WORLD – The global infant formula market is anticipated to surpass US$103 billion by 2026 with increasing awareness about their nutritional benefits and rising innovation from manufacturers in the sector seen to drive growth, a recent study by Fortune Business Insights shows.
According to the study, the sector is projected to exhibit a 10.85% CAGR growth during the forecast period running through 2019-2016 from a US$45.12 billion market value in 2018.
During the period, demand for infant nutrition products will increase, with manufacturers embarking on designing the formulations that closely replicates the composition of breast milk, the report highlights.
Furthermore, introduction of innovative packaging, premiumization, new changes in ingredient mix are driving the infant formula market growth.
Coupled with the delivery of effective communication on product offerings, the innovations in the sector are expected to benefit the long-term growth of the market.
According to the report, the future growth in the global infant milk formula market hinges on the combination of scientifically-validated and well-researched ingredients as well as the packaging.
“Parents are looking for the differentiation in the infant formula, which is encouraging the manufacturers to introduce premiumization and value addition to the product, such as different ingredients, different animal milk, packaging, flavoring, and other loaded nutrients which makes the product premium in the market,” the reports highlights.
In addition, modernization and evolving lifestyles of the consumers are also seen to be driving growth in the infant formula market while the convenience of the product along with compositional enhancement is also propelling the demand among the parents.
Among different types of infant formula, infant milk is expected to cover the major portion of the Infant Formula Market share.
A lead analyst at Fortune Business Insights says, “The segment witnesses’ strong sales growth in emerging economies on account of the lack of substitutes in the market.”
“Owing to the lack of nutrient-dense and convenient products, manufacturers are planning to develop a plethora of new infant formulae products such as infant milk.”
Considering the rising awareness about infant formula, the report notes a trend whereby consumers demand organic, 100% lactose, GMO-free and other product differentiation in infant milk products.
While the regional markets remains crucial for the manufacturers to strategize their offerings, a major uptick is expected to be recorded in the Chinese and US markets.
The market in China is anticipated to register a CAGR of 11.30% between 2019 and 2026 driven by the he elimination of ‘one-child’ policy and rapid consolidation of the domestic industry are factors creating growth opportunities for the market.
The US infant formula market was valued at US$2.66 billion in 2018 and is expected to reach US$5.07 billion by 2026, exhibiting a CAGR of 8.30% during the forecast period.
According to the report, the market is expanding owing to the rising focus on value-added infant formulae with the best ingredients and regulatory practices.
Major players in the sector include Nestle, Danone, Abbott, Arla Foods, Abbott, Yili Group, The Kraft Heinz Company, Bellamy’s Organic, Perrigo Company, Reckitt Benckiser Group and Royal FrieslandCampina.