Infant formula is often considered as a substitute for breast milk. These formulas majorly consist of all the necessary nutrients that are essential for the growth of babies such as fats, proteins, carbohydrates, and vitamins among others. These are generally fed to infants under twelve months of age for their necessary development
Infant Formula Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The figure above represents the size of the infant formula market which shows that the market reached US$60.874 billion by the year 2025 from US$44.077 in the year 2019. The market is expected to witness a decent growth over the course of the next five years primarily due to the significant growth in the working female population in both developed and developing economies of the world Furthermore, improved living standards in both developing and underdeveloped countries couped with lifestyle changes of people has resulted in the escalating demand for the convenience-oriented lifestyle which in turn has further boosted the demand for infant formula in place of the breast milk as it serves as a good alternative for it. Furthermore, the market is also poised to grow on account of the growing concerns of the parents towards the health and nutrition of their toddlers. Also, the growing number of women with lactation problems is also a key factor bolstering the adoption of infant formula throughout the globe during the next five years.
Moreover, the constant participation of the key market players in the form of investments in the R&D for the development and launch of new formulas with enhanced nutritional values further increase the growth potential of the global infant formula market in the coming years. However, the market is expected to be restrained by the fact that there is still a high proportion of females in many countries that still prefer to exclusively breastfeed their babies, either due to its nutritional benefits or due to lower purchasing power to buy expensive products. Also, a significant drop in the birth rates in some countries for population control is also expected too negatively impact the infant formula market growth to some extent during the forecast period. The recent outbreak of the novel coronavirus disease is expected to widen up the opportunities for the market players over the short period of the next six to eight months. Factors such as growing concerns regarding the health of babies for boosting their immunity systems coupled with the situation of panic buying in many countries are further expected to boost the sale of several necessity commodities especially proteins and supplements, which is further providing an impetus for the market to grow in the short run. Also, the growing acceptance of plant-based food and beverages is also a key factor that is motivating the market players to launch plant-based products to tap the growing vegan population around the globe.
Preference for breast milk
The high preference towards breastfeeding in some countries of the world is anticipated to be one of the major factors which are anticipated to inhibit the demand to some extent. Factors such as lower purchasing power of some people coupled with the growing concerns among the parents regarding proper health of babies is further forcing them to prefer breastfed milk rather than opting for artificial formulas. Furthermore, the governments across several economies are taking various initiatives and programs to educate the mothers about breastfeeding their kids at least till the age of six months is further expected to hamper the adoption of infant formulas, thereby acting as a restraining factor for the market in the next five years. The American Academy of Pediatrics further recommends that infants should be exclusively fed with breast milk for the first six months then further it should be continued with complementary foods as well.
Percent of Infants 0-5 Months of Age Exclusively Breastfed, by Region, 2019