Baby food is any soft and easily consumable products that are suitable for baby health other than breastmilk or infant formula. The special product is manufactured for babies aged between four months to two years’ old. The food is supplied in various flavors and varieties. Though babies lack developed muscles to chew hard food, so it is necessary that baby food manufactured must be in the form of liquid, paste or easily chewable. Care should be taken that to prepare soft food, it gets not affected by choking hazard, which are undercooked vegetables or food having bones. The types of baby food are Cereals, Vegetables, Meat, Sweet and salty food, etc.
Parents are more concerned with the quality of food offered by the companies, whether it is good for the health of their children or not. Thus, the more focus and value is given to the companies dealing in organic food. Companies are also focusing to offer natural alternatives available to manufacture baby products which are healthier than using scientific factors of manufacturing. The food industry has the potential and provides opportunities to the small business to start at the small level with own savings of an entrepreneur and expand the scope, once it gets developed a repeat client or customer base. To start a new business, an entrepreneur has to follow some steps which are as follows:
- Research the local market, in which a business wants to deal.
- The management team must contact the health department of the country to obtain a food handling or manufacturing permit and follow the rules and regulations in day to day operations of the company.
- Determine the vision of the company, develop the logo and brand of the company, which will differentiate the company from its competitors.
- After finished with the company establishment procedures, a firm should prepare recipes of the food to be supplied. The recipe designed must be free form preservatives, sugars, salt, fillers or any scientific content, which is harmful to the health of the baby. To ensure a high demand for the products, the recipes designed must be unique and healthy.
- A business company has to acquire the licensed space, where the staff can prepare food and package it. Food manufacturing companies are prohibited to use any home or unlicensed space for commercial use.
- The packaging material to be used to pack the food manufactured must be degradable and all the contents are required to be labeled on the pack.
- The company is required to conduct nutritional analysis of the product offered by the company and compare it with other branded products.
Macro factors that affect the baby product business are as follows:
- Political factors are related to governmental rules and provisions related to the food industry. The governmental policies are more organic and even various programs are conducted to create awareness of consumers to buy healthy or prefer organic food.
- Economic factors that affect the food industry are inflation rate, taxation slabs, import or export policies or cost provided by the government of a country. The finance available to the company also determines the performance of a company, processes to be followed and material used. The food chain and branding of the company get affected with the economic factors.
- Social factors of the population consuming baby products also affects the operations and performance of the company. Age of the child, taste, and preference for food, disposable income of parents of the child and their awareness related to baby food affects the demand and supply of the products offered by the company.
Therefore, while starting a new business to manufacture baby products, a business owner has to conduct the research and consider all the related factors to design the most viable business model