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  Consumers Go Ga-Ga Over Organic   Consumers Go Ga-Ga Over Organic  Barry Silverstein  
         
 
Consumers Go Ga-Ga Over Organic According to a 2006 study by Datamonitor/RNCOS, the worldwide baby food market grew from about US$ 9.5 billion in 2003 to US$ 21 billion in 2005. The US, Europe, and Asia-Pacific regions together made up about 75 percent of the market, split fairly evenly, with the rest of the world accounting for the remaining 25 percent. Still, a 2006 report by Mintel says growth in the baby food market will essentially be flat through 2011 because a dramatic rise in birth rates is not anticipated.

Yet the organic baby food market segment is growing by leaps and bounds. AC Nielsen says there was a 60 percent increase in organic baby food sales from 2000 to 2005. Research firm RNCOS says sales of organic baby milk went up 271 percent from 2004 to 2005, and organic strained food increased 18 percent from 2004 to 2005.

According to 2006 data from Mintel, on average, organic baby foods cost roughly 69 percent more than conventional varieties. That factor doesn’t seem to depress sales, however. Over half of mothers surveyed by Mintel say a food being “all natural” is “very important” when they are choosing baby foods and drinks.

 
Organic baby food is in vogue because parents everywhere want healthy, safe food for their children, and they are willing to pay for it. Organic baby food manufacturers prominently mention the fact that their products are free of commercial pesticides, a significant concern with conventionally grown produce. A January 2006 analysis by Consumer Reports, a US organization, concluded: “For those wanting to limit their children's exposure to the pesticides, hormones, antibiotics, and other toxins found in some nonorganic products, organic baby food should be purchased as often as possible.”

So it’s no wonder that new organic baby food brands are being born every day. And many of them are literally home grown. Says Dana Bowen, writing in The New York Times: “These baby food start-ups, mostly the brainchildren of parents who searched in vain for alternatives to jarred food, address the way parents’ dietary concerns are magnified by a highchair. The new baby foods are all organic, and they are sold fresh or frozen, not in shelf-stable jars…” You can barely keep up with the new organic baby food brand introductions in North America. HappyBaby Food is typical of a brand conceived by mother-entrepreneurs. Launched on Mother’s Day in 2006 by working moms Shazi Visram and Jessica Rolph in New York City, HappyBaby planned to focus on the local area but outgrew its marketing plan almost immediately. The brand was so well-received that it was picked up by Whole Foods and Wild Oats, major distributors of organic products.

Shazi was a marketing consultant who helped small businesses launch their brands, while Jessica worked for a natural foods company, so the match was a good one to start an organic baby food business. They had the wisdom to align with pediatrician Robert Sears, M.D., author of four baby books, who helped them develop HappyBaby meals.

The cool thing about HappyBaby Food is it’s cool – or rather, cold. Each HappyBaby meal is fresh frozen and packaged in containers that look like ice cube trays. Moms just pop out a single serving as needed. HappyBaby launched with five combination packages that included six cubes of each variety so meals could be mixed and matched. HappyBaby Food recently introduced non-frozen “HappyBellies,” the only organic immunity boosting dry cereals with probiotics (potentially beneficial dietary supplements) on the market.

Brands such as Evie’s Organic Edibles, Mom Made Foods, Plum Organics, Taste Bud, and Yummy Spoonfuls in the US, and Bobo Baby in Canada, adhere to the fresh frozen model. Earth’s Best, Gerber Organics, and Healthy Times brands package their organics in conventional jars. Some brands, like Homemade Baby, offer organic meals that are sold in the fresh refrigerated section. Bohemian Baby and other boutique brands are essentially catering services, delivering fresh organic baby meals to the consumer’s door in limited geographic areas.

The European baby food market is toddling along as well, but the growth in organic baby foods is not as dramatic as in the US. The French are the world's largest consumers of baby foods, buying about 95 kilos of baby food per year, according to the US Department of Agriculture. They're followed by consumers in Germany.

 
Two companies are battling it out for European organic baby food market share: Germany’s HiPP and the UK’s Organix. HiPP, the European leader according to TNS, says it pioneered organic baby food. The Organix brand, “Goodies,” won the 2007/2008 Mother & Baby award for “Best Baby Food.” In Germany, Holle competes with HiPP. The UK has a rash of organic baby food brands, including Fresh Daisy, So Baby and Truuuly Scrumptious.

Asia is an emerging market in the organics category: UK researcher Organic Monitor says organic foods should reach about US$ 1 billion this year. Singapore alone is about a US$ 40 million market for organic foods. Asian organic baby food brands are not common just yet, but other companies distribute their brands to the region. HiPP, for example, is sold in Taiwan and Vietnam.

The rest of the world is beginning to see the organics phenomenon take hold. Organic baby food brands are starting to spring up in various regions: Organic Bubs in Australia, Healthy Sprouts and Sweet Pea in Canada, Babynat, Green Monkey and Stages in New Zealand, and Olli in South Africa are some examples.

It seems that wherever they reside, new parents have the same basic concerns about food safety and purity. Organics present these discriminating consumers with a reassuring alternative to traditional baby food brands. Parents will be receptive to new organic baby food brands—even those from start-up companies—if they have confidence the brands provide the best nutritional choice for their children. That’s why the organic baby food market is poised for continued growth worldwide. Manufacturers of organic baby food are optimistic that this specialized product category will thrive.    

[3-Mar-2008]

 
  
  

Barry Silverstein has been a frequent brandchannel contributor since 2007. He has thirty years of advertising and marketing experience and is currently a freelance writer and marketing consultant. He founded and ran his own direct marketing agency and held executive positions with Epsilon, a leading database marketing firm and Arnold, a major ad agency. Silverstein is the author of three marketing books, including the McGraw-Hill book, The Breakaway Brand, which he co-authored with Arnold CEO Fran Kelly.

     
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