Increasing parental concern over baby food, need for chemical free and healthy products, rising health awareness programmes by governments are major factors fuelling the growth of BRIC market for organic baby food. Apart from this, aggressive product branding and increasing preference for natural nourishment has been contributing significantly towards expansion of BRIC market of organic baby food.
A recent report anticipates that the BRIC market for organic baby food will expand at an outstanding 19.5% CAGR during the forecast period, 2015-2020, to touch an evaluation of nearly US$ 3,528.7Mn by the end of 2020. Companies namely Pristine Organics Pvt Ltd, Groupe Danone, Nestle S.A, Bellamy’s Australia Limited, Campbell Soup Company, Abbott Laboratories, Hero Group and H.J. Heinz Company amongst others will observe a substantial growth worldwide. Leading companies are concentrating on marketing strategies such as product developments and expanding their product portfolio.
Nestle S.A Defends Itself from External Claims
Nestle S.A was criticized for its organic baby milk by a pressure group. The company follows international marketing standards, even then there were abrupt claims about their products. Nestle S.A had mentioned that it abides by the code of World Health Organization with regards to marketing breast milk alternatives. However, manufacturers must note that the company implements its own policy only when the national legislations seems less effective. Nestle S.A does make sure that its organic baby food formulas are strictly under the guidance of best available science.
Recent reports point out that Nestle S.A had many discrepancies in its over-all formula products and holds qualm on the reliability of its health claims. There were claims that Nestle S.A uses sucrose in its infant formula products and no other company does. Nestle S.A along with the support of Food Safety Authority of Europe sells infant milks in Hong Kong and Brazil, thereby increasing awareness amongst the consumers against consumption of sucrose in infants.
Apart from this, there were claims that Nestle S.A sells infant milks in South Africa that does contain sucrose. However, the company disagrees to the claims and mentions that it does no use any sucrose or related products in its infant formulas.
Danone Brand Baby Food Products to Be Most Preferred In China
Danone is gaining grounds in China for baby food products by beating the major players, Reckitt Benckiser Group Plc and Nestle SA. Apart from this, Danone has also balanced the slump it faced in its yogurt business. Recently, the company observed a hike of 10% in its infant nutrition sales. Manufacturers can look forward to enter into collaborations or M&A with this company as they have been proving comparatively lucrative so far, especially for the BRIC countries.
Danone has been expanding its presence in China and rest of Asia. Danone has been shifting its preferences towards mom-and-baby and e-commerce stores in China. Manufacturers can increase their attention towards e-commerce as Danone is of the opinion that e-commerce has helped to accelerate its sales by nearly 13%. Last year, substantial increase in child birth has been observed in China, which lead to increasing demand for organic baby food in the region. Danone is working on M&A for expanding its organic baby food and drinks market.
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