Infant Formula Ingredients Market Report 2025

This Infant Formula Ingredients market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The infant formula ingredients market size has grown strongly in recent years. It will grow from $23.41 billion in 2024 to $25.53 billion in 2025 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to increased awareness of infant nutrition and health, rise in global birth rates and population growth, growth in urbanization and busy lifestyles of parents, improved distribution channels and access to infant nutrition, regulatory standards and guidelines for infant formula production.

The infant formula ingredients market size is expected to see strong growth in the next few years. It will grow to $35.95 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to demand for organic and clean label infant formula ingredients, expansion of e-commerce platforms for infant nutrition products, rising disposable income and affordability of premium formulas, adoption of plant-based and alternative protein sources, emerging markets and growing middle-class population. Major trends in the forecast period include human milk oligosaccharides (hmos), probiotics and prebiotics for gut health, non-gmo and organic ingredients, omega-3 fatty acids (dha and epa), personalized and customized formulas.

The increasing emphasis on infant care and nutrition is expected to boost the infant formula ingredients market. This heightened focus arises from the need to reduce morbidity and mortality rates, minimize the risk of chronic diseases throughout life, and promote regular mental and physical development. As a result, there will be significant demand for infant formula ingredients, which serve as an effective alternative to breast milk and provide essential nutrition for infants. During infancy and early childhood, adequate nutrition through infant formula ingredients is crucial for ensuring overall growth, health, and development, as well as fostering healthy growth and cognitive advancement in infants. Additionally, these ingredients help decrease the likelihood of becoming overweight or obese and developing non-communicable diseases (NCDs) later in life. For example, according to key facts from the World Health Organization (WHO), undernutrition is linked to 2.7 million child deaths annually, accounting for 45% of all child fatalities. If all children aged 0 to 23 months were adequately breastfed, over 820,000 lives could be saved each year among children under five. However, many children do not receive nutritionally adequate and safe complementary foods, with less than a fourth of infants aged 6 to 23 months in many countries meeting the appropriate criteria for dietary diversity and feeding frequency. This highlights the growing focus on infant care and nutrition. In response, WHO has been assisting countries in implementing and monitoring the 'comprehensive implementation plan on maternal, infant, and young child nutrition.' Therefore, the increasing emphasis on infant care and nutrition is set to drive the infant formula ingredients market.

The increase in birth rates is expected to drive the growth of the infant formula ingredients market in the future. Birth rates indicate the number of live births in a given year and are commonly used to evaluate population growth and demographic trends within a region or country. As birth rates rise, the demand for infant formula ingredients becomes essential to provide optimal nutrition for the increasing number of newborns. For example, in July 2022, the Congressional Budget Office (CBO), a U.S.-based federal agency, projected that the total fertility rate would decrease to 1.6 births per woman in 2021, rise to 1.75 by 2030, and remain stable thereafter. Thus, the rise in birth rates is fueling the infant formula ingredients market.

The rising demand for organic infant formula is a significant trend gaining traction in the infant formula ingredients market. Organic infant formula is a non-GMO (non-genetically modified) product made from grass-fed cows, free from artificial growth hormones and antibiotics. Its popularity is growing due to several benefits, including fewer health complications. A segment of health-conscious consumers prefers organic products over conventional ones because of concerns regarding highly processed methods, artificial ingredients, and their potential impact on infants' hormones and growth. Key industry players are capitalizing on this trend by offering organic infant formulas to strengthen their market presence. For instance, Bunge Loders Croklaan, the Netherlands-based plant-based lipids division of U.S.-based food production company Bunge, launched Betapol Organic, the first certified organic OPO (Oleic-Palmitic-Oleic or SN-2 palmitate) in the Chinese and European markets. Betapol Organic is a certified organic OPO for infant milk formula that incorporates a natural component of human breast milk. This organic infant formula ingredient is designed to enhance bone mineral density, positively influence healthy gut bacteria, improve energy intake, reduce constipation, enhance fine motor skills, minimize crying, and promote 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 2024. 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.

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 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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