Baby Food - Iceland

Iceland

Revenue in the Baby Food market amounts to €6.94m in 2024. The market is expected to grow annually by 5.20% (CAGR 2024-2029).
In global comparison, most revenue is generated in China (€18,540m in 2024).
In relation to total population figures, per person revenues of €18.37 are generated in 2024.
In the Baby Food market, volume is expected to amount to 519.30k kg by 2029. The Baby Food market is expected to show a volume growth of 1.9% in 2025.
The average volume per person in the Baby Food market is expected to amount to 1.2kg in 2024.

Key regions: Canada, United Kingdom, Japan, United States, Spain

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Baby Food market in Iceland is experiencing slow growth due to various factors, including the declining birth rate and the increasing popularity of homemade baby food. The sub-markets of Baby Milk & Infant Formula, Baby Cereals & Other Dried Baby Food, Prepared Baby Food, and Baby Snacks & Others are all impacted by these factors. Additionally, the high cost of imported baby food and the limited variety of local options also contribute to the market's minimal growth rate. However, the growing concerns about nutrition and the convenience of prepared baby food are expected to drive future growth in the market.

Customer preferences: As health and wellness continue to be a top priority for Icelandic consumers, there has been a noticeable increase in demand for organic and all-natural baby food options. This trend is driven by a growing awareness of the benefits of clean and sustainable food choices, as well as a desire to support local and environmentally friendly products. Additionally, with a rise in dual-income households and busy lifestyles, there has been a shift towards convenient and on-the-go baby food solutions, such as pouches and single-serve containers. This reflects a larger trend towards convenience and time-saving products in the overall food market in Iceland.

Trends in the market: In Iceland, the Baby Food Market is experiencing a shift towards organic and natural options, with consumers becoming more health-conscious and concerned about the ingredients in their baby's food. This trend is expected to continue, with a growing demand for transparency and clean-label products. Industry players are responding by introducing new organic and locally sourced baby food options. This trend also presents opportunities for collaboration with local farmers and suppliers. Additionally, there is a rise in online purchasing of baby food, driven by convenience and safety concerns amid the COVID-19 pandemic. This has led to the emergence of new e-commerce platforms and partnerships between retailers and manufacturers to meet the demand. These trends have significant implications for stakeholders, as they must adapt their strategies to cater to the changing consumer preferences and leverage digital channels to reach a wider audience.

Local special circumstances: In Iceland, the Baby Food market is heavily influenced by the country's unique geographical and cultural factors. Due to its remote location and harsh climate, Iceland relies heavily on imported goods, including baby food. This has led to a limited selection of locally produced baby food options. Additionally, Icelanders have a strong preference for organic and natural products, which has resulted in a growing demand for organic baby food. Furthermore, strict regulations on food production and labeling have also impacted the market, with a focus on providing high-quality and safe products for the country's small population.

Underlying macroeconomic factors: The performance of the Baby Food Market within The Food market market in Iceland is largely impacted by macroeconomic factors such as the country's economic health, government fiscal policies, and global economic trends. Iceland's stable economy and strong government support for the food industry have contributed to the growth of the Baby Food Market. However, fluctuations in global economic conditions and changes in consumer spending patterns can also impact the market's performance. Additionally, demographic trends such as a declining birth rate and an aging population can also influence the demand for baby food products in Iceland.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.