July 19, 2024
Infant Formula Market

Booming Asia Pacific region to boost the growth of Infant Formula Market

The global Infant Formula Market is estimated to be valued at US$ 38983.06 Mn or in 2023 and is expected to exhibit a CAGR of 10.6%over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Infant formula is a manufactured food designed and marketed for feeding to babies and infants, usually prepared for bottle-feeding or cup-feeding from powder (mixed with water) or liquid (with or without additional water). It is the only source of nutrition for babies who are not exclusively breastfed and not fed with human breast milk. Infant formula is made from cow’s milk which is modified and processed to mimic human breast milk. Starter infant formulas are typically based on cow’s milk proteins but modified for easier digestibility. Follow-on formulas contain higher amounts of proteins, vitamins and minerals than starter infant formula. Growing urbanization and rise in working women population is increasing the demand for infant formula.

Market key trends:

One of the key trends currently being observed in the infant formula market is the rising demand for organic and clean label products. Consumers are increasingly becoming conscious about the ingredients used in infant formulas. They prefer formulas containing organic ingredients and without artificial preservatives, colors or flavors. Companies are innovating new products using organic and natural ingredients to cater to this demand. For example, Nestle’s organic infant formula “Gerber Good Start Organic Soothe Probiotic Infant Formula” promotes digestive health without any artificial growth hormones, antibiotics, pesticides or GMOs. The product contains DHA and prebiotic ingredients to nourish baby’s immunity. Such innovative organic variants are gaining popularity globally and driving the market growth.

Porter’s Analysis

Threat of new entrants: The infant formula market requires significant investments in research and development to meet strict regulatory standards. The certification and approval processes also pose strong barriers to entry.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of a wide range of branded and private label products. However, switching costs for buyers are low.
Bargaining power of suppliers: Key suppliers such as dairy producers and manufacturers of ingredients like prebiotics and probiotics have lower bargaining power due to the presence of substitutes and the fragmented nature of suppliers.
Threat of new substitutes: Human breastmilk remains the most viable substitute for infant formula. However, the ability to substitute is limited as breastfeeding requires additional time commitment and not all mothers can breastfeed.
Competitive rivalry: The global market is dominated by few major players leading to high competitive rivalry. Players compete based on product differentiation, pricing, promotion, and effective distribution.

Key Takeaways

The Global Infant Formula Market Size is expected to witness high growth, exhibiting CAGR of 10.6%over the forecast period, due to increasing number of working women and rising disposable income in developing economies.

Regional analysis: Asia Pacific region dominates the global market and is expected to grow at over 11% CAGR during the forecast period. China accounts for over 50% of global infant formula sales owing to the one-child policy and cultural preference for formula over breastmilk. North America follows Asia Pacific in terms of market share.

Key players: Key players operating in the infant formula market are Nestle S.A., Groupe Danone, Abbott Nutrition, Mead Johnson Nutrition, The Kraft Heinz Company, Meiji Holdings Co. Ltd., Beingmate Baby & Child food Co. Ltd., Synutra International Inc., Pfizer Inc., and FrieslandCampina. N.V. Nestle, Danone and Abbott collectively account for over 70% of global market share.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk researchInfant Formula Market
2. We have leveraged AI tools to mine information and compile it