According to Research & Markets, an analyst, the US$50bn global infant nutrition market will become the world’s fastest growing packaged food segment from 2015-20 as it continues to increase at a rate of 7% each year.
While Europe and North America together accounted for 87% of baby food and 66% of infant formula sales in 2014, growth there has remained static. Instead, burgeoning middle-classes in the emerging markets of Asia-Pacific, Latin America and the Middle East and Africa are expected to continue driving growth in the segment.
In China, almost 30% of the baby formula consumed is ordered online due to consumers’ doubts over the quality of domestic dairy produce, the report said.
After China, India is the next biggest market in Asia-Pacific for baby food and infant formula, worth US$250m in 2014. However, though the country has a sizeable infant base, per capita consumption of baby food is low due a traditional preference among Indian mothers to feed fresh food to babies. Strict legislation governing the segment have also acted to slow growth.