Infant Nutrition Market - Forecasts from 2024 to 2029

The global infant nutrition market is expected to experience a CAGR of 7.66% throughout the forecast period, reaching a market size of US$104.136 billion by 2029. This represents a substantial increase from US$62.127 billion recorded in 2022.

One primary factor driving the infant nutrition products market is the global increase in birth rates. Secondly, rising disposable income allows parents to purchase specialized and high-end newborn feeding products, especially in developing nations. In addition, the growing business is also greatly aided by parents' increased understanding of the need for healthy nutrition for young children's growth. Consumers are showing an increasing preference for items that target certain health issues and offer optimal nourishment as they become more aware about the nutritional needs of infants. When taken as a whole, these factors highlight how dynamic the infant feeding business is and establish it as a significant sector of the larger food and beverage industry. Moreover, the rising participation of females in the workforce is also expected to boost the market growth as the gross household income has increased considerably. Further, with both parents working and having time restraints, these processed infant nutrition items are expected to experience a rise in sales due to the convenience that they offer.

According to data from the World Bank, the infant mortality rate has been continually decreasing and hit as low as 28.4 deaths per thousand births in 2021. The declining infant mortality rate is one of the major factors boosting the demand for infant nutrition products and is expected to broaden the end-user demographics, boosting the sales of such products. Companies use a variety of techniques to manage the competitive environment in the infant nutrition business.

To increase their reputation and reach a larger audience, market participants also frequently form strategic alliances with pediatricians, maternity hospitals, and other healthcare providers. Furthermore, geographic growth and entry into developing markets are crucial, particularly given regional variations in consumer tastes and economic situations. Generally, businesses in the infant nutrition sector strive to satisfy the changing needs of parents and carers through a dynamic fusion of innovation, strategic alliances, and focused marketing initiatives.

Increasing investments in product innovation and market expansion activities propels the market growth.

The global infant nutrition industry is transforming due to increased expenditures in product innovation and market growth initiatives. These kinds of expenditures propel product offers into a broader range, catering to a wider spectrum of consumer tastes and particular health issues. Increased funding for research and development results in better nutritional profiles for baby food products, with cutting-edge components and enhanced formulas becoming standard. For instance, as published in the annual reports, Nestle’s R&D expenditure saw an increase of about 6.25% from 2020 to 2021. Various companies are further focusing on product innovation. For instance, in November 2023, under the Wyeth illuma brand, Nestlé announced the introduction of its growing-up milk solution, which is based on research and contains human milk oligosaccharides (HMOs) for early life nutrition, in mainland China. This is in response to the National Health Commission of the nation's recent approval of the use of such bioactives.

The North American region is expected to witness significant growth. 

The United States infant nutrition market is a growing market driven by factors such as a growing population of infants, increasing awareness of the importance of infant nutrition, and high disposable income among parents. There is a growing awareness among parents and caregivers about the importance of proper infant nutrition for the healthy development of babies. This has led to positive requirements for such nutritional goods. Changes in lifestyle, including more working mothers, have led to an increase in demand for convenience products such as infant formula and baby food. Busy parents often prefer the convenience of packaged infant nutrition products over homemade options. There is a growing trend towards organic and natural products, including infant nutrition products. Parents are increasingly concerned about the potential health risks associated with synthetic ingredients and are therefore seeking out natural and organic products.

Furthermore, the number of babies born in the United States per year has a significant impact on the infant nutrition market. When there are more babies born in a given year, there is a larger customer base for infant nutrition products, which can increase demand and sales for manufacturers and retailers. Additionally, it is important to note that even with a decreasing number of births, the infant nutrition market in the United States is still significant, with billions of dollars in revenue generated annually. As such, the stable number of births in the United States per year has had a major influence on the United States infant nutrition market. For instance- as per UNICEF, the increasing birth rate from 2020 to 2022 displays a market opportunity for rising demand for infant nutrition products in upcoming years.

Market Key Developments

• February 2023, Vitamil + was introduced to the market by the business Société de Transformation Alimentaire (STA). An addition to breastfeeding, Vitamil + is a milk flour made to satisfy the nutritional demands of kids. Manufactured in Niger, this high-quality product meets worldwide manufacturing and marketing standards and is reasonably priced for homes. As part of the Meriem project, it was developed with funding from GRET and Hystra. It is one of numerous creative solutions to help combat hunger, which has an impact on the development of young children, especially in unstable communities outside of Niamey.
• August 2022, the company is again restarting Similac® infant formula production at their Sturgis, Mich., facility.
• June 2022, in response to parents' requests for feeding alternatives that are appropriate for plant-based, vegetarian, and flexitarian diets while still satisfying their baby's unique nutritional needs, Danone introduced the new Dairy & Plants Blend infant formula. To create this innovative dairy-and plant-based infant formula mix, Danone drew on its 50 years of scientific study on breastmilk and its history of being a leader in plant-based meals, as demonstrated by well-known brands like Silk and Alpro.
• April 2022, Abbott released limited amounts of metabolic nutrition formulas at the request of the U.S. Food and Drug Administration (FDA). These formulas were previously on hold due to Abbott's recall of certain powder infant formulas from its Sturgis, Mich., facility. Before being distributed, the goods have undergone testing and have been found to meet all product release standards.
• December 2020, Abbot Nutrition, a significant American supplier of infant nutrition products, launched its new Similac line Pro-Advance which according to the company, is its closest baby food commodity to breast milk and includes supplementary 2’-FL HMO prebiotic for development and enhance of the immune systems of babies.

Segmentation:

By Product Type:

• Infant Formula
• Cow Milk Protein-Based Formula
• Soy-Based Formula
• Protein Hydrolysate Formula
• Prepared Baby Food
• Dried Baby Food

By Distribution Channel:

• Online
• Offline

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• Spain
• Italy
• France
• Others
• Middle East and Africa
• United Arab Emirates
• South Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• India
• Australia
• New Zealand
• Japan
• South Korea
• Thailand
• Taiwan
• Indonesia
• Others