Infant Formula Market Size - By Product, By Distribution Channel & Forecast, 2024-2032

Infant Formula Market Size

The global infant formula market size was valued at USD 43.14 billion in 2023 and is anticipated to expand at a CAGR of 10.3% CAGR between 2024 and 2032. The rising incidence of premature births and metabolic disorders among babies are among the prominent drivers for industry expansion.
 

Infant or baby formula is gaining acceptance as a safe alternative to breastmilk with added vitamins, fats, and minerals for nutrition. Over recent years, the occurrence of premature birth has been surging. Based on data from the March of Dimes Organization, close to 380,000 babies are born prematurely per year in the U.S., which is critical in high-resource countries. These factors will promote bottle feeding of infant formula to suit the nutritional needs of preterm babies.
 

Additionally, the market is experiencing significant growth, driven by rising birth rates and increasing parental awareness of nutritional needs. Key trends include a shift towards organic and plant-based formulas, fueled by growing health consciousness and concerns over synthetic ingredients. Technological advancements in formula production and packaging are enhancing product safety and convenience. Additionally, emerging markets, particularly in Asia-Pacific, are expanding rapidly due to rising disposable incomes and changing lifestyles. Regulatory changes and stringent quality controls are also influencing market dynamics. Companies are focusing on innovation and sustainability to stay competitive in this evolving landscape. 
 

The rising infant population and growing employment among women contribute to increased demand for convenient, ready-to-use culinary products. With more households relying on quick meal solutions due to busy lifestyles, the need for diverse and high-quality seasonings grows. Heightened consumer awareness around wellness and the adoption of home healthcare drive interest in natural and health-conscious seasoning options, aligning with broader trends towards healthier eating.
 

A robust distribution network and the widespread use of e-commerce platforms facilitate easy access to a variety of seasoning products, enhancing market reach and consumer choice. Additionally, the rising incidence of premature births and metabolic disorders in infants underscores the need for specialized, health-focused seasoning alternatives. Despite the favorable business environments, the introduction of stringent regulations pertaining to infant food products may act as a factor limiting industry development to some extent.
 

Infant Formula Market Trends

The infant formula industry is evolving with significant advancements in manufacturing and technology. Innovations such as high-efficiency production processes, precision nutrient delivery systems, and enhanced quality control mechanisms are driving market growth. Emerging technologies, including artificial intelligence for personalized nutrition and blockchain for traceability, are reshaping the industry landscape. Additionally, improvements in ingredient sourcing and processing techniques are enhancing formula safety and nutritional value. These technological advancements are not only increasing production efficiency but also meeting rising consumer demands for transparency and quality in infant nutrition.
 

Infant Formula Market Analysis

The toddler product segment will capture USD 45.26 billion and demonstrate a 10.8% CAGR by 2032. Due to the increasing instances of malnutrition among babies aged 0 to 6 months. Since the first 6 months are critical for the health of infants, formulas are specially manufactured to satisfy their nutritional requirements. Standard formulas also play a prominent role in managing infant diets, through the delivery of essential nutrients required to thrive and develop.
 

The emphasis on reducing low birthweight through proper nutrition remains high. For example, the World Health Assembly announced a nutrition target to lower the incidence of low birthweight by 30% between 2017 and 2023. Initiatives such as these will further augment the demand for standard infant formula to manage malnutrition, address feeding concerns, and limit the lifelong consequences of stunted growth in infants.
 

Additionally, standard formulas are designed for newborns and infants, providing essential nutrients to support growth and development. Follow-on formulas are formulated for older infants, typically from six months, to complement solid foods and ensure continued nutritional support. Toddler formulas cater to children aged one year and older, offering additional nutrients to meet the dietary needs of active toddlers. Specialty formulas address specific health concerns or dietary requirements, such as lactose intolerance, allergies, or metabolic disorders, providing tailored nutrition solutions.
 

The supermarkets distribution channel segment held a 36.16% infant formula market share in 2023, amounting to USD 15.59 billion, and is predicted to grow at a 10.2% CAGR from 2024 to 2032. Supermarkets have emerged as an ideal sales channel for infant nutrition products since they give customers access to formulas at discounted prices. Furthermore, the delivery of a seamless shopping experience has also increased footfall in supermarket chains. However, the ongoing supply disruptions due to safety recalls may hamper the demand for infant formulas from supermarkets to a certain extent.
 

The Asia Pacific infant formula market is estimated to achieve USD 40.19 billion, with a CAGR of 10.7% from 2024 to 2032. The burden of infant mortality is also still prevalent across the region. According to data from the Sample Registration System of the Indian government, in 2022, 20 out of 1,000 babies died within 12 months of their birth. These factors are expected to amplify the production of infant formulas to meet nutritional needs and lower the rate of infant deaths in the APAC region.
 

In North America, the market is driven by high awareness of infant nutrition and stringent regulatory standards. Europe follows closely, with a focus on organic and specialized formulas catering to diverse dietary needs. Asia Pacific is the fastest-growing region, fueled by increasing birth rates and rising disposable incomes, alongside expanding urbanization. Latin America shows steady growth, supported by improving healthcare infrastructure and rising middle-class populations.
 

Infant Formula Market Share

Companies include, Nestlé SA, a global leader in nutrition, has significantly impacted the infant formula industry with its diverse portfolio and extensive distribution network. Hero Group has strengthened its presence with a focus on natural and organic infant formulas, appealing to health-conscious consumers. BUBS Australia stands out for its premium, grass-fed infant formulas, catering to the growing demand for high-quality, Australian-made products.
 

Nutricia, a subsidiary of Danone, contributes through its innovative range of scientifically advanced formulas designed to meet specific nutritional needs. Abbott Laboratories, known for its Similac brand, provides a wide array of infant nutrition solutions supported by cutting-edge research and technology.
 

Infant Formula Market Companies

Top companies operating in the infant formula industry include:

• Nestle SA
• Hero Group
• BUBS Australia
• Nutricia
• Abbot Laboratories
• Mead Johnson Nutrition
• Arla Group
• Perrigo
• HiPP Bellamy's Organic
   

Infant Formula Industry News

July 2023: Danone Early Life Nutrition introduced a new infant formula containing milk droplets that closely mimic the structure found in mother's milk in China.
 

May 2022: Nestlé Health Science acquired The Bountiful Company, including Osteo Bi-Flex, Nature's Bounty, Solgar, Ester-C, Puritan's Pride, and Sundown. This initiative, intended to attract customers in the global nutrition and supplement category, will enable the company to strengthen its footprint in the infant formula industry.
 

The infant formula market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Billion) (Tons) from 2021 to 2032, for the following segments:

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Market, By Product

• Standard
• Follow-on
• Toddler
• Specialty

Market, By Distribution Channel

• Hypermarkets
• Supermarkets
• Convenience stores
• Online
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa