Infant Formula Ingredients Global Market Report 2024

Infant formula ingredients refer to products based on cow's milk, other animal milk, or a combination thereof, formulated to be suitable for infant feeding. These formulas serve as a substitute for women's breast milk, providing essential nutrients found in cow's milk, soymilk, and protein hydrolysates. They are supplemented with vital vitamins, minerals, oils & fats, and other necessary components required for infants' development.

The primary types of infant formula ingredients include carbohydrates, oils & fats, proteins, vitamins, minerals, and prebiotics. Carbohydrates are a key ingredient utilized in infant formula. These ingredients are available in various forms such as powder, liquid, and semi-liquid. Infant formula ingredients are employed in various types including growing milk, standard infant formula, follow-on formula, and specialty formula.

The infant formula ingredients market research report is one of a series of new reports that provides infant formula ingredients market statistics, including infant formula ingredients industry global market size, regional shares, competitors with a infant formula ingredients market share, detailed infant formula ingredients market segments, infant formula ingredients market trends and opportunities, and any further data you may need to thrive in the infant formula ingredients industry. This infant formula ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The infant formula ingredients market size has grown strongly in recent years. It will grow from $21.47 billion in 2023 to $23.41 billion in 2024 at a compound annual growth rate (CAGR) of 9.0%. The growth observed in the historical period can be attributed to several factors. These include an increased awareness of infant nutrition and health, a rise in global birth rates and population growth, the growth of urbanization and the resulting busy lifestyles of parents, improvements in distribution channels and accessibility to infant nutrition, as well as the presence of regulatory standards and guidelines governing the production of infant formula.

The infant formula ingredients market size is expected to see strong growth in the next few years. It will grow to $33.01 billion in 2028 at a compound annual growth rate (CAGR) of 9.0%. The anticipated growth in the forecast period can be attributed to several key factors. These include an increased demand for organic and clean label infant formula ingredients, the expansion of e-commerce platforms for infant nutrition products, rising disposable income levels leading to greater affordability of premium formulas, a growing adoption of plant-based and alternative protein sources, as well as the emergence of new markets with a burgeoning middle-class population. Further, notable trends in the forecast period encompass the incorporation of human milk oligosaccharides (HMOs), the use of probiotics and prebiotics to support gut health, a preference for non-GMO and organic ingredients, the inclusion of omega-3 fatty acids (DHA and EPA), and a shift towards personalized and customized formula options.

The infant formula ingredients market is set to be driven by the increasing emphasis on infant care and nutrition. This heightened focus arises from the imperative to reduce morbidity and mortality rates, mitigate the risk of chronic diseases throughout an individual's lifespan, and foster regular mental and physical development. As this emphasis on infant care and nutrition continues to grow, there will be a notable surge in demand for infant formula ingredients, which serve as an effective alternative to breast milk and furnish infants with essential nutrition. During infancy and early childhood, the provision of adequate nutrition through infant formula ingredients is pivotal for comprehensive growth, health, and development, as well as for promoting healthy cognitive development. Moreover, these ingredients play a role in diminishing the likelihood of childhood obesity, non-communicable diseases (NCDs), and other related health issues later in life. For example, data from the World Health Organization (WHO) published in June 2021 underscores the association between undernutrition and an estimated 2.7 million child deaths, constituting 45% of total child fatalities annually. The statistics further indicate that globally, over 820,000 children's lives could be saved annually if all children aged 0–23 months were adequately breastfed. These trends highlight the growing emphasis on infant care and nutrition, with WHO actively supporting countries in the implementation and monitoring of a comprehensive plan addressing maternal, infant, and young child nutrition. Consequently, the heightened attention to infant care and nutrition is poised to drive the infant formula ingredients market.

The projected increase in birth rates across various industries is expected to be a significant catalyst for the infant formula ingredients market. Birth rates serve as a metric for assessing population growth and demographic trends, representing the number of live births in a given period. In regions experiencing a surge in birth rates, infant formula ingredients become crucial in providing optimal nutrition for the expanding population of newborns. For instance, in May 2022, the Centers for Disease Control and Prevention reported a provisional total of 3,659,289 births in the United States for the year 2021, reflecting a 1% increase from the previous year. This upward trend in birth rates is a key driver for the infant formula ingredients market.

A notable trend gaining traction in the infant formula ingredients market is the escalating demand for organic infant formula. Organic infant formula, produced from non-GMO sources and derived from grass-fed cows without the use of artificial growth hormones or antibiotics, is gaining popularity due to its associated health benefits and minimal risk of complications. Health-conscious consumers, particularly those concerned about the effects of highly processed methods and artificial ingredients on infant health and development, are opting for organic alternatives. This trend is being seized by major players who are introducing organic infant formulas to fortify their position in the market. For instance, in September 2021, Bunge Loders Croklaan unveiled Betapol Organic, the first certified organic OPO (Oleic-Palmitic-Oleic or SN-2 palmitate) on the Chinese and European markets. This certified organic infant formula ingredient, derived from a natural component of human breast milk, delivers various benefits including improved bone mineral density, positive effects on gut bacteria, enhanced energy intake, reduced constipation, improved fine motor skills, less crying, and better sleep.

Leading companies in the infant formula ingredients market are introducing alpha-rich infant formula ingredients like Lacprodan Alpha-50 to address the growing demand for low-protein infant formula formulations. Lacprodan Alpha-50 is a specialized ingredient abundant in alpha-lactalbumin, designed specifically for infant formulas. In May 2023, Arla Foods Ingredients launched this product, boasting a composition that mirrors the nutritional quality of human milk. With 90% of its protein derived from alpha-lactalbumin, Lacprodan Alpha-50 facilitates the creation of low-protein formulas.

In July 2023, Bobbie, a US-based infant formula company, acquired Nature’s One for an undisclosed sum. This acquisition positions Bobbie to have complete control over Nature’s One production process, enabling an expansion of its market share and furthering its mission to transform the infant formula industry. Nature’s One, a US-based pediatric nutrition company, specializes in providing organic premium infant formula.

Major companies operating in the infant formula ingredients market include Arla Foods AMBA, Fonterra Co-Operative Group Limited, Royal FrieslandCampina NV, DuPont de Nemours Inc., Sachsenmilch Leppersdorf GmbH, AAK AB, Carbery Food Ingredients Limited, Kerry Group plc, BASF SE, Koninklijke DSM N.V., Chr. Hansen Holding A/S, Ingredion Incorporated, Tate & Lyle PLC, Archer Daniels Midland Company, Omega Ingredients Ltd., Bunge Limited, Cargill Inc., FrieslandCampina Ingredients, Hilmar Ingredients Inc., Lactalis American Group Inc., Glanbia Nutritionals Inc., Nestle S.A., A2 Milk Company Limited, Feihe International Inc., H&H Group, Meiji Holdings Co. Ltd., Morinaga Milk Industry Co. Ltd., Westland Milk Products, Wissun International Group Co. Ltd.

North America was the largest region in the infant formula ingredients market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global infant formula ingredients market share during the forecast period. The regions covered in the infant formula ingredients market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the infant formula ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The infant formula ingredients market consists of sales of protein, linoleic acid, fat-soluble vitamins A, D, E, K, niacin, and thiamine. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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