The Brazilian baby food market is expected to grow at a compound annual growth rate of 4.34% over the forecast period to reach a market size of US$4.761 billion in 2027, from US$3.537 billion in 2020.
Introduction
The baby food market caters to the need for infant nutrition. The segment includes a wide range of baby nutrition product that helps infants to get proper nutrition to develop. Further, products include a wide range of baby food like formula milk, bottled baby food, canned baby food, purees, baked goods, baby cereals, and baby snacks. The food can be categorized into infant formula, ready-to-eat baby food, dried baby food, and others.
Market Trend:
The key factors contributing to the baby food market in brazil are growing awareness regarding child nutrition and pediatrics, the high women workforce, and growing online shopping in the region. With high women workforce, the disposable income of the family increases, which means high affordability of baby food. An educated workforce also indicates good, highly aware individuals. Further, the prevalence of e-commerce is expected to drive the market demand.
Growth Factors
Awareness about child nutrition and pediatrics has grown during the past few years. Awareness comes with good education, and female education plays a vital role in a child’s health. According to the World Bank data, the literacy rate amongst females aged 15 and above is 93.42% in Brazil. Further, in Brazil female workforce contributed to 43.89% in the year 2019. This is further expected to rise. With such a staggering high literacy rate, mothers are more aware of the importance of nutrition and what food better provides for their needs. Further, with the rising adoption of organic baby food, the demand is expected to rise.
Brazil has a high working women population, which makes it challenging to maintain a balance between home and work, making it difficult to prepare a nutritious meal at home with less time. The availability of packaged baby food becomes not only convenient for the mother but also ensures proper intake of nutrition by the baby. The labor force participation rate is 47.31% among females, according to the International Labor Organization (ILO). The labor force participation rate indicates the size of the labor supply available to engage in the production of goods and services. This includes the country’s working-age population that engages actively in the labor market, either by working or looking for work. With high employment, the disposable income of the family increases along with improvement in the living standard, making the baby food products affordable.
The booming e-commerce business in Brazil is likely to offer a significant boost to the infant food market in the future years due to the ease of purchase it has brought to parents. With the increase in the working population, online shopping has become a helpful tool. The high internet penetration in the region, as well as the widespread use of smartphones and modern technology by the population, are two important reasons contributing to the expansion of e-commerce in Brazil. According to the World Bank, in Brazil, the population of individuals using the internet has expanded dramatically from 40.65% of the total population in 2010 to 73.912 percent in 2019.
Restraint
When it comes to baby food products, safety concern is the primary priority of parents as nutrition plays a vital role in the child's development. Further, parents would prefer to feed the baby as natural and fresh food as possible, which includes low preservatives, high additive sugar, and artificial food coloring. Strict regulations are also laid down by the government, which needs to be followed by the companies. This might include licensing and act as a restraint to the market.
Impact of COVID-19 Pandemic on the Brazil Baby Food Market:
With the outburst of the COVID pandemic, the Brazil baby food market was also affected. With strict regulations and travel restrictions, the supply chain of the products was affected. Although the market comes under the essential category, still the demand was affected due to an increase in the unemployment rate and a fall in disposable income. Furthermore, due to the rise in the inflation rate, the demand for baby food was affected.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market size value in 2020 | US$3.537 billion |
| Market size value in 2027 | US$4.761 billion |
| Growth Rate | CAGR of 4.34% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Product Type, Type, And Distribution Channel |
| Companies covered | Nestle, Danone, Abbott, Reckitt Benckiser Group plc, Nutrimental, Unilever |
| Customization scope | Free report customization with purchase |
Segmentation: