The kids food and beverage market is expected to grow at a compound annual growth rate of 5.03% over the forecast period to reach a market size of US$147.383 billion in 2027, from US$104.501 billion in 2020.
Kids’ food and beverages include a wide variety of food products like dairy products, beverages, fruits and vegetables, snacks, fortified foods, etc., that are popular among the kids.
The easy availability of the food and beverages backed up by the growing online distribution channels that easily present the wide variety available in the market is expected to become the major key highlight for the kids’ food and beverages market. Besides that, strong advertisements by the companies, high investment in marketing, and branding have always boosted the food and beverage sector, and the trend is expected to continue further.
The growing health concerns like obesity, hypertension, impaired glucose tolerance, etc., in kids highly associated with the high intake of junk food, are expected to hamper the market's growth in the coming years. However, the emergence of nutritious food brands under the category is expected to benefit and propel in the coming years.
Although kids’ food and beverages are readily available in almost every region and every store, the deep penetration of the internet has powered the growth of the market further. Online shopping provides an ease to the customers to select from a range of domestic and foreign varieties. Online distribution has increased significantly, especially after the pandemic, and with the ever-increasing use of smartphones powered by the internet, the kids’ food and beverage market stands are expected to boost further. With the advancement, companies have now developed food and beverage-specific websites and applications to aid the tedious process of selecting a specific category. This includes famous sites like Big Basket, Swiggy Instamart, etc.
With the rising health concerns associated with the intake of energy-dense foods high in fat and sugars, the nutritional food brands are expected to gain a significant market share in the coming years. The growing health awareness among the people, the increasing government initiatives to feed healthy products to the children, and the growing literacy rate are expected to provide a significant push to this market, especially when it comes to child immunity and health. For instance, Nestle S.A. launched two new plant-based beverages in 2020, including Milo and Nesquick Go Vegetal are made from 100% natural ingredients and have low sugar content. Besides, Eat Well Investment Group Inc. has recently decided to expand one of its companies Amara Organic Foods, to Canada. These developments and the emergence of new companies specially devoted to the sector hold a bright perspective time for developing the kids’ food and beverage market.
Food and beverages manufactured by the companies contain high proportions of sugar, salt, saturated fat, and calories. Its high consumption is directly linked to the harmful side effects and diseases in kids. Kids who consume fast foods have a high intake of fat, saturated fat, energy, sodium, carbonated soft drink, and a lower intake of milk, fruits, vegetables, vitamins A and C than those who do not take fast food. This is directly linked to the high prevalence of obesity, impaired glucose tolerance, hypertension, dyslipidemia, and a high risk of heart diseases. Childhood obesity is associated with premature death and disability in adulthood, along with the increased risk of fractures, insulin resistance, and psychological effects. According to World Health Organization data, worldwide obesity has tripled since 1975, and in 2020 around 39 million children under the age of 5 were overweight or obese. Since child health is one of the major priorities in families, these concerns and statistics are expected to hamper the market's growth in the coming years, especially when parental approval is one of the major deciding factors in the kids' food and beverage market. The growing government actions due to these concerns are expected to hamper the market growth further. For instance, The South Korean Ministry of Food and Drug Safety has recently decided to expand its Food Sanitation Act to the food products purchased online from foreign contractors to check deteriorating public health.
Impact of COVID-19 Pandemic on the Kids Food and Beverages Market:
Several deciding factors played a significant role in determining the course of action of the kids’ food and beverage market in the coronavirus pandemic. While the disease spreading initially raised some concerns for the market growth, especially with the announcement of lockdowns, curfews, social distancing, which therefore impacted the labor supply, and distortion of supply and export chains, the market witnessed panic buying and a surge in demand due to the fears of stricter regulations. The easy availability in the online and offline stores, along with the low prices of the products, induced higher buying among the people during the pandemic. Besides that, the pandemic gave a new opportunity to the companies to promote nutritional brands associated with better immunity, etc.
|Market size value in 2020||US$104.501 billion|
|Market size value in 2027||US$147.383 billion|
|Growth Rate||CAGR of 5.03% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Product Type, Age Group, Distribution Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||The Simply Good Foods Company, Britvic PLC., General Mills Inc., Nestlé, Kellogg family of companies, The Kraft Heinz Company, McKee Foods, PepsiCo Inc., Vitaco, KRISPY KERNELS Foods|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global kid's food and beverages market?
A1. Kids Food And Beverages Market was valued at US$104.501 billion in 2020.
Q2. What will be the kid's food and beverages market size by 2027?
A2. The kid's food and beverages market is projected to reach a total market size of US$147.383 billion by 2027.
Q3. What are the growth prospects for the kid's food and beverages market?
A3. The global kid's food and beverages market is projected to grow at a CAGR of 5.03% during the forecast period.
Q4. What factors are anticipated to drive the kid's food and beverages market growth?
A4. Kid's food and beverages are easily available in almost every region and every store, the deep penetration of the internet has powered the kid's food and beverage market growth.
Q5. How are the global kid's food and beverages market segmented?
A5. The global kid's food and beverages market has been segmented by product type, age group, distribution channel, and geography.
The Kellogg Company
The Simply Good Foods Company
General Mills Inc.
The Kraft Heinz Company
Britannia Industries Limited
The Coca-Cola Company
The Hershey Company
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