Tier I and Tier II cities are the preferred locations for baby food manufacturers to introduce their products. In urban areas, there are still many people who prefer home-cooked food for their kids. Pricing is the major concern for baby food manufacturers in the country. Only one-fourth of the population belongs to the upper middle class and high class. India is expected to see a 30 per cent increase in population in the working age group. India's working age population in 2008 amounted to 388.60 million men and 361.50 million women.
Baby juices are still in their infancy stage and facing difficulty to gain importance because more than three-fourth of the total parent population believe in feeding fresh fruit juice to their kids. Demand for dried and ready-to-feed baby food is low in states such as Bihar, Uttar Pradesh and Madhya Pradesh. Every year, there is a growth expected in dried, packaged and formula baby food demand with rising number of health-conscious parents, working mothers and companies' increasing efforts to make the product available in all parts of the country. Powdered milk forms the largest product category in the baby food segment, although it is not a fully-tapped market.
The present report on "India Baby Food and Formula Market-Bright Prospects for Dry Baby Food" gives a comprehensive analysis on types of baby food and formula, in terms of retail sales. The report covers market size of the baby food and formula market, market by segmentation and also discussed sub-segments of the market, SWOT analysis and recent trends and developments. The report also highlights major macro economic factors in relation with baby food demand and popular brands available in the Indian market. We have also compared the past and present performance of the industry on various verticals and future outlook of the baby food and formula market.
Key Findings
" In the past, baby food and formula market had witnessed a compound annual growth rate (CAGR) of 4.18 per cent from 2006-2011
" Baby food forms the largest segment and accounts for 50.52 per cent of the total retail sales of baby food and formula market
" Baby food which constitutes dried and ready to feed food products grew at a meagre CAGR of 3.88 per cent during the period from 2007-2011
" Infant and toddler formula milk retail sales registered a CAGR of 3.54 per cent from 2007-2011
" India is world's largest milk producer and contributes almost 15 per cent to the total milk production worldwide. Consumption of dairy products is also high in the country
" Baby powder and food account for highest revenue generation in terms of export of dairy products. In 2011 almost 47 per cent of milk powder and baby food was exported to other countries.
