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Infant Formula Market Size, Share and Industry Analysis Report by Product (Standard, Follow-on, Toddler, Specialty) and Distribution Channel (Hypermarkets, Super Markets, Convenience Stores, Online), Regional, Application Trends, Competitive Market Share & Forecast, 2019 – 2025

  • Report ID: GMI3237
  • Published Date: Apr 2019
  • Report Format: PDF

Industry Overview

Global Infant Formula Market size was more than USD 52 billion in 2018 and will witness a 9.8% CAGR through 2025 driven by the increasing number of infants born every year. Increasing number of working mothers, driven by economic growth which brings more women into the workforce, is a key market growth driver from past several years.
 

infant formula market outlook

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For instance, according to the United Nations, global infant population in 2015 was 673.6 million and is likely to reach 733.3 million by 2025. Moreover, increasing number of middle-class households in emerging economies including India, Indonesia, Thailand, Malaysia, South Korea, etc., have resulted in economic and population growth and rise in number of consumers who can afford infant formula for their babies.
 

The regulatory hurdles associated with the infant formula production may restrict the product demand over the forecast period. This can be ascribed to the implementation of stringent quality and safety standards for product manufacturers led by multiple countries and regulatory authorities.
 

For instance, The China Certification and Accreditation Administration (CNCA) approved the sale to only 94 brands among over 800 foreign brands. In addition, the costs associated with the product manufacturing and higher technology usage in the market will be the major barriers for new entrants. Also, limited product awareness in rural regions of Asia Pacific and Africa will limit the infant formula market growth to some extent in near future.
 

Market, By Product

infant formula market by product

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Follow-on product segment accounted for over 40% market share in 2018 and is forecasted to grow at a significant CAGR over the forecast timespan. 0–6 months infants are highly dependent on breast feeding, after the 6th month, usage of follow-on infant formula acts as substitution to breast milk. Toddler infant formula will be the fastest growing segment in the coming years.
 

Increasing health awareness, changing lifestyle, and increasing disposable income of people in emerging economies will drive the infant formula market share in next few years. Specialty product segment was having the lowest market share in 2018 and will moderate CAGR during the forecast period due to the low product usage in age group above 3 years.
 

Market, By Distribution Channels

infant formula market by distribution channels

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Supermarkets accounted a major market share in the global baby food market in 2018 and projected to grow with highest CAGR in near future. Increasing supermarket penetration across the globe and rising product presence on online platform will have positive impact on the infant formula market growth in the coming years. Rapidly growing e-commerce industry will create more growth avenues for product over the forecast period.
 

The wide variety of products, real time shopping experience and budget pricing has been attracting varied strata of society from past several years. Product manufacturers and distributors are competing to grab the top spots in supermarket shelves to get more eyeball and increase conversion ratio.
 

Hypermarket was one of the major distribution channels in 2018 and will expand with a prominent CAGR during the forecast period. Heavy discounts offered by hypermarkets was major attribute behind its growing penetration across the globe.
 

Market, By Region

infant formula market by region

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Asia Pacific infant formula market shall experience significant growth during the forecast timespan. China was the largest product consumer in 2018 and shall remain the largest over the forecast duration. Abandonment of the one-child policy by China will have positive influence on the Asia Pacific market during forecast timeframe.
 

Europe held a prominent share in infant formula market in 2018 and forecast to grow with a 9.8% CAGR during the forecast period. European market is growing at a relative slow pace compared to Asia Pacific due to comparatively low birth rate. In addition, high baby health awareness and several initiatives to propagate mothers breastfeeding shall hamper the infant formula demand over the forecast timespan.
 

Competitive Market Share

The infant formula industry has seen substantial consolidation, some multinational giants such as Nestlé, Abbott, Danone and Mead Johnson are holding major market share in global market. This can be attributed to the strong brand identity and large multinational distribution network. Nestlé and Danone dominate in all four infant formula categories, Abbott and Reckitt Benckiser possess their relative strength in the standard and follow-on product categories.
 

Other regional producers operating in the industry include Perrigo Nutritionals, Arla Food Ingredients, Hero Group, HiPP, Otsuka Pharmaceutical Co. Ltd, Bubs Australia, etc. Major players operating in the industry are involved in the merger and acquisition strategy to increase the customer base and market presence.
 

Industry Background

Infant formula is primarily composed of lactose/ sugar, dried skim milk and refined vegetable oil. It is one of the highly regulated food segments and requires specific manufacturing capabilities and quality assurance. Product is gaining popularity among masses owing to increasing working class women across the globe. It is used to satisfy the nutritional needs of infants. They are classified according to the age of baby. Product categories includes standard infant formula for 0-6 months, follow-on infant formula for 6-12 months, toddler infant formula for 1-3 years and a specialty infant formula category covering products such as hypo-allergenic-, lactose-free- and anti-reflux formulas for all ages.
 

Infant formula market report includes in-depth coverage of the industry, with estimates & forecast in terms of volume in Tons and revenue in USD million from 2019 to 2025, for the following segments:

By Product

  • Standard
  • Follow-on
  • Toddler
  • Specialty

By Distribution Channel

  • Hypermarket
  • Supermarket
  • Convenience store
  • Online
  • Others

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
  • APAC
    • China
    • India
    • Japan
    • Australia
    • Indonesia
    • Malaysia
    • South Korea
    • Thailand
    • Vietnam
  • LATAM
    • Brazil
    • Mexico
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE
       
Authors: Kiran Pulidindi, Hiralkumar Patel

Frequently Asked Questions (FAQ) :

The global infant formula industry size accounted for a significant value and is poised to record a 9.8% CAGR through 2025 owing to the rising number of working mothers and the surging count of infants born every year.

The demand for follow-on products in the infant formula industry is estimated to grow at a robust pace through 2025 owing to the greater dependency of 0–6 months infants on breastfeeding.

The infant formula market share from supermarkets will record a prominent CAGR through 2025 due to the booming e-commerce industry and rising presence on online platforms.

The infant formula industry in the Asia Pacific will capture a considerable revenue share up to 2025 driven by the abandonment of the one-child policies, notably in China.

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Premium Report Details

  • Base Year: 2018
  • Companies covered: 10
  • Tables & Figures: 193
  • Countries covered: 22
  • Pages: 132

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