Infant Formula Ingredients Market

Infant Formula Ingredient Market Outlook (2023 to 2033)

According to Future Market Insights research, during the projected period, the global infant formula ingredients market is expected to grow at a CAGR of 6.3%. The market value is projected to increase to USD 78,818.9 million by 2033. At present, the total market valuation accounts for USD 42,645.0 million in 2023.

Attribute	Details
Market Size Value in 2023	USD 42,645.0 million
Market Forecast Value in 2033	USD 78,818.9 million
Global Growth Rate (2023 to 2033)	6.3% CAGR

It is anticipated by the expert analysts at FMI that there is an unprecedented surge in the market size of infant formula ingredients as it is being largely fed to babies for their overall development. Although physicians recommend exclusive breastfeeding for babies under 6 months, infant formula can be used as an alternative.

It is gaining rapid traction in the global forum because it has similar nutrient contents and is being widely adopted by working women with infants. The FMI analysts have revealed that consumer attitudes have changed significantly in recent years due to the growth of the global food business since consumers are now more knowledgeable about the components of food and beverage goods before making a purchase. This is particularly true when it comes to ingredients for infant formula, which mostly consists of components for food preparations meant for infants younger than one year of age.

With parents' preferences to maintain the necessary levels of nutrition for their newborns, the use of baby formula ingredients has increased. Therefore, it is anticipated that the infant formula ingredient market is likely to have significant growth during the forecast period.

A Contrast with the Historical Market Scenario

The infant formula ingredient market is projected to grow over the study period substantially. The analysts observe at FMI that the concerned market has had a considerable increase in the total valuation from USD 14.92 Billion in the base year to USD 42,645.0 million in 20232.

The market's growth can be attributed to the rising sales of infant formula ingredients, sourcing a replacement for women’s breast milk with nutrients available in the soymilk, cow’s milk, and protein hydrolysates form.

The demand for infant formula ingredients is growing as this product combines essential vitamins, minerals, oils & fats, and all the other necessary ingredients for infants. Carbohydrates are highly used in infant formula ingredients and are largely consumed by newborn babies of the working women populace in middle-class families across various regions.

Market Dynamics: Identification of Key Demand Drivers and Deterring Elements

A number of factors have been identified while analyzing the infant formula ingredients market in depth. These aspects are likely to bolster the growth of the forum during the forecast period.

Besides the driving elements, some factors are also observed that are likely to inhibit the growth of the market and curb the expansion of the infant formula ingredients market to some extent.

They are as follows:

DRIVERS

• The adoption of infant formula ingredients has gone up due to the increasing preference of parents to maintain the requisite levels of nutrition in their babies.
• The ease of digestibility and pricing of the products are anticipated to fuel market growth in the long run.
• instant food formula ingredients are receiving regulatory approvals from the Food and Drug Administration, which is identified as a major factor driving the growth of the infant formula ingredients market.
• Higher levels of awareness about nutrition options amongst working-class mothers and the rising availability of various sources is a having a positive influence on the forum.
• There is also a shift of consumer preference to clean-label and plant-based products, away from chemical ingredients, coupled with a growing focus on infant care and nutrition is likely to propel the expansion of the forum during the forecast period.

RESTRAINTS

The factors that are likely to hinder the growth of the market are identified below:

• Stringent rules and regulations concerning the launch of new products are likely to impact the market in a negative way.
• There is a complicated process of registration of new products involved, which is predicted to hamper product growth in the coming years.
• Lower acceptance of premium products or high-priced products across some developing regions due to low per capita income also acts as an obstacle to the growth of the infant formula ingredient market.

Category-wise Insights

Dominating Segments Securing Large Revenue Chunks in the Global Marketplace

Infant Milk Formula - By Product Type:

The infant milk formula segment is anticipated to hold a significant share and advance at a considerable CAGR of 9.5% during the estimated study period.

This segment is witnessed to have strong value-based sales and is one of the leading categories in emerging economies, owing to the lack of acceptable alternatives in the market. The factors attributing to the growth of this segment are:

• The limited availability of convenient and nutrient-dense products is encouraging the manufacturers to develop and bring forth innovative products in the market.
• The rising consumers’ prosperity towards their infants and baby milk enables them to afford a diverse range of infant milk formula products available in the market.

Specialty Stores - By Distribution Channel:

Specialty stores are identified to be the rapidly growing distribution channels, owing to the stores providing a wide range of baby foods, specialized products, and breast milk substances, along with other baby care products on a single platform.

This segment is rapidly expanding due to:

• The convenient way of shopping with a diverse product portfolio is enticing consumers to purchase from speciality stores.
• Most consumers prefer to buy the products under the guidance of specialists and experienced nutritionists that are present in such specialized stores.
• This distribution channel is expected to act as a “one-stop-for-all” regarding infant formula.

Regional Analysis

Identification of Market-O-Nomics in Diverse Regions

Region	Asia Pacific
Statistics	Asia Pacific excluding Japan accounts for the largest and fastest-growing regional market for instant formula ingredients. Overall market share held: 49% A CAGR of 8.6% is projected through 2033.
Description	The contributing elements toward growth are: Rapid urbanization and higher consumer demand for convenience food. Prevalence of international trade with other countries to fuel further growth in the APEJ region.

Region	North America
Statistics	The North American region is projected to have substantial growth through 2033 and is currently accounting for 38% market share. The USA is having a dominant share, registering a CAGR of 8.6% during the period 2023-2033 for the infant formula ingredient market. Market valuation in 2023: USD 4,586.67 Million
Description	The growth can be attributed to: Increasing acquaintance with Western lifestyles and the underlying strength of the economy is likely to have a positive impact. Rising working woman population and awareness regarding the product benefits and nutritive value.

Start-up Ecosystem

Key Start-ups Battling it Out

The start-ups in the infant formula ingredients market are making continuous efforts to innovate the ingredients with nutritional values to further appeal to the changing preferences and demands of the consumers. They are indulging in collaborations and making investments in research and development activities to further expand the consumption of the product by newborn babies.

Top Star-ups to Watch For

Better Dairy - United Kingdom -based Start-up

This firm is taking an approach to innovating the technology for precision fermentation for the highest value in milk in terms of nutrition and functionality. They are indulged in supplying to existing supply chains and define an interesting angle to approach the infant formula ingredients market.

Biomilq - USA-based Start-up

Biomilq is one step closer to offering mammary cell-cultured human breast milk to families around the globe thanks to USD 3.5 million in funding. The start-up is culturing mammary cells outside the body and leveraging their natural ability to produce all 2,500+ components of breast milk. It recently produced human casein and lactose, and the company believes it can fully replicate the nutritional profile of breastmilk.

Helaina - New York-based Start-up

This firm is representing an opportunity not just to make feeding more convenient and accessible to the nursing parent, but more inclusive to the non-nursing partners, including trans or cisgender male parents by making dairy and infant formulas available.

Competitive Landscape

How are the Key Players Revolutionizing the Forum?

The infant formula ingredient suppliers are engaging in aggressive business practices such as regular mergers and acquisitions, capital expansion, and strategic alliances. Major businesses are focusing on boosting productivity through technological innovation while also increasing their share of the overall sector. Manufacturers who are active in the infant formula ingredients market are also constantly working on R&D to create products that meet consumer demands.

Recent Developments in the Market

• In March 2020, the Kraft Heinz firm partnered with Babytree, a childcare website in China, to distribute over 4,000 boxes of the company's infant nutrition to families in need through the Shanghai Fosun Foundation.
• In February 2020, Else Nutrition, producer and distributor of clean ingredients, and plant-based nutrition products announced the launch of a 100% plant-based, organic toddler formula prepared with a proprietary formulation of almonds, buckwheat, and tapioca.
• In August 2019, Danone Nutricia - a brand of Danone SA launched a new product, Karicare Toddler with a new product innovation made with pure New Zealand sheep milk.
• In September 2021, Bunge Loders Croklaan, the Netherlands plant-based lipids business of Bunge, a USA-based food production company introduced Betapol Organic, the first certified organic OPO (Oleic-Palmitic-Oleic or SN-2 palmitate) on the Chinese and European markets.

Some of the key players identified in the market are

• Co-operative Group Limited
• AAK AB
• Royal Friesland Campina N.V.
• Carbery Food Ingredients Limited
• Glanbia plc
• BASF SE
• Koninklijk DSM N.V.
• Sachsenmilch Leppersdorf GmbH
• Chr. Hansen Holdings A/S
• Arla Foods
• Lactalis Ingredients
• Kerry Group plc
• Vitablend Nederland B.V.

Key Segments in the Infant Formula Ingredients Market

By Ingredient Type:

• Fats & Oils
• Minerals
• Proteins
• Vitamins
• Carbohydrates
• Prebiotics
• Others (Probiotics, Nucleotides, and Emulsifiers)

By Source:

• Soy
• Protein hydrolysates
• Cow Milk
• Others (Goat milk and camel milk)

By Application:

• 0 to 6-month-old infants
• 6 to 12-month-old infants
• Infants over 12 months
• Specialty Formula

By Form:

• Powder
• Liquid & semi-liquid

By Region:

• North America
• Latin America
• Asia Pacific
• MEA
• Europe

Frequently Asked Questions

What is the Current Magnitude of the Infant Formula Ingredients Market?

The infant formula ingredients market value reaches USD 42,645.0 million in 2023.

What are the Projected Dimensions of the Infant Formula Ingredients Market by 2033?

The market is anticipated to record a CAGR of 6.3% until 2033.

Which Category could Gain Prominence in the Product Type Category?

The infant milk formula segment is likely to exhibit a significant CAGR of 9.5% until 2033.

Which Country Holds High Lucrativeness for Infant Formula Ingredients?

China holds high lucrativeness for infant formula ingredients.

Who are the Key Infant Formula Ingredients Market Players?

Co-operative Group Limited, AAK AB, and Royal Friesland Campina N.V are key market players.