Global Infant Formula Market Outlook Report - Market Size, Share Analysis and Forecast (2024-2032)

Global Infant Formula Market Size

The global infant formula market attained a value of approximately USD 39.23 billion in 2023. The market is further expected to grow in the forecast period of 2024-2032 at a CAGR of 8.40%, reaching a value of around USD 81.08 billion by 2032.

The increasing prevalence of challenges with breastfeeding and increasing awareness regarding the advantages and convenience of infant formula are driving the infant formula market growth. The increasing sale of premium packaged infant formula products for newborns, induced by the growing consciousness about the health of infants and their specific dietary requirements is further increasing the demand for infant formula. Specialised infant formulas are designed to meet the dietary requirements of infants and include the necessary vitamins and minerals crucial for infant development. These formulations are easy to digest and replicate the texture, taste, and nutritional profile of traditional breast milk, due to which they are being widely adopted by parents worldwide.

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Infant Formula Market Growth

Rising Demand for Plant-Based Alternatives to Boost Market Growth

There is a rising demand for plant-based, vegetarian and flexitarian infant alternatives, replacing traditional dairy milk. In line with this, the growing research and development activities by the major food companies aimed towards producing rich plant-based infant formula products are boosting the size of the infant formula market.

Meanwhile, there is also an increasing demand for organic infant formula, as they contain no harmful ingredients or chemicals such as hormones, antibiotics, and heavy metals, among others. The increasing awareness pertaining to organic infant products is enhancing the organic infant formula market size. Changing consumer preferences from using artificial ingredients towards natural infant formulations with minimal ingredients is likely to expand the market for organic infant formula in the coming years and boost infant formula market revenue.

Infant Formula Market Trends

There has been a surge in infant formulas that focus on gut health issues. Several nutrition brands are investing in research and development for infant products that can be easily digested and do not contain any ingredient that may cause a harmful effect on the infant’s digestion. Furthermore, the infant formula manufacturers are focused on developing organic baby drinks which does not cause any environmental concern and are also gentle on the infant’s stomach, preventing the risk of side effects or allergies that may happen due to additives.

Recent Developments

China approved around 600 infant formulas that are based on GuoBiao as well as national standards in 2023. As per these new standards, major and small brands are required to reformulate the presence of carbohydrates, proteins, and the number of calories in the products to ensure that they are suitable for the consumption of babies. The implementation of these new standards also led several smaller infant formula market players to exist the market as they were not able to meet the specific requirements.

Industry Outlook

As per the infant formula industry statistics, the increasing number of women in workforces on a global scale is pushing the adoption of infant formula to feed babies. Infant formulas provide ample nutrition along with added convenience to the mothers. According to Our World In Data, Sub-Saharan Africa leads with the highest rate at 60.5% female labour force participation in 2022, followed by East Asia and the Pacific at 58.7%. North America shows a participation rate of 56.5%, while Europe and Central Asia come in at 51.6%. Latin America and the Caribbean have a rate of 50.9%, just above the global average of 47.8%. South Asia has a participation rate of 28.1%, and the Middle East and North Africa at 18.7%.

The increasing internet penetration across the globe is significantly contributing to increased sales of infant formula through online platforms. According to the United Nations, the global average for internet usage stands at 66.2%. Northern Europe leads with the highest internet adoption rate at 97.6%, followed closely by Northern America at 96.8%. Western Europe and Southern Europe also show high adoption rates at 94.5% and 90.2%, respectively which fuels infant formula industry revenue. Eastern Europe reports an 88.4% internet adoption rate.

The presence of significant fertility rates in countries such as China is supporting market growth. According to United Nations - World Population Prospects, the fertility rate in China climbed to 1.705 in 2023 from 1.690 in 2018. From 2019 through 2023, the growth rate consistently held at 0.180% annually, fuelling the growth of the infant formula industry. The insufficient breastfeeding rates leading to early reliance on substitutes for breast milk and changing consumer lifestyles are further contributing to the growth of the market.

The growth in organic food demand is influenced by both sustainability and health concerns. Around 47% of global consumers choose organic foods and beverages due to environmental reasons, while 58% opt for these products because they believe they enhance their health. As per the infant formula industry analysis, these trends likely influence parents to prefer organic infant formulas for their children as well. Another trend in infant nutrition is the rising popularity of growing-up milks, which are increasingly capturing a larger portion of market growth and new product introductions. Also referred to as toddler milks, these supplementary formulas are tailored for children aged one to three years.

Infant Formula Market Opportunities and Challenges

Infant Formula Offers Balanced Nutrition Similar to Breast Milk, Provides a Convenient Alternative For Parents Unable to Breastfeed

• Infant formula is designed to provide essential nutrients that mimic the nutritional composition of breast milk, ensuring infants receive balanced nutrition.

• Offers a convenient alternative for parents who cannot breastfeed due to medical, personal, or lifestyle reasons, increasing the infant formula market value.

• Availability of various types of formulas, including specialized options for infants with allergies, lactose intolerance, or other dietary needs.

• Established brands have a significant market presence and trust among consumers, which supports consistent sales.

Infant Formula is Costly, Faces Contamination and Health Concerns, Stringent Regulations, And is Impacted by Strong Global Breastfeeding Advocacy.

• Infant formula can be expensive, making it less accessible to low-income families.

• Some parents and healthcare professionals express concerns about the potential for contamination, over-reliance, and long-term health impacts compared to breastfeeding which can negatively impact the infant formula demand forecast.

• The industry is subject to stringent regulations and quality standards, which can lead to costly compliance and potential recalls if standards are not met.

• Strong global advocacy for breastfeeding as the optimal nutrition for infants can negatively impact formula sales.

Rising Demand in Emerging Economies, New Breast Milk-Replicating Formulas, and Expanding Online Retail Boost the Infant Formula Market Share.

• Growing demand in emerging economies due to rising disposable incomes and increasing awareness about infant nutrition.

• Development of new formulas that better replicate breast milk, including organic, non-GMO, and additive-free options.

• Expanding online retail platforms provide new channels for reaching consumers and increasing market penetration, aiding the infant formula demand growth.

• Partnerships with healthcare providers and hospitals to recommend or distribute products can enhance credibility and market reach.

Regulatory Changes, Intense Competition, and Supply Chain Disruptions Can Negatively Affect the Profitability and Operations of Players in the Infant Formula Market.

• Changes in regulations and standards can impact manufacturing processes and increase operational costs.

• Intense competition from established brands and new entrants can lead to price wars and reduced profit margins.

• As per the infant formula market dynamics and trends, disruptions in the supply chain, such as those caused by pandemics or geopolitical issues, can impact production and distribution.

What Major Factors are Influencing the Competitive Landscape of the Global Infant Formula Market?

• Ensuring the highest standards of quality and safety in production to build and maintain consumer trust.

• Compliance with international regulations and standards to avoid recalls and ensure product integrity.

• Developing formulas that closely mimic the nutritional profile of breast milk can aid infant formula demand.

• Incorporating essential nutrients, probiotics, prebiotics, and other health-enhancing ingredients to support infant development.

• Strong brand presence and a history of reliability are crucial in gaining and retaining consumer trust.

• Effective branding and marketing strategies to position the brand as a leader in infant nutrition.

• Offering a diverse range of products, including specialized formulas for allergies, lactose intolerance, and other dietary needs.

• Continuous innovation to improve product formulations and introduce new, health-focused variants such as organic and non-GMO options boosts the growth of the infant formula market.

• Competitive pricing to attract a wide range of consumers, from budget-conscious families to those seeking premium options.

• Implementing promotional strategies and discounts to increase market share.

Key Players in the Global Infant Formula Market and their Strategic Initiatives:

Nestle SA:

• Focus on developing advanced formulas that include probiotics, prebiotics, and other essential nutrients to mimic breast milk.

• Commitment to sustainable sourcing and reducing environmental impact through eco-friendly packaging and production practices offers lucrative infant formula market opportunities.

Danone S.A

• Heavy investment in R&D to develop new formulas that cater to specific dietary needs and improve overall infant health.

• Partnering with healthcare professionals to endorse and recommend products.

• Emphasis on sustainable farming practices and reducing carbon footprint is an emerging trend in infant formula market.

Abbott Healthcare Private Limited

• Utilizing advanced manufacturing processes to ensure product safety and quality.

• Running campaigns to educate parents on the benefits of infant formula.

Arla Foods amba:

• Arla focuses on sustainability and high-quality dairy ingredients, catering to the health-conscious segment of the infant formula market.

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Global Infant Formula Market Segmentation

On the basis of type, the market is segmented into:

• Infant Milk

• Follow-on-Milk

• Specialty Baby Milk

• Growing-up Milk

Based on ingredient, the market is divided into:

• Carbohydrate

• Fat

• Protein

• Minerals

• Vitamins

• Others

By distribution channel, the market is classified into:

• Supermarkets and Hypermarkets

• Pharmacies/Medical Stores

• Specialty Stores

• Online

• Others

On the basis of region, the market is divided into:

• Europe

• Middle East and Africa

• Asia Pacific

• North America

• Latin America

Competitive Landscape

The report offers an extensive assessment of major players in the global market for infant formula, evaluating their capacity, and observing latest developments like plant turnarounds, capacity expansions, and mergers and acquisitions:

• Nestlé S.A

• Danone S.A

• Arla Foods amba

• Royal FrieslandCampina

• Reckitt Benckiser Group plc.

• Abbott Laboratories

• The Kraft Heinz Company

• Bellamy’s Australia Limited

• Perrigo Company plc

• Synutra International, Inc.

• Others

The EMR report offers deep insights into the market through Porter’s Five Forces model and SWOT analysis.

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Global Infant Formula Market Regional Analysis

Based on region, Asia Pacific accounts for a significant share of the market for infant formula, with the China infant formula market share witnessing expansion due to the increasing population and rising infant health consciousness among new parents.

Meanwhile, the North America market for infant formula is anticipated to witness a steady growth in the forecast period, due to the increasing demand from the United States. Although the market for infant formula in the United States has witnessed disruptions due to supply shortages, the market is likely to recover in the forecast period, owing to the efforts being made to bolster the supply chain for various types of infant formulas.

Key Highlights of the Report

Infant Formula Market Report Snapshots

Infant Formula Market Size

Infant Formula Market Growth

Infant Formula Market Share

Infant Formula Companies