Baby Infant Formula Market Expected to Reach $56.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Baby Infant Formula Market," The baby infant formula market size was valued at $25.5 billion in 2021, and is estimated to reach $56.6 billion by 2031, growing at a CAGR of 8.1% from 2022 to 2031.

The market for baby infant formula is mostly driven by increase in number of women participations in labor force and high nutritional content of infant formula. The baby infant formula market trends is driven by rise in number of women working outside their houses. Most of the working mothers return to their jobs shortly after their delivery. Breastfeeding is not always possible for working mothers due to lack of time and inconvenience. Infant formulas provide an appealing alternative for working mothers, thus fulfilling their requirement for healthy and nutritious food with their need for convenience. Moreover, the infant formula segment accounted for the highest share in the market. Breastfeeding is not always possible for mothers working outside homes; thus, infant formula is an appropriate alternative for the infant as its composition is similar to that of breastmilk.

The baby infant formula market growth shows high growth potential in Europe and LAMEA region. The LAMEA baby infant formula market is expanding due to rise in consumer buying power and economic growth in nations such as Brazil and Argentina.  The Asia-Pacific baby infant formula market analysis held the major share in 2021. Asia-Pacific is one of the most varied and vibrant markets globally. However, on the other side, concerns related to food safety is rising among consumers. Infant formula is an overly sensitive food product, as it is a substitute to breastmilk and is added to the diet of infants for their proper development. Cases related to adulteration of infant formula have been reported across the globe. Thus, the concerns related to the safety of baby infant formula act as the major restraint to the market growth.    

The baby infant formula market forecast is segmented on the basis of type, ingredient, distribution channel, and region. By type, the market is classified into infant milk, follow-on milk, specialty baby milk, and growing-up milk. By ingredient, the market is divided into carbohydrate, fat, protein, minerals, and vitamins. By distribution channel, the market is categorized into online and offline. The offline segment is classified into hypermarkets & supermarkets, pharmacy/medical store, specialty stores, and hard discounter store. Region wise, it is analyzed across North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Italy, Spain, Turkey, Russia, and rest of Europe), Asia-Pacific (China, India, South Korea, Japan, Philippines, Indonesia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, Saudi Arabia, UAE, and rest of LAMEA).     

By type, the market is classified into infant milk, follow-on milk, specialty baby milk, and growing-up milk. The infant milk segment accounted for a major share in the baby infant formula market in 2021 and is expected to grow at a significant CAGR during the forecast period. The demand for infant milk is rising as it is specially designed to meet the growing needs of babies under six months of age. Moreover, various infant formula manufacturers are looking at synthesizing oligosaccharides, a complex carbohydrate found in human milk, which could be added to infant formulas. This may open new baby infant formula market opportunities for the manufacturers, thereby propelling the market growth.

By ingredient, the market is divided into carbohydrate, fat, protein, minerals, and vitamins. The carbohydrate segment accounted for a major baby infant formula market share in 2021 and is expected to grow at a significant CAGR during the forecast period. Carbohydrates are an infant’s main fuel source, and essential for proper growth and development. Offering infants healthy, nutrient-dense carbohydrates is expected to optimize their growth and maintain a healthy body weight. The demand for carbohydrate in baby infant formula is rising as carbohydrates are an important source of energy for growing infants, as they account for almost 40% of their daily energy intake.

By distribution channel, the market is bifurcated into online and offline. The offline segment accounted for a major share in the baby infant formula market in 2021 and is expected to grow at a significant CAGR during the forecast period. Hypermarkets and supermarkets, pharmacy/medical store, specialty stores, and hard discount stores all fall within the offline section. Most localities have a few modest trade lines that house retail establishments, which are often tiny retailers. Such stores are more common in underdeveloped countries with low hypermarket/supermarket penetration rates.

The offline segment is further classified into hypermarkets & supermarkets, pharmacy/medical store, specialty stores, and hard discounter store. The hypermarkets and supermarkets segment accounted for a major share in the baby infant formula market in 2021 and is expected to grow at a significant CAGR during the forecast period. Hypermarkets and supermarkets are large self-service grocery stores that offer variety of foods and household supplies and are quite larger compared to traditional grocery stores, however, smaller and more limited in the range of merchandise as compared to hypermarkets or big-box markets. High visibility of infant formula in the supermarket is expected to boost the sales of the market.

By region, the baby infant formula market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific baby infant formula market accounted for a major share in 2021 and is expected to grow at a significant CAGR during the forecast period. The industry in this area is growing quickly due to rise in living standards and increase in disposable income among consumers. Developing economies such as Indonesia and Vietnam are rapidly industrializing and have young population and millions of mothers entering the workforce in the coming years, which is expected to lead to the growth in formula feeding.

The major players analyzed for the global baby infant formula industry are Abbott Laboratories, Arla Foods amba, Campbell Soups, Dana Dairy Group Ltd, Danone, D-Signstore, HiPP GmbH & Co. Vertrieb KG, Reckitt Benckiser (Mead Johnson & Company LLC), The Hain Celestial Group, Inc., The Kraft Heinz Company, Reckitt Benckiser Group plc, Royal FrieslandCampina N.V., bellamy's organic, Nestle S.A., and yili group.   

KEY FINDINGS OF THE STUDY     

• By Type, the infant milk segment was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
• By Ingredient, the carbohydrate segment was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
• By Distribution Channel, the offline segment was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
• By Region, the Asia-Pacific region was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.