APAC | GlobalData reveals that the demand for packaged baby food has grown in APAC with the rising female workforce.
The increasing participation of women in the workforce across the Asia-Pacific (APAC) region, coupled with the hectic work schedules of dual-income households, has reshaped consumer behaviour towards packaged baby food.
GlobalData revealed that rising per capita incomes and the need for convenience have driven more significant demand for baby formula, ready-to-eat finger foods, and other baby care products in key APAC markets.
“Most countries in the APAC region have witnessed a steady increase in the female labour force during the past few years,” said Mohammed Masiuddin Shajie, Lead Consumer Analyst at GlobalData.
“The baby food sector in South Korea, Japan, Singapore, and Malaysia is expected to grow at a higher compound annual growth rate (CAGR) than the regional average during 2023-28.”
According to the World Bank, the female labour force as a percentage of the total labour force grew from 42.1 percent in 2018 to 43.5 percent in 2023 in South Korea. In Japan, it grew from 44.1 percent in 2018 to 45.1 percent in 2023.
Countries such as Singapore and Malaysia also witnessed an increase in the female labour force during the last five years.
“Busy lifestyle is compelling parents to shift towards convenient baby food options such as baby formula milk and ready-to-eat finger food/drinks. Rising per capita income in these Asian economies supports this consumer shift,” said Deepak Nautiyal, Consumer and Retail Commercial Director, APAC and ME at GlobalData.
According to GlobalData 2024 Q2 consumer survey, 13 percent of respondents reported switching to cheaper alternatives within the same brand. Meanwhile, 18 percent indicated they had opted for other, more affordable brands to reduce spending on baby care and childcare products.
Additionally, 13 percent mentioned turned to store-brand products to save money on these items.
The increasing participation of women in the workforce, coupled with the growing demand for convenient baby food options, presents a substantial growth opportunity for the baby food industry in APAC.
However, to remain competitive amidst economic pressures, manufacturers must adapt to changing consumer preferences by offering value-driven products that cater to evolving price sensitivities.
More insights here
