Global Baby Infant Formula Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Baby Infant Formula market is expected to record a CAGR of 9.8% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 26.2 billion. By 2032, the valuation is anticipated to reach USD 58.1 billion.

Top 10 Countries With The Highest Number Of Babies Born In Urban Areas Between 2018 and 2021

According to CMI Market Research Analysis (Approx)

The baby infant formula market refers to the industry involved in the production, distribution, and sale of commercially prepared formulas designed to provide essential nutrients for infants when breastfeeding is not possible or insufficient. It includes various types of formula products, such as powdered, liquid, and specialized formulas, targeting different age groups and dietary needs of babies.

The baby infant formula market is highly competitive and regulated, with a focus on product safety and quality. It involves a combination of multinational corporations, regional players, and local brands, offering a wide range of options to consumers. The market is influenced by factors such as birth rates, consumer awareness, nutritional research, technological advancements, and changing lifestyles. rising demand for organic and natural formulas, personalized and specialty formulae tailored to specific needs, and a focus on product safety and transparency.

Other prominent developments include the increasing usage of internet sales and e-commerce, increased interest in health and immunity-focused formulae, and an emphasis on sustainable and eco-friendly practices. Consumer preferences, legislative developments, and evolving nutritional studies all influence market patterns.

Baby Infant Formula Market – Significant Growth Factors

The Baby Infant Formula Market presents significant growth opportunities due to several factors:

• Rising Demand for Organic and Natural Formulas: There is a growing trend among consumers to seek organic and natural baby infant formulas. Parents are increasingly concerned about the ingredients used in formulas and opt for products made from organic sources. This trend presents an opportunity for manufacturers to develop and market organic and natural formulas to cater to this expanding consumer segment.

• Eco-Friendly and Sustainable Formulas: There is an increasing emphasis on eco-friendly and sustainable practices in the baby infant formula market. Consumers are concerned about the environmental impact of formula production and packaging. Manufacturers have an opportunity to meet this demand by developing formulas that utilize sustainable sourcing, eco-friendly packaging materials, and implementing environmentally friendly production processes.

• Personalization and Specialized Formulas: There is an increasing demand for customized and specialized baby infant formulas that cater to specific dietary needs, such as lactose intolerance or allergies. Parents are seeking formulas that address these specific requirements. Manufacturers have an opportunity to develop specialized formulas that meet these needs, allowing for product differentiation and potential market growth.

• E-commerce and Online Sales: The rapid growth of e-commerce has significantly impacted the distribution of baby infant formulas. Online platforms offer convenience, a wide range of product options, and access to a global customer base. Manufacturers can leverage this trend by expanding their online presence, partnering with e-commerce platforms, and optimizing their digital marketing strategies to tap into this expanding market opportunity.

• Emerging Markets: Emerging markets present significant growth opportunities for the baby infant formula market. Rising birth rates, increasing disposable incomes, urbanization, and improved healthcare access contribute to the expanding consumer base in these regions. Manufacturers can focus on market penetration and product customization to cater to the unique needs and preferences of consumers in these emerging markets, unlocking substantial growth potential.

Baby Infant Formula Market – Mergers and Acquisitions

The Baby Infant Formula Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Baby Infant Formula Market include:

• Nestlé’s Partnership with Merck KGaA: In 2019, Nestlé has formed a collaboration with Merck KGaA, a major research and technology business, to develop and commercialise nutritional therapy for people suffering from specific health issues. This collaboration aims to combine Nestlé’s nutritional science experience and Merck KGaA’s pharmaceutical research skills to develop breakthrough baby infant formula solutions that address specific health requirements.

• Nestlé’s Acquisition of Pfizer Nutrition: In 2012, Nestlé acquired Pfizer Nutrition, expanding its presence in the baby infant formula market and strengthening its portfolio of nutritional products for infants and young children.

• Abbott’s Acquisition of Mead Johnson Nutrition: In 2017, Abbott Laboratories acquired Mead Johnson Nutrition, a leading global manufacturer of baby infant formula. This acquisition allowed Abbott to expand its presence in the market and offer a broader range of nutritional products for infants and children.

• Reckitt Benckiser Acquires Mead Johnson Nutrition: In 2017, Reckitt Benckiser, a consumer health and hygiene corporation, bought Mead Johnson Nutrition. Reckitt Benckiser was able to enter the baby infant formula industry and diversify its product line in the healthcare sector as a result of this acquisition.

• FrieslandCampina’s Joint Venture with Beingmate: In 2014 FrieslandCampina, a Dutch dairy company, formed a joint venture with Beingmate Baby & Child Food Co., Ltd., a Chinese infant formula manufacturer. This partnership aimed to strengthen FrieslandCampina’s presence in the Chinese market and expand the distribution of its baby infant formula products.

These partnerships and acquisitions demonstrate the strategic importance of collaborations and mergers in the baby infant formula market. They enable companies to leverage each other’s strengths, expand their market reach, enhance their product offerings, and capitalize on the growing demand for safe and nutritious infant formula products.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Baby Infant Formula Market – Significant Threats

The Baby Infant Formula Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Breastfeeding Promotion: The promotion of breastfeeding poses a threat to the market as it encourages mothers to exclusively breastfeed their babies. Breast milk is widely recognized as the optimal source of nutrition for infants, and campaigns promoting its benefits may reduce the demand for infant formula.

• Regulatory Changes: Changes in regulations and stricter compliance requirements can pose challenges to the baby infant formula market. Regulatory agencies may introduce new guidelines or standards that impact manufacturing processes, labeling, or ingredient composition, leading to increased costs and potential disruptions in production.

• Negative Perceptions and Safety Concerns: Instances of product recalls, contamination scares, or negative media coverage regarding baby infant formulas can erode consumer trust and confidence. Safety concerns can lead to a decline in demand and reputation damage for manufacturers, posing a significant threat to the market.

• Cultural and Social Factors: Cultural and social factors can influence the preference for breastfeeding over using baby infant formula. Societal norms, cultural beliefs, and perceptions surrounding breastfeeding and formula feeding can vary across different regions and communities, affecting the market demand for baby infant formula products.

Report Scope

Category-Wise Insights

By Type:

• Infant milk: infant milk, is a commercially manufactured alternative to breast milk. When nursing is not possible, it supplies necessary nutrients to babies up to six months old. Growing desire for organic and natural choices, enhanced nutrition with probiotics and omega-3 fatty acids, and specialized formulas for specific dietary needs or disorders are all trends in the baby infant formula market. Manufacturers are also prioritizing sustainability and transparency in ingredient sourcing and packaging.

• Follow-on milk: The follow-on milk in the baby infant formula market refers to formulas specifically developed for infants aged six months and older. It complements the introduction of solid foods, providing additional nutrients to support the transition to a mixed diet. Current trends include the inclusion of probiotics, omega-3 fatty acids, and other beneficial ingredients to enhance nutritional profiles and promote infant development.

• Specialty baby milk: The specialty baby milk in the baby infant formula market refers to specialized formulas catering to the specific dietary needs of infants, such as hypoallergenic or lactose-free options. Trends in this segment include an increasing demand for allergy-friendly formulas, formulas for premature babies, and formulas enriched with specific nutrients to meet the unique requirements of infants with specific conditions.

• Growing-up milk: The growing-up milk, also known as toddler milk or stage 3 formula, is a type of baby infant formula designed for children aged one year and older. It provides essential nutrients to support their growth and development. Trends in the baby infant formula market for growing-up milk include a focus on fortified formulations, organic options, and marketing campaigns promoting its benefits for toddler nutrition.

By Ingredient:

• Carbohydrate: Carbohydrates in the baby infant formula market refer to the source of energy derived from sugars and starches present in the formula. Trends in the market include the use of prebiotic and lactose-based carbohydrates to mimic the composition of breast milk, promoting gut health and digestion. Manufacturers are also exploring alternative carbohydrate sources and reducing the use of added sugars.

• Fat: Fat in the baby infant formula market refers to a crucial component that provides essential nutrients and energy for infant growth and development. Current trends in the market include the incorporation of healthy fats, such as omega-3 fatty acids, in formulas to support brain and eye development. Manufacturers are also focusing on precise fat composition to mimic the fat content of breast milk.

• Protein: Protein plays a crucial role in the baby infant formula market as it provides essential building blocks for growth and development. Current trends include a focus on optimizing protein content and quality, incorporating plant-based protein sources, and addressing specific protein needs for infants with allergies or intolerances, promoting healthy and balanced nutrition.

• Minerals: Minerals in the context of the baby infant formula market refer to essential nutrients such as calcium, iron, zinc, and others, added to formulas to support the healthy development of infants. Current trends include the incorporation of bioavailable minerals, personalized mineral blends, and an emphasis on meeting the recommended dietary intake of minerals in infant formulas.

• Vitamins: Vitamins are essential organic compounds that are required in small amounts for proper growth, development, and overall health. In the baby infant formula market, there is a growing trend towards incorporating a wide range of vitamins into formulas to provide infants with the necessary nutrients. This trend reflects the increasing emphasis on optimal nutrition and supporting healthy development in infants.

• Others: Other definitions in the baby infant formula market include growing-up milk, which is formulated for toddlers above the age of one, and toddler milk, designed for children aged one to three. Trends in the market include the rising demand for organic and natural formulas, personalized and specialty formulas, and a focus on product safety and transparency.

 By Distribution Channel:

• Online: Online distribution channels in the baby infant formula market refer to the sale and distribution of formula products through digital platforms, such as e-commerce websites and online retailers. Consumers increasingly prefer the convenience, wide product selection, and accessibility offered by online platforms. Manufacturers are expanding their online presence, partnering with e-commerce platforms, and optimizing digital marketing strategies to tap into this growing market opportunity.

• Offline:  Offline distribution channels in the baby infant formula market refer to the traditional brick-and-mortar retail outlets where products are physically purchased, such as supermarkets, pharmacies, and baby specialty stores. Despite the growing popularity of e-commerce, offline channels continue to dominate the market, providing convenience, accessibility, and personalized customer service to parents purchasing baby formula products.

Baby Infant Formula Market – Regional Analysis

The Baby Infant Formula Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North America’s Baby Infant Formula Market: The baby infant formula market in North America refers to the industry involved in the production, distribution, and sale of infant formula products within the region. Current trends include a growing demand for organic and natural formulas, increasing preference for specialty formulas, rising focus on product safety and transparency, and the expanding adoption of online sales channels.

• Europe: The baby infant formula market in Europe refers to the industry involved in the production, distribution, and sale of formula products for infants. Current trends in the European market include a growing demand for organic and natural formulas, increasing awareness of infant nutrition, preference for premium offerings, and emphasis on product safety and transparency.

• Asia-Pacific: he Asia-Pacific region encompasses the market for commercially prepared formulas designed for infants. It includes countries such as China, India, Japan, and Australia. Key trends in this market include increasing disposable incomes, rising urbanization, growing health consciousness, and a shift towards premium and organic formula options. Key players in this market include Nestlé, Danone, Mead Johnson Nutrition, Abbott Laboratories, and Beingmate Baby & Child Food Co., Ltd.

• LAMEA: Refers to a region encompassing Latin American countries, Middle Eastern countries, and African countries. In the baby infant formula market in LAMEA, key players such as Nestlé S.A., Danone S.A., and Abbott Laboratories dominate. Trends include rising disposable incomes, urbanization, increasing birth rates, and growing awareness about the importance of proper infant nutrition.

Competitive Landscape – Baby Infant Formula Market

The Baby Infant Formula Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• Nestlé S.A.
• Danone S.A.
• Abbott Laboratories
• Mead Johnson Nutrition Company (a subsidiary of Reckitt Benckiser Group PLC)
• Kraft Heinz Company
• FrieslandCampina N.V.
• Beingmate Baby & Child Food Co. Ltd.
• Meiji Holdings Co. Ltd.
• Yili Group
• Synutra International Inc.
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships. For example, In 2022, Reckitt Benckiser Group PLC introduced a new line of organic baby infant formulas under its brand Enfamil. The formulas are made with organic ingredients, providing parents with a trusted and convenient option for nourishing their infants with high-quality, organic nutrition.

In the baby infant formula market, several new players have adopted innovation and development strategies to enter the industry. These include companies such as H&H Group, Ausnutria Dairy Corporation Ltd., and China Feihe Limited. These emerging players focus on developing high-quality formulas with enhanced nutritional profiles, organic options, and specialized formulas to cater to specific dietary needs.

However, the market is predominantly dominated by key players like Nestlé S.A., Danone S.A., and Abbott Laboratories. These dominant players have established strong brand recognition, extensive distribution networks, and robust research and development capabilities. They leverage their market presence and financial resources to invest in marketing campaigns, product innovation, and strategic partnerships, enabling them to maintain a significant market share and competitive advantage in the baby infant formula industry.

The Baby Infant Formula Market is segmented as follows:

By Type

• Infant milk
• Follow on milk
• Specialty baby milk
• Growing-up milk

By Ingredient

• Carbohydrate
• Fat
• Protein
• Minerals
• Vitamins
• Others

By Distribution Channels

• Online Channel
• Offline Channel

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America