in the world baby food market
baby food market has been growing consistently, but he has been experiencing phenomenal growth since 2003. In 2005, worldwide baby food market was worth 21 billion U.S. dollars (U.S.), compared with 9.5 billion in 2003. North American accounts for 25% of the market, Europe 27% Asia-Pacific accounts for 25% of global market value. (1)
U.S. Baby Food Market
nature of the market for baby food in the United States has changed over the past few years. Historically, few major players dominate the market, but several companies have emerged to target specific niche markets for more fresh 'and organic alternatives.
Due to the increasing number of competitors and the fact that the use of baby food product cycle is relatively short, manufacturers are creating new customer segments such as "toddler cuisine. Industry analysts believe that the baby / child food and drinks that are able to capitalize on convenience as well as offer top quality ingredients and will perform well, as parents often want to buy the best wishes for their child and are willing to pay a high price for a specially formulated products to ensure complete nutrition and a healthy balance. (2)
Drivers of market growth
There are many factors that lead to growth in the market for baby food. These are:. methods of family planning, financial planning, before the birth of a child in late pregnancy options exercised by women, increasing the number of employed women, and increased willingness of consumers to pay a premium quality, organic products (3)
Parents, especially mothers, believe that "organic" and "all natural" labels are "very important" when making food decisions for their child. (4) It is often the case that the baby food / drinks are the first type of organic products to be brought into the household. (5)
Although there are a large number of jars of organic baby food brands, such as the Earth's Best and Tender Harvest is available in stores today, parents who are committed to offer their children the best, healthiest choice they know that commercial organic baby food is not fresh, and to have longer term duration, they are cooked to temperatures that destroy many vitamins and nutrients.
Because of good quality organic baby food is not available in stores many parents are choosing to make homemade baby food. At the same time, dozens of homemade baby food website have popped up.
New trend: Frozen organic baby food
In response to a short coming in the jars of baby food, new alternative locally made, frozen organic baby food - is starting to appear in the leading trend in cities like New York, Los Angeles and San Francisco. Each of these companies has taken a significant step forward.
For the introduction of the market has many challenges. To effectively sell products through the store must pay the distributors and store space charge. In order to maintain profitability should reduce production costs by using co-packers to make their food. Co-packers require large minimum monthly production, cold storage fees, and baby food companies are losing control over the production of their products. And companies need to make very large investments in advertising, so that buyers know to look for them in the frozen food section of their local grocery store.
Customer Problem
All parents want what is best for your new baby. U.S. consumption of the baby is 28 billion dollar industry. Families spend more than $ 11,000 during the first year of life for baby products themselves. (6) This desire extends beyond the cute clothes and fun toys and goes back to the kitchen and baby's first food.
Numerous studies have shown that dietary habits and food preferences established early in life. (7) Dissatisfied with preservative and sugar-filled baby food options available in stores, parents are looking for new feed alternatives.
an increasing number of parents are turning to organic foods not only for personal health reasons, but because of environmental reasons as well. organic baby food market grew by almost 18 percent in 2004, double the overall growth of organic food sales. (8) According to AC Neilsen, in the past five years, organic baby food market grew by more than 60 percent, generating more than $ 100 million in sales in 2005. This growth is driven by concerns that parents have about the level of pesticides and hormones in baby food.
In recent years many parents have also begun to at least have the intention of making your own baby food. But working parents and active, busy families do not have time to shop, peel, steam, puree, strain and freeze homemade baby food yourself - it's simply too much time. According to a recent work / life balance study conducted by CareerBuilder.com, one-on-four working moms said they are dissatisfied with their work / life balance and actively seeking ways to gain more flexibility, and some will do it at all costs . Fifty-two percent of working moms say they would even be willing to take a pay cut to spend more time with their children, a significant jump from 38 percent last year.
New Baby Food Companies
Over the past few years, the number of new baby food companies have popped up all over the world in order to meet market needs for high quality baby food products. Some are trying to go head-to-head against the giants of baby food in chain stores. Some are opening "boutique baby food. " While several other focusing on children's food and hospitality.
(1) Baby Food Industry (2006), Datamonitor / RNCOS.
(2) Ibid.
(3) Children's food market for organic and inorganic: the study of markets, Datamonitor / RNCOS
(4) Baby Food Market Outlook, March 2005, Datamonitor / RNCOS
(5) Children's food and beverage, October 2006, Datamonitor / RNCOS
(6) Health and Human Services Department, 2004. U.S. Department of Commerce.
(7) to help children develop eating habits Health, University of Maryland School of Medicine, 11 June 2003.
(8) "organic foods on grocery lists, parents: concerns about pesticides, other toxins in children Diet Driving Demand, " Seattle Post-spy, 24 November 2005