The global infant formula market size was valued at USD 73.83 billion in 2023. The industry is expected to expand from USD 81.72 billion in 2024 to USD 178.83 billion by 2032, exhibiting a CAGR of 10.28% over the study period. The expansion can be credited to the rising consumer shift toward plant-based and clean-label products. Consumers are increasingly shifting from chemical to plant-based ingredients, which is anticipated to bolster the demand for these infant products.
Fortune Business Insights™ provides this information in its research report, titled “Infant Formula Market, 2024-2032”.
COVID-19 Impact:
Supply Chain Upheavals Hindered the Market Growth Amid the Pandemic
The supply chain and production constraints were observed in the infant nutrition industry amid the pandemic, which had a negative impact on the market growth. A surge in product sales attributed to the increased inclination of people toward products with high nutrition was also witnessed. However, the market faced consumer panic due to the limited production, which led to a supply chain gap.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/infant-formula-market-101498
Segmentation:
Infant Milk Segment Dominated Due to Growing New Product Launches by Market Players
On the basis of type, the market is divided into infant milk, follow-on-milk, and others. The infant milk segment held the largest infant formula market share in 2022. The leading market players are focusing on new product launches in the infant milk segment. This factor is driving the segment growth.
Consumers’ High Preference for Large Supermarkets to Escalate Hypermarkets/Supermarkets Segment Expansion
By distribution channel, the market segmented into hypermarkets/supermarkets, pharmacy/medical stores, specialty stores, and others. The hypermarkets/supermarkets segment accounts for the largest market share. Consumers exhibit a high preference to purchase products from large supermarkets due to the availability of a wide range of pricing options.
By region, the market has been studied across the Asia Pacific, North America, Europe, the Middle East & Africa, and South America.
Report Coverage:
The market report offers comprehensive coverage of the driving factors impacting the market growth. In also offers vital insights into the COVID-19 impact on the market growth. It further highlights the key market trends and strategies formulated by leading market players to retain their industry foothold.
Drivers and Restraints:
Surging Awarenessabout the Importance of Early Nutrition for Infants' Proper Growth and Development to Accelerate the Market Growth
One of the major factors driving the infant formula market growth is an increase in awareness about the importance of early nutrition for the proper growth and development of infants. Parents are focusing on better nutrition and more advantageous products for their children. In addition, young parents look for plant products due to their high nutritional value.
Despite an expanding scope for product adoption, the safety issues related to the new infant formulas may hinder the market growth.
Regional Insights:
Asia Pacific Dominated Due to the Rising Birth Rate in the Region
The Asia Pacific market held the largest share in 2022. The birth rate in the region is high, which has increased the product uptake. This factor is proliferating the regional growth.
The Europe market for infant formula is anticipated to expand significantly during the forecast period. The key market players such as Organix, Nestle, and others are continuously innovating. This factor is driving the regional growth.
Competitive Landscape:
Prominent Companies Focus on Capacity Expansion Strategies to Reinforce their Industry Positions
Notable infant formula market players are focusing on various competitive strategies to extend their industry footing. Mergers and acquisitions, collaborations, joint ventures, and product innovations are some of the key competitive strategies deployed by leading market players. Several companies are also focusing on capacity expansion strategies to sustain their industry leaderships.
Key Industry Development:
August 2022: Abbott announced the resumption of its Similac infant formula production plant at Sturgis, Michigan. Through this move, the company intended to supply over 8 million pounds of infant formula in the U.S.
List of Key Players Mentioned in the Report:
- Nestle S.A. (Switzerland)
- DanoneA. (France)
- Arla Foods (Denmark)
- Yili Group (China)
- Abbott (U.S.)
- The Kraft Heinz Company (U.S.)
- Bellamy’s Organic (Australia)
- Reckitt Benckiser Group PLC (U.K.)
- Perrigo Company plc (Ireland)
- FrieslandCampina (Netherlands)
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