Global Infant Formula Ingredients Market Overview
Infant Formula Ingredients Market Size was estimated at 58.32 (USD Billion) in 2022. The Infant Formula Ingredients Industry is expected to grow from 60.83(USD Billion) in 2023 to 88.9 (USD Billion) by 2032. The Infant Formula Ingredients Market CAGR (growth rate) is expected to be around 4.3% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Infant Formula Ingredients Market Trends Highlighted
The Infant Formula Ingredients Market is anticipated to witness significant growth in the coming years, driven by rising demand for nutritional products and increasing health consciousness among consumers. Key market drivers include growing urbanization, changing lifestyles, increasing disposable income, and the trend towards premiumization.Opportunities for growth in the infant formula ingredients market lie in the exploration of innovative and functional ingredients that cater to the specific needs of infants. Additionally, targeting emerging markets with growing populations and increasing demand for infant formula presents significant opportunities.
Recent trends in the infant formula ingredients market include the rise of organic and natural ingredients, as well as the growing demand for products that meet specific dietary requirements such as lactose-free or hypoallergenic formulas. The market is also witnessing the integration of advanced technologies, such as precision fermentation, to create novel and sustainable ingredients. These trends are expected to continue shaping the industry in the years to come, driving innovation and market growth.
Infant Formula Ingredients Market Drivers
Rising Demand for Premium Infant Formula
The development and growing recognition of the significance of nutrition for infants has led to the growth in demand for premium infant formula. This product of higher value is created of premium or higher-quality ingredients and also offers additional features, for instance, prebiotics, probiotics, etc. For these reasons, it will be true to say that the demand for premium infant formula will continue to rise within the coming years. In general, the reasons are as follows: Disposable income – within the increasing number of developing countries, the disposable income of the population is growing, which is why they are more willing to purchase goods of higher value.Within the limitations of the given piece of writing, it is an infant premium brand formula.
Rising recognition of the need for better nutrition – due to numerous studies and reports of WHO and multiple NGOs, society is more informed concerning the significance of nutrition. This makes them pay more attention to choosing the best quality infant formula, which comprises the best and most useful ingredients.
Increasing urbanization – one of the negative effects of urbanization is that babies in such conditions are often forced into idle life.The formula is their primary and unlimited source of the most important ratio. For this reason, in order to provide the necessary materials for ideal development, parents choose premium brand formulas. To sum it up, it is important to underline that the given phenomena have already been occurring, and thus, they will evidently continue within the following years. This trend is destined to be increased due to the development of the above-mentioned factors and the increasing quantity of the birth rate within all corners of the world.
Growth of the E-commerce Market
The growth of the e-commerce market is another major factor driving the growth of the Infant Formula Ingredients Market Industry. Parents are increasingly purchasing infant formula products online, as it is more convenient and often cheaper than purchasing them in stores. The growth of the e-commerce market is being driven by a number of factors, including Increasing Internet penetration: Internet penetration is increasing in developing countries, making it easier for parents to purchase infant formula products online.
Growing popularity of smartphones: Smartphones are becoming increasingly popular, making it easier for parents to shop online.
Increasing trust in online retailers: Parents are becoming more trustful of online retailers, as they have had positive experiences with them in the past. The growth of the e-commerce market is expected to continue in the coming years. This growth will be driven by the factors mentioned above, as well as by the increasing number of infants worldwide.
As a result, the Infant Formula Ingredients Market Industry is expected to grow significantly in the coming years.
Increasing Prevalence of Lactose Intolerance
The increasing prevalence of lactose intolerance is another major factor driving the growth of the Infant Formula Ingredients Market Industry. Lactose intolerance is a condition in which the body is unable to digest lactose, the sugar found in milk. This can lead to a number of symptoms, including abdominal pain, bloating, and diarrhea.
The increasing prevalence of lactose intolerance is being driven by a number of factors, including Increasing urbanization: Urbanization is leading to a more sedentary lifestyle for many infants.This makes it more difficult for them to digest lactose. Increasing consumption of processed foods: Processed foods often contain high levels of lactose. This can make it difficult for infants with lactose intolerance to digest these foods.
Increasing use of antibiotics: Antibiotics can kill the bacteria that help to digest lactose. This can lead to lactose intolerance in some infants. The increasing prevalence of lactose intolerance is expected to continue in the coming years.
This growth will be driven by the factors mentioned above, as well as by the increasing number of infants worldwide. As a result, the Infant Formula Ingredients Market Industry is expected to grow significantly in the coming years.
Infant Formula Ingredients Market Segment Insights
Infant Formula Ingredients Market Type Insights
The Infant Formula Ingredients Market is divided by Type into Powdered Infant Formula Ingredients, Liquid Infant Formula Ingredients, and Concentrated Infant Formula Ingredients. Powdered Infant Formula Ingredients dominated the market in 2023, contributing to over 60% of the Infant Formula Ingredients Market revenue. The growth of this segment is attributed to the convenience of storage and carrying. Powdered infant formula ingredients are much more stable for a longer time than the liquid and concentrated alternatives for storage purposes and increased transportation convenience because of their lighter weight.
Liquid Infant Formula Ingredients show significant growth will be evident during the forecast period. This reliance is associated with increasing consumer demand for more accessible and less inconvenient products. Parents can use liquid infant formula ingredients without the added task of stirring or heating the product before they can feed their children. At the same time, in some instances, these concentrates are used for their nutritional value in terms of greater concentrations of nutrients in smaller servings. Concentrated Infant Formula Ingredients are often the most commonly used form of the product for premature infants or infants with specific feeding needs.
Demand for Children’s Formula is expected to increase at a significant growth rate over the forecast period. Increased demand will likely be fueled by the increased number of early childbirths in light of the growing concerns of premature infants. The Infant Formula Ingredients Market will grow steadily during the forecast period in general as a resulting wave of infant feeding acceptance grows exponentially and infants depend on formula milk to breastfeed.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Infant Formula Ingredients Market Raw Material Insights
The raw material segment is one of the leading ones in the Infant Formula Ingredients Market. It involves a variety of sources that can be used to manufacture the product. Cow’s milk remains the most prominent raw material. It has the advantages of being available in large quantities, relatively cheap, and familiar to manufacturers. Another critical raw material is soybean. It is extensively used in plant-based infant formula to cater to the increasingly popular vegan and lactose-intolerant niche. Goat’s milk has become increasingly popular owing to its beneficial cosmetic effect on the child.
At the same time, it remains high in beneficial nutrients, which drive both economic use in premixes and pride of usage in premium solutions. Finally, plant-based raw materials seem to be the new popular trend. Pea protein, as well as algae, is channeling the market demand shift towards more ethical and environmentally sustainable food acquisition. The Infant Formula Ingredients Market revenue is expected to reach 88.9 billion USD by 2032. The leading drivers of this trend include an actively growing consumer awareness of healthy baby nutrition, during which consumers begin to discover and try alternative choices of baby food, and a growing income of the global population with the expansion of the distributor network.
Infant Formula Ingredients Market Application Insights
The application segment of the Infant Formula Ingredients Market is categorized into full-term infant formula, preterm infant formula, and specialized infant formula (e.g., lactose-free, hypoallergenic). Full-term infant formula is the most common type, accounting for a majority of the market share. It is designed to meet the nutritional needs of healthy infants who are born at term (after 37 weeks of gestation). Preterm infant formula is specifically formulated for premature infants who are born before 37 weeks of gestation. It has a higher calorie and nutrient content to support the rapid growth and development of these infants.
The growth of the market is attributed to the increasing demand for infant formula due to rising birth rates, working mothers, and urbanization. Furthermore, the growing awareness of the importance of proper nutrition for infants is also driving the market growth. Key players in the Infant Formula Ingredients Market include Archer Daniels Midland Company, Cargill, Incorporated, and Glanbia plc. These companies are investing in research and development to improve the nutritional value and functionality of infant formula ingredients.
Infant Formula Ingredients Market End User Insights
The End User segment of the Infant Formula Ingredients Market is classified into manufacturers, retailers, and healthcare providers (e.g., hospitals and clinics). Among these, manufacturers hold the largest revenue share due to the rising demand for infant formula from emerging economies. This segment is expected to continue dominating the market throughout the forecast period, driven by factors such as increasing birth rates and growing awareness about infant nutrition. Healthcare providers are also expected to witness significant growth in the coming years due to the increasing number of infant formula prescriptions and the growing trend of hospital-based infant care. On the other hand, retailers are expected to experience moderate growth, primarily driven by the convenience and availability of infant formula in various retail channels.
Infant Formula Ingredients Market Regional Insights
The Infant Formula Ingredients Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share in the coming years. The increasing demand for infant formula in developing countries such as China and India is driving the growth of the APAC market. Europe and North America are also significant markets for infant formula ingredients, with well-established regulatory frameworks and high consumer awareness. South America and MEA are emerging markets with growing potential, as the demand for infant formula increases with rising disposable incomes and urbanization.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Infant Formula Ingredients Market Key Players And Competitive Insights
Leading players in the market are focusing on innovative and advanced product development to cater to the diverse and increasing needs of consumers. In addition to the launch of standard infant formula products, the major players are also involved in the development of new products in the market. One of the innovative products that have been developed in the infant formula ingredients market is the organic infant formula. The other infant formula product that has been launched recently is the hypoallergenic infant formula. These innovative infant formula products are expected to increase their demand across the globe. The increasing consumer inclination towards the use of convenient products is also propelling the demand for ready-to-use infant formula among consumers across the globe.
Royal FrieslandCampina N.V. is one of the leading companies operating in the infant formula ingredients market. The company is a global dairy company and offers a wide range of infant formula ingredients. Some of the prominent infant formula ingredients provided by Royal FrieslandCampina N.V. include whey protein, casein, and lactose. The company promotes the use of high-quality infant formula ingredients to meet the diverse nutritional needs of infants. Royal FrieslandCampina N.V. is based in the Netherlands and has a strong presence in the key markets of Asia, Europe, and North America.
Arla Foods Amba is a competitor of Royal FrieslandCampina N.V. in the infant formula ingredients market. It is a global dairy cooperative that offers a wide range of infant formula ingredients, including whey protein, casein, and lactose. The company has a strong focus on the development and innovation of infant formula. Arla Foods Amba has a strong presence in the global markets, and its products are available in over 100 countries worldwide.
Key Companies in the Infant Formula Ingredients Market Include
- Royal FrieslandCampina N.V.
- Fonterra
- Danone
- Abbott
- Bubs Australia
- Arla Foods
- Nestle
- Mead Johnson Nutrition
- Glanbia
- FrieslandCampina
- Lactalis Group
- Yili Group
- Bellamy's Organic
Infant Formula Ingredients Market Industry Developments
The Infant Formula Ingredients Market is projected to grow from an estimated USD 60.83 billion in 2023 to USD 88.9 billion by 2032, exhibiting a CAGR of 4.3% during the forecast period. Rising health consciousness among parents, increasing birth rates in developing countries, and growing disposable income levels are driving market growth.
The Asia-Pacific region is expected to dominate the market throughout the forecast period due to factors such as increasing urbanization, rising consumer awareness, and government initiatives to promote infant health. Key industry players are focusing on product innovation, strategic partnerships, and acquisitions to gain a competitive edge.
Recent developments include the launch of new organic and sustainable infant formula ingredients, collaborations between ingredient suppliers and infant formula manufacturers, and investments in research and development to improve product quality and functionality.
Infant Formula Ingredients Market Segmentation Insights
-
Infant Formula Ingredients Market Type Outlook
- Powdered Infant Formula Ingredients
- Liquid Infant Formula Ingredients
- Concentrated Infant Formula Ingredients
-
Infant Formula Ingredients Market Raw Material Outlook
- Cow's Milk
- Soybean
- Goat's Milk
- Plant-based
-
Infant Formula Ingredients Market Application Outlook
- Full-Term Infant Formula
- Preterm Infant Formula
- Specialized Infant Formula (e.g., lactose-free, hypoallergenic)
-
Infant Formula Ingredients Market End User Outlook
- Manufacturers
- Retailers
- Healthcare Providers (e.g., hospitals, clinics)
-
Infant Formula Ingredients Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
58.32(USD Billion) |
| Market Size 2023 |
60.83(USD Billion) |
| Market Size 2032 |
88.9(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.3% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Royal FrieslandCampina N.V., Fonterra, Danone, Abbott, Bubs Australia, Arla Foods, Nestle, Mead Johnson Nutrition, Glanbia, FrieslandCampina, Lactalis Group, Yili Group, Bellamy’s Organic |
| Segments Covered |
Type, Raw Material, Application, End User, Regional |
| Key Market Opportunities |
Growing demand from emerging economies Increasing awareness of health benefits Rising disposable income Innovation in product formulations Ecommerce Expansion |
| Key Market Dynamics |
Rising demand for convenience Growing health awareness Increasing disposable income Advancements in technology Stringent government regulations |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Infant Formula Ingredients Market is expected to reach a valuation of USD 60.83 billion in 2023 and is projected to grow at a CAGR of 4.3% during the forecast period from 2024 to 2032.
The Asia Pacific region is anticipated to hold a significant market share in the Infant Formula Ingredients Market, followed by North America and Europe. The growth in these regions can be attributed to rising birth rates, increasing disposable income levels, and growing awareness about infant nutrition.
Infant formula ingredients are primarily used in the manufacturing of infant formula, which is a substitute for breast milk for infants and young children. These ingredients include proteins, carbohydrates, fats, vitamins, and minerals, which are essential for the growth and development of infants.
Some of the prominent players in the Infant Formula Ingredients Market include Arla Foods, Fonterra Co-operative Group, Danone S.A., Royal FrieslandCampina N.V., and Abbott Laboratories. These companies offer a wide range of infant formula ingredients, including whey protein concentrates, caseinates, and lactose.
The growth of the Infant Formula Ingredients Market is primarily driven by the increasing birth rates in developing countries, rising health consciousness among parents, and growing disposable income levels. Additionally, government regulations and initiatives aimed at promoting infant nutrition are also contributing to market growth.
The Infant Formula Ingredients Market faces several challenges, such as intense competition, stringent regulatory requirements, and fluctuations in raw material prices. Additionally, the spread of misinformation about infant formula can impact consumer perception and hinder market growth.
The Infant Formula Ingredients Market is projected to reach a valuation of USD 88.9 billion by 2032, exhibiting a CAGR of 4.3% from 2024 to 2032.
The Infant Formula Ingredients Market is witnessing several emerging trends, including the growing demand for organic and natural ingredients, the rise of e-commerce platforms, and the increasing adoption of sustainable practices. Additionally, advancements in research and development are leading to the development of new and innovative infant formula ingredients.
The Infant Formula Ingredients Market is segmented based on ingredient type, application, and region. By ingredient type, the market is divided into proteins, carbohydrates, fats, vitamins, and minerals. By application, the market is segmented into infant formula, follow-on formula, and specialized formula. Regionally, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
The growth of the Infant Formula Ingredients Market is influenced by several key factors, including rising birth rates, increasing awareness about infant nutrition, growing disposable income levels, and supportive government regulations. Additionally, the expansion of e-commerce platforms and the growing demand for organic and natural ingredients are also contributing to market growth.
