Global Infant Formula Market Outlook, 2029

The infant formula market encompasses a wide range of products formulated to mimic the composition of human breast milk. Before the development of modern infant formula, mothers relied primarily on breastfeeding or alternative feeding methods such as wet nursing or feeding infants animal milk. These methods varied widely in effectiveness and safety. The early 20th century witnessed significant scientific advancements in the understanding of infant nutrition. Pioneering researchers such as Dr. Frederick Hopkins and Dr. Elsie Widdowson conducted groundbreaking studies on the nutritional needs of infants, laying the foundation for the development of improved infant formulas. Advancements in food technology and nutrition science led to the development of modern infant formulas that more closely resembled human breast milk in composition and nutritional content. These formulas were fortified with essential vitamins, minerals, and other nutrients to support infant growth and development. The infant formula industry has not been without controversy. Issues such as aggressive marketing tactics, product recalls due to safety concerns, and debates over breastfeeding versus formula feeding have garnered public attention and regulatory scrutiny. Consumer preferences have also evolved, with a growing demand for organic, natural, and hypoallergenic formula options. As the infant formula industry grew, concerns arose regarding product safety, labeling, and marketing practices. Governments around the world began implementing regulations and standards to ensure the quality and safety of infant formula products. Regulatory bodies such as the FDA in the United States and the Codex Alimentarius Commission at the international level played crucial roles in establishing guidelines for infant formula manufacturing and marketing.

According to the research report, “Global Infant Formula Market Outlook, 2029” published by Bonafide Research, the market is expected to be more than USD 49.42 Billion in 2023. The demand for infant formula is driven by factors such as birth rates, population demographics, cultural norms, and maternal health. The market is expected to grow with 3.96% CAGR by 2024-29. In regions with high birth rates or where breastfeeding may not be feasible or culturally accepted, the demand for infant formula tends to be higher. Additionally, increasing urbanization and changing lifestyles contribute to the growing demand for convenience-oriented infant formula products. Infant formula is widely available in both developed and developing countries through various distribution channels such as pharmacies, supermarkets, specialty stores, and online retailers. However, accessibility may vary depending on geographic location, socioeconomic factors, and regulatory constraints. In remote or underserved areas, access to infant formula may be limited, posing challenges for families in need. Disposable income levels, purchasing power, and economic stability affect consumers' ability to afford infant formula products. Economic downturns may lead to shifts in purchasing behavior or demand for lower-priced alternatives. Advances in food science, manufacturing processes, and packaging technologies drive innovation in the infant formula industry. Companies invest in research and development to improve product quality, safety, nutritional content, and convenience. Infant formula products typically have a shelf life ranging from several months to a few years, depending on the type of formula and packaging. Powdered formulas, when stored properly in a cool, dry place, can remain stable for an extended period. Liquid concentrates and ready-to-feed formulas often have shorter shelf lives once opened but may offer added convenience and reduced risk of preparation errors. Proper storage and handling are essential to maintain the quality and safety of infant formula products.

Market Drivers

Rising Awareness and Acceptance of Infant Formula: Increased awareness about infant nutrition, coupled with changing lifestyles and societal norms, drives the demand for infant formula. Factors such as maternal employment, insufficient lactation support, and cultural shifts contribute to the acceptance of formula feeding as a viable alternative to breastfeeding.
Urbanization and Changing Demographics: Urbanization trends and changing demographics, particularly in emerging economies, contribute to the growth of the infant formula market. Urbanization often leads to smaller family sizes, increased female workforce participation, and reduced support for traditional breastfeeding practices, thereby fueling the demand for infant formula products.

Market Challenges



Regulatory Scrutiny and Compliance: The infant formula industry is subject to stringent regulations and standards imposed by governmental bodies worldwide. Compliance with these regulations, which cover aspects such as product composition, labeling, marketing, and safety, poses a significant challenge for manufacturers. Non-compliance can result in regulatory sanctions, product recalls, and reputational damage.
Breastfeeding Advocacy and Stigma: Despite the growth of the infant formula market, breastfeeding advocacy efforts continue to challenge the industry. Public health campaigns promoting breastfeeding as the optimal feeding method for infants highlight the potential risks associated with formula feeding, including health implications for both infants and mothers. This advocacy can create stigma around formula feeding and influence consumer perceptions and purchasing behavior.

Market Trends

Premiumization and Product Differentiation: Manufacturers are increasingly focusing on premiumization and product differentiation to cater to diverse consumer preferences and demands. This trend has led to the introduction of specialized infant formula products targeting specific nutritional needs, such as organic, non-GMO, hypoallergenic, and fortified formulas. Companies invest in research and development to innovate and differentiate their products in a competitive market landscape.
Online Retail and E-Commerce: The rise of e-commerce platforms and online retail channels has transformed the distribution landscape for infant formula products. Consumers increasingly prefer the convenience of purchasing infant formula online, facilitated by factors such as home delivery services, subscription models, and a wider product assortment. Manufacturers leverage digital marketing strategies and online platforms to reach consumers directly and enhance brand visibility and engagement.

Based on the report, the product types are segmented into special milk, toddlers milk, follow-on-milk, starting milk.

Special milk formulas are designed to meet the specific dietary needs of infants with certain health conditions or dietary restrictions. These conditions may include cow's milk protein allergy, lactose intolerance, gastrointestinal disorders, or metabolic disorders. Special milk formulas may be hypoallergenic, lactose-free, or contain modified protein sources to address these conditions while still providing essential nutrients for growth and development. Toddler's milk, also known as growing-up milk or follow-on formula, is designed for children over the age of one who are transitioning from infant formula or breast milk to regular cow's milk. Toddler's milk is fortified with additional nutrients such as calcium, iron, vitamins, and omega-3 fatty acids to support the nutritional needs of toddlers during this critical stage of growth and development. It is available in powdered or liquid form and is often marketed as a convenient and nutritionally balanced alternative to cow's milk. Follow-on milk is similar to toddler's milk and is intended for infants over the age of six months who are transitioning from breast milk or infant formula to solid foods. Follow-on milk is fortified with additional nutrients such as iron, calcium, vitamins, and essential fatty acids to support the growing nutritional needs of infants as they begin to consume more solid foods. Follow-on milk is available in powdered or liquid form and is often marketed as a complementary food source to support a balanced diet during the weaning process. Starting milk, also known as newborn formula or first-stage formula, is designed for newborn infants from birth up to six months of age who are not breastfed or partially breastfed. Starting milk is formulated to provide the essential nutrients needed for healthy growth and development during the first few months of life when breast milk or infant formula is the primary source of nutrition. It contains a balanced combination of proteins, fats, carbohydrates, vitamins, and minerals to support the unique nutritional requirements of newborn infants.

Based on the report, the form are segmented into powdered, liquid and solid. Powdered infant formula lead due to its convenience, longer shelf life, and cost-effectiveness compared to liquid and solid forms.

The powdered form of infant formula stands out as the predominant choice in the industry for several compelling reasons. First and foremost, its convenience reigns supreme. Powdered formula is incredibly easy to store, transport, and prepare, making it an ideal option for busy parents or caregivers on the go. Unlike liquid concentrate or ready-to-use formulas, powdered formula can be stored at room temperature, eliminating the need for refrigeration and freeing up valuable space in the pantry or diaper bag. Its lightweight nature also makes it a practical choice for travel, whether it's a weekend getaway or an extended vacation, allowing parents to maintain their infant's feeding routine without hassle. Moreover, powdered infant formula is notably cost-effective compared to other forms. Its manufacturing process generally incurs lower production and transportation costs, translating to more affordable prices for consumers. This cost-effectiveness makes powdered formula accessible to a broader demographic, including families with varying income levels or those seeking budget-friendly options without compromising on quality. Additionally, powdered formula often comes in larger-sized containers or bulk packages, providing better value for money over time compared to smaller or single-serving options. Furthermore, powdered formula offers unparalleled versatility, catering to the diverse needs and preferences of infants and their caregivers. It allows for precise measurement and customization of each feeding, accommodating infants with specific dietary requirements or sensitivities. Caregivers have the flexibility to adjust the concentration of the formula according to their infant's age, appetite, or nutritional needs, ensuring optimal nourishment and satisfaction.

Based on the report, the distribution channel is segmented into Online retail and Store based Retailing.

Online retailing has been experiencing significant growth in recent years, driven by factors such as convenience, wide product selection, competitive pricing, and the increasing popularity of e-commerce platforms. Many parents appreciate the convenience of being able to research and purchase infant formula products online, often with the added benefit of home delivery. Additionally, online retailers often offer subscription services, discounts, and customer reviews that can influence purchasing decisions. However, traditional store-based retailing, including supermarkets, pharmacies, specialty baby stores, and maternity hospitals, remains a crucial distribution channel for infant formula products. These brick-and-mortar retailers provide immediate access to products, allowing consumers to physically examine and purchase infant formula while shopping for other necessities. Pharmacies and specialty baby stores, in particular, offer personalized service and expert advice, which can be appealing to parents seeking guidance on infant nutrition.

APAC is leading in the infant formula industry due to its large population base, rising disposable incomes, increasing urbanization, and growing awareness of infant nutrition, driving demand for infant formula products across the region.

The Asia-Pacific (APAC) region has emerged as a powerhouse in the infant formula industry, propelled by a combination of demographic, economic, and socio-cultural factors that contribute to its leadership position. At the heart of APAC's dominance in the infant formula market is its massive population base, which presents a vast consumer market for infant nutrition products. With countries like China, India, Indonesia, and Japan boasting populations in the billions, the sheer size of the market offers significant opportunities for manufacturers and suppliers to tap into a diverse and growing customer base. Moreover, APAC's rapid economic development and increasing disposable incomes have fueled the demand for premium infant formula products. As economies in the region continue to grow and urbanize, more families are transitioning to modern lifestyles characterized by higher standards of living and increased purchasing power. This shift has led to greater spending on healthcare, education, and premium consumer goods, including infant formula. As parents prioritize their children's health and well-being, they are willing to invest in high-quality nutrition products that offer the assurance of meeting their infants' dietary needs. the urbanization trend in APAC has played a pivotal role in driving the demand for infant formula products. Urban areas are hubs of economic activity, employment opportunities, and access to modern healthcare facilities, making them conducive environments for the adoption of infant formula feeding practices. As urban populations continue to expand, so does the demand for convenient and reliable infant nutrition solutions, driving the growth of the infant formula market across cities and metropolitan regions in APAC.


• In October 2022, Else Nutrition Holdings Inc. opened its flagship Chinese store on Tmall Global in September and is now offering Else Nutrition Toddler Formula and Baby Cereal directly to Chinese consumers. Else’s entry into the Chinese market marks the company’s third foreign market.
• In September 2022, Nestlé discovered a nutritious blend of components found in breast milk called myelin and introduced Nutrilearn Connect, an infant formula containing the breakthrough ingredient, in Hong Kong before spreading into other markets.
• Fats and Oils Specialist, Bunge Loders Croklaan (BLC), in January 2021, announced the launch of a new premium lipid ingredient for infant formula that claims to regenerate breast milk in flavor and taste.
• In March 2021, 108LABS announced its new animal-free infant formula, Colostrupedis, featuring cell-grown breast milk molecules derived from human breast cell agriculture and is formulated with the ability to extensively neutralize human secreted antibodies.
• In February 2020, Else Nutrition, manufacturer and distributor of cleansing ingredients, plant-based nutritional products and organic toddler formulas formulated with an exclusive almond formula, buckwheat and tapioca.
• In August, 2019, Danone Nutricia, a Danone SA brand, has developed Karicare Toddler using New Zealand sheep’s milk in New Zealand.
• In January 2019, Arla Foods Elements, a subsidiary of Arla Foods amba, has launched a safe food for infants.

FAQs
Questions:
Can infants with allergies or intolerances consume infant formula?
Who are the major players operating in the infant formula market?
What are the key factors of the infant formula market?
Are there regulations governing the infant formula industry?
Answers:
Infants with allergies or intolerances to specific ingredients such as cow's milk protein or lactose may require specialized infant formula products designed to meet their dietary needs.
The major players operating in the infant formula market are Nestle S.A., Danone SA, Abbott, Yili Group, The Kraft Heinz Company, Bellamy's Organic, Perrigo Company plc, Reckitt Benckiser Group plc., Royal FrieslandCampina N.V., Arla Foods amba.
The increasing demands for the nutritional requirement of infants are the key factors propelling the market growth.
Yes, most countries have regulations and standards in place to ensure the safety, quality, and labeling of infant formula products. These regulations may include requirements for ingredient composition, manufacturing practices, labeling information, and advertising claims.