India Kids Food And Beverage Market Size, Share, Opportunities, And Trends 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), And By Distribution Channel (Online, Offline) - Forecasts From 2023 To 2028

The Indian kid's food and beverage market will increase to US$12.318 billion by 2028 from US$7.080 billion in 2021 accelerating at a CAGR of 8.23%.

This steady growth is underpinned by several factors, including a decline in child mortality rates, rising disposable income among households, and an increasing demand for innovative and nutritionally tailored products for children. The notable reduction in the Under 5 Mortality Rate (U5MR), which was 35 per 1000 live births in 2019 significantly decreased by 3 points in 2020, as reported by the Ministry of Health and Family Welfare, signals improved child health, instilling confidence in parents to invest in premium nutritional offerings. 

Furthermore, the snacks segment will witness notable growth in the overall domestic market due to rising modernization and a demanding combination of work and personal commitments of parents. Due to their busy schedules, customers are forced to opt for quick-to-prepare food items because they are unable to spend time cooking or dining out during their work time.

This has led to increased product launches and partnerships in the country by major players to increase their market share during the forecast period. For instance, Ferrero India Private Limited, launched "Kinder Creamy," in September 2020, marking its entry into the kids' snacking market. Ferrero India intends to gain more traction in the Indian chocolate market with this new product. A unique addition within the umbrella label Kinder - this product is a creamy & crunchy micro snack comprised of milk as well as vitamin B12 that gives a multi-texture flavor to every single scoop.

Parental demand for nutrient-rich products

Innovative branding and packaging, increased structured retail marketing, urbanization, and a significant increase in the number of working mothers are all factors propelling the market forward. According to the nation’s Periodic Labour Force Survey, the projected Labour Force Participation Rate (LFPR) for women aged 15 and over was around 32.8% during 2021–22.   

The rising demand from parents for nutrient-rich, practical, and affordable products for their children is another major driver for domestic market expansion. Companies are adapting to shifting parental attitudes by expanding their product portfolios, aligning with sound brand positioning, and demonstrating social consciousness. For instance, Lil'Goodness, a Bangalore-based start-up, introduced India's first "prebiotic" chocolate in 2020. These chocolates contain prebiotic fibers that activate good bacteria, enhancing the absorption of vital nutrients and boosting immunity. By incorporating healthy nutrients like prebiotics into convenient food options like chocolates, Lil'Goodness aims to instill confidence in millennial parents and transform children's eating habits through technology-driven awareness campaigns and a diverse range of fresh and packaged food offerings.

Consequently, businesses are coming up with new ideas and providing products and solutions that satisfy customers' expectations and dietary requirements at all phases of life. For example, Danone India launched AptaGrow in October 2021, marking their entry into the children's health drink market.

The beverage segment is anticipated to grow steadily. 

Beverages for kids mainly comprise healthy drinks and fruit juices which consist of all basic nutrients that bolster their overall growth. India is one of the major countries with a high infant population and with the growing emphasis of parents on providing healthy diets to their children, the demand for nutritional beverage products is also expected to increase. For instance, according to the World Bank of India, in 2022, the overall population aged 0 to 14 years in India stood at 358.63 million. Though the figure in comparison to 2021 has witnessed a slight decline of 0.8%, however, in the coming years, the population strength is expected to show positive growth which is mainly attributable to various campaigns and government initiatives undertaken to improve the infant mortality rate.

Moreover, the well-established presence of major kids’ beverage brands in India namely, Complan, Horlicks, Cadbury Bournvita, PediaSure, and Boost which are provided in a variety of flavors are acting as an additional driving factor. The parent companies of such brands and other market players have shown active investments in new product launches to optimize the market potential in India. For instance, in September 2021, Abbott launched its new PediaSure product in India which included vitamin K2 and arginine among 37 essential nutrients that support a child's growth.

Market Key Developments

• In August 2023, Tata Soulfull expanded its snacking offering with the release of Ragi Bites Choco Sticks. This product consists of a crispy Millets wafer and a delightful chocolate cream filling. With this new offering, the company hopes to increase its market share in the kids' market under its main brand, the nutritious snacking brand Ragi Bites.
• In October 2021, Danone India launched the nutritional drink product “AptaGrow” to address the nutritional requirement for children aged 3 to 6 years. The product comes in vanilla and tasty chocolate flavors.

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

1.  INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. GROWTH RATE OF KEY INDICATORS OF CHILD NUTRITION, 2020-2027

6. INDIA KIDS FOOD AND BEVERAGE MARKET, BY PRODUCT TYPE

6.1. Introduction

6.2. Bakery Products

6.3. Dairy Products

6.4. Cereals and Grains

6.5. Snacks

6.6. Fruits and Vegetables

6.7. Beverages

6.8. Others

7. INDIA KIDS FOOD AND BEVERAGE MARKET, BY AGE GROUP

7.1. Introduction

7.2. 2-3 years

7.3. 4-8 years

7.4. 9-13 years

7.5. 14-18 years

8. INDIA KIDS FOOD AND BEVERAGE MARKET, BY DISTRIBUTION CHANNEL

8.1. Introduction

8.2. Online 

8.3. Offline

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis (over 3 years with revenue)

9.2.1. Bournvita 

9.2.2. Pediasure 

9.2.3. Groviva 

9.2.4. Horlicks 

9.3. Mergers, Acquisitions, Agreements, and Collaborations

10. COMPANY PROFILES

9.1 PediaSure (Abbott)

9.2 Cadbury Bournvita (Mondel?z International, Inc.)

9.3 Horlicks (Unilever)

9.4 Groviva (Signutra)

9.5 Complan (Zydus Wellness)

9.6 Boost (Unilever)

9.7 Protinex (Danone)

9.8 Himalaya Quista kidz (Himalaya Wellness Company)

9.9 DFM Foods Ltd.

PediaSure (Abbott)

Cadbury Bournvita (Mondel?z International, Inc.)

Horlicks (Unilever)

Groviva (Signutra)

Complan (Zydus Wellness)

Boost (Unilever)

Protinex (Danone)

Himalaya Quista kidz (Himalaya Wellness Company)

DFM Foods Ltd.