Infant Formula Market Revenue To propels USD 74.68 Billion In 2023

Published Date : 15 May 2023

The global infant formula market revenue is propelling at USD 74.68 billion in 2023 and is expected to attain around USD 174.66 billion by 2032, growing at a remarkable CAGR of 9.9% between 2023 and 2032.

For infants between the ages of four months and two years, baby food is a soft mixture of fruits, vegetables, and grains. Infant formula, on the other hand, is produced with newborns under 12 months of age in mind. Due to the availability of key nutrients that are crucial to the development of children, it is regarded as the optimal alternative to breast milk. Baby food and infant formula serve as the main sources of nourishment for infants because they lack the teeth and muscles necessary for adequate chewing.

Due to their convenience and superior nutrition, packaged foods have become more and more popular among parents over time. The demand for easy nourishment has led an increasing number of working moms worldwide to push infant food manufacturers to release nutrient-rich supplements. The adoption of environmentally friendly packaging practices by businesses has improved the growth prospects of important firms.

Market Growth:

A significant increase in demand for organic baby food among children under the age of five around the world is expected to boost the market for infant formula. The demand for infant formula has grown as a result of an increase in incidences of malnutrition among children and babies. The necessity for simple feeding has prompted infant food manufacturers to create nutrient-rich supplements due to the increasing number of working moms around the world. Additionally, businesses are using eco-friendly packaging practices, which has improved the growth prospects for major firms. Transparency and clean label products are preferred by consumers, particularly Gen-Z and young parents. Over the projected period, manufacturers are anticipated to benefit financially from shifting customer preferences.

Regional Analysis:

In 2021, the Asia-Pacific region accounted for the biggest revenue share. The rising birth rates in nations like China and India are a major factor in the APAC market's growing demand. In addition, there is an increasing reliance on imports and domestic industry in the face of rising premiums, quality, and growth demands. The biggest consumer of baby and infant food items worldwide, China, is present in the industry, supporting its expansion. Demand for infant formula in North America is anticipated to increase steadily throughout the course of the projection period. Additionally, the majority of infant formula sales in this region are anticipated to come from the US. Large corporations have boosted production in response to the rising need for organic infant formula, helping to meet the rising demand across the nation. The expansion in this area is being attributed to the rise in the number of women joining the workforce as well as the desire for wholesome baby food.

Infant Formula Market Report Scope:

Report Coverage Details
Market Revenue in 2023 USD 74.68 Billion
Projected Forecast Revenue in 2032 USD 174.66 Billion
Growth Rate from 2023 to 2032 CAGR of 9.9%
Largest Market Asia-Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics:

Market Drivers:

Market companies are being encouraged to produce products that are organic and free of animal products due to a growing understanding of variables that affect young children's health and the significance of micronutrients in boosting growth.

With growing interest in the various components used in these products, consumers are becoming more selective in the infant formula they choose to buy. Leading market participants are concentrating on the introduction of organic components and hypoallergenic baby food in order to keep up with the surge in parents' awareness when choosing an infant formula. These goods are only made using organic and plant-based ingredients.

Market Restraints:

The growing number of lactation cases, the absence of assistance and qualified lactation experts, medicine, and unfriendly work policies for working mothers are all elements that may raise the potential opportunities of the worldwide infant formula market. Despite the growth prospects, a few elements that may impede future development include strict rules and regulations governing the introduction of new items, challenging registration procedures for such products, and lower acceptability of expensive products in emerging nations. The COVID-19 pandemic did, however, have a brief detrimental effect on the export and import of the nutrition sector.

Market Opportunities:

Increased consumer awareness of the health advantages of using organic infant formula has resulted in a desire for organic baby drinks. Thus, it is projected that baby infant formula free of additives like added sugar, sodium, and preservatives will gain popularity in the U.S. and thereby contribute to the market's expansion. Thoughts about food safety and a fall in the birth rate are impeding the growth of the infant formula business in the United States.

Type Insights:

Every infant formula is made with the intention of resembling breast milk, albeit individual components may differ. Furthermore, every baby is unique, and this is particularly true when it comes to feeding. Something one of your children may have gladly gulped down may be completely rejected or inappropriate for them totally by their sibling. There are several fundamental formula kinds, such as:

These formulae are created from cow's milk that has been processed to make it easier for newborns to digest and are suitable for the majority of babies. The majority of cow's milk formulae also include extra iron. Examples include Earth's Best Organic, Similac Advance, Gerber Good Start, Enfamil Enspire, and Honest Co. Organic Premium.

Gentle: These formulas are better suited for babies who suffer gas or fussiness since they include less lactose than standard milk-based formulas. Examples are Gerber Good Start Gentle Plus and Enfamil Gentlease.

These formulas are still based on milk but are lactose-free, making them safe for infants who may be lactose intolerant. Similac Sensitive, for instance.

Distribution Channel Insights:

The supermarkets and hypermarkets segment accounted for the highest revenue share of 45% in 2022, depending on the distribution channel. Supermarkets and hypermarkets have seen a sharp increase in demand in the market. Infant formula sales have increased as a result of the baby-specific sections, product bundles, programs, deals, and simple one-stop shopping for customers, which has also helped to fuel the market's expansion in terms of value sales. However, during the projected period, the specialty store segment is anticipated to increase at the quickest rate. This is so that customers can conveniently shop at specialty shops while also having access to a large variety of baby alternatives and other baby care products on one platform.

Recent Development:

  • The launch of a new premium lipid ingredient for baby formula, which promises to be a duplicate of mother's milk in terms of flavor, nutrition, and natural balance, was announced by fats and oils expert Bunge Loders Croklaan (BLC) in January 2021.
  • Colostrupedis, a new animal-free newborn formula from 108LABS, was introduced in March 2021. It is made with broadly-neutralizing human secretory antibodies and cell-cultured human milk molecules obtained from human mammary cell agriculture.

Major Key Players:

  • Nestle S.A.
  • Danone SA
  • Abbott
  • Yili Group
  • The Kraft Heinz Company
  • Bellamy's Organic
  • Perrigo Company plc
  • Reckitt Benckiser Group plc.
  • Royal FrieslandCampina N.V.
  • Arla Foods amba

Market Segmentation:

By Type

  • Infant Milk
  • Follow-on-Milk
  • Others

By Product

  • Infant Formula
    • First Infant Formula
    • Follow-on Formula
    • Growing-up Formula
    • Specialty Baby Formula
  • Baby Food
    • Prepared Food
    • Dried Food
    • Other Baby Foods

By Distribution Channel

  • Hypermarkets/Supermarkets
  • Pharmacy/Medical Stores
  • Specialty Stores
  • Others

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