The US Baby Food and Formula Market - Nurturing Demand for Organic Baby Food Products

20-Jul-2012 | General Article (Non-News)

HTML clipboardThe US baby food industry constitutes dry baby food, ready-to-feed and formula milk, of which formula milk dominates the market in terms of value and volume. Supermarkets account for large percentage of baby food demand. Online shopping is also gaining importance in the country. Some of the known online sites are,, drug, and Falling birth rate is a major concern for the baby food manufacturers. The number of children born in the US was highest in 2007 at a level of 4.30 million births but since then it has reduced and reached 4.00 million births in 2010.
 In the period of 2008 to 2011, baby food and formula market registered unstable growth and even performed negatively in 2009 and 2010. Formula milk market witnessed a strong growth in the US up till 2007 by volume and value. Sales in value terms reached USD ~ million in 2007. Cereal is the largest product category in the US baby food segment in terms of both value and volume. Cereals market grew at a constant rate of ~% from 2009-2011. High growth is expected for organic baby food products in coming five years with anticipated economy recovery and rising educated population.
 High entry barriers prohibit new entrants in the market which give leverage to the existing players to keep high price for high demand baby products. Major players such as Nestle, Abbott and Mead Johnson will continue to dominate the baby food market in the future as well.
 The present report on “The US Baby Food and Formula Market-optimistic Future Outlook” discusses baby food demand on different parameters. Industry has been segmented into two major categories- Baby food (dry, ready-to-feed and others) and formula milk (infants and toddlers). The report has highlighted major segments of the baby food industry and product categories such as cereals, juices, and more. In formula market, the report has discussed market size in terms of retails sales, comparison of present and past performance and share of base-ingredients. The report also covers organic baby food in terms of demand and factors influencing change in demand. For analyzing market present and future performance, report discuses SWOT analysis, opportunities and major driving forces, country analysis and macro economy factors. The study also includes major player’s market share and future performance of the baby food and formula industry.
- The baby food and formula industry in the country has showcased a consistent growth prior to 2008 from USD ~ million in 2006 to USD ~ million in 2008 at CAGR 1.19%.
 - Ready to feed baby food (prepared baby food) is the largest segment in the US baby food market, which accounts for 72.76% of the total baby food segment registering USD ~ million of revenue in 2011. Ready-to-feed (prepared baby food) segment is expected to grow at 3.39% CAGR from 2011-2016.
 - In terms of sales by value, baby juice segment fell by 8.40% and 8.20% in 2010 and 2011 respectively.
 - In 2011, dry baby food segment grew by 6.67% from previous year to USD ~ million, whereas in 2010, the segment recorded negative results.
 - From 2011, formula milk market in the country showed stability, although grew by only 2.55% to USD ~ million.
 - In terms of base ingredient, milk based formula account for the largest demand, accounting for ~% market share.
 - In 2007, organic baby food segment recorded sales of USD 21.43 million which escalated to USD ~ million in 2009.
 - The overall baby food and formula market will grow at 2.69% CAGR from 2011-2016 to USD ~ million.
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The US Baby Food and Formula Market - Nurturing Demand for Organic Baby Food Products
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