Overview of the global RTD infant milk market

Technavio’s market research analyst predicts the global ready-to-drink (RTD) infant milk market to grow steadily at a CAGR of above 3% by 2021. One of the key factors responsible for the growth of this market is the rise in breastfeeding alternatives for specified maternal conditions, convenience, and flexibility. The RTD infant milk works as an alternative to breast milk, having all the necessary ingredients such as DHA, lutein, and vitamin E that are found in breast milk. Also, the increase in the number of working women including mothers of new-born babies, dietary instructions, medical condition, and concerns of breastfeeding in public places have also contributed to the market growth of this market. The rising urbanization and the growth of the middle-class population have significantly encouraged consumers to adopt convenience-oriented lifestyles, which, in turn, is making baby food and infant formula a desirable option among working women.

In terms of geography, the Americas accounted for the maximum market share during 2016 and will continue to dominate the market for the next few years. An increasing number of parents are significantly opting for no-additives and natural ingredients infant milk formula, which in turn, is augmenting the sale of organic baby food. The growth of the RTD infant milk market in North America is mainly driven by the growth of the markets in the US and Mexico. In the US, organic baby food sales have increased due to health concerns among parents about food safety. To stay abreast with this trend, several market vendors have increased the organic baby foods. For instance, Nestlé created a new segment of non-chilled yogurt for babies and toddlers.

Competitive landscape and key vendors

The RTD market in fast-growing countries such as China and India in APAC, present a significant growth opportunity for market players with an increasing target population and relative awareness about RTD infant milk. As these markets are highly price sensitive, the penetration is restricted to urban areas.

Leading vendors in the market are -

• Abbott Laboratories (Abbott)
• Danone
• Mead Johnson Nutrition
• Nestlé

Other prominent vendors in the RTD infant milk market include Arla Foods, Amara Baby Food, Baby Gourmet, Ella's Kitchen Group, Friso, GreenMonkey (GreenZoo), Hero Group, Morinaga, Meiji, Nurture (Happy Family), One Earth Farms, Parent's Choice, Plum Organics, and Stonyfield Farm.

Segmentation by age group and analysis of the RTD infant milk market

• 0-6 months
• 7-12 months

During 2016, the 0-6 months’ segment dominated the RTD infant milk market and accounted for a major part of the overall market share. Factor such as faster digestion and an easier method to feed the babies are the major reasons for the dominance of this segment. Moreover, due to the growing dependency of working women on RTD infant milk this segment is expected to dominate the market over the next few years.   

Segmentation by distribution channel and analysis of the RTD infant milk market

• Online
• In-store

In this market study, analysts have estimated the in-store segment to dominate the RTD infant milk market during the forecast period. One of the major factors driving the growth of in-store sales of RTD infant milk is the increased credibility of brick-and-mortar stores. When it comes to quality, consumers prefer a physical store within their geographic proximity to online stores, as it tends to have a flexible return policy or increased period of warranty. Also, the growing popularity of in-store pickups is contributing to the growth of this segment in the RTD infant milk market.

Key questions answered in the report include

• What will the RTD infant milk market size and growth rate be in 2021?
• What are the key factors driving the global RTD infant milk market?
• What are the key market trends impacting the growth of the global RTD infant milk market?
• What are the challenges to market growth?
• Who are the key vendors in the global RTD infant milk market?
• What are the market opportunities and threats faced by the vendors in the global RTD infant milk market?
• Trending factors influencing the market shares of the Americas, APAC, Europe and MEA.
• What are the key outcomes of the five forces analysis of the global RTD infant milk market?

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