The global baby infant formula market revenue was around US$ 29.7 billion in 2023 and is estimated to reach US$ 60 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.1% during the forecast period from 2024 to 2032.
Baby formula is made up of four different types of milk that are infant, follow-on, specialty, and growing-up milk, all of which are intended for consumption by infants and toddlers. Breast milk contains the vitamins, minerals, and other nutrients needed for a baby's healthy development. Because infant formula can be fed anytime, anywhere, and is convenient for working mothers, doctors advise against using breastmilk in place of it. A lot of mothers who work soon return to their jobs after giving birth. Hence, infant formula offers a wholesome and convenient substitute for breast milk.
Factors Influencing Market Growth
- There is an increasing consumer shift toward clean-label and plant-based products, and baby infant formula fulfills these criteria. This will fuel the market's growth.
- Due to changing consumers' lifestyles, growing purchasing power, and the increase in female employment, it's more convenient for a female to provide baby infant formula products to infants rather than breastfeeding them every time. This is increasing the demand for baby infant formula, thus expanding the market.
- Due to increasing low breastfeeding rates and fertility rates, there is a demand for substitutes for breastfeeding, such as baby infant formula. As a result, this factor is propelling the global market growth.
- The strict rules and regulations about the launch of new products and the complicated process of registering new products may restrict market growth.
Impact of COVID-19
COVID-19 negatively impacted the market. It caused severe production and supply chain limitations for the infant nutrition sector. Because of the restricted supply and elevated demand, there was a gap in the supply chain, which led to a scarcity of baby formula on the market and terrified customers. To facilitate the trade of infant nutrition products, the Food and Drug Administration (FDA) of the United States adopted new international regulations. For example, the FDA released new guidelines in May 2022 to increase trade flexibility in the product.
Regional Insights
Asia Pacific dominated the market in 2023. This is because the expanding economies of China, India, South Korea, and other Asia-Pacific nations have raised living standards in those nations. Spending on infant nutrition has increased as a result of rising disposable income. With India's high infant population and rapidly rising female labor force participation, it is expected that infant formula manufacturers will have more opportunities, which will accelerate market growth.
Leading Competitors
- Dana Dairy Group
- Campbell Soup Company
- Danone S.A.
- Royal FrieslandCampina N.V.
- The Kraft Heinz Company
- Nestle S.A.
- Reckitt Benckiser Group PLC
- Abbott Laboratories
- Arla Foods amba
- The Hain Celestial Group, Inc.
- Other Prominent Players
Segmentation Analysis
The global baby infant formula market segmentation focuses on distribution channel, type, ingredient, and region.
Segmentation based on Distribution Channel
- Online
- Offline
- Hypermarkets and Supermarkets
- Pharmacy/Medical Store
- Specialty Stores
- Hard Discounter Store
Segmentation based on Type
- Infant milk
- Follow on milk
- Specialty baby milk
- Growing-up milk
Segmentation based on Ingredient
- Carbohydrate
- Fat
- Protein
- Minerals
- Vitamins
- Others
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa