October 8, 2024
(press release)
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The increasing participation of women in the workforce across the Asia-Pacific (APAC) region, coupled with hectic work schedules of dual-income households, is reshaping consumer behavior towards packaged baby food. Rising per capita incomes and the need for convenience are driving greater demand for baby formula, ready-to-eat finger foods, and other baby care products in key APAC markets, says GlobalData, a leading data and analytics company. Mohammed Masiuddin Shajie, Lead Consumer Analyst at GlobalData, comments: “Most countries in the APAC region have witnessed a steady increase in female labor force during the past few years. According to the World Bank, female labor force as a percentage of the total labor force grew from 42.1% in 2018 to 43.5% in 2023, in South Korea. In Japan it grew from 44.1% in 2018 to 45.1% in 2023. Most other countries such as Singapore and Malaysia also witnessed an increase in female labor force during the last five years.” Deepak Nautiyal, Consumer and Retail Commercial Director, APAC and ME at GlobalData, notes: “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 is supporting this consumer shift.” Shajie adds: “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 GlobalData 2024 Q2 consumer survey*, 13% of respondents reported switching to cheaper alternatives within the same brand, while 18% indicated they are opting for other more affordable brands to reduce spending on baby care and childcare products. Additionally, 13% mentioned they are turning to store-brand products to save money on these items. Nautiyal concludes: “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.” *GlobalData 2024 Q2 Consumer Survey – Asia & Australasia, with 6,506 respondents
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