Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
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 the baby for their overall development and provides crucial nutrients to the baby in the early phase of developments. Infant formula is suitable for children below 1 year of age.
The global infant formula market is estimated to account for US$ 32,237.4 Mn in terms of value in 2019.
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 consume lesser time. Moreover, infant’s formula have various nutrients values that are present in human breast milk which is further augmenting their adoption across consumers.
A high birth rate across developing regions is expected to foster the market growth of the infant formula. According to the Population Reference Bureau, the world population in 2015 was 7.3 billion and is estimated to increase to 9.8 billion by 2050. This will favor the market growth in the near future. Moreover, the two-child policy in China since 1 January 2016 is further expected to augment the market growth over the forecast timeframe.
APEJ region dominated the global infant formula market in 2019, accounting for 48.7% share in terms of value, followed by North America and Western Europe, respectively.
Figure 1. Global Infant Formula Market, Revenue Share (%), By Region, 2019
Strict regulatory hurdle associated with the approval for production of infant’s formula and food is expected to restrict the market growth of infant formula. Moreover, the growing prevalence of scandals in the infant formula industry is again expected to affect the market growth negatively.
Lack of awareness regarding the health benefits associated with the infant formula among consumers of developing countries especially across rural areas is projected to hamper the market growth of infant’s formula.
Infant Formula Market Report Coverage
||Market Size in 2019:
||US$ 32,237.4 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 70,642.2 Mn
- North America: U.S., Canada
- Latin America: Brazil, Mexico, Rest of Latin America
- Western Europe: Germany, U.K., France, Italy, Spain, Nordic, BENELUX, Rest of Europe
- Eastern Europe: Russia, Poland, Rest of Europe
- APEJ: China, India, ASEAN, ANZ, Rest of APEJ
- Middle East & Africa: South Africa, GCC Countries, Rest of Middle East & Africa
- By Product Type: Starting Milk Formula, Follow-on Milk Formula, Toddler’s Milk Formula and Special Milk Formula
- By Distribution Channel: Specialty Outlets, Supermarkets, Online Stores, Pharmacy Stores and Others
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.
- Increasing number of working women population
- High birth rate across developing regions
|Restraints & Challenges:
- Strict regulatory hurdle associated with the approval for production of infant’s formula and food
Figure 2. Global Infant Formula Market – Opportunity Analysis
Growing demand for premium infant nutrition product is expected to provide potential opportunities to the market of infant formula. For instance, in November 2019, Advanced Lipids has launched two new additions to its infant range of infant formula ingredients. A new premium offering, Infant Pro, offers higher levels of sn-2 palmitate, while Infant MF is a special blend containing milk fat. Both new products will be unveiled at Food Ingredients Europe, 3-5 December in Paris.
Growth in the online retail industry around the globe which enable easy purchasing of product at an affordable rate with convenience is expected to bring new opportunities to the market of infant formula. Working women highly preferred online shopping due to their busy and hectic life>
Figure 3. Global Infant Formula Market, Revenue Share (%), By Product Type, in 2019
On the basis of product type, starting milk formula dominated the global infant formula market in 2019 with around 48.0% of market share in terms of revenue, followed by follow-on milk formula and toddler’s milk formula, respectively.
Market Trends/Key Takeaways
Organic infant’s formula is gaining traction in the market due to growing health and wellness trend. This trend is expected to accelerate the market growth of infant formula. For instance, in February 2020, Else Nutrition, a developer and marketer of clean-ingredients, plant-based nutrition products, has announced the launch of its first commercial product. It’s a next-generation, 100 percent plant-based, organic toddler formula made with a proprietary formulation of almonds, buckwheat, and tapioca.
Demand for dried food is on rise among parents which is expected to bolster the market growth of the infant formula. They offer ease of use and also available in variety of flavors. Continuous improvisation in the infant formula by major players in order to meet the rising demand is further anticipated to fuel the market growth of the infant formula over the forecast timeframe.
NEW NUTRIENT REQUIREMENTS IN AMERICA
In the U.S., the Infant Formula Act of 1980 was passed as major manufacturers produced soy-based infant formula with an insufficient level of chloride due to the discharge of salt in the formula. The same act was amended in 1986 with the accumulation of internal and external auditing, record keeping, current good production practice, and other related requirements.
Even with further requirements, which are published in 21 Code of Federal Regulations part 107, from July 2014, the U.S. Food and Drug Administration (US FDA) launched final product testing for Salmonella, Cronobacter, thiamine and Vitamin A, C, E, before the release of any lot of infant formula.
From 23 July 2016 onwards, the U.S. FDA will add specific maximum and minimum levels of selenium to those essential nutrients that are listed in 21 CFR 107.100. Assuring the appropriate level of such nutrients is necessary for the quality control procedures of producing infant formula products.
Global Infant Formula Market - Impact of Coronavirus (Covid-19) Pandemic
There have been unprecedented variations in the global sales of infant formula and food products owing to the changes in purchase patterns among consumers. Rising trends of bulk buying and stockpiling of infant formula or foods has led to certain products being in very limited supply, which in turn has led to price fluctuations in global infant formula market. This scenario is expected to hinder the growth rate the market till the early months of 2021.
- Nestle 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
- FrieslandCampina N.V.
Few Recent Developments
In February 2017, Reckitt Benckiser has agreed to buy U.S. baby formula maker Mead Johnson Nutrition for $16.6 billion, giving the British consumer goods company a new product line and expanding its presence in developing markets.