India is the second
most populated country in the world after China despite not having a high birth
rate. The Indian baby food industry was recently valued in billions of US
dollars showing the vastness of this sector. According to the study, ‘THE BABY FOOD SECTOR IN INDIA, 2018’, the
target consumers of commercially available baby food range from infants (babies
aged six to twelve months ) to toddlers (children up to three years old). Baby
food is available in various flavors and in both solid and liquid form. India
comes under the categories of developed and developing nations whose
population, due to modern day time constraints, has reduced the use of homemade
baby food.
India’s economic and
industrial stronghold has not benefitted its baby nutrition sector since India
is among the world’s five largest emerging economies where investment in
breastfeeding is significantly low resulting in an annual economic loss of
billions of US Dollars due to child deaths and cognitive losses. As employment
increases young working women have begun shifting to packaged baby food for
supplementing breast milk. While focus has mainly been on milk formula and
dried baby food, several prepared baby foods and other such products made
appearances on store shelves of major cities in 2010 and have been flourishing
ever since. Every company is adopting the strategy of new flavors and new
nutritional content in order to attract customers. Growing concerns about
nutrition has made parents conscious about what their babies consume and hence,
organic baby food is also coming up these days. The company, 24 Mantra Organic
is more than a decade old and is India’s largest organic foods brand. Happy
Family Organic Super Foods has a range of baby foods that include puree pouches
of mango, apple and peach among others. Pristine Organics is the first brand in
India to make certified organic weaning foods. Earth’s Best Organic Baby Food
provides a wide range of baby food including infant cereals, food for toddlers
and age specific options as well.
Though baby food
market in India is one of the fastest emerging sectors, the government’s
regulation in India is very strong and makes it tough to operate in infant food
and nutrition. India’s policies regarding milk formula and infant foods are
stricter than those of some of its neighbors and advertising in the category is
banned. However, retailers and companies partner for mutual gain. Supermarket
chain Big Bazaar launched imported prepared baby food brand Gerber in their
outlets in the metro cities in 2010. Even vegetable flavors have been launched
in certain baby food products as mothers consider such variants to be more
nutritious. Even the most renowned organic baby food manufacturers in the
country cannot compete with Nestle which has an absolute monopoly over the Indian
baby food market. This company is holding nearly four-fifth of the entire child
nutrition market in India.
The rapidly growing
Indian baby food sector’s success can be attributed to the fact that it has
identified the target audience properly. Urbanization is leading to a greater
demand for packaged baby food however; growing concerns regarding child
nutrition keep the quality aspect in check. India too is adopting organic baby
food but with unfavorable legal situations, companies and retailers seem to
benefit mostly in partnerships.
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