Data analytics and consulting company GlobalData has forecast a compound annual growth rate (CAGR) of 3% a year to hit RM3.1 billion by 2028.

This is despite the fact that the fertility rate has been falling and the downtrend is likely to continue. The number of births per child-bearing woman has fallen from 2.0 in 2012 to 1.7 in 2022.

Infant formula is leading the upward trend, followed by cereals, wet meals and finger snacks, all of which have seen rising demand in the past year.

The GlobalData numbers also show a steady rise in the per capita expenditure (PCE) on baby food. The PCE has risen from RM1,559 in 2017 to RM2,070 in 2022.

In comparison, the average PCE for the Asia-Pacific in 2022 was only RM766 and the global average was RM787.

Boom led by gullible parents

Local baby food manufacturer and distributor Baebis World attributes the boom in the baby food market to rising income and standard of living.

Not only are people buying higher quality, and therefore more expensive, food for their babies, but they are also purchasing more of it. In fact, there has been a double digit growth year on year.

Given the trend, the PCE on baby food is expected to hit RM2,641 by 2027.

The higher standard of living has certainly inflated the baby food market but nutritionists are not convinced that the pricier foods are more beneficial.

There is a demand for an assortment of deluxe baby food products and this has helped to push prices up.

Some baby food, especially the imported and organic varieties, are fortified with selected nutrients such as DHA or probiotics, giving the impression that they are more nutritious than breast milk or home-cooked baby food, according to nutritionist Oo Yi Qian.

“Some people see these (food products) as a quick and good solution,” she told FMT Business.

The data lends support to this assumption. A total of 32% of Malaysian respondents to the GlobalData survey related high-quality products or ingredients with “good value for money” when buying babycare and childcare products.

Additionally, 37% of Malaysian respondents in GlobalData’s Q4 2022 consumer survey stated that their spending on infant formula was “quite high” or “very high”.

Paediatrician and paediatric cardiologist at KPJ Selangor Specialist Hospital Dr Zulkifli Ismail blames it on effective advertising and parents’ gullibility.

“The average Malaysian is not taught to critically evaluate advertising messages, read food labels, and appreciate natural products and foods,” he said.

Big fat babies

As society becomes more affluent, babies are being fed more food. But more often than not, babies and children are eating processed foods, leading to obesity, Zulkifli claimed.

“The 2022 National Health and Morbidity Survey showed that 6% of children were overweight. An earlier United Nations International Children’s Emergency Fund (Unicef) report in 2019 indicated 12.7% of Malaysian children aged five to 19 were obese,” he said.

While there is no data directly linking the higher baby food consumption with childhood obesity, Zulkilfi believes that the two are correlated.

Oo believes many babies, especially those on infant formula, are often fed more than they need.

She said that while overfeeding does not pose an obvious or major health issue, most research shows that overfed babies have an increased risk of obesity in childhood and adulthood.

Dietician Tan Ye Ting said that when a baby starts having solid food, the spoon feeding approach can easily turn into force feeding, a common mistake in Malaysia.

“This causes poor self-regulation of food consumption later in life, again leading to overeating, obesity and malnutrition,” she told FMT Business.

The alternative

Medical experts agree that the best way forward is breastfeeding. Without a doubt, it is also the best option for parents on a tight budget.

However, Oo said, the current breastfeeding rate is only about 40% and still falling.

Zulkifli said that on top of breastfeeding, all new parents should also be taught “appropriate complementary feeding”.

This prevents malnutrition, under-nutrition and over-nutrition, he said.

He also cautioned against feeding babies processed canned foods, pointing out that they contain preservatives and some have added sugar.

And while Malaysian parents learn the benefits of breastfeeding and become more well-informed consumers, it is full steam ahead for the baby food market, with players like Baebis World seeing strong growth ahead.