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Infant Formula Market Size, Share & Industry Analysis, By Type (Infant Milk, Follow-on-Milk, Others), Distribution Channel (Hypermarkets/ Supermarkets, Pharmacy/Medical Stores, Specialty Stores, Others), and Regional Forecast 2019-2026

Region : Global | Published Date: Oct, 2019 | Report ID: FBI101498| Status : Published

 

KEY INDUSTRY INSIGHTS

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The global infant formula market size was valued at USD 45.12 Billion in 2018 is projected to reach USD 103.75 Billion by 2026, exhibiting a CAGR of 10.85% during the forecast period.


Infant formulae are the specially designed formulations for utilization among consumers who are preferably below one year of age. These products are generally regulated in a stringent manner given the target group. The demand for infant formula or infant nutrition products is growing across the world due to rising awareness of their benefits and nutritional values which is developed in a way to mimic breast milk. Premiumization, change in ingredients mix and packaging innovation coupled with effectively communicated information about the product offerings are expected to benefit the long term growth of infant formulae in the world.  


The future growth in the global infant milk formula market hinges on the combination of scientifically-validated and well-researched ingredients as well as the packaging. The innovation in the product must closely replicate breast milk in its composition to the best possible extent. Parents are looking for differentiation in the infant formula, which is encouraging the manufacturers to introduce premiumization and value addition to the product, such as different ingredients, different animal milk, packaging, flavoring, and other loaded nutrients which makes the product premium in the market.


The modernization and evolving lifestyles of the consumers are also driving the infant formula market growth. The convenience of the product along with compositional enhancement is propelling the demand among the parents.


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The U.S. infant formula market was valued at USD 2.66 billion in 2018 and is expected to reach USD 5.07 billion by 2026, exhibiting a CAGR of 8.30% during the forecast period.


The U.S. market is exhibiting a change in terms of robust demands for value-added infant formula having recognizable ingredients, safety and regulations, and traceability. The country accounts for one of the largest markets outside the European Union (EU) and China. The regional market remains crucial for the manufacturers to strategize their offerings by getting the pulse of the developed market scenario.


MARKET DRIVERS


“Favorable Population Dynamics is Fueling the Sales Growth of Infants Formulae”


The global market is primarily driven by promising demand dynamics such as fertility rates, suboptimal breastfeeding rates indicating the early dependence on the breast milk substitute. The infant formula is becoming beneficial and important nutrition for the babies and infants, due to its attractive baby health properties, such as gut system improvement, growth, and other such disorders.


According to the World Bank Data, the global fertility rate (total births per woman) in 2017 stood at 2.426 from 2.507 in 2010 registering a compounded decline of 3.2% points over the last six years. Despite an overall drop in the number of children, the current world population is estimated at around 7.7 billion with a growth rate of 1.05% projected for the next year (2020) which is an indicative of constructive growth in the sales of infant formulae.


“Growing Focus on Infant Care and Nutrition to Drive the Market”


The growing attention and focus on the nutritional need of infant formula are the other major factors driving the infant formula market share across the globe. The increase in the number of working females and mothers, coupled with the substantial rise in their discretionary spending patterns, has boosted the sales of the baby nutrition products.


According to the Global Breastfeeding Scorecard, 2019 by the World Health Organization, and the United Nations Children’s Fund (UNICEF), the current rate of breastfeeding remains suboptimal as compared to the standard recommendations across the world. The increasing cases of lactation, medication, lack of support and qualified lactation experts, unsupportive work policies, and cultural norms are some of the attributing factors that boost-up the infant formula consumption. There are many cases across the world, where mothers voluntarily prefer infant formula instead of breastfeeding to their children, thus relying exclusively on plethora of infant formulae available in the market. Manufacturers of infant formula are thus improvising and innovating their formulations to closely mimic the breast milk composition.


SEGMENTATION


By Type Analysis


“Infant Milk Formula to witness greater innovation in terms of ingredient formulations and packaging modifications”


The infant milk formula segment has witnessed strong value-based sales and it is one of the leading category in the emerging economies, owing to the lack of acceptable alternatives in the market. Launch of convenient and nutrient-dense products is also low in this market, which is encouraging the manufacturers to develop and bring forth, a plethora infant formulae products in the market. The rising consumers’ prosperity towards their infants and baby milk enables them to afford diverse range of infant milk formula products available in the market.


The infant milk formula space has evolved majorly on the product differentiation, there is a growing trend of the medicalization of infant milk formula with label claims that address general conditions in infants and children like indigestion, constipation, etc. The product differentiation is also manifested in the inclusion of ingredients that are acceptable among conscious consumers such as 100% lactose, organic, GMO-free, palm-oil free, etc.


By Distribution Channel Analysis


“Hypermarkets/Supermarkets are one of the leading sales channels for infant formula – Specialty stores to gain greater sales traction in coming years”


The infant formula market has witnessed a rapid demand across supermarkets/hypermarkets channels. Such mass merchandisers offer an enhanced convenience, separate baby sections, bundling offers, schemes, and convenient shopping experience to buyers under a single roof along with all the home groceries. The safety and autonomy regarding the choice of the products are offered by the supermarkets/hypermarkets to the consumers along with the home delivery facilities.


Apart from the safety and convenience factor, the consumer prefers and enjoys the shopping experience due to several social activities arranged by the management and enticing environment in the shopping place. Moreover, such distribution channels are expected to act as “one-stop-for-all” regarding infant formula.


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Specialty stores are the other rapidly growing distribution channels, as the store provides a wide range of baby foods, specialized infant formulae, breast milk substitutes along with other baby care products at a single platform. The convenient way of shopping with a diverse product portfolio are enticing consumers to purchase from specialty stores. Most of the consumer prefers to buy infant formula under the guidance of infant formula specialist and experienced in nutrition that are present in such specialized stores.


REGIONAL ANALYSIS


China is the largest and fastest-growing market for infant formula products in the world. The China infant market is projected to register a CAGR of 11.30% during the forecast period (2019-2026). The infant formula market trend is majorly driven by the strong demands emerging from favorable birth rates among the elimination of the “one-child” policy.


The strong motivation provided to the domestic industry and the greater dependency on imports among rising demand for higher, quality, and premium products have also propelled the growth of the market. China is likely to be the major production hub for infant formula products in the world. This is mainly on account of the high dependence on the imports of infant formula products and rapid consolidation of the domestic industry.


Europe Infant Formula Market Size, 2018

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The market in the U.S. is expected to play a radical role in influencing the purchasing patterns and variety of different infant formula products across the globe. The Women, Infants, and Children (WIC) programme controlled by the United States has made a significant uptick in the wholesale price of the infant formula in the country. Consumers who were not able to purchase infant formula due to high prices of infant formula products are now able to get such infant products under such welfare schemes of the government. Manufacturers are also encouraged to produce the required quantity of the infant formula for the government and for individuals in the country.


INDUSTRY KEY PLAYERS


“Market players such as Nestle S.A., Danone SA, and Abbott to strengthen the market position with respect to serving infant formula products in the market”


Nestle S.A. is actively and intensively focusing on the new product development in the baby food and infant formula category among their diverse product portfolio. The company has a strong global presence in the world, which holds 22% of the global market share in infant formula segment in 2018. Innovations and expansion of business are the key strategies adopted by the company to compete in this competitive landscape.


Danone SA also has a strong global presence in the market. The company also holds a major market share in the global infant formula market demand followed by the Nestle S.A. The company is focusing on the expansion of the e-commerce platform network across the globe. Mergers and acquisitions are one of the key strategies of the company to survive globally. Itis also expanding and modifying its facilities and equipment to increase its production capacity along with the safety standards of the infant formula products. 


List Of Key Companies Profiled



  • Nestle S.A.

  • Danone SA

  • Abbott

  • Arla Foods amba

  • Yili Group

  • The Kraft Heinz Company

  • Bellamy's Organic

  • Perrigo Company plc

  • Reckitt Benckiser Group plc.

  • Royal FrieslandCampina N.V.


REPORT COVERAGE


The overview of the infant formula market growth across the world with the perceivable and justified benefits and the essential role of the infant formula in the baby feeding and infant’s nutritional diet indicates a significant growth of the global market. The consumption of infant formula is majorly growing across Asian countries, such as Japan, China, and India. However, the global market in the European Union is expected to be the next major hotspot in the years to come.


The report provides qualitative and quantitative insights on the market and detailed analysis of infant formula market size and growth rate for all possible segments in the market.  


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Along with this, the report provides an elaborative analysis of this market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global infant formula market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape, and company profiles.


Report Scope & Segmentation








































 ATTRIBUTE



 DETAILS



Study Period



  2015-2026



Base Year



  2018



Forecast Period



  2019-2026



Historical Period



  2015-2017



Unit



  Value (USD Billion)



Segmentation



By Type



  • Infant Milk

  • Follow-on-Milk

  • Others



By Distribution Channel



  • Hypermarkets/Supermarkets

  • Pharmacy/Medical Stores

  • Specialty Stores

  • Others



By Geography



  • U.S.

  • China

  • Japan

  • Australia

  • EU

  • Rest of the World



INDUSTRY DEVELOPMENTS



  • In August 2019, Danone Nutricia- a Brand of Danone SA has launched a new infant formula, Karicare Toddler with the new product innovation made with pure New Zealand sheep milk in New Zealand.

  • In January 2019, Arla Foods Ingredients, a subsidiary of Arla Foods amba, has launched an optimized comfort concept for easy digest whey protein infant formula.

  • In October 2018, Nestle S.A. has launched new infant formula- A2 Baby Formula, a premium starter infant formula, to expand its baby product range in the Australian market.

  • In May 2018, Nestle S.A. has announced its launch of its new children’s nutrition program, which is aimed to reformulate and develop the company’s products in order to make them more nutritious. The company has also initiated a campaign- Nestle for Healthier Kids globally, to provide nutritional advice for kids to parents and families.

  • The company, Abbott is focusing on utilizing natural and organic ingredients in infant formula manufacturing, to create more nutritious baby foods in the market and to meet consumer's demand for organic products in 2018.


Frequently Asked Questions

Fortune Business Insights says that the Infant Formula Market was valued at USD 45.12 Bn in 2018 and is projected to reach USD 103.75 Bn by 2026

In 2018, the Infant Formula Market was valued at USD 45.12 Bn.

Growing at a CAGR of 10.85%, the Infant Formula Market will exhibit steady growth in the forecast period (2019-2026)

Infant Milk segment is expected to be the leading segment in the Infant Formula Market during the forecast period.

Favorable population dynamics of infants will drive the growth of the Infant Formula Market.

Nestle S.A., Danone SA, Abbott, Arla Foods amba, and Yili Group are the top players in Infant Formula Market.

China is expected to hold the highest market share in the Infant Formula Market.

Mass merchandisers, such as hypermarkets/supermarkets are expected to deliver the highest number of infant formula products.

Modernization, increasing busy life-style, emerging economies, and lack of feeding guidance are the trends for infant formula market.

Infant Formula Market Size, Share and Global Industry Trend Forecast till 2026
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