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The Global Baby Food and Infant Formula Market size is forecast to increase by USD 34.37 billion at a CAGR of 6.96% between 2022 and 2027. The market witnesses growth driven by various influential factors. With continuous new product launches, the market offers diverse and innovative options catering to evolving consumer preferences. Additionally, the increasing number of working mothers fuels the demand for convenient and nutritionally balanced baby food solutions. Moreover, growing health concerns among parents drive the adoption of infant formula products that prioritize safety and nutritional value. This dynamic market landscape underscores the importance of addressing parental needs and health concerns in shaping the market. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market share growth by the infant formula segment will be significant during the forecast period. The demand for infant formula products is expected to grow during the forecast period due to the increasing number of working mothers and due to the growing health awareness among customers. Infant formula products comprise two kinds of proteins, namely casein and whey. The Infant formula segment showed a gradual increase in market share from USD 34.51 billion in 2017 and continued to grow by 2021. These products are made from modified cow milk and are infused with vitamins, minerals, carbohydrates, and vegetable oils. Casein is the most significant protein in cow's milk. However, the primary protein in breast milk is whey protein. Therefore, many infant formula products are altered to contain whey protein. Despite infusing infant formula products with whey protein, they differ from breast milk because of the difference in their amino acid and protein content. However, they contain the necessary nutrients for infant growth. For instance, they contain iron, which aids in preventing anaemia. These products are available in two forms, namely ready-to-feed liquid infant formula and powdered infant formula. Powdered infant formula is manufactured by evaporating milk until it dries and is less expensive than liquid infant formula, which makes it popular among budget-conscious consumers.
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Powdered infant formula has a longer shelf life than its liquid counterpart and does not need to be refrigerated due to its low moisture content. However, powdered infant formula products must be mixed or diluted in water before use. Liquid infant formula is made of cow milk and is infused with vitamins, minerals, carbohydrates, and vegetable oils. The demand for liquid infant formula products is increasing among consumers primarily because they offer greater convenience than their powdered counterparts, which require dilution before use.
The global demand for baby food products is on the rise and is expected to continue throughout the forecast period. This increase is attributed to factors such as the growing number of working mothers and the convenience offered by these products. Baby food products are typically used as an alternative to breast milk during the developmental stages of infants, typically from four months to two years old. The demand for organic baby food products is also on the rise due to the increasing health consciousness among parents and the perception that these products are free from harmful ingredients such as pesticide residues. Baby food products are typically available in prepared and dried forms, with the former often fortified with essential nutrients such as iron. Prepared baby foods are available in a variety of flavors and are mostly stored in jars, with some also available frozen. They are convenient for traveling and require little preparation time, only needing to be warmed before feeding. These products offer a combination of health and convenience, making them preferred by busy parents.
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APAC is projected to contribute 30% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is expected to experience the strongest demand among all other regions for baby food and infant formula products during the forecast period. This is because of the favorable economic conditions in the region, which allow consumers to pay a premium price for better-quality products. The growing popularity of organic baby food products will also propel the market. growth Also, the increasing middle-class population in the region is expected to drive the market in the coming years as consumers are able to spend more on high-quality baby food products.
The global market is witnessing significant growth driven by B2C enterprises capitalizing on rising consumer spending and technological advancements to meet infant nutritional needs, especially in the face of increasing awareness and changing lifestyles, such as working women in nuclear families. This market also benefits from innovations in food technology, packaging, and preservation methods to ensure essential nutrition delivery, particularly in response to the growing demand for organic baby food via e-commerce channels, catering to the needs of the working mother population and promoting baby health worldwide. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The launch of new products in the global market not only helps increase the revenue flow of companies but also expands their consumer base. The introduction of new products in the worldwide market not only boosts companies' revenue streams but also broadens their customer base. These introductions offer a competitive edge to stakeholders and aid in expanding their market share. Several recent launches have been highlighted below. In March 2021, Hochdorf rolled out goat milk infant formula under its Bimbosan brand, while in January 2021, Bunge Loders Croklaan (BLC) unveiled a high-quality liquid ingredient for baby formula, enabling manufacturers to adapt to regional variations in mother's milk. Additionally, in April 2020, Nestle SA Gerber introduced Good Start A2 Toddler Drink and Gerber Good Start A2 Infant Formula, containing easily digestible A2 B-casein protein. These elements are anticipated to propel the growth of the global market in the projected period.
The escalating count of working mothers and mounting health apprehensions among parents emerge as pivotal catalysts for the market's expansion. Working mothers consistently seek out nutritious and convenient food choices for their infants. Nations like India, China, the US, and the UK have witnessed an upsurge in the number of working mothers. For instance, in the UK, nearly three-quarters of mothers with children are either partially or fully employed—a figure projected to surge in the forecast period, driving up the demand for baby food and infant formula products. Similarly, in the US, approximately 61.4% of mothers with children under six years old are part of the workforce. The escalating count of working women will elevate families' per capita income and result in a higher number of dual-income households. This trend is poised to propel the growth of the market in the US in the forecast period, as more households will be financially capable of affording these products.
The global market growth is expected to be fueled by the increasing demand for organic baby food products. Parents perceive organic baby foods as healthier and safer, which is leading to their increased sales during the forecast period. Growing awareness of the harmful effects of chemicals and preservatives on babies' health has also resulted in more parents opting for organic baby food products. Organic baby food is free from chemicals, pesticides, preservatives, hormones, and antibiotics, making them highly sought after.
Manufacturers of organic baby food products must adhere to strict guidelines governing their production, packaging, and labeling. Chemical fertilizers and pesticides cannot be used in the cultivation of cereals, while livestock used for dairy and poultry products must be fed organic feed and cannot be administered growth hormones. Due to such stringent regulations, organic baby foods are perceived to be safer than regular baby food and infant formula products. Else Nutrition Holdings Inc., GreenSpace Brands Inc., and Plum Organics, a brand of Campbell Soup Co. (Campbell Soup), are some of the Companies offering organic baby food and infant formula products.
The increasing number of product recalls is a major challenge to global market growth. Manufacturers issue product recalls due to various factors, such as product contamination and incorrect labelling. Product recalls adversely affect market growth as consumers lose confidence in the products and the reputation of players issuing recalls. Players may also incur additional costs in the form of compensation for settling various legal litigations filed against them.
The market has witnessed various product recalls in the last few years due to the use of contaminated raw materials, the presence of allergens, or incorrect labelling, which can have a negative impact on market growth and consumers’ trust in products. For instance, in 2019, Abbott voluntarily recalled a single lot of Calcilo XD powder cans belonging to a specific lot number in the US and Canada. The product was recalled due to inconsistency in color and aroma in a small number of cans of the particular batch. Product recalls can lead to significant financial setbacks for Companies and impact their brand image. Therefore, product recalls can limit the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Baby Food and Infant-Formula Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Beingmate Co. Ltd. - The company offers baby food and infant formula that combines the natural benefits of Dutch goat milk with a modern composition of ingredients that meets the latest scientific insights. They offer several maternal formula products for mothers, along with infant formula products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is experiencing substantial growth, driven by factors such as B2C enterprises meeting the increasing consumer spending and global awareness regarding infant nutritional needs. With rising income levels and the prevalence of nuclear families, coupled with technological advancements in food technology and preservation, the nutrition sector is witnessing significant developments. This growth is further fueled by the integration of e-commerce platforms, catering to the needs of the working mother population. With a focus on essential nutrition and the efforts of baby food manufacturers to meet stringent standards, the market continues to thrive, playing a crucial role in baby health and contributing to the global economy.
The market caters not only to infants but also to toddlers, offering a wide range of products, including organic products, lactose-free options, and hypoallergenic formulas. These products are available in various retail outlets such as supermarkets, hypermarkets, pharmacies, and convenience stores, meeting the diverse needs of consumers. Amid challenges like low wages, the high cost of living, and stress, the market adapts to convenience-oriented lifestyles driven by rapid urbanization and increasing female participation in the labor force. With a focus on food safety and adherence to government standards, manufacturers provide flavor variety and additional nutrients, addressing the evolving needs of pregnant women and new mothers in today's changing lifestyles.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Baby Food And Infant-Formula Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.96% |
Market growth 2023-2027 |
USD 34.37 billion |
Market structure |
Fragmented |
YoY growth (%) |
5.91 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 30% |
Key countries |
US, Canada, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abbott Laboratories, Beingmate Co. Ltd., Danone SA, GreenSpace Brands Inc., HiPP GmbH and Co. Vertrieb KG, Nestle SA, Reckitt Benckiser Group PLC, Emirates Industry for Camel Milk and Products, Fonterra Cooperative Group Ltd., The Kraft Heinz Co., Gujarat Cooperative Milk Marketing Federation, Hero Group, Ausnutria Dairy Corp. Ltd., LACTALIS Group, Meiji Holdings Co. Ltd., Campbell Soup Co., PZ Cussons Plc, Ellas Kitchen Brands Ltd., and Else Nutrition Holdings Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
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