Infant Formula Market Size - By Product Type, Stage, Form, Distribution Channel, Ingredient, Growth Forecast, 2025 - 2034

Infant formula Market Size

The global infant formula market size was valued at USD 47.2 billion in 2024, with expectations to reach USD 126.5 billion by 2034, growing at a CAGR of 10.4%.
 

The growth of the market is due to an increase in awareness about baby nutrition, the rising number of working mothers and increased birth rates particularly among developing countries. Other factors that have contributed to the market growth are urbanization, an increase in disposable income as well as a rise in female workforce participation. In addition, there has been growing parental focus on product safety, digestibility and nutrition thus increasing demand for premium/specialty formulas such as organic, lactose-free and hypoallergenic ones.
 

Technological developments regarding formula composition such as incorporating prebiotics & probiotics, HMOs (human milk oligosaccharides), DHA/ARA are also driving sales acceptance. Brands are investing heavily into R&D to come up with formulas that closely resemble breast milk to promote cognitive and immune system development.
 

According to the March of Dimes Organization, nearly 380,000 babies are born prematurely each year in the U.S., which is a significant issue even in well-resourced countries. These factors support the use of infant formula to meet the nutritional needs of preterm babies.
 

High costs of products, regulatory complexities and preference for breastfeeding especially where public health campaigns are strong inhibit market growth. Also, consumer trust has been affected by fears over fake infant formulas witnessed in some markets.
 

For example, the World Health Assembly aimed to cut low birthweight cases by 30% between 2017 and 2023. Such efforts are expected to increase the demand for standard infant formulas to fight malnutrition, address feeding issues, and reduce the long-term effects of stunted growth in infants.
 

Infant Formula Market Trends

There are several important shifts in the infant formula industry owing to changing consumer preferences and health concerns. Key changes among these are the rising demand for clean-label, organic, and plant-based formulas as parents seek products without synthetic additives, GMOs, or artificial sweeteners. There has been an increase in interest in specialty formulas that focus on lactose intolerance, allergies, and needs of premature infants which reflect a move toward individualized infant nutrition.
 

The landscape is being reshaped by technological innovations. Manufacturers are increasingly adding bioactive compounds such as nucleotides, HMOs, prebiotics and probiotics with the aim of imitating human milk’s functional characteristics. Precision fermentation and biotechnology can create breast milk-identical proteins and components. These improvements enhance the nutritional quality of infant formula while also improving its functional properties supportive of gut health and immunity.
 

Product development emphasizes on improving digestibility, taste profiles as well as nutritional equivalence with breast milk. Companies are incorporating DHA (docosahexaenoic acid), ARA (arachidonic acid), lutein alongside MFGM into formulas to support eye and brain development. Lastly ready-to-feed and single-serve formats have become popular for their convenience purposes.
 

At present, regulatory frameworks are increasingly strict, with agencies like the FDA, EFSA and CFDA emphasizing product safety, ingredient transparency and labeling compliance. Manufacturers have to adhere to high standards of quality in order to satisfy strict approval processes and post-market surveillance which guarantees both nutritional adequacy as well as consumer trust in infant formula products. 
 

Infant Formula Market Analysis

Based on product type, the infant formula market is segmented into cow's milk-based formula, soy-based formula, protein hydrolysate formula, specialty formula, organic formula, goat milk-based formula. The cow milk accounted for 64% of the market share in 2024 and is expected to grow with the CAGR of 10.4% in 2034.
 

• Cow’s milk-based formula is the most popular infant formula, accounting for the largest revenue share of all types of products. This acceptance follows from its nutritional attributes that nearly resemble those of breast milk particularly when further fortified with critical nutrients like DHA, ARA and iron. Healthy full-term infants who are not breastfed are usually given standard cow’s milk based formula which is chosen by default by a majority of parents.
   
• Manufacturers have been able to attract customers seeking for mild to moderate digestive problem or cow's milk intolerance in their babies due to product evolution such as partially hydrolyzed and extensively hydrolyzed varieties. The segment is characterized by strong brand affinity, well-established clinical safety credibility and wide distribution network across major distribution channels globally thereby reinforcing its domination.
   
• With increasing awareness on infant nutrition and increased birth rates in developing regions, it is anticipated that cow’s milk-based formulas will maintain their market hold even though there has been an interest in alternative products such as goat milk or soy-based ones.
   

Based on stage the infant formula market is segmented into stage 1 (0–6 months), stage 2 (6–12 months), stage 3 (12–24 months), stage 4 (24+ months). Stage 1 (0-6 months) hold the market share of 45% in 2024 and expected to grow at a faster rate of 10.6% CAGR in 2034.
 

• The largest segment by stage is stage 1(0-6 months) infant formula, as it caters for the most crucial phase of infancy when exclusive breastfeeding is required. At this early stage, babies depend solely on either breast milk or formula for nutrition since their digestive systems are still developing. This dependence significantly drives volume and sales for Stage 1 formulas, especially among working mothers and in urban households where breastfeeding may not always be viable.
   
• These formulas are designed to be gentle, with carefully calibrated nutrient content including DHA, ARA, iron, and prebiotics to support brain development, immunity, and digestion. Regulatory authorities impose strict guidelines for this age group, further ensuring product safety and efficacy which boosts consumer trust. Since new parents often search for the best nutritional beginning to life for their infants, Stage 1 formulas are most frequently recommended by pediatricians, making them dominate the overall infant formula market.
   

Based on form the infant formula market is segmented into powder, liquid concentrate, ready-to-feed. The powder hold a significant market size of USD 26.1 billion of the market in 2024.
 

• The powder form of infant formulas is most commonly used and has the highest market share as it is more cost effective, easy to store and has a longer shelf life compared to liquid forms. This makes them popular in many homes especially in developing countries where affordability and accessibility are key factors. Powdered formulas can be prepared in any way for purposes of flexibility thus they are good for home and travel preparations.
   
• Producers have come up with better packaging methods that include integrated scoop lids and resealable tubs thus enhancing cleanliness, as well as convenience to caregivers. This format can also allow the introduction of a wider range of products including organic, standard or specialty ones hence catering for different customers’ needs. While urbanization gives liquid formula an edge over powdered one ready-to-feed (RTF) formulas still hold minimal market shares throughout the globe.
   

Based on distribution channel the infant formula market is segmented into supermarket & hypermarket, pharmacies & drug store, online retail, speciality baby stores, hospital & clinics, convenience store, others. The supermarket & hypermarket segment holds a significant market size of USD 16.6 billion of the market in 2024.
 

• Supermarkets and hypermarkets have become the dominant means of selling infant formula in most cases. These shopping options enable parents to see a range of brands and variants, often with special deals or promotions in-store which influence their final decisions. Typically, supermarkets are fast becoming the primary source of baby formula and other related products in developing countries. Besides this, these formats benefit from well-established logistical processes, stable stock levels and access to chemists’ assistance when making purchase choices.
   
• Supermarkets are also preferred by busy parents who live in urban or suburban areas due to their one-stop shopping capability. The leading formula producers compete for shelf space in these stores so that they can easily display their flagship formulas on the shelves where customers can easily see them. Though online purchasing is on the rise, supermarkets and hypermarkets maintain an advantage over it as they guarantee instant availability of goods at competitive prices which make consumers trust them while selecting selling channels for formulae.
   

Based on ingredient the infant formula market is segmented into basic ingredient, functional ingredient, vitamin & minerals. Basic ingredient holds the market share of 60.2% in 2024 and expected to grow at a faster rate of 10.6% CAGR in 2034.
 

• The fundamental components of all infant formula products are the basic ingredients, which constitute the most significant segment within the market. These ingredients encompass proteins (including whey, casein, and soy), carbohydrates (mainly lactose and corn syrup solids), and fats & oils (such as vegetable oils, DHA, and ARA).
   
• Lactose is the most frequently utilized carbohydrate as it resembles the sugars found in natural breast milk. Vegetable oils supply essential fatty acids, while the incorporation of DHA and ARA promotes brain and eye development. The prevalence of basic ingredients is also due to their extensive application across all varieties of formulas, including standard, organic, and specialty types. Manufacturers are consistently enhancing sourcing and processing technologies to boost digestibility and nutrient bioavailability, thereby increasing the attractiveness of formulas that incorporate these vital components.
   

In the infant formula market, U.S. accounts the major share in North America by accounting USD 13 billion in 2024 and is expected to grow at a CAGR of 8.4% in 2034.
 

• The U.S. is the dominant player in the North American market for infant formula. The reason the U.S. maintains this position is a combination of high relative birth rates, their sophisticated healthcare systems, easy access to infant formula products, and considerable brand equity.
   
• Domestic competitors such as Abbott Laboratories (Similac), Mead Johnson (Enfamil), and Nestlé (Gerber Good Start), as well as international rivals, have built strong supply chains and retail partnerships alongside consumer loyalty in the US which provides him with substantial competitive advantage.
   
• The adoption of innovation and the acceptance of premium and specialty infant formulas, including organic and non-GMO alternatives as well as those enriched with HMOs, DHA/ARA, and plant-based protein, are some of the distinguishing features of the U.S. market.
   
• The retail landscape further strengthens dominance in the US. Supermarkets, drugstores, online platforms, and specialty stores sell infant formula products. Their aggressive marketing strategies enhance consumer access. Temporary supply interruptions within the US due to recalls and regulatory actions have not shifted the focus away from the US infant formula market. The country’s size, spending capacity, and the regulatory leadership through the FDA keep it at the forefront of the North American landscape.
   

Infant Formula Market Share

Top 5 companies include Nestle, Abbott Nutrition, Arla Food, Bellamy's Organic, Bubs Australia. These are prominent companies within the infant formula industry operating in their respective regions. These companies hold strong positions globally due to their extensive experience in infant formula market. Their diverse product portfolios, backed by robust production capabilities and distribution networks, enable them to meet the rising demand for infant formula across various regions.
 

Infant Formula Market Companies

Nestlé: Nestlé is one of the strong players globally in the infant formula industry. Its major markets include Europe, Asia, North America and Latin America with flagship brands such as NAN, Lactogen and Gerber for infants' nutrition. Nestle depends on its extensive R&D capabilities, strong global distribution network and brand trust. It has started focusing more on organic and specialty formulas like hypoallergenic or lactose-free products which are preferred by modern customers in developed nations.
 

Abbott Nutrition: In the United States and portions of Asia, Abbott Nutrition holds a significant market share under its well-known Similac brand. The company differentiates itself through a strong emphasis on science-backed nutrition and innovation. Abbott has been actively involved in producing formulas enriched with HMO (Human Milk Oligosaccharides), DHA, and other functional ingredients.
 

Arla Foods: Arla Foods has been applying its cooperative dairy model and clean-label philosophy to expand in the infant formula industry. The firm manufactures organic and high-quality milk-based formulas for instance under the Baby & Me Organic brand. The company’s infant nutrition division is much smaller than Nestlé or Abbott but it experienced significant growth in emerging markets particularly China through private-label manufacturing and partnerships. Its emphasis on sustainability and traceability is well received by environmentally conscious consumers.
 

Bellamy’s Organic: Primarily serving the Australian and Chinese markets, Bellamy’s Organic is a luxury brand of organic baby formulae. The company has established a reputation for certified organic products with clean labels that do not contain synthetic additives. Bellamy’s leverages strong consumer confidence in “Made in Australia” quality as well as food safety standards.
 

Bubs Australia is an upcoming player in the infant formula industry that specializes in goat milk-based and organic cow milk-based products. It seeks to provide a premium niche alternative, which is particularly attractive to health-conscious parents looking for softer, easily digestible options. Bubs has had substantial success through its exports to China and USA and also managed to secure supply agreements with notable retailers such as Wal-Mart Stores Inc. and Target Corporation.
 

Infant Formula Industry News:

• In July 2023: Danone Early Life Nutrition introduced a new infant formula containing milk droplets that closely mimic the structure found in mother's milk in China.
   
• In May 2022: Nestlé Health Science acquired The Bountiful Company, including Osteo Bi-Flex, Nature's Bounty, Solgar, Ester-C, Puritan's Pride, and Sundown. This initiative, intended to attract customers in the global nutrition and supplement category, will enable the company to strengthen its footprint in the infant formula industry.
   

The infant formula market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 - 2034 for the following segments:

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Market, By Product Type

• Cow's milk-based formula
  • Standard cow's milk formula
  • Partially hydrolyzed formula
  • Extensively hydrolyzed formula 
• Soy-based formula
• Protein hydrolysate formula
• Specialty formula
  • Premature infant formula
  • Anti-reflux formula
  • Lactose-free formula
  • Amino acid-based formula
  • Other specialty formulas
• Organic formula
• Goat milk-based formula

Market, By Stage

• Stage 1 (0–6 months)
• Stage 2 (6–12 months)
• Stage 3 (12–24 months)
• Stage 4 (24+ months)

Market, By Form

• Powder
• Liquid concentrate
• Ready-to-feed

Market, By Distribution Channel

• Supermarkets & hypermarkets
• Pharmacies & drug stores
• Online retail
  • E-commerce platforms
  • Direct-to-consumer websites 
• Specialty baby stores
• Hospitals & clinics
• Convenience stores
• Others

Market, By Ingredients

• Basic ingredients
  • Proteins
    • Whey protein
    • Casein
    • Soy protein
  • Carbohydrates
    • Lactose
    • Corn syrup solids
    • Other carbohydrates
  • Fats & oils
    • Vegetable oils
    • DHA & ARA 
• Functional ingredients
  • Prebiotics
  • Probiotics
  • Human milk oligosaccharides
  • Nucleotides
• Vitamins & minerals
  • Vitamins
  • Minerals

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East & Africa