Baby Food & Infant Formula Market By Type (Infant Milk, Follow-on-Milk, Specialty Baby Milk, Growing-up Milk), Ingredient (Carbohydrate, Fat, Protein, Minerals, Vitamins, Others), Packaging Type (Bottles, Cans, Pouches, Others), Distribution Channel (Hypermarkets, Supermarkets, Pharmacy/Medical Stores, Specialty Stores, Hard Discounter Stores, Others), and Region Global Forecast 2022 to 2032

As a general observation, consumer preference for more efficient and cost-effective products have led to the introduction of cheaper milk formulae. Moreover, innovation in the development of cost-effective raw materials coupled with a rising in demand for milk powder, especially from working women, are some key factors driving the overall demand. The market is fragmented with the presence of a large number of regional and international players. Thus, major players in the global infant formula milk powder market account for a significant share, although multiple companies are focusing on mergers, partnerships, and acquisitions as their key businesses actions to form strategies to strengthen their global reach and goodwill in the ever-competitive market.

Despite its benefits, baby food products cannot act as a substitute for natural breastfeeding, even if they are manufactured according to the highest procedures for maintaining quality. Exclusive breastfeeding is considered as a wholesome food source until the first six months of a babies’ life. Healthy growth of a child is also considered as an important factor for a healthy nation which is directly correlated with the growth of the country. Therefore, breastfeeding is now being increasingly promoted by numerous countries by providing additional facilities and schemes. In some countries, marketing of baby food products is also limited by the government so as to shift consumer focus towards exclusive breastfeeding. Also, declining fertility rates in women, especially in the developed economies, will affect the market in the long term. These factors are likely to hinder the global baby food products market in the future.

Despite the obstacles faced by the baby food products manufacturers, the global baby food products market is still witnessing significant growth due to the demand for dried baby food and prepared food among others. Baby food is a category in which consumers are deeply invested as they tend to provide the best food for their children. Furthermore, the global baby food products market is a saturated marketplace with a strong presence of global and regional players.

NESTLE: - The Market Pioneer

Nestle follows a diverse premiumization strategy which has resulted in cementing its position in the global food and confectionery business. Premiumization strategies by Nestle are majorly driven by the surging demand for its products such as the baby milk formula which includes the hypo-allergenic milk formula, organic baby food products, and goat milk formula.

Milk formula is widely gaining acceptance among selected Asians countries, notably Australia and New Zealand, as well as in emerging markets including India and China, majorly benefiting from a healthy and premium image of Nestle and its brands among parents. Trust in the brand is the major factor behind the growth of the baby food market, globally, resulting in long-term brand loyalty. Apart from this, the price point has always been a key factor behind the volatilizing demand for baby food in some regions. On-going focus on sugar as a health foe has urged parents to control and monitor the baby’s diet. This is expected to pose a threat to the growth of the global baby foods market sales since parents tend to feed their babies with homemade food and drinks.

Baby foods are specifically designed food products and ingredients that are suitable for consumption for babies between 0 to 2 years of age. However, nowadays, baby foods for toddlers are also getting increasingly available in the market. Baby foods are broadly categorized into dried baby foods, milk formula, prepared baby food and juices among others. These products are categorized based on an infant’s daily diet. Milk powder was the largest consumed product across the globe generating revenues worth 67.5% of the global baby food market share in 2017. Milk powder is specially designed for infants that are within the breastfeeding age of 0 to 6 months. Milk powder is given to them in order to fulfill additional nutritional requirements. As the population of working women has increased, exclusive breastfeeding after a certain period is a major challenge. This has resulted in mothers weaning babies off breastmilk and supplementing them with infant formula or mixed feeding. Also, lactating problems among women also have led to increased adoption of milk formula powders. These are some of the key factors to promote the demand for baby foods across the globe.

Apart from dried, prepared baby foods are also set to witness rapid growth in the coming years. This growth is supported by the fact that more and more women are entering the workforce leading to increasingly busy lifestyles and lack of time and skills to prepare meals.

Supermarkets and health & beauty retailers together account for over 90% of the global baby food & infant formula market volume sales in 2017. Good visibility in shelves and consistent supply of these products is expected to augment the sales via these channels. Majority of the mothers’ purchase infant formula cans while shopping for other household groceries. This trend is expected to continue over the next few years.

The increasing availability of infant formulas on e-commerce portals along with the rising trend towards shopping via these portals is expected to drive the sales in the near future. These days’ young parents are the internet-savvy, who are actively contributing to the growth of the packaged baby food category with the largest e-commerce sales. E-commerce generated over USD 3.5 billion in 2017 and is expected to grow with a CAGR of 7.4% from 2018 to 2025.

Companies such as Amazon offers Enfamil, Nestle Good Start, and Similac with free shipping facilities. The site also has organic brands such as Bright Beginnings and Baby’s Only. Also, the availability of fast e-commerce services such as Amazon Prime enables a consumer to enjoy unlimited “free” standard and two-day shipping on eligible items as well as other benefits associated with an annual membership fee. Retailers such as Walmart have also launched their own e-commerce portal where parents can purchase baby products along with other groceries. There are several e-commerce portals that cater to consumers within the country or a region. The increasing penetration of the internet across the globe along with the rising number of online shoppers is expected to augment the demand for baby food through e-commerce channels.

The primary trend witnessed in North America and Europe baby food market is the increasing dietary counseling for infants as a part of routine care. The effectiveness of regular counseling is strengthened by the rapid adoption of nutritious and affordable baby foods, thus, generating massive growth opportunities for the baby food & infant formula market in these regions. Nowadays, parents are willing to spend more on high-quality, premium baby foods to ensure the well-being of their infants and babies.

Also, rising health concerns towards the overall development of the baby and the growing number of malnutrition cases have made a pivotal developmental in the growth of the global market. Additionally, the rising number of working women along with the increasing frequency of business travels has made a significant impact on the baby food market in these regions.

With the rapid adaption of the western lifestyle, working females in the developed nations are losing interest in breastfeeding, since they feel they cannot provide complete nutrition to the baby. Another noticeable trend in the developed markets is that modern females restrict themselves from feeding babies so as to maintain their apparent beauty. This urges them to follow and adopt the infant formula based on the recommendations by their nutritionist or doctor. At times, the mother naturally fails to fulfill the breastfeeding baby requirements due to certain ailments or health issues. These factors have significantly improved the demand for infant milk powder products as an alternative to breastfeeding and are expected to surge the global baby food market size in the coming years.

In accordance with the U.S. Food and Drug Administration (FDA), in the US, 6 out of 10 citizens rely on organic food to achieve better health. Stringent regulatory scenario laid down by the FDA ensures that the product quality adheres with the required standards. These factors are majorly responsible for the growth of the global organic baby food market in the coming years.

Some of the major trends witnessed in the global baby foods market are the growing adoption of organic and minimally processed foods. Manufacturers are actively focusing on premiumization and innovation of their existing product portfolio to maintain their customer base in the developed as well as saturated marketplaces.

Infant formula consumption in Asia Pacific is rapidly booming in countries such as China, India, and Malaysia. Chinese parents are demanding baby formula and food from international brands since the recent milk scandals by domestic companies in China has raised concerns over food safety and quality. This has forced many Chinese companies to partner with large dairy internationals to utilize their expertise in local production. Recently, some Chinese retailers have launched insurance schemes for purchases against tainted food in order to boost sales.

Globally, China has the second largest baby population and the low per capita consumption, leading to the vast opportunities in the untapped market. With the end of the one-child policy, improving consumer spending power, level of urbanization and regulatory changes are poised to boost the sales of baby food in China.

dominated the Latin America baby food market, followed by Mexico. Brazil has the largest child population in the region and has been continuously recording the increase in birth rate since 2009. Latin America baby food market is growing steadily on account of developing primary and secondary healthcare standards with the prevalence of marginal urban and rural population. This has significantly reduced the rates of infant mortality in Latin America, thereby enhancing the growth of the baby food market in this region.