The worldwide organic follow-up formula market is estimated to be valued at USD 86.6 billion in 2024. Displaying a CAGR of 6.7% through 2034, the sector is slated to be worth USD 166.2 billion by the end of the forecast period.
Spending on infant food is increasing by the boatload. It is estimated that by 2034, sales of baby food worldwide will reach nearly USD 140 billion. There is thus more attention being paid to the health and intake of babies. Follow up formula is another infant item that is being bought in droves. Thus, the future of the organic follow up formula industry is promising.
Sales of the product have catapulted as its health benefits are increasing. The infusion of prebiotics has furthered the health benefits of the product, making it more attractive to parents. The infusion of more fatty acids is also raising the profile of the formula.
Global Organic Follow Up Formula Industry Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 78.7 billion |
| Estimated Size, 2024 | USD 86.6 billion |
| Projected Size, 2034 | USD 166.2 billion |
| Value-based CAGR (2024 to 2034) | 6.7% |
In addition to consumer knowledge about the necessity of nutrients in the first six months through breastmilk, they are also becoming more knowledgeable about the importance of nutrition after that period. Parents are more aware of the need for iron and vitamin D in infants after they hit six months of age and thus greater recourse is being taken to follow up formula.
The demand for infant formula is rising. Consumers who have already taken the help of formula in the first six months of the infant’s life are more open to resorting to follow up formula. Thus, the growth of the infant formula industry complements the growth in the organic follow up formula sector.
Manufacturers are taking heed of the various requirements of babies. Thus, the production of the product in sugar-free, lactose-free, and casein-free versions is increasing. With the rising lactose intolerance around the world, the lactose-free versions are especially seeing increasing sales.
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The below table presents the expected CAGR for the global organic follow up formula market over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is expected to grow at a CAGR of 6.6%. For the second half (H2), growth is predicted at a CAGR of 6.8%.
| Particular | Value CAGR |
|---|---|
| H1 | 6.6% (2023 to 2033) |
| H2 | 6.8% (2023 to 2033) |
| H1 | 7% (2024 to 2034) |
| H2 | 6.9% (2024 to 2034) |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be 7% in the first half and 6.9% in the second half. Thus, the uptake of the sector is anticipated to be slightly faster in the first half than in the second half.
Players Aiming for Impoverished Areas Around the Globe
Stakeholders are making concentrated efforts to expand their geographical presence by targeting areas where the number of malnourished children is high. Players are aided in this effort by the governments of these regions looking to curb the number of malnourished children. Investors are looking to expand their presence in areas of Asia and Africa where at-risk infants are high.
Demand for Improving Brain Function in Children Prompts Increased Sales
Parents are aware of the role played by food intake in improving the brain function of babies. Thus, they are on the lookout for products that help set their children on the right path. Follow up formulas are stepping in to provide babies with enhanced brain function through their DHA and iron components.
Introduction of Novel Benefits to Encourage Sales
To appeal to parents more, players are focused on producing novel products that promise more health benefits. The infusion of materials like ARA, nucleotides, and folic acid is seeing more parents getting attracted to using follow up formulas.
The introduction of sugar-free formulas is also allowing players to cater to a wider subset of the population. Babies who are lactose intolerant sometimes struggle to get the necessary nutrition through regular diets as part of the weaning process. This is where the introduction of sugar-free formulas is helping investors to expand their reach in the organic follow up formula market.
Consumers’ Apprehension About Necessity and Obesity Concerns Limit Growth
A significant subset of parents does not feel the need to supplement their children’s diets with follow up formulas. Parents are satisfied with the regular weaning diets provided to children from 6 months onwards and thus refuse the product. Health experts also emphasize that regular diets are enough to provide the nutrition needed for growth in babies.
Excessive protein intake in children has been linked to the risk of obesity in later life. Parents fear the risk of organic follow up formulas going beyond the necessary protein intake of children and increasing later chances of obesity. These factors curtail the growth of the organic follow up formula sector.
Principal Consultant
The industry size was tipped to be USD 66.5 billion in 2019. Throughout the historical period, the industry grew at a CAGR of 6.8%, reaching a size of USD 78.7 billion in 2023.
The pandemic period put the spotlight on health firmly, including that of babies. While breastfeeding was encouraged even after mothers had COVID-19, a notable number of parents still felt the need to resort to formulas. Follow up formula sales thus benefitted.
The industry’s progress in the forecast period is predicted to be slightly lower than in the historical period. One of the factors helping the product become more prominent is the stakeholders’ effort to have it reach far and wide. Underdeveloped areas of the world, most prominently in Africa, have a considerable quantity of children not getting enough nutrition.
With the help of governments and hospitals, manufacturers are looking at making the product available even in remote corners of the world. Improved healthcare infrastructure in countries is also helping the product’ reach.
Increased attention being paid to baby care is boosting the product’s demand. Parents are busy pouring over material or watching media about caring for children. As parenting takes on a more modern aspect, there is less hesitation in the adoption of formulas, including follow up ones.
Tier 1 companies that have a notable presence in the industry include Bellamy’s Organic, Danone S.A., Nestle S.A., and Nutrimed Healthcare Pvt. Ltd. Tier 1 companies are tipped to generate 20% of the revenue of the sector, lower than both tier 2 and tier 3 companies. Bellamy’s Organic focuses on Australia to increase its sales. Danone focuses heavily on plant-based formulas, as evidenced by its launch of the Dairy & Plants blend. Nutrimed’s follow up formula is a spray dried one.
Some notable tier 2 companies are Morinaga Milk Industry Co., Ltd., Abbott Laboratories, Reckitt Benckiser, and Wockhardt Nutrition. The revenue share of tier 2 companies is established to be 24.1%, higher than tier 1 companies though still lower than their tier 3 counterparts. Morinaga Milk Industry Co., Ltd. focuses on increasing its sales all over Asia. Innovation plays a key role in the strategy of Abbott Laboratories. Wockhardt Nutrition, meanwhile, specializes in formulas geared at lactose-intolerant children.
Some notable tier 3 companies are Nutricia, Beingmate Group, and Hain Celestial Group. Tier 3 companies are set to account for the majority of the revenue share in the sector, standing at 55.9%. Thus, it is clear that small-scale companies have the ability to thrive in the industry.
Nutricia produces products through various brands such as Dexolac, emphasizing the nutrition in the product. Beingmate has all-around expertise in formulas, with follow up formulas being one of them. Hain Celestial Group has jumped on the meat-free train, appealing to vegan and vegetarian parents.
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The urban bend of the population in nations like China and India is seeing the product make more of a mark in Asia. In Europe and North America, rising disposable income is seeing more parents opt for additional baby care products like organic follow up formulas. The determination by stakeholders to have the product enrich impoverished areas is seeing the industry make more of a mark in Africa.
| Countries | CAGR (2024 to 2034) |
|---|---|
| Italy | 7.9% |
| United States | 6.5% |
| United Kingdom | 6.8% |
| Spain | 7.7% |
| France | 7.4% |
The industry is penned in to progress at a CAGR of 6.5% in the United States. Parents’ concern over the health of their children is seeing artificial products being refused on a mass scale. Thus, the baby product industry in the United States is inclining towards the organic trend, benefitting follow up formulas that are organic.
Rising disposable income among the millennial population, who are procreating rapidly, is also helping demand. The millennial population is thus not hesitant to splash the cash on premium baby products like organic follow up formulas.
Demand for organic follow up formulas in Italy is set to surge at a CAGR of 7.7% over the next decade, making the country rich with prospects for stakeholders. The high percentage of lactose intolerance in the country is leading to a considerable number of lactose-intolerant children.
It is claimed that about 72% of the Italian population suffers from some form of lactose intolerance. When these children reach 6 months of age, they are put on a weaning diet. However, due to lactose intolerance, there is a risk of the children not receiving the proper nutrition intake from regular diets. This is being sought to be remedied by the follow up formulas. Thus, investors have the avenue of lactose-intolerant products to increase demand.
The sector in the United Kingdom is anticipated to book a CAGR of 6.8% over the next ten years. Stakeholders in the sector are enjoying support from the government in the nation. As a way to improve baby health, the government in the nation is urging parents to investigate the use of formulas to improve baby health.
Recent price cuts have also contributed to making the product attractive to consumers. For example, in January 2024, industry giant Danone cut the price of its Aptamil range by 7% for retailers in the country.
Powder is the preferred version of the formula by consumers. Hypermarket/supermarket is the avenue through which the majority of sales happen. It is clear that the traditional version of the product as well as the traditional distribution channel still rule the roost in the sector.
| Segment | Dry/Powder (Form) |
|---|---|
| Value Share (2024) | 68.4% |
Powdered/dry versions of the product are estimated to account for 68.4% of the industry share in 2024. Compared to liquid versions of the product, powder products are cheaper. This is accomplished due to the powdered form being easier to produce and transport.
Powder forms of the product have a longer shelf life, endearing them to end-users. Due to having a shorter shelf life, liquid formulas are known to be prone to waste. Thus, powder forms are sought to ensure there is minimal wastage. Powder formulas are also imminently adjustable in terms of dosage, winning the vote from parents who need to adjust to their children’s quickly developing needs.
| Segment | Hypermarket/Supermarket (Distribution Channel) |
|---|---|
| Value Share (2024) | 36.4% |
Hypermarkets/supermarkets are anticipated to account for 36.4% of the industry share in 2024. A major reason for hyperstores winning in the segment is their wide availability of baby products. Parents can thus conveniently shop for organic follow up formula and baby toys under one roof.
The wide variety available courtesy of the stores also helps consumers in selecting the formula suitable for them. Supermart owners are also drawing in consumers by offering competitive prices and discounts. Thus, a notable number of consumers are bundling tighter infant products, including organic follow up formulas.
The organic follow up formula market is significantly fragmented in nature. Although a few industry giants do control a significant share of the landscape, it is the small players that dominate local pockets of the landscape. As the landscape is competitive and there is a dearth of industry giants, the barrier to entry is low.
Major multinational companies like Nestlé, Danone, and Abbott Laboratories have entered the organic segment, leveraging their established brand recognition and extensive distribution networks. These companies often introduce organic variants of their popular conventional formulas.
Specialized organic baby food companies, such as Hipp Organic, Holle, and Bellamy's Organic, have gained significant traction by focusing exclusively on organic products. These firms often emphasize their commitment to organic farming practices and premium ingredients. Regional players have carved out more than a notable presence for themselves, however. For instance, companies like Bimbosan in Switzerland and Lebenswert in Germany have a strong local presence.
Competition revolves around factors such as organic certification, ingredient sourcing, nutritional profile, and advertising strategies. Companies are increasingly focusing on transparency in their supply chains and manufacturing processes to build consumer trust. E-commerce has become a crucial battleground, allowing smaller brands to reach a wider audience and compete more effectively. However, regulatory compliance and the higher cost of organic ingredients remain significant challenges for all players.
Industry Developments
Based on the form, the organic follow up formula market is divided into liquid formula and dry formula.
Based on the distribution channel, the organic follow up formula market has been divided into hypermarkets/supermarkets, specialty stores, online retail, and other distribution channels.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The organic follow up formula sector is sized at USD 86.6 billion in 2024.
A CAGR of 6.7% is predicted over the forecast period.
The organic follow up formula market is forecast to reach USD 166.2 billion by 2034.
Danone and Nestle are key companies in the industry.
The United States organic follow up formula market is set to thrive at a CAGR of 6.5%.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Form
6.2. Distribution Channel
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form
7.1. Liquid Formula
7.2. Dry Formula
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
8.1. Hypermarket/Supermarket
8.2. Specialty Stores
8.3. Online Retail
8.4. Other Distribution Channels
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. South Asia and Pacific
9.5. East Asia
9.6. Middle East and Africa
10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Sales Forecast 2024 to 2034 by Form and Distribution Channel for 30 Countries
17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
18. Company Profile
18.1. Bellamy’s Organic
18.2. Danone S.A.
18.3. Morinaga Milk Industry Co., Ltd.
18.4. Nutrimed Healthcare Pvt. Ltd.
18.5. Nestlé S.A.
18.6. Abbott Laboratories
18.7. Wockhardt Nutrition
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Organic Follow Up Formula Market
