Kids Food and Beverage Market - Forecasts from 2024 to 2029

The kids' food and beverages market is evaluated at US$119.03 billion for the year 2022 growing at a CAGR of 5.7% reaching the market size of US$175.407 billion by the year 2029.

Kids’ food and beverages include a wide variety of food products like dairy products, beverages, fruits and vegetables, snacks, fortified foods, etc., that are popular among kids.

MARKET TRENDS:

The easy availability of food and beverages backed up by the growing online distribution channels that easily present the wide variety available in the market is expected to become the major key highlight for the kids’ food and beverages market. Besides that, strong advertisements by the companies, and high investment in marketing, and branding have always boosted the food and beverage sector, and the trend is expected to continue further.

The growing health concerns like obesity, hypertension, impaired glucose tolerance, etc., in kids highly associated with the high intake of junk food, are expected to hamper the market's growth in the coming years. However, the emergence of nutritious food brands under the category is expected to benefit and propel in the coming years.

MARKET DRIVERS:

Growing Online Distribution Channels is anticipated to propel the market.

Although kids’ food and beverages are readily available in almost every region and every store, the deep penetration of the internet has powered the growth of the market further. Online shopping provides ease to customers to select from a range of domestic and foreign varieties. Online distribution has increased significantly, especially after the pandemic, and with the ever-increasing use of smartphones powered by the internet, the kids’ food and beverage market stands are expected to boost further. With the advancement, companies have now developed food and beverage-specific websites and applications to aid the tedious process of selecting a specific category. This includes famous sites like Big Basket, Swiggy Instamart, etc.

Growth in intake of nutritional foods.

With the rising health concerns associated with the intake of energy-dense foods high in fat and sugars, nutritional food brands are expected to gain a significant market share in the coming years. The growing health awareness among the people, the increasing government initiatives to feed healthy products to children, and the growing literacy rate are expected to provide a significant push to this market, especially when it comes to child immunity and health. For instance, Nestle S.A. launched two new plant-based beverages in 2020, including Milo and Nesquick Go Vegetal are made from 100% natural ingredients and have low sugar content.  Besides, Eat Well Investment Group Inc. has recently decided to expand one of its companies Amara Organic Foods, to Canada. These developments and the emergence of new companies specially devoted to the sector hold a bright perspective time for developing the kids’ food and beverage market.

MARKET RESTRAINTS:

Growing Health Concerns:

Food and beverages manufactured by the companies contain high proportions of sugar, salt, saturated fat, and calories. Its high consumption is directly linked to harmful side effects and diseases in kids. Kids who consume fast foods have a higher intake of fat, saturated fat, energy, sodium, and carbonated soft drinks, and a lower intake of milk, fruits, vegetables, and vitamins A and C than those who do not eat fast food. This is directly linked to the high prevalence of obesity, impaired glucose tolerance, hypertension, dyslipidemia, and a high risk of heart disease. Childhood obesity is associated with premature death and disability in adulthood, along with the increased risk of fractures, insulin resistance, and psychological effects. According to World Health Organization data, worldwide obesity has tripled since 1975, and in 2020 around 39 million children under the age of 5 were overweight or obese. Since child health is one of the major priorities in families, these concerns and statistics are expected to hamper the market's growth in the coming years, especially when parental approval is one of the major deciding factors in the kids' food and beverage market. The growing government actions due to these concerns are expected to hamper the market growth further. For instance, The South Korean Ministry of Food and Drug Safety has recently decided to expand its Food Sanitation Act to the food products purchased online from foreign contractors to check deteriorating public health.

North America is anticipated to be the major regional market.

In North America, the kids' food and beverage industry is growing rapidly due to several factors. Parents' growing interest in health and wellness trends is one of the main factors fueling this need for healthy, well-balanced solutions for kids. Customers are searching for products with reduced sugar content, natural ingredients, and additional nutritional benefits to support the overall wellness of their children. There is a clear market trend in consumer preferences for healthier products, which points to a broader societal movement to promote healthy living from an early age. Additionally, developing innovative products with kid-friendly flavors and packaging alternatives is crucial to capturing the interest and taste preferences of younger consumers.

Key Developments:

• In December 2023, the industry leader in plant-based beverages, Life Health Foods (India) Pvt. Ltd., introduced So Good Oat Caramel, a new vegan beverage that is made entirely of plant-based milk instead of dairy. The brand's promise is fulfilled by the new, delectable So Good Oat Caramel beverage, which is made locally in India using oats and has a distinct caramel flavor that kids adore.
• In May 2023, Mrs. Obama declared the opening of PLEZi Nutrition, a Public Benefit Company to raise the bar for American food and beverage manufacturing and marketing for children by emphasizing truth, taste, and nutrition.

Segmentation:

By Product Type

• Bakery Products
• Dairy Products
• Cereals and Grains
• Snacks
• Fruits and vegetables
• Beverages
• Others

By Age Group

• 2-3 years
• 4-8 years
• 9-13 years
• 14-18 years

By Distribution Channel

• Online
• Offline

By Geography

• North America
• USA
• Canada
• México
• South America
• Brazil
• Argentina
• Others
• Europe
• U.K.
• Germany
• France
• Others
• Middle East and Africa
• UAE
• South Africa
• Israel
• Saudi Arabia
• Others
• Asia-Pacific
• China
• Japan
• India
• Australia
• Taiwan
• South Korea
• Others