Australia Baby Food Market Overview, 2027

Baby food is any soft, easily swallowed food that is intended for infants between the ages of four to six months and two years old and is neither breastmilk or infant formula. The meal is available from producers in a wide range of flavours and variations, or it could be table food that has been mashed or otherwise broken down and is consumed by the family. The World Health Organization advises that new born should be breastfed during the first six months of life in order to attain the best possible growth, development, and health. The majority of infants who are six months old are physically and developmentally prepared for new foods, textures, and feeding methods. Experts advising the World Health Assembly have provided evidence that introducing solids earlier than six months increases babies' chances of illness, without improving growth.

The market is segmented on the basis of product type and sales channel. The milk formula product category has historically been a major segment in the market. Milk formula is also known as infant formula is manufactured for infants under 12 months of age, usually prepared for bottle feeding. They act as a substitute for breast feeding, in some cases and provide ability to other partner to feed the baby during night times. This attribute of providing alternative has made this product type a large segment in Australia. The consumers in the country have always opted for buying baby food products from traditional point of sales like hyper and super markets, this segment therefore has the largest market share. But with changing consumer trends to e-commerce which is an online sales channel this particular segment is going to experience the highest market growth rate. This is due to the ability of this sales channel to directly deliver products to the doorstep a convenience factor which is desired by parents especially in urban locations.

The emerging trend of organic product consumption amongst consumer has also penetrated into the baby food market, with the consumers wanting organic food for their babies this trend has gained momentum in the country. This has resulted in the consumer Strict government regulations related to the manufacturing of baby food all though restrict the growth of the market, but are a boon for the consumer as these policies make sure food safety is upheld and quality products are used. Furthermore, the market is growth was contributed by the consultants and clinical doctors advising the consumption of such baby products for better baby health. Recent innovation in the baby food market have observed the manufacturers in the country making specialised products for the consumers. These specialised products include development of plant-based baby food products, vegan baby food and the beforementioned organic baby food. A trend observed in the global market which stands true for the market in Australia is that the manufacturers are using alternate for raw materials like bulk sugars and preservatives along with sodium.

The market is restrained by many factors the major factor being the use of chemicals in production of these products. Along with this the market is recently also suffering from increase in cost of the end product which is the result of using organic raw materials which come at a higher price then the ones they are replacing. To tackle this problem manufacturers in Australia are introducing green marketing to make the consumer know about the ingredients and justify the cost. Consumers have recently started shifting to home-made meals for their children with the idea that fresh food is good food, this has led to a decline in the baby food market. Further, recent tests have found traces of heavy metals in baby food products which has steered the consumer away from consumption of these products.

COVID-19 Impact

like almost every other industry vertical the baby food industry was also affected by the pandemic in many different ways. The initial spread of the virus created fear of future availability of food stocks which led to panic buying behaviour amongst the consumers. This provided the market with a boost in terms of growth, on the other hand negative effects of the pandemic came with the implementation of nationwide lockdowns and travel restriction. With this the consumer turned to provide home cooked meals for the babies which affected the market negatively.

Considered in the report

• Geography: Australia
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027

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
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

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.