Date : September 24, 2022
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Organic food and the rise of Green Marketing, key trends shaping the Baby Food Market : Bonafide Research

Organic food and the rise of Green Marketing, key trends shaping the Baby Food Market : Bonafide Research
The birth rate around the globe in the year of 2021 increased from that of 2020 by around 1%, though this increase seems negligent the market was bolstered in a positive manner with this phenomenon and if this continues the future of the industry is predicted to clock better growth. Baby food by industry definition is mainly specialty nutrition with well-balanced nutrition quality intended at mimicking breast milk as closely as possible. It is a pre-prepared solid food containing an easily chewable or soft food that is mostly meant for infants, newborns, toddlers or preschoolers and is available commercially. Generally, baby food contains nutrients, such as carbohydrates, protein, essential fatty acids (ARA and DHA), iron, minerals (Zinc, Calcium, and others), and vitamins (A, B, C, D, and E). The traditional meals prepared at home can also be termed as baby food, if this term is to used under a broad spectrum.

The emerging middle-class economy having greater disposable income have contributed to the adoption of commercial baby food market in recent times. Along with this rise in income the active choice majority of the parents are making to spend more money on their child to provide them with better facilities has led to growth in the market. The awareness about the benefits of providing nutritionally rich baby food have reached larger masses across the globe mainly due to increasing internet penetration in different countries by which information is available to the user on their fingertip. And for the minority who are not equipped with this facility the awareness is spread by pediatric consultants and other doctors who advise the use of these products to ensure proper growth and development. The early history of feeding the baby with alternate sources date backs to around 2000BC, when animal milk was used as an substitute for mothers with irregular lactating. This trend in feeding continued till as late as 20th Century, until the first proper baby food was developed. In 1865, chemist Justus von Liebig developed, patented, and marketed an infant food, first in a liquid form and then in a powdered form for better preservation. Liebig's formula—consisting of cow's milk, wheat and malt flour, and potassium bicarbonate—was considered the perfect infant food during the time. After this the invention of food preservatives and evaporated milk fueled the growth of this product and transformed it into a mainstream market. This transformation was accompanied by intense marketing by the manufacturers, which ended up creating an ill effect on the market as issues such as decreasing rate of breastfeeding came into the spotlight. Currently, many believe the development and advertisement of infant formula has once again negatively impacted the practice of breastfeeding.

Still, according to the report titled “Global Baby Food Market Outlook,2027”, which was published by Bonafide Research the market was valued at around USD 80 Billion in the year of 2021. The increasing use of these products owing to the rapid urbanization of population across the globe will drive the market in the future with a growth rate of around 5% till the year of 2027. The target end consumer for this market which are the babies are highly vulnerable to foodborne illness as their immune system isn’t fully developed to its potential and doesn’t have the full capability to fight off infections. This has led to the demand for premium quality products which are produced with proper safety standards among the consumer, all though these premium products command premium prices the increased spending have saved the market from a decline. The Food and beverage industry has observed a change in consumer behavior with the consumers making active decisions about what they eat and also make sure the ingredients it is being made from.

Organic food is any food which is produced through no or minimal use of chemicals and pesticide. This change is in response to the concerns over food products and their toxicity, which has created a demand for Organic food. The Baby food market has observed the same shift in trend where the parents who themselves are looking for organically prepared food wants the same for their babies. This shift has steered to major manufacturers to produce organic baby food to cater to the consumers demands. Along with this the market has observed some sub-trends which include plant-based baby food and Vegan baby food which is still a niche market but is expected increase in terms of Market share. In 2021, 108LABS acknowledged its latest Animal-free Infant baby formula, which was named Colostrupedis, this product consists of Fully human milk molecules developed by cell culture process. This launch in baby food helps manufacturers to opt for natural ingredients which drive the market through delivering to consumer demands. Gluten is a protein naturally found in some grains including wheat, barley, and rye. It acts like a binder, holding food together and adding a “stretchy” quality—think of a pizza maker tossing and stretching out a ball of dough. Without gluten, the dough would rip easily. Gluten-free diets have become increasingly popular in recent years, especially due to the growing awareness of gluten-related disorders. The baby food market also responded to this phenomenon and developed gluten free baby food which drove the market.

The baby food industry has had a long relationship with marketing, dating past to the early days of the industry, when marketing was majorly done to the pediatrics and medical consultants. This evolved with time when the manufacturers decided to target the consumers directly in the late 80s. This shift also noticed turmoil in countries like the US wherein the American Academy of Pediatrics (AAP) released a statement listing reasons for the organization's opposition to advertising infant formulas to the general public. The AAP believed the advertisements created a negative effect on breastfeeding, interfered with physicians’ advice on infant nutrition, led to confusion among consumers, and increased the cost of infant formula.

Today, Marketing is an essential business activity conducted by the brands, which helps create a qualitative value to the consumer and help decision making. Recently the consumers have adopted the idea of sustainability for many different products. The baby food market is no exception to this, and has observed a rise in Green marketing of products. Green marketing refers to marketing done to promote environmentally friendly products, services, and initiatives. More specifically, green marketing refers a broad range of environmentally friendly practices and strategies. This involves creation of eco-friendly products, sustainable packaging and natural sources. Indulging in these practices have found to be lucrative for the player in the industry and hence is being adopted by many other organizations.
The Asia pacific market is the biggest market in terms of Share with occupying to around 30% of the global share. This is owed to the huge population in the region within countries like India and China. All though, a large market share this region is yet to explode into its full potential which is because of the consumer perception that home cooked food is good quality food and processed food containing preservative is a health risk. This perception is true to an extent and but development of organic baby food will help the market in the region to grow.

The region of Europe and North America historically had a High rate of adoption for baby food products. This is due to the increasing number of women working in the region and living hectic urban lifestyle, which has led to the growth of the market in recent times. The Convenience of the product and the nutritional value of baby food has driven the market in both of the region. The manufacturers in the region have understood there customers need and fulfilled it with ready to eat products for babies.

The South America region consisting of countries like Brazil, Argentina and Columbia in current period observed a significant rise in the adoption and demand for baby food. This region which was historically ignored by the international players is now proving to be an excellent opportunity for them. The major reason being the developing economic condition of the middle class and the increased adoption of urban lifestyle by the millennials in the region.
The Middle East and Africa is amongst the smallest market globally with the polarizing economic condition of the region. The market in recent times have observed a growth which is majorly contributed by the government policies in countries like Saudi Arabia. These government policies have made sure the food safety criterion related to baby food is adhered to properly, which helps gain the consumer’s trust. Along with this the increasing exposure of western culture in the region is helping the market grow in Middle East and Africa.

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Organic food and the rise of Green Marketing, key trends shaping the Baby Food Market : Bonafide Research

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