According to a new report published by Transparency Market Research, the global baby food and pediatric nutrition market is estimated to be $38.1 billion in 2011 and expected to reach $41.5 billion in 2012, further reaching $63.7 billion at a CAGR of nearly 9% over the period 2012 to 2017.

Milk formula accounted for the largest share of packaged baby food in 2011 at 54% and also was the fastest growing segment at 12% CAGR during 2007-2011, according to the report titled “Baby Food & Pediatric Nutrition Market: Global Analysis and Forecast (2007-2017).” The baby cereals segment accounted for the largest share of the baby food and pediatric nutrition product market at nearly 45% in 2011.

Globally, as parents are increasingly becoming aware the nutritional requirement in their baby’s food, they are rapidly turning toward more products that enhance the development of their babies throughout the early development stage. Parents with time constraints and who are concerned about their baby’s adequate nutrition and overall development are more demanding and also seek clear and timely communication about baby food products.

While birth rates are declining in developed markets, new and emerging markets such as India, Brazil and Middle East and African countries have opened up growth gates for the baby food market. Enhanced participation of woman in work and a fast paced lifestyle has enhanced the adoption of packaged baby food in these regions. Moreover, high competition and growing challenges are also pushing parents to look for high nutritional food for their babies to support early stage growth.

Strong sales growth in the bottled baby food and baby snacks products categories has supported the Asia Pacific baby food and pediatric nutrition market (Australasia not included) growth during 2007-2011. The market grew from $8.7 billion in 2007 to reach $14.7 billion in 2011 with a CAGR of 14% during 2007-2011.The Chinese and Indonesian markets grew with CAGRs of 22% and 15% respectively during the same period and generated revenues of $7.1 billion and $2.1 billion respectively in 2011.