Insights

Even as births decline, the kids' food market is expanding in the age of the “ten-pocket” economy, in which an entire family opens its wallet for one child. In this report, Samjong KPMG analyzes the kids' food market for infants and children aged 0–12, where products are differentiated by nutritional content, format, and packaging. The market encompasses foods for special dietary uses such as infant formula and baby food, as well as processed foods including milk, children's ready meals, health supplements, and snacks. Korea's kids' food market is expected to reach USD 583.4 million in 2026, up 14.4% from 2021. Supported by growth in baby food and infant snack categories, it is projected to expand at a CAGR of 4.3% from 2026 and reach USD 689.7 million by 2030.

Four changes in the operating environment are driving the market. Amid low birth rates, spending is concentrating on “gold kids,” expanding the ten-pocket family economy beyond parents and both sets of grandparents to aunts, uncles, and family acquaintances, while the average amount spent per child rises sharply. Rapid growth in dual-income households is increasing demand for children's home meal replacements that save time while meeting nutritional needs. More parents are becoming “checksumers” who scrutinize ingredient transparency and safety, and functional ingredients such as DHA, colostrum, and probiotics, together with strategic marketing alliances involving popular children's IP, have emerged as important drivers of purchase conversion. Distribution is being reorganized around D2C subscriptions, online platforms, and communities, while regulation is also evolving through measures including tighter ongoing oversight under the Special Act on Safety Management of Children's Dietary Lifestyle.

Five forces are reshaping the Korean business landscape. The report identifies five major trends in Korea's kids' food market: ① infant formula companies seeking new growth engines to offset low-birth-rate risk; ② the baby food market consolidating around specialist brands; ③ sustained, healthy demand for children's health supplements; ④ the rise of specialist kids' food brands focused on children's ready meals; and ⑤ premiumization of infant and toddler snacks through enhanced nutrition and the integration of IP. It also examines the global kids' food markets in the United States, Europe, and Japan and outlines response strategies for Korean companies.

Implications for M&A. First, for major infant formula and dairy companies exposed to Korea's low birth rate, specialist brands in baby food, ready meals, and health supplements are likely to become priority bolt-on acquisition targets for category expansion. Second, premiumization driven by the ten-pocket economy and proven brand loyalty may support valuation premiums for specialist kids' food companies, making the sector increasingly attractive to financial investors seeking consumer opportunities. Third, expansion into overseas kids' food markets, including Asia, is likely to catalyze cross-border M&A and acquisitions of export channels that leverage confidence in K-food.