Infant formula market is estimated to be valued at USD 81.42 Bn in 2024, exhibiting with a CAGR of 10.3% over the forecast period 2024-2031. Furthermore, rising disposable incomes and growing middle-class population boosts demand for premium infant formula products.
Increasing birth rates across developing nations is expected to drive the global infant formula market growth. Rapid urbanization has led to more number of working women opting for infant formula, which is conveniently replacing breastfeeding. This trend has significantly boosted sale volumes of formula milk products. Another major factor propelling the market growth is growing consumer awareness about the benefits of infant nutrition. Many leading manufacturers are launching infant formulas enriched with prebiotics, probiotics and omega fatty acids to cater to increasing demand for products that support infant growth and development. However, stringent regulations surrounding infant formula production may hamper the market growth. Ongoing research & development of formula resembling breast milk composition can drive the global infant formula market growth.
Increased Birth Rate Globally
There has been increase in global birth rate over the past decade. Increasing birth rates around the world, particularly in developing nations, is expected to boost demand for infant formula . Many new parents opt for formula as an alternative or supplement to breastfeeding. Growing number of infants born each year presents a significant growth opportunity for manufacturers and suppliers of infant formula products.
Rising Disposable Incomes in Emerging Economies
Countries like China, India, Brazil and others that previously had large percentages of their populations in poverty are seeing middle classes emerge. As income increases, more families have the means to purchase branded and specialty infant formulas. Earlier, store brand or generic formulas were the only affordable option for low income households. However, rising wages allowed more new parents to spend on high quality formulas these people perceive as best for their babies nutrition and development. This represents a sizable new customer base for premium and therapeutic infant formula brands.
Stringent Government Regulations
Global infant formula market faces very strict regulations regarding formulation, labeling and marketing. Any changes to existing products or launch of new formulas requires rigorous clinical testing and approval processes. This regulatory hurdle makes innovation and new product development much more difficult and lengthy as compared to other consumer product categories.
Social Stigma around Formula Feeding
Though choices about feeding infants have become more personal in recent decades, some social stigmas persist around formula feeding versus breastfeeding. Public health initiatives often emphasize the health benefits of breastmilk, and portray formula feeding hesitantly. This social disapproval weighs on some new parents and may dissuade some from choosing formula initially or continuing with it. Overcoming negative perceptions and normalizing formula as a healthy alternative can be challenging for industry players trying to please consumers.
Demand in specialized/therapeutic formulas
Within the infant formula market, lies sizable opportunities in specialty and therapeutic sub-segments. Formulas targeting allergies, sensitivities, prematurity and other medical conditions require customized formulations. As parents grow more informed and proactive about babies' health, the demand for specialized formulas clinically proven to address specific needs will increase.
E-commerce sales and Direct-to-Consumer approach
While mass market retailers like supermarkets, pharmacies and grocers remain important infant formula distribution channels, e-commerce offers an attractive new avenue for sales. Especially in Asia Pacific and other emerging regions, online parenting communities and mommy bloggers are influencers driving formula purchase decisions. Direct-to-consumer strategies on own online stores and marketplaces like targeting and engaging with these influencers and consumers directly can unlock untapped potential in digital channels.
*Link: https://www.coherentmarketinsights.com/market-insight/infant-formula-market-2330
Key Developments
- In April 2024, Else Nutrition announced the first commercial launch of its groundbreaking plant-based infant formula in Australia
- In January 2024, Kabrita USA launched a goat-milk infant formula, following a lengthy process to determine its whey protein concentrate and non-fat dry goat milk as generally recognized as safe (GRAS) for infants, the brand’s director of medical and scientific affairs Elieke Kearns told Food Navigator-USA
- In 2023, Danone launched a new infant formula containing milk droplets that closely mimic the structure found in mothers’ milk in China
- In 2022, ByHeart announced the launch of its groundbreaking infant formula, becoming the only new infant formula brand in decades to rewrite the recipe from scratch
- In 2022, Danone launched plant-based infant formula blend
Key Players
Kendamil USA, Nestle, USA, Arla Foods, Bobbie, Dana Dairy Group, Danone S.A., Abbott Nutrition, Mead Johnson Nutrition, The Kraft Heinz Company, Meiji Holdings Co. Ltd., Synutra International Inc., Pfizer Inc., Friesland Campina, Bubs Organic, LLC. , Perrigo Company plc, Bellamy's Organic. , Glanbia plc, Reckitt Benckiser Group PLC., and PT Kalbe Farma Tbk
