Organic Infant Formula Market Research Global Report - Forecast till 2030

Organic Infant Formula Market Research Report Information By Product (Starting-Milk Formula, Follow-on Milk Formula, Special Milk Formula and Others), By Formulation(Powdered Formula, Concentrated Milk Formula and Ready to Feed Formula), By Distribution Channel ( Supermarkets & Hypermarkets, Convenience Stores, Specialty Stores and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) - Forecast Till 2030

ID: MRFR/F-B & N/2090-CR | 90 Pages | Published By Snehal Singh on February 2021         

Organic Infant Formula Market Speak to Analyst Request a Free Sample

Global Organic Infant Formula Market Overview


Organic Infant Formula Market Size was valued at USD 17.6 billion in 2021. The Organic Infant Formula market industry is projected to grow from USD 18.15 Billion in 2022 to USD 32.53 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.56% during the forecast period (2022 - 2030). The growing concern among consumers about feeding their babies with milk without the use of pesticide, additives and many more, has compelled manufacturers to adopt various strategies to expand its product portfolio and better serve the customer which in turn is set to fuel its market growth. For instance, in November 2022, Perrigo has invested USD 170 million strategically to strengthen and grow infant formula production in the United States by boosting production capacity and enhancing caregivers' and parents' and infants' access to secure, reasonably priced formula.


  Organic Infant Formula Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Organic Infant Formula Market Trends


Increasing Demand for Organic Food Coupled with the Rising Concern of Malnutrition and Undernutrition Among Children


Rising health consciousness has led to consumers' preference for organic food products. There has been an increased inclination among consumers for organic products that are produced without any synthetic substances. It has been observed that the demand for organic products has grown tremendously in most developed countries worldwide in the past few years. According to MRFR analysis, the global organic products market was valued at USD 104.6 billion in 2019, registering a CAGR of approximately 6.5% from 2020 to 2028. Besides North America and Europe, the adoption of organic food products is increasing in Asia-Pacific, the Middle East & Africa. Consumers in these regions are becoming aware of the benefits of organic products, which creates an opportunity for players in the Organic Infant Formula Market. Several application industries are focusing on launching organic products to cater to changing consumer preferences. Along with the consumer's inclination for healthier, natural, and organic functionality, food trends have altered the overall nutrition business worldwide. The ever-increasing popularity and health benefits of organic food products are further driving the growth of organic infant formula, which has been the best alternative for breast milk.


Proper nutrition is one of the fundamental needs of an infant's health. For healthy growth, infants need the right amount of healthy food and nutrition. The correct feeding up to the first 3-4 years of life helps to reduce the risk of morbidity and mortality. The deficiencies or lack of healthy feeding may result in nutrition malfunctioning. Thus, the proper utilization of infant formula reduces the risk of chronic diseases. Although in many countries, the government has made mandatory laws regarding the right to good nutrients under the convention on child rights. Moreover, rising undernutrition caused global overweight problems, stunting, and being underweight. Such imbalances mainly cause because of undernutrition. The ever-increasing malnutrition and undernutrition problems are further deriving the importance of infant formula. Organic infant formula provides nutritional benefits to infants that decrease morbidity. Hence the major player working in the infant formula market is prominently focusing on organic products. Considering the heavy growth of organic products from the major undeveloped region has further benefited from the larger demand for the product.


Organic Infant Formula Market Segment Insights


Organic Infant Formula Product Insights


The Organic Infant Formula Market segmentation, based on product, includes milk formula, follow-on milk formula, special milk formula, and others. The follow-on milk formula segment held the majority share in 2021 contribution to around 41.63% in respect to the Organic Infant Formula Market revenue. According to the US Breastfeeding Report Card 2019, which was released by the CDC (Center for Disease Control and Prevention), at 6 months old, 55.8% of babies have had any breast milk, and 24.9% had received just breast milk. From month to month, there has been a gradual drop in breastfeeding, both any and exclusive, which indicates the demand for organic Follow-on milk formula.


July 2022 Danone introduced Dairy and Plants Mix in response to parents' requests for vegetarian and flexitarian infant formula. With more than one-third of EU consumers choosing a vegan, vegetarian, or flexitarian diet, and nearly 70% of parents now preferring their children eat more plant-based foods, plant-based consumption is significantly increasing. Up until now, parents who decide to wean their children from breastfeeding but still want to make wholesome, more plant-based, and environmentally friendly food choices have had few options.


October 2018 Nestlé SA launched its own brand of A2 baby milk in Australia and New Zealand in order to compete with Auckland-based dairy manufacturer a2 Milk Co. Ltd., which currently maintains a commanding market share in the region. In November, the business also intends to make the S-26 Atwo brand available at a few Woolworths Group Ltd.-owned Countdown stores in New Zealand.


Organic Infant Formula Formulation Insights


The Organic Infant Formula Market data has been bifurcated by formulation into powdered formula, concentrated liquid formula, and ready to feed formula. The powdered formula segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is mainly owing to the growing parent’s preference to give their infants artificial formula choose powdered formula over ready-to-feed since it is substantially less expensive and can be kept for a longer period. It is unquestionably most cost-effective option and, to be honest, it is ideal for most newborns.


May 2022 The U.S. Food and Drug Administration announced  that it has expanded its partnership with Danone's Nutricia company in order to address the lack of specialized medical baby formula bottles among newborns with specific allergies or serious medical issues.


November 2022: Perrigo has made a strategic investment of USD 170 million to expand and strengthen its U.S. infant formula manufacturing by bolstering the capacity and increasing access to safe, affordable formula for infants, parents, and caregivers. As part of this strategic investment, Perrigo has purchased Nestlé's Gateway infant formula plant in Eau Claire, Wisconsin, along with the U.S. and Canadian rights to the Gerber, Good Start, and Good Start infant formula brands.


Figure 2: Organic Infant Formula Market, by Formulation, 2021 & 2030 (USD Billion)
Organic Infant Formula Market, by Formulation, 2021 & 2030


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Organic Infant Formula Distribution Channel Insights


Based on Distribution Channel, the global Organic Infant Formula industry has been segmented into supermarkets & hypermarkets, convenience stores, specialty stores, and online. The supermarkets & hypermarkets held the largest segment share in 2021. This is mainly owing to the increasing number of these outlets and other merchandisers are offering more business to Infant formula products. In order to draw consumers' attention and provide them the option to choose from a range of brands before making a purchase, supermarkets and hypermarkets have focused on stocking a number of categories, such as standard and organic Infant formula goods.


Organic Infant Formula Regional Insights


By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific Organic Infant Formula market accounted for USD 7.60 billion in 2021 and is expected to exhibit an 7.71% CAGR during the study period. This is mainly owing the presence of China, the world's largest consumer of baby and infant food products is predicted further takedown by India as per US banking it is anticipated that Chinese birth rates will fall by 7% for the next five years which will set to drag down the global infant formula market.


Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 3: ORGANIC INFANT FORMULA MARKET SHARE BY REGION 2021 (%)
ORGANIC INFANT FORMULA MARKET SHARE BY REGION 2021


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


North America Organic Infant Formula market accounts for the second-largest market share, with the U.S. accounting for the majority share of sales. Growing consumer demand for organic infant formula has prompted major producers to raise production, helping to meet the demand growth across the nation. Increased female employment and the need for organic infant formula with high nutritional value are contributing to the rise. Leading companies including Nestle, Danone, Abbott, and Kraft Heinz are present in the baby formula business, and they account for close to 50% of market sales. Further, the U.S. Organic Infant Formula market held the largest market share, and the Canada Organic Infant Formula market was the fastest-growing market in the North America region.


The Europe Organic Infant Formula Market is expected to grow at a CAGR of 7.44% from 2022 to 2030. Infant formula demand has increased in the UK and Germany as a result of the growing trend toward organic baby food. With the rise in popularity of internet shopping across the nation, there are more well-known brands selling baby formula. Moreover, U.K. Organic Infant Formula market held the largest market share, and the Germany Organic Infant Formula market was the fastest-growing market in the Europe region.


Organic Infant Formula Key Market Players & Competitive Insights


Major market players are spending a lot of money on R&D to increase their product lines, which will help the Organic Infant Formula market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Organic Infant Formula industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.


One of the primary business strategies adopted by manufacturers in the global Organic Infant Formula industry to benefit clients and expand the Organic Infant Formula market sector is to manufacture locally to reduce operating costs. In recent years, Organic Infant Formula has provided enormous benefits to its consumers.


Key Companies in the Organic Infant Formula market includes


 



  • Nestle S.A.

  • Danone

  • Abbott

  • Reckitt Benckiser Group Plc

  • Bellamy’s Organic

  • Perrigo Company LLC

  • Shijiazhuang Junlebao Dairy Co., Ltd

  • Friesland Campina

  • Heilongjiang Feihe Dairy Co., Ltd

  • Bubs Organic, LLC


 


Organic Infant Formula Industry Developments


June 2021 FrieslandCampina Ingredients launched Deminal 90 Organic for premium organic infant milk formula. FrieslandCampina Ingredients offers Deminal 90 Organic to meet the growing demand from parents who look for organic infant nutrition.


March 2020 Junlebao launched ULTREE Organic Milk Powder. Junlebao ULTREE organic milk powder adopts an innovative high-end formulation that provides moderately hydrolyzed whey protein and two types of active probiotics, helping babies improve digestion and immunity. In addition, all fresh milk is sourced from company-owned organic farms and processed by an integrated industrial chain, which ensures full traceability in every stage as well.


Organic Infant Formula Market Segmentation


Organic Infant Formula Product Outlook


 



  • Starting Milk Formula

  • Follow-on Milk formula

  • Special Milk Formula

  • Others


 


Organic Infant Formula Formulation Outlook


 



  • Powdered Formula

  • Concentrated Liquid Formula

  • Ready to Feed Formula


 


Organic Infant Formula Distribution Channel Outlook


 



  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Specialty Stores

  • Online


 


Organic Infant Formula Regional Outlook




  • North America



    • US

    • Canada

    • Mexico


     




  • Europe



    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Finland

    • Norway

    • Rest of Europe


     




  • Asia-Pacific




  •  



    • China

    • Japan

    • India

    • Australia & New Zealand

    • Rest of Asia-Pacific


     




  • Rest of the World




    • South and Central America




    • Middle East and North Africa




    • Rest of Middle East and Africa







Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 17.6 billion
Market Size 2022 USD 18.15 billion
Market Size 2030 USD 32.53 billion
Compound Annual Growth Rate (CAGR) 7.56% (2022-2030)
Base Year 2021
Forecast Period 2022-2030
Historical Data 2020
Forecast Units Value and Volume (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Product, Formulation, Distribution Channel, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, Denmark, Sweden, Finland, Norway, Rest of Europe, China, Japan, India, Australia & New Zealand, Rest of Asia Pacific, South & Central America, Middle East & North Africa and Rest of the Middle East & Africa.
Key Companies Profiled Nestle (Switzerland), Danone (France), Abbott (US), Reckitt Benckiser Group PLC (England), Bellamy鈥檚 Organic (Australia), Perrigo Company PLC (Ireland), Shijiazhuang Junlebao Dairy Co., Ltd. (China), Friesland Campina (Netherlands), Heilongjiang Feihe Dairy Co., Ltd. (China), and Bubs Organic, LLC (Australia)
Key Market Opportunities 路聽聽聽聽聽聽聽聽 Growing expansion policies adopted by key players
Key Market Dynamics 路聽聽聽聽聽聽聽聽 Increasing demand for organic food 路聽聽聽聽聽聽聽聽 Rising concerns of malnutrition and undernutrition among children


Speak to Analyst Ask for Customization

Frequently Asked Questions (FAQ) :

The Organic Infant Formula market was valued USD 17.6 Bn in 2021 and is expected to grow at a CAGR of 7.56% during 2022-2030.

China Organic Infant Formula Market valued USD 4.34 Bn in 2021.

The growth rate of Organic Infant Formula Market is 7.56% during the forecast period 2022-2030.

Asia-Pacific held the largest market share in the Organic Infant Formula Market in 2021.

The key players in the Organic Infant Formula Market are Nestle (Switzerland), Danone (France), Abbott (US), Reckitt Benckiser Group PLC (England), Bellamy鈥檚 Organic (Australia), Perrigo Company PLC (Ireland), Shijiazhuang Junlebao Dairy Co., Ltd. (China), Friesland Campina (Netherlands), Heilongjiang Feihe Dairy Co., Ltd. (China), and Bubs Organic, LLC (Australia).

The follow-on milk formula segment held the highest market share in the Organic Infant Formula Market in 2021.

The powdered formulation segment held the largest market share in the Organic Infant Formula market in 2021.