North America Baby Food Market Size, Share & Trends Analysis Report By Product (Milk Formula, Dried, Prepared), By Distribution Channel (Supermarkets, Online), And Segment Forecasts, 2018 - 2025

Industry Insights

The North America baby food market size stood at USD 4.45 billion in 2016. It is anticipated to expand at a CAGR of 6.0% in terms of revenue over the forecast period. The region is witnessing augmented demand from the U.S. on account of rising health consciousness, strengthening brand marketing paired with rising number of working women. In addition, increasing trend of adopting premium organic baby foods is also one of the major contributors to the regional market growth.

Infants and children are vulnerable to foodborne illnesses as their immune systems are not fully developed to fight off infections. Thus, factors like premium quality products and their safety are among the most essential criteria influencing the buyer’s decision. In addition, growing demand for gluten-free versions is also supplementing industry growth in North America.

Health organizations have set strict guidelines for baby foods and the use of chemicals owing to their effect on human body. This factor is likely to pose a challenge to market growth over the next eight years. In addition, rising consumer preference for quality food has led to rise in the costs of final product. These prices are mainly affected by the quality and prices of raw materials.

Rising urbanization and changing lifestyles are propelling demand for packaged baby foods in North America. Concerns related to food safety, stringent regulations, falling birth rates, and practice of feeding home-cooked food to babies are among the key restraints.

Distribution Channel Insights

In 2016, supermarkets emerged as the largest distribution channel segment in the North America baby food market. It is likely to continue its dominance throughout the analysis period. Rising urbanization coupled with innovative marketing strategies would continue to supplement growth of distribution channels during the forecast period. The Kroger Company, Edeka Group, Walmart, Fred Mayer, Whole Foods Market, and Target Corporation are some of the major global and regional retail chains.

However, online channels are expected to witness promising growth during the analysis period. E-commerce websites are gaining extensive popularity among the consumers from North America. Rising modernization coupled with high number of internet users is further propelling growth of online channels selling baby food. The trend of online shopping is on the rise owing to the east of accessibility. This trend is expected to positively impact expansion of the market for baby food in North America.

Product Insights

Commercially prepared baby milk formula is rapidly gaining adoption among consumers. These products offer essential nutrients necessary for the overall nutritional needs of infants and act as an effective substitute for breast milk. It is beneficial in incidences of malnourishment and lactation insufficiency. Moreover, rising population of working women is anticipated to propel the demand for readymade formula milk in near future.

While prepared foods is projected to exhibit the highest CAGR through 2025, the dried baby foods segment is also anticipated to witness steady growth over the forecast period. It includes dried and mashed potato, banana, apple, mango, berries, and oats. These products are ideal for babies as they are high in nutritional content and can be easily converted into a sauce by mixing with water or breastmilk. Organic products are gaining considerable adoption, thereby supplementing market growth. These dried foods are made of 100% fruits and devoid of any artificial flavors or food colorants. Thus, they are considered ideal for babies.

Country Insights

The U.S. was the dominant segment in 2016. The country accounted for a significant market share on account of rising demand driven by high birth rate. Changing lifestyle due to rising standards of living can further propel the regional market growth. In addition, consumer awareness about nutritional diet for babies has boosted regional product sale. The others segment, which includes Canada and Mexico, is slated to witness significant growth over the coming years. This can be attributed to improving disposable income, greater availability of these products, increase in consumer awareness regarding their benefits, and rising number of working mothers.

North America Baby Food Market Share Insights

Key players include Mead Johnson & Company, LLC, Nestle SA, Hain Celestial Group, and Abbott Nutrition. New product development and business partnerships in the form of joint ventures and mergers and acquisitions are some of the top business strategies adopted by major market players. For instance, Hain Tilda, a wholly owned subsidiary of Hain Celestial Group and Future Group entered into a joint venture to expand in three major categories, namely, baby food, organic chips, and non-dairy products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at region and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the North America baby food market report on the basis of product, distribution channel, and country:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Milk Formula

  • Dried

  • Prepared

  • Other

• Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

  • Supermarket

  • Others

  • Online Channels

• Country Outlook (Revenue, USD Million, 2014 - 2025)

  • The U.S.

  • RoNA