The global infant formula market is expected to increase at a 14.36% CAGR to reach US$120.303 billion by 2027, compared to US$47.027 billion in 2020.
The infant baby formula comprises a formula for newborns aged 0 to 6 months. They are advised if breastfeeding is in short supply or to augment the baby’s nutrition. The simplicity of feeding, the nutrition mix, and the choice of milk and soy-free milk varieties make these goods a viable alternative, particularly for working mothers. These items are available in fluid, powdered, and prepared forms, with dairy serving as the primary component in all of them.
The increase in the number of women working outside the house is the primary driver of the market. Furthermore, increased knowledge regarding the high nutritious content of infant formula drives the market growth.
Before giving the powdered version of infant formula to the baby, it must be mixed with water. Because of its appropriateness as a replacement for human milk, this formula is only intended for special dietary usage as a meal for newborns. It contains a variety of nutrients that are necessary for newborns’ general development and growth, making it a popular option among working women who are unable to nurse their kids on time.
Moreover, companies have expanded their operations by collaborating with other firms in addition to launching natural and organic products that have surged the market trend in the upcoming years. For instance, Else Nutrition, a maker and distributor of cleansing components, plant-based nutritional products, and organic baby formulas developed with a proprietary buckwheat, almond formula, and tapioca, was launched in February 2020. Therefore, such innovative and clean product launches are expected to positively contribute to the market size.
The rising number of working women in addition to the high preference of the market by consumers will drive the market share.
According to the World Bank, Panama, Portugal, Spain, Chile, and, Korea are the five nations’ whose income and female labor force participation increased significantly in 2020. Chile’s GDP per capita climbed to $12,954, while female labor force participation rose to 45 percent. Furthermore, governments have initiated several schemes to increase women in labor. The Ministry of Women and Child Development in India created the STEP Scheme (Support to Training and Employment Programme for Women), which seeks to offer women employability skills as well as competencies and skills that allow women to become self-employed/entrepreneurs. The Scheme is meant to help women in the nation who are 16 years of age or older.
Therefore, the growing number of working women worldwide has prompted baby food firms to offer nutrition-rich supplements to meet the need for easy feeding. Many women return to work soon after giving birth, and baby formula is ideal for these mothers since it is simple to prepare and takes less time. In addition, corporations are using eco-friendly packaging materials, which has increased the growth potential for significant players. Furthermore, infant formula contains different nutritious properties than human breast milk, which increases market acceptance. Protein utilization as a component in diverse uses such as milk supply and specialty formula is predicted to drive up demand for baby formula ingredients in the coming years.
The emerging initiative by the companies to include nutritional value in the infant formula is anticipated to surge the market demand.
The worldwide infant formula industry is expected to increase rapidly due to the growing demand for organic baby food for children below the age of five. The growing prevalence of malnutrition among children and newborns has increased the need for baby formula. Because newborns lack the necessary muscles and teeth to chew properly, baby food and baby formula serve as their major sources of nutrition. Nowadays, parents are becoming more conscious of the importance of proper nutrition in their child’s general growth and development. As an outcome, they are gravitating toward nutrient baby food and newborn formula. These items are often available in powdered form that may be blended with milk or water. Aside from that, as consumer awareness grows, producers are producing natural, gourmet, baby food, and infant formula versions to improve sales.
Consumers’ increased awareness of ingredient and content labeling has driven corporations to develop clean-label manufacturing. For instance, in March 2021, 108LABS introduced Colostrupedis, an animal-free infant baby formula made of cell-cultured human milk molecules generated from human mammary cell farming and fortified with widely neutralizing human secretory antibodies.
Furthermore, Danone developed the new Dairy & Plants Blend infant formula in July 2022 to address parents’ need for a vegetarian, flexitarian, and plant-based feeding alternatives while still providing their baby’s precise nutritional requirements. Danone has developed this innovative dairy & plant-based infant formula mix based on 50 years of clinical breastfeeding research and its tradition of expertise in plant-based foods through well-known brands such as Alpro & Silk.
During the forecast period, the global infant formula market in Asia Pacific is predicted to have a dominating share.
The global infant formula market is divided into five areas based on geography: North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. During the forecast period, the Asia Pacific is projected to hold a significant amount of market share due to the rise of online pharmacies and retail outlets. The adoption has been fueled by growing demand for organic baby food and increased knowledge about the health of newborns. Due to the rising impact of infant mortality rates and stunting, India implemented a variety of initiatives to reduce the number of malnutrition children in the country. POSHAN Abhiyaan, for example, aims to reduce childhood malnutrition by delivering intensive health and nutrition assistance for the first 1000 days, with real-time monitoring. The Indian government pushed the use of baby formula for moms who were unable to breastfeed through this effort. From October 2020 to March 2021, according to the most recent POSHAN JAN ANDOLAN survey, about 7,315,163 children under the age of 5 received all policy benefits. Additionally, on September 29, 2022, Else Nutrition Holdings Inc established its flagship Chinese store on Tmall Global, and the business is offering Else Nutrition Toddler Formula and Baby Cereal items directly to Chinese consumers. Else’s entry into the Chinese market marks the company’s third foreign market.