Infant formula is also referred to as a baby formula that has a rich nutritional value such as carbohydrates, vitamins, proteins, fats, and minerals. This formula is prepared for infants for their overall development and provides important nutrients to the baby in the early phase of developments. Infant formula is suitable for children below 1 year of age.
Global infant formula market was valued at US$ 31,868.8 Million in 2021 in terms of revenue, exhibiting a CAGR of 10.6% during the forecast period (2022 to 2030).
Drivers
Increasing number of working women population is a prime factor driving the market growth of infant formula. Various women resume their jobs quickly after delivery and infant formula is ideal for these women as it is easy to prepare and consumes lesser time. Moreover, infant formula has various nutritional value hat are present in human breast milk, which is further augmenting their adoption across consumers.
A high birth rate across emerging economies is expected to foster the market growth of the infant formula. According to the Population Reference Bureau, the world population in 2021 was 7.9 billion and is estimated to increase to 9.7 billion by 2050. This would favor the market growth in the Forecast Period. Moreover, In May 2021, the three-child policy in China replacing the country's previous Two-child policy, which is further expected to augment the market growth over the forecast period.
The COVID-19 pandemic has led to disruptions in transportation, labor, and ingredients availability. There has also been a shortage of infant formulas due to supply chain challenges and recall of baby formula products over contamination issues, particularly in the U.S., which caused a hindrance to the steady business growth.
However, with the gradual lifting of restrictions and reduction of pandemic-induced constraints, the global infant formula industry may witness commendable growth over the years ahead.
Asia Pacific region dominated the global infant formula market in 2021, accounting for 48.70% share in terms of value, followed by North America and Europe, respectively.
Figure 1. Global Infant Formula Market Value Share (%), By Region, 2021
Market Restraints
Strict regulatory obstacles associated with the approval for production of infant formula and food is expected to restrict the market growth of infant formula. Moreover, growing prevalence of disgrace in the infant formula industry is expected to affect the market growth negatively.
Lack of awareness regarding the health benefits associated with the infant formula among consumers of emerging economies especially across rural areas is projected to hamper the market growth of infant formula.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 31,868.8 Mn |
| Historical Data for: | 2017 to 2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 10.6% | Forecast Period: | 2022 to 2030 |
| Geographies covered: |
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| Companies covered: |
Nestlé S.A., Groupe Danone, Abbott Nutrition, Mead Johnson Nutrition, The Kraft Heinz Company, Meiji Holdings Co. Ltd., Beingmate Baby & Child food Co. Ltd., Synutra International Inc., Pfizer Inc., and FrieslandCampina. N.V. |
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Market Opportunities
Growing demand for premium infant nutrition products is expected to provide potential opportunities to market of infant formula. For instance, in November 2019, Advanced Lipids, manufactures and markets innovative bio- active lipid ingredients, had launched two additions to its infant range of infant formula ingredients. The Infant Pro, offers sn-2 palmitate, while Infant MF is a blend contains milk fat
Growth in the online retail industry around the globe which enables easy purchasing of products at an affordable price with convenience is expected to bring new opportunities to market of infant formula. Working women highly preferred online shopping due to their busy and hectic lifestyle. Thus, growth in the online retail industry across emerging economies is expected to upsurge the market growth over the forecast period.
Figure 2. Global Infant Formula Market Value Share (%), By Product, 2021
On the basis of product type, starting milk formula dominated the global infant formula market in 2021 with around 48.0% of market share in terms of revenue, followed by follow-on milk formula and toddler’s milk formula, respectively.
Recent Developments
Competitive Section
Major players operating in the global infant formula market include Nestlé S.A., Groupe Danone, Abbott Nutrition, Mead Johnson Nutrition, The Kraft Heinz Company, Meiji Holdings Co. Ltd., Beingmate Baby & Child food Co. Ltd., Synutra International Inc., Pfizer Inc., and FrieslandCampina. N.V
Global infant formula market is growing at a substantial rate, owing to the rising working women population across the globe. In addition to this, growing demand for infant formula due to busy lifestyle and high birth rate across emerging economies is expected to foster the market growth of infant formula market during the forecast period. Infant formula is available in various product types such as starting milk formula, follow-on milk formula, toddler’s milk formula, and special milk formula.
Market Dynamics
Global infant formula market has witnessed significant growth in recent five years, owing to the changing consumer lifestyles which have led to a shift in food preferences. For instance, growing demand for processed and convenience foods is expected to fuel growth of the global infant formula market during the forecast period.
Rising demand for organic infant formula have increased the manufacturing among leading players, facilitating the increasing demand across the country. Rise in number of women participation in work force and need of high nutritional content in baby food is aiding the growth. For instance, in June 2021, ByHeart, a new infant formula U.S. based company announced the completion of its largest infant formula clinical trial and is on the track to become 4th fully integrated FDA-registered, U.S. based infant formula brand in the country.
Major players in the global infant formula market are increasing their investment on innovative product launches, research & development, and marketing & promotional activities to capitalize on emerging trends in various product types such as starting milk formula, follow-on milk formula, toddler’s milk formula, and special milk formula. This scenario is expected to fuel the market growth during the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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