Hectic work schedules of dual-income households and the increasing participation of women in the workforce across the Asia-Pacific (APAC) is reshaping consumer behaviour towards packaged baby food, according to data and analytics company, GlobalData’s, latest report.
The report found rising per capita incomes and the need for convenience are driving increased demand for baby formula, ready-to-eat finger foods, and other baby care products in key APAC markets.
GlobalData Consumer and Retail commercial director, APAC and ME, Deepak Nautiyal, said busier lives are compelling parents 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,” Nautiyal said
GlobalData lead consumer analyst, Mohammed Masiuddin Shajie, said World Bank statistics showed an increase in the female labour force as a percentage of the total labour force in several APAC countries.
“According to the World Bank, in South Korea, female labour force grew from 42.1 per cent in 2018 to 43.5 per cent in 2023. In Japan it grew from 44.1 per cent in 2018 to 45.1 per cent in 2023. Most other countries such as Singapore and Malaysia also witnessed an increase in female labour force during the last five years,” Shajie said.
Nautiyal said, “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.
Shajie added, “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.”
A consumer survey by GlobalData of 6,506 people in Asia and Australia earlier this year found 13 per cent had switched to cheaper alternatives within the same brand, while 18 per cent said they were opting for more affordable brands to reduce spending on baby care and childcare products. And 13 per cent mentioned they were turning to store-brand products to save money on these items.
“To remain competitive amidst economic pressures, manufacturers must adapt to changing consumer preferences by offering value-driven products that cater to evolving price sensitivities,” Nautiyal said.
