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Infant Formula Market size to surpass $100 Bn by 2032

  • Published Date: November 23, 2022

Infant Formula Market size is anticipated to cross USD 100 billion by 2032, as per a recent research report announced by Global Market Insights Inc.

Rising awareness about postnatal care and the adoption of home healthcare services are some of the prominent drivers for baby formula demand. Consumers are becoming aware of the importance of proper nutrition and well-being in the early phase of child development. As a part of personalized childcare assistance, home health service providers have been offering cost-effective, integrated, and high-quality newborn care. This increase in exceptional healthcare delivery to lower mortality and morbidity rates of newborns will boost baby milk intake and support the growth of infant formula providers.

Despite the favorable growth trajectory, risks of contamination due to the presence of harmful bacteria and chemical residues have resulted in frequent recalls of infant formulas over recent years. For instance, in February 2022, the U.S. FDA warned families to not consume certain powdered infant formulas contaminated with bacteria. The agency recalled all formulas manufactured at a U.S. factory after 5 babies developed Salmonella Newport and Cronobacter sakazakii infections. Such consumption risks may assert a negative influence on infant formula development to some extent.

Growing cases of preterm birth to amplify specialty infant formula sales

Infant formula market value from the specialty product segment is likely to surpass USD 52 billion by 2032, given the increasing number of preterm babies at risk of stunted growth. Based on the WHO, over 15 million babies are born preterm annually. To help meet nutritional needs and address specific health concerns associated with these babies, including low birthweight, specialty formulas have been developed. Nutrients such as iron, choline, iodine, and zinc are specifically added to these formulas to support the brain development of preterm infants, thereby contributing to product consumption.

Browse key industry insights spread across 300 pages with 342 market data tables and 29 figures & charts from the report “Infant Formula Market Statistics, By Product (Standard, Follow-on, Toddler, Specialty), By Distribution Channel (Hypermarket, Supermarket, Convenience Stores, Online), Industry Analysis Report, Regional Outlook, End-user Development Potential, Price Trends, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:

Online platforms to become preferred distribution channel for infant formula suppliers

Infant formula market share from the online distribution channel segment is poised to depict over 11% CAGR through 2023-2032. The adoption of multiple sales channels including e-commerce as a part of customer retention strategies in the competitive business landscape is one of the key growth drivers. Many organic infant formula companies, including ByHeart, have also planned to launch their FDA-registered formulas through their websites. According to the report, these initiatives to ensure extensive product availability will further the sale of infant formula products from online channels.

Increasing female workforce contributes to infant formula consumption in North America

North America infant formula market value is expected to reach over USD 17.5 billion by 2032, owing to the rising household income and the expanding female workforce. As per data from the U.S. Department of Labor, the rate of labor-force participation for women aged 25 to 54 years rose to 77.2% in August 2022. As a result, the number of women seeking alternatives to breastfeeding will surge and consequently bolster the demand for infant formulas in the nation.

Product range expansions to remain a key growth strategy for market players

BUBS Australia, Hero Group, Nestlé SA, Abbot Laboratories, Mead Johnson Nutrition, Arla Group, Perrigo, and HiPP are among the major players profiled in the report. These companies are emphasizing product range expansions and other strategies to reinforce their presence in the global market.

Authors: Kiran Pulidindi, Hiralkumar Patel