been favorable for creating brand awareness about organic baby food products. The opening of sprawling shopping centres in prominent cities in the BRIC has revolutionized the overall retail market in this region. Shopping malls have become the preferred choice of middle-class consumers for shopping needs, thus has emerged to be a lucrative channel for the sales of organic baby food products.

The information presented in this review is based on the report, “Organic Baby Food Market: BRIC Industry Analysis and Opportunity Assessment 2015 – 2020.” Request a Sample Report with Table of Contents: http://www.futuremarketinsights.com/reports/sample/rep-br-333



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