Fortified Baby Food Market Share, Growth & Forecast [2031]

Report Description

Fortified Baby Food Market Outlook 2031

The global fortified baby food market size was USD 26.5 Billion in 2022 and is likely to reach USD 37.7 Billion by 2031, expanding at a CAGR of 4% during, 2023–2031. The market is driven by the growing birth rate in developing countries and the rise in spending on baby care.

Rising focus on the baby’s well-being and development in the early years is boosting the demand for fortified baby food products. These consumables are made to meet the specific nutritional needs of children. They are easy to digest and ensure that nutrients contained are in proportion to the requirements of the babies in their particular age group. Growth of the fortified baby food market is further supported by the growing disposable income and changing lifestyles in modern households.

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• According to the latest information published by the World Health Organization (WHO), at the age of six months, infants' requirement for additional energy and nutrition starts to exceed what is received through breast milk. The babies at this stage are ready to consume other foods and require complementary nutrient-rich foods.

• As per the UNICEF, WHO, and World Bank Group Joint Child Malnutrition Estimates, published in May 2023, stunting, commonly caused by malnutrition, affected 148.1 million children under the age of five worldwide in 2022. 37 million children below five were affected by overweight, while wasting threatened the lives of 45 million children aged under five years in 2022.

The research report finds that the COVID-19 pandemic boosted the fortified baby food market. The demand for various nutrient-rich food items made for babies skyrocketed to that of pre-pandemic levels.

The focus of parents in providing their children with healthy and nutritious diets grew significantly during this period, owing to the rise in concerns about the well-being of children. Physical stores were closed, due to lockdowns and supply chain hurdles, which boosted the online sales of fortified food items worldwide during the pandemic.

Impact of Artificial Intelligence (AI) on Fortified Baby Food Market

AI is projected to support the market growth during the forecast period, owing to its growing applications in the food industry. It is an emerging technology in the food sector, which is likely to be used for processing various foods, such as fortified foods, to improve the production quality.

AI and other related tools are high in demand in the market, for operations ranging from manufacturing to packaging, and distribution to sales. The food industry is focusing on quality and nutrition. AI and machine learning (ML) tools are likely to address essential aspects in this industry to help manufacturers achieve their desired products.

• On September 6, 2023, AI Palette, one of the largest global platforms for AI-powered innovation in FMCG products, introduced FoodGPT, an innovative generative AI solution for the food industry. It is designed with the aim of handling complex landscapes in the F&B sector. The advanced conversational generative AI tool analyzes requirements given by consumers to make products with efficiency and speed.

Fortified Baby Food Market Dynamics

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Key Trends

Increasing popularity of allergen-free and clean-label products is fueling the market. Parents prefer products that use little or no chemicals and preservatives, due to health concerns and increasing awareness about the negative effects of artificial ingredients.

The major players in the industry are addressing this demand by expanding the offering of food products made with natural ingredients that are clearly labeled. This trend is giving rise to the entry of plant-based organic baby food and allergy-free fortified food products into the global market.

Major Drivers

Growing birth rate and surging demand for processed food products are among the major drivers of the fortified baby food market. Rising focus on the overall development of a child, from the early stage of life, and concerns over malnutrition are boosting the preference for nutrient-rich food in emerging economies such as India and China.

Demand for these products globally is supported by a growing number of families with both parents as working professionals. The rise in disposable income and changes in lifestyle have increased the inclusion of nutrient-rich processed food items in children's diets.

• As per the National Center for Health Statistics (NCHS)’s Births in the US, 2022 report published in August 2023, the number of births in the country was unchanged from 2021 to 2022, following a one percent growth, from 2020-21.

Existing Restraints

High price of fortified baby food products is likely to restrain the growth of the market. These products require specialized ingredients, manufacturing, and packaging, which raises overall production costs.

High prices of the products keep numerous families in the lower-to-middle-income group from buying such products. The pollution caused by packaging material is likely to restrict environmentally conscious parents from purchasing these food products. Moreover, the concerns over the creation of long-term habits in kids, due to regular consumption of fortified foods, are likely to hinder the market growth.

Emerging Opportunities

Growing initiatives by various governments worldwide against malnutrition and advancements in food processing technology are likely to create growth opportunities for companies in the market. Countries in the Middle East & Africa and Asia have significant birth rates as per the findings of recent studies.

Malnutrition is a big challenge for several nations in these regions. As a result, governments have undertaken several initiatives to promote nutritionally rich foods for the healthy growth of babies and children.

Additionally, the advances in food processing technology are likely to aid manufacturers in raising the quality of food. The emergence of new technologies is anticipated to boost the development of fortified baby food offerings, thus, increasing growth potential for the market players.

Scope of Fortified Baby Food Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Fortified Baby Food Market Segment Insights

Food Type Segment Analysis

Based on food type, the fortified baby food market is divided into dried baby foods, ready to feed baby foods, milk formula, and others. The ready-to-feed baby foods segment is anticipated to lead in terms of revenue share in the market during the projection period.

The segment growth is attributed to the growing availability of ready to feed baby products in the market, which are nutrient-rich and convenient for parents to easily accommodate in their baby/child’s diet. These fortified food products are designed to meet the nutrient needs of infants to promote healthy development and growth.

The milk formula segment is anticipated to register rapid growth, as it meets the complete nutritional requirements of infants. Baby infant formula products are available in liquid and powdered forms and contain extra minerals, vitamins, and other ingredients to replicate breast milk.

These products provide flexibility and convenience to mothers, as they are fed to babies at any time by anyone. Some mothers, in addition to breastfeeding, use milk formulas as a supplementary food product for the healthy growth of the baby.

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Distribution Channel Segment Analysis

On the basis of distribution channel, the global market is segregated into convenience stores, specialist retailers, supermarkets & hypermarkets, online, and others. The supermarkets & hypermarkets segment is projected to expand at a considerable CAGR during the projection period, owing to the availability of wide product selection.

These shopping avenues provide discounts and coupon offers to shoppers on a regular basis, which attracts high footfall. Customers are able to buy products as per their quantity and quality requirement based on their budgets, due to the availability of several alternatives to a single product.

• As per the study report published in June 2022, baby food ranked highest among the most purchased baby product categories in US supermarkets, earning USD 833.3 million from sales in 2018. The baby feeding supplies category ranked second in that year.

The online segment is projected to grow at the fastest pace in the coming years, due to the expansion of eCommerce platforms. The baby food product categories are increasing on these platforms, which allows parents to select from wide-ranging options and make informed purchases.

Companies in the market are increasing their presence on e-shopping platforms, providing parents with the convenience and flexibility of buying from anywhere at any given time.

Nutrient Segment Analysis

On the basis of nutrient, the fortified baby food market is trifurcated into minerals, vitamins, and others. The minerals segment is expected to register robust growth during the forecast period, owing to the demand for fortified food products with calcium, iron, zinc, and iodine. Such fortified food items allow for healthy growth and development of babies.

Unmet needs of minerals lead to deficiency problems related to bone development and other health issues. The changing lifestyle in urban areas has led to a rise in demand for fortified baby food with different minerals to fulfill the mineral needs of a growing child.

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Age Group Segment Analysis

Based on age group, the fortified baby food market is categorized as 0 to 6 months, 6 to 12 months, 1 to 3 years, and others. The 1 to 3 years segment is expected to expand at a significant growth rate during the projection period, owing to the growing dependence of toddlers on various foods to meet their dietary needs.

Breastfeeding is slowly replaced with nutrient-rich easy-to-consume food for toddlers. Fortified food products are required for toddlers to fulfill their energy and nutrient demands, as it is essential for their long-term wellness and development.

Regional Outlook

In terms of region, the global fortified baby food market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to the growing demand for a diverse range of fortified baby food products. This demand is driven by the rapidly changing lifestyles in modern households.

The changing consumer spending behavior on nutrition-rich foods post-COVID-19 pandemic is driving sales in the regional market. Key players present in the market are focused on expanding their product offerings in vitamin fortified and mineral enriched food & beverage categories, thereby, further fueling the market in this region.

• As per the study published in October 2022, the revenue from the baby food industry in the US is likely to reach USD 99 Billion by 2024. The demand for baby formula is expanding at the highest growth rate, with powdered baby milk formula being more popular than the liquid form.

The market in Asia Pacific is anticipated to grow at a rapid pace, owing to rising birth rates and growing awareness about nutritional foods specially made for babies. The expansion of the organized retail sector in developing economies such as India and China further supports the sales of fortified baby food products.

The rise of disposable income, lifestyle changes, urbanization, and awareness about the need of nutrition-rich food for wellness are major aspects propelling the market in this region.

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