Project report for Baby Food

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Introduction

The baby food Industry market in India is getting a big boost from the increasing awareness about the role it plays in meeting the nutritional needs of infants and toddlers. The major challenges for the baby food industry are low birth rates, static market conditions in developed countries, and milk intolerance in babies. However, opportunities for the baby food market immense, as there is large untapped market in developing economies and as evolving food technology and new product developments are expected to attract more customers in future. Baby food producers has large growth opportunities as India in 2018 is ranked 100 in terms of ease of doing business, up by 4.71% from 2017 ranking. Further, the rising e-commerce industry in India is giving a push to the sales of baby food through online channels.

Baby food is any soft, easily consumed food other than breastmilk or infant formula that is made specifically for human babies between four and six months and two years old. The food comes in many varieties and flavors that are purchased ready-made from producers, or it may be table food eaten by the family that has been mashed or otherwise broken down. Babies need specialized food when they first begin eating. The food must be mushy yet nutritious, and it’s preferable if the food is conveniently packaged. Baby food businesses make this type of food. They create the food itself, package the food, and then sell it directly to customers or through retailers. Many parents want to give their children the most delicious and nutritious baby food possible. This impulse has led to significant growth in the industry in recent years.

Market potential & Strategy

The global baby food market size was valued at INR 50050 Crores in 2019 and is projected to reach INR 71610 crores by 2027, growing at a CAGR of 6.0% from 2021 to 2027. Traditionally, babies are fed with soft home cooked food, a practice that is still popular in underdeveloped and developing countries. However, growing urbanization and changing lifestyles have increased the demand for packaged baby foods in different societies and cultures. These foods are fed to babies between the ages of four to six months and two years. Growing awareness for nutrition, rise in organized retail marketing, urbanization paired with a significant increase in the count of working women population are key factors that boost the baby food market growth. Concerns related to food safety, falling birth rates, and the practice of feeding home cooked food to babies are the key restraints in this market. Increasing urban population, changing lifestyles of individuals due to considerable rise in disposable incomes is the main factor that boost the overall growth of the global baby food market. In addition, increase population of women at workplace leaves less time for food preparation and breast-feeding the infants, in turn demands quality baby food for their baby. Packaged baby foods are popular in the urban areas, as they provide adequate amount of nutrition for infants. Majority of parents prefer home-cooked baby food compared to packaged baby food for their infants.

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