Infant Formula Ingredients and Products Market Size, Share & Industry Analysis, By Ingredient Type (Carbohydrates, Fats, Proteins, Prebiotics and Probiotics, Vitamins and Minerals, and Others), By Product Type (Organic Formulas, Goat milk-based Formulas, OPO-enriched Product, Soy-Based Formula, Specialty Formula, HMO-Enriched Formula, A2 Protein Formula, Lactoferrin-Enriched Formula, and Others), and Regional Forecast, 2025-2032

The global infant formula ingredients and products market size was valued at USD 74.94 billion in 2024. The market is projected to grow from USD 77.64 billion in 2025 to USD 109.70 billion by 2032 at a CAGR of 5.06% during 2025-2032. Asia dominated the infant formula ingredients and products market with a market share of 66.2% in 2024.

Some of the prominent manufacturers of infant formula ingredients and products operating globally include Nestle S.A., Abbott, Danone, and Reckitt Benckiser Group plc.

Infant formulas are products that are fed to babies aged 0-3 years as a substitute for human milk. It is one of the essential forms of nutrition for infants. These products are derived from cow’s milk, but formulas derived from goat and soy are also available in the market. In the journey of parenting, ensuring proper nutrition and health for infants is of vital importance. While breast milk is considered the best source of infant nutrition, circumstances such as a fast-paced lifestyle and medical ailments may necessitate substitutes such as infant formula.

Infant Formula Ingredients and Products Market Key Takeaways

Market Size & Forecast:

• 2024 Market Size: USD 74.94 billion
• 2025 Market Size: USD 77.64 billion
• 2032 Forecast Market Size: USD 109.70 billion
• CAGR: 5.06% from 2025–2032

Market Share:

• Asia Pacific dominated the infant formula ingredients and products market with a market value of USD 49.61 billion in 2024, driven by growing female workforce participation, rapid urbanization, and rising awareness of infant nutrition. The region also benefits from government initiatives encouraging higher birth rates and premium nutrition products.
• By product type, specialty formula held the largest market share in 2024, catering to infants with allergies, sensitivities, or medical needs, while HMO-enriched formulas emerged as the fastest-growing category due to their similarity to breast milk composition.

Key Country Highlights:

• China: Policy reforms encouraging childbirth and rising consumer demand for advanced infant nutrition products, including HMOs and probiotics, drive market growth.
• United States: Manufacturers are addressing past supply disruptions with enhanced safety regulations and localized production following the 2022 infant formula shortage.
• India: Increasing middle-class population and working women adoption of convenience-based infant feeding options support robust market expansion.
• France: Rising preference for organic and premium formulas, including A2 and lactose-free variants, is driving European market growth.
• Brazil: Steady birth rates and consumer preference for functional, plant-based soy formulas are supporting sales growth.
• United Arab Emirates: Expanding expatriate population and growing demand for premium, imported infant formula products fuel regional market development.

MARKET DYNAMICS

MARKET DRIVERS

Surging Awareness of Infant Nutrition Amongst Parents Bolsters Sales of Infant Formula

Infant nutrition during early childhood is a substantial indicator of well-being and health. Today, parents, especially those from the Middle East and Asia, are highly aware of the advantages and importance of infant formula. To support their infants' proper development and growth, many parents, especially mothers, are gravitating toward formulas, alongside breastfeeding. Similar to breast milk, infant formulas offer a balanced mix of vitamins, carbohydrates, minerals, and protein, designed to replicate human milk. These products also address specific medical conditions such as digestive sensitivities, allergies, and other metabolic challenges. Furthermore, nutrient-enriched infant food bolsters both cognitive and physical development. Thus, such benefits stimulate the acceptability rate, ultimately escalating infant formula sales and supporting the global infant formula ingredients and products market growth.

Growing Demand for Specialty Infant Formula Products Boost Industry’s Growing Potential

Food allergies in infants are a growing public health concern and are recognized as one of the most common and chronic conditions of childhood. In recent years, its prevalence has been increasing at a faster pace in both developed and developing nations. Predominantly in infants, lactose intolerance is highly common and creates symptoms such as vomiting, diarrhea, and respiratory issues. To minimize such health concerns, infant formula producers are exploring specialized products for babies who are unable to tolerate lactose-rich formulas. These finished products are easier to digest and help reduce the risk of allergic sensitivities/reactions.

• For instance, in September 2024, Perrigo Company plc, an Irish pharmaceutical firm, entered into a partnership with Dr. Brown's Company, a U.S.-based enterprise, and Good Start, a brand of Perrigo, to launch lactose-free infant formula, produced using 100% plant-based proteins. This formula can be purchased through retailers such as Walmart, Kroger, and Amazon across the U.S.

MARKET RESTRAINTS

High Manufacturing Cost of Infant Formula Ingredients Could Hamper Market Growth

The growing manufacturing costs of infant formula ingredients present a significant hurdle for the industry. The ingredients utilized and their procurement cost all lead to the final price of the end products. The feeding formula comprises vegetable oils, milk powder, vitamins, carbohydrates, and others, all of which have different prices and fluctuate according to market conditions. Moreover, the price of sourcing ingredients, particularly organic and other specialized ingredients, is higher than that of conventional ingredients, hampering market growth. Supply chain disruptions and growing energy costs also continue to hinder the production of infant formula.

MARKET OPPORTUNITIES

Technological Advancements in Production of Infant Formula Offers Expansion Opportunities

Over the past few years, pediatric and infant nutrition breakthroughs have resulted in deeper insights into what babies require for healthy growth. In response, food manufacturers concentrate on producing items using advanced technologies to support the health of infants. Utilization of such technologies enables the development of infant formulas that replicate human milk and satisfy particular nutritional requirements. As a result, to improve the production process and quality, companies can utilize supercritical fluid extraction and microfiltration methods to isolate milk fat globule membranes from cow’s milk. Moreover, enterprises can use enzymatic synthesis and fermentation techniques to produce cost-effective essential ingredients. For instance, in April 2020, Conagen, a U.S.-based biotechnology firm, developed Lactoferrin, an important infant nutrition protein produced through fermentation.

Infant Formula Ingredients and Products Market Trends

Increasing Popularity of Ingredients Imitating Human Milk Properties among Parents

Products that closely mimic human milk are popular among consumers in the emerging ingredients category. Health and immunity-boosting ingredients such as OPO, HMO, and A2 protein are witnessing growing demand in Asian markets. For instance, in October 2023, International Flavours and Fragrance (IFF), DSM-Firmenich, and Mengniu received approval to use HMOs and probiotics in their infant milk formula, which are manufactured and sold in China. This regulatory permit opened doors for other manufacturers to expand their market presence in the region.

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Impact of Tariff War

As heavy tariffs are imposed on imported products for the U.S. market, the country is increasingly reliant on domestic production units to meet its demand. However, overreliance on domestic production can lead to supply chain issues, product shortages in the stores, increased prices, and reduced demand. Similar problems occurred during the 2022 U.S. infant formula shortage, where problems in domestically manufactured products led to product recalls and an infant formula shortage in the country. To address the emergency, the U.S. government had to import infant formulas from European Union countries to meet the domestic demand. If tariffs are imposed on infant formulas, it could become more difficult for the government to mitigate any future price volatility in the infant formula market.

Segmentation Analysis

By Ingredient Type

Carbohydrates Segment Held Largest Share as it is a Major Source of Energy for Infants

By type, the market is segmented into carbohydrates, fats, proteins, prebiotics and probiotics, vitamins and minerals, and others.

Carbohydrates accounted for the highest global infant formula ingredients and products market share in 2024, as they are the main source of energy for infants. Lactose present in the milk supports brain development, nutrient absorption, and overall growth of the baby. It is one of the essential parts of nutrition for babies.

Fats account for the second-largest share of the infant formula ingredients market. Around 40-45% of an infant’s daily caloric intake should come from fats to ensure healthy development. Along with carbohydrates, they help provide energy, boost growth and development, and improve nervous system development.

Proteins help in muscle growth, tissue repair, and muscle recovery in the body. It is necessary for child growth and development, and hence accounts for the third largest share of the market.

The prebiotics and probiotics segment is likely to hold the highest growth during the forecast period. These ingredients support gut health and immune function. As there is growing research in this category, companies continue to roll out new products that contain prebiotics and probiotics in their product formulations.   

By Product Type

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Specialty Formula Segment Dominates Owing to its Ability to Provide Specialized Nutrition to Infants

By type, the products market is segmented into organic formulas, goat milk-based formulas, OPO-enriched product, soy-based formula, specialty formula, HMO-enriched formula, A2 protein formula, Lactoferrin-enriched, and others.

The specialty formula dominated the global infant formula products market and held a considerable market share in 2024. Specialty formulas are designed for infants with particular medical conditions and dietary requirements that conventional infant products cannot easily fulfill. Such formulas may be used for infants with metabolic disorders, premature/low birth infants, and allergies/sensitivities. In response to rising demand, prominent players in the global space are introducing new formulas to fulfill the increasing needs of specialty infants.

For instance, in March 2023, Danone, a food processing firm in France, announced the release of its new hypoallergenic formula, "Pepticate," across the U.S. market. This Product is a hydrolyzed powdered formula formulated to offer relief to infants suffering from cow's milk allergy. 

The HMO-enriched formulas segment is the fastest-growing category and is anticipated to maintain this momentum in the coming years. The HMOs are considered the third most abundant component of breast milk, after fat and lactose. To boost the health mechanism, the companies are incorporating HMOs in infant formula, especially 2'-fucosyllactose (2'FL), to replicate breast milk.

INFANT FORMULA INGREDIENTS AND PRODUCTS MARKET REGIONAL OUTLOOK

Geographically, the market is studied across North America, Europe, Asia, South America, and the Middle East & Africa.

Asia

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Growing Women Employment in Asia Pacific Contributes to the Region’s Growth

The rapid industrialization across Asian countries is a key driver of the infant formula and products market growth. The proportion of women in the workforce, compared to men in several Asian countries, is still low, and there is an opportunity to expand and increase women's participation in the workforce. As more young women join the workforce, they have less time to spend at home, thus prompting them to opt for infant formulas to feed their babies instead of breastfeeding. This trend is expected to cause a major shift in infant nutrition across the region. For instance, as per a 2024 update by the World Bank's South Asia Development, increasing the participation of women in the workforce could boost regional GDP by 51%.

In addition, the Chinese government has implemented major policy reforms due to a decline in birth rates. Moreover, studies conducted by several reputed national and international organizations have stated that the population may collapse due to its stringent one-child policy. In 2015, the country scrapped its one-child policy and encouraged young parents to have 2 children. This has led to a modest rise in infant births in 2024. As a result, infant formula manufacturers expect that the demand for these products will increase in the future.

North America

There is significant volatility in the price and availability of infant formula ingredients and products in the North American market. The 2022 U.S. infant formula shortage, caused by bacterial contamination, resulted in widespread product recalls and reduced availability in the market. This also impacted the global supply chain of U.S.-manufactured infant formula products, leading to import restrictions and formula shortages, especially in the U.S. market. This has prompted countries to adopt stringent safety and quality inspection measures for infant formula ingredients and products.     

Europe

Consumers in European markets demonstrate a strong preference for organically produced and sourced ingredients that are free of additives. Therefore, demand for organic-labeled products is increasing steadily in the region. Among premium offerings sold in the region, HMO and A2 products are gaining popularity. Additionally, there is high demand for specialized infant nutrition products, particularly for lactose-intolerant populations or babies suffering from food are also popular in the region.

South America

The market in South America is witnessing substantial growth, primarily fueled by the growing disposable income and a stable infant birth rate in the region. Functional, ingredient-based products that provide added nutritional benefits to infants are particularly popular in the market. Infant formula manufacturers are using marketing claims such as "gentle on the stomach", "supports bone health", and similar health-related labels to attract consumers and increase sales. The popularity of plant-based soy infant milk formula is growing rapidly in the region as well.

Middle East & Africa

The Middle East & Africa region is known for its culturally diverse society and is recognized as a home to a large number of people from various nationalities. Due to the surge in working migrants, students, and expatriates, the region is witnessing a massive influx of people from various nations. Although the number of baby births in the region is slow, with the growing influx of wealthy residents, the demand for high-quality, premium baby formula is expected to increase.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Companies Focus on New Product Launch and Expansion in Production Capacity to Meet Global Demand

The market is highly competitive owing to the presence of a wide number of established and regional players. Key companies, such as ARLA FOODS AMBA, Fonterra Co-operative Group Limited, Abbott, Nestle S.A. are the prominent players in this market. These players are focusing on increasing production capacity and new ingredient-based infant formula product launches to better meet the regional demand.

Major Players in the Infant Formula Ingredients and Products Market

The market is semi-consolidated, with the top 5 players accounting for around a limited portion of the global infant formula ingredients and products market share.

LIST OF KEY INFANT FORMULA INGREDIENTS AND PRODUCTS COMPANIES PROFILED

• Fonterra Co-operative Group Limited (New Zealand)
• Abbott (U.S.)
• Nestle S.A. (Switzerland)
• Ingredion Incorporated (U.S.)
• DSM-Firmenich (Netherlands)
• Almarai Company (Saudi Arabia)
• Cargill, Incorporated (U.S.)
• Danone S.A. (France)
• Novonesis (Denmark)
• AAK (Sweden)
• Royal FrieslandCampina N.V. (Netherlands)
• Reckitt Benckiser Group plc (U.K.)
• Junlebao Dairy Group (China)
• Hero Group (Switzerland)
• ARLA FOODS AMBA (Denmark)

KEY INDUSTRY DEVELOPMENTS

• May 2025: Arla Food Ingredients, a subsidiary of Arla Foods, collaborated with Brenntag Group, a German distributor, to extend its distribution across Southeast Asia. Through this collaboration, Brenntag marketed Arla Foods’ protein ingredients portfolio for sports nutrition and infant nutrition across Indonesia, Vietnam, and Thailand.
• December 2024: Novonesis announced the launch of its latest commercialized ingredient, “2'-FL human milk oligosaccharides.” This ingredient received approval for use in infant formula, young children, and older infants prepared formula across the Chinese market.
• October 2023: ARLA FOODS AMBA announced the investment in its existing factory in Argentina, focusing on infant formula and protein ingredient applications. Moreover, Arla Food Ingredients revealed its plan to add a drying tower to its site in Portena, Argentina.
• November 2022: FrieslandCampina expanded its infant formula ingredient product range by launching new fish-oil-free products in the market. Two products are based on algal oil and contain docosahexaenoic acid (DHA), Vana-Sana DHA algae 20L and Vana-Sana DHA algae 11N. The other product is arachidonic acid (ARA), Vana-Sana ARA 20L, derived from fungal oil.
• November 2022: Hero Group invested USD 16.5 million in a new factory, located at the company’s current premises in Spain. This 6,000 square-meter facility created 100 jobs and reinforced the company’s commitment to its home country. Hero Group aims to strengthen its position in Spain and drive innovation in new infant formula and baby food product development.
• August 2022: Junlebao Dairy Group released its new infant formula enriched with the highest Lactoferrin content. This product was developed to boost the immune health of Chinese infants.
• November 2019: Enfamil, an acquired brand by Reckitt, launched a campaign to improve the awareness of DHA and urged other formula producers to develop and market DHA-based infant formula across the U.S.

REPORT COVERAGE

The global infant formula ingredients and products market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. Various key insights presented in the report are an overview of related markets, recent industry developments, global infant formula products and ingredients market trends, recent developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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Report Scope & Segmentation