Private Label Opportunities — The private-label food business has grown rapidly in the past decade, as grocers have found private-label products very profitable. Private labels have benefited by going upscale with gourmet offerings, blurring the traditional distinction between private-label and branded products. For some products, the price gap between branded and private-label goods is also shrinking, as branded products struggle to compete with more competitively priced private-label products. Some manufacturers have capitalized on this trend by making both branded and private-label goods, sometimes in the same plants. *Hoovers

Focus on Food - In 2012, parents spent $6.5 billion on baby food. The market is expected to grow 22% through 2017 to $8 billion. *Mintel The trend towards organic food for adults is just as important for the baby food industry. In 2013, U.S. consumers spent $613 million on organic baby food and $68 million on organic milk formula, up from $453 million and $62 million, respectively, in 2008. *Euromonitor. Almost half of new launches from 2007-2012 touted the organic claim and sales in natural supermarket channels saw a 63% increase during 2011–2013. Organic was a common theme of companies targeted for acquisition. *Mintel

E-Commerce - New parents are increasingly shopping online, making the online baby-products business one of the most successful segments in the retail landscape. *IBISWorld Online sales of baby products grew at an annual rate of 14.5% from 2008 to 2013, to $5.6 billion. Diapers account for 41% of all online baby-related purchases. *MarketWatch It’s estimated that by 2018 there will be more than 6,000 companies looking to sell products via e-tail. *Inc.com

New Packaging — New food packaging often focuses on convenience and eco-friendly designs. Manufacturers also sell pre-measured meal kits with the necessary ingredients and seasonings. Resealable and single-serving packages have also become more common and can appeal to many busy parents. *Hoovers In some cases, these pouches (which typically contain a fruit blend) allow the child to feed himself. Also growing in popularity are kits allowing parents to make their own baby food at home. *Inc.com

Increased Spending and Duration - Possible growth drivers for this market increase can be attributed to the fact that baby care products are used for longer periods by the infants as well as the fact that parents want the best available products for their baby, therefore disregarding the cost of certain products. *Statista

“Mommy Blogs” - Social media has vastly expanded the ways that new parents can share with one another. Influential so-called mommy bloggers have expanded beyond blogs to Pinterest, Facebook and Instagram. Companies, meanwhile, know the products they give these bloggers to review will be posted and pictured in multiple forums. *Marketwatch

China – As of November, 2013, China announced the decision to relax the one-child policy. Under the new policy aimed at addressing China’s aging population, families can now have up to two children. Coupled with continued growth and higher standards of living, China remains fertile for growth across all of the major baby industry products. *The Guardian

Safety First – One of the strongest segments of the baby industry include products that promote safety and care. Two of the most primal concerns of any parent.