South America Baby Food Market Outlook, 2027

Baby food is intended to fulfil the particular requirements of infants in good health while they are being weaned, and of young children in good health as a supplement to their diet and/or for their progressive adaptation to ordinary food 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. According to the report titled, “South America Baby Food Market Outlook, 2027” the market in the region was valued at almost USD 11 Billion in the year of 2021. The population of demography between the age of 0-4 years in the region was constantly in creasing during the historic period from being 22.75 million in 2016 to 22.82 million in 2021. All though not a significant growth this slight increase has helped the market sustain a growth rate of CAGR 5.74% till 2021.

The report classifies the market on the basis of product type and sales channel, on the basis of product type the category consist of milk formulas, dried baby food, Cereals and other categories. While on the basis of sales channel the market is categorised into hyper/supermarkets, Pharmacy/drugstores, convenience stores and online channel. The milk formula segment held the highest market share in the region with occupying around 60% of the total market. This market share is due to the convenience this product provides for the parents especially the mothers, this product can be used as substitute for breast milk when some or other complication hinders the availability of the source. All though, one of the fastest growing segment will be the dried baby foods during the forecast period in the region. The decline in infant health in the South American region is increasing the need and demand for infant health products. Bolivia is regarded as having the highest infant death rate in South America, per UNFPA (United Nations Population Fund) data. The region's baby food business is expanding due to the fall in infant health and malnutrition in South American nations. The South American baby food market is being stimulated by South American governments' aid in supporting initiatives that support infant health development. South American consumers are willing to spend more money on infant food products because the region's population is always growing and they want to be able to feed their babies healthy food from an early age. Even though organic baby food is expensive, consumers with more disposable means aren't hesitant to buy it since they view it as an essential item for their children's health.

Consumers can be certain of the quality of infant foods purchased from reputable companies in South America thanks to on-going marketing activities. Customers in this region are placing a higher value on food safety, food preparation methods, and the materials used in it as a result of multiple food safety incidents in recent years. Therefore, the majority of the consumers are choosing natural products baby food over others. The main reason fueling the market expansion of South American infant food is the improvement in the standard of life of the population there. The rise in disposable income and the expansion of the working class populations in South America have both favourably impacted the surge in demand for baby health goods. Along with this the region has always experienced malnutrition conditions in rural population of children, to deal with this problem the nutrient content provided to the child at an early stage is a crucial aspect. This has further increased awareness amongst non-urban parts of the region creating more than demand. In response to this demand companies are looking to make innovative products which can be made available easily to the segment of the population in question.

While numerous factors help the growth of the baby food market in the region there are a few of them which obstructs its growth. Firstly, the perception of consumer about processed baby food along with the lack of knowledge about organic options is declining the market growth. Along with this the high price of organic food which is mostly because of the increased cost of raw materials used in them is creating a problem in widespread adoption of the baby food industry.

COVID-19 Impact

The Covid-19 pandemic affected the baby food market in the region moderately. The poor economic strength of the different countries which was further worsened by the pandemic created a negative impact on the market growth. Along with this lockdowns and travel restrictions observed the consumer shifting to home-made meals. But with the ease in restrictions and the parents resuming their on premises work, the market has observed a slight yet sustainable growth recently.

Major Companies Included: The Kraft Heinz Company Reckitt Benckiser Group plc, Hero Group, Arla Food, Danone

Considered in the report

• Geography: South America
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027

Countries covered:

• Brazil
• Argentina
• Columbia

Aspects covered in the report

• Market Size by Value for the period (2016-2027F)
• Market Share by Product Type (Milk Formula, Dried Baby Food, Cereals, Others)
• Market Share by Channel Sales (Hyper/Supermarket, Convenience store, Pharmacy/ Drugstores, Online)
• Market Share by Country
• Market Share by Company

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Consumer goods and Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.