INFANT NUTRITION MARKET OUTLOOK - 2026
The global infant nutrition market size was valued at USD 68.44 billion in 2020 and is estimated to reach USD 106.84 billion by 2026, with a CAGR of 7.7% from 2020 to 2026. Every infant and child has the right to good nutrition under the Convention on the Child's Rights. In recent years, the increasing consumer awareness of health, a better understanding of the health and fitness of their children, and increasing adoption of natural and organic infant nutrition products are the major factors driving the market. First infant formula has high potential in APAC as the segment accounts for 47.81% of the market share due to increasing health awareness and personalized nutrition for infants. Rapid modernization and rising disposable income are the prominent reasons for the growing demand for infant nutrition solutions in developing and developed nations. Urbanization is predicted to increase the market potential for the market during the forecast period.
- Parent's keen interest in organic nutrition for infants and sustainability are driving the growth of organic infant formula. 47% of global consumers seek organic food and drinks because of environmental concerns.
- The increasing number of working mothers across the world and the substantial rises in their spending create an opportunity for players to boost up the sales of organic infant nutrition products.
- Nowadays, parents are looking and selecting formulas based on their infants' needs and preferences, surging the growth of the personalized market. China has the highest potential in this market.
- Nestle, one of the prominent players, goes vegan with plant-based infant formula.
- Rising e-commerce platforms have helped increase the demand for infant food enriched with vitamins such as vitamin D.
- The trend of using probiotic supplements in infant formula, baby food, and supplements for healthy early life is driving the growth of the infant nutrition market.
- Product innovation plays a significant role in the growth of the baby nutrition market.
- In 2020, the APAC infant nutrition market share accounted for the largest share of 44.69%.
- The infant nutrition trend in North America is toward customizing infant nutrition products.
INFANT NUTRITION MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Distribution Channel
MARKET SHARE AND SEGMENTS
- In 2020, the specialty baby formula was valued at USD 5.39 billion, which is expected to grow at a CAGR of 6.58% during the forecast period.
- Follow-on formula is the fastest-growing category of breastmilk substitutes.
- Growing-up formula and toddlers’ milk are marketed as an alternative to whole cow’s milk for children over one year.
- The powder formula segment is expected to add USD 22.70 billion to the market by 2026.
- APAC and Middle East & Africa are expected to witness high traction for powder formula.
- The demand for concentrated liquid formula products is likely to gain momentum as they are easy to mix and more sterilized than powdered formula in the baby nutrition market.
- The global ready-to-feed formula segment will grow at a CAGR of 8.69% in upcoming years.
- The distribution methods remain the key influencer in determining the sales and market share of the brands in the market.
- Supermarkets and hypermarkets were the dominant distribution channel in 2020 and are expected to keep the momentum throughout the forecast period.
- Most of the players sell their products through online platforms as they offer an easy and convenient shopping experience.
APAC is expected to witness the fastest growth in the infant nutrition market, with a CAGR of 8.67% during the forecast period.
The large base and rapidly increase consumer purchasing power attracting many multinational brands to invest in the APAC region. For instance, Nestle, one of the key players, enter China's third and fourth-tier cities and its substitution strategy, contributing to its sales recovery in 2020. Innovative packaging of baby nutrition products is driving infant formula growth, thereby contributing to the development of infant nutrition in the region. In APAC, the players focus on goat milk for producing infant formulas augmenting the region's infant formula market, thereby support infant nutrition growth. The development of infant nutrition products sales is expected to be higher in lower-tier cities than first and second-tier cities of APAC.
The infant nutrition market is highly competitive with the presence of numerous players. The global market is dominated by vendors that have an international presence. International players are expected to expand their reach worldwide, especially in the fast-developing countries of the APAC region and Latin America, to boost their market share. According to the companies, China and India are the most lucrative and significant markets for a plant-based diet. For instance, Else Nutrition Holdings, an organization to target the baby formula segment of the plant-based market by offering 100% non-soy, non-dairy, plant-based baby formula. Players are manufacturing infant nutrition with innovative product specifications to have a competitive advantage over other vendors.
The infant nutrition market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments.
- First Infant Formula
- Follow-On Formula
- Growing-Up Formula
- Specialty Baby Formula
- Powder Formula
- Concentrated Liquid Formula
- Ready-To-Feed Formula
- Supermarket & Hypermarkets
- Pharmacies & Drugstores
- Online Channels
- Convenience Stores
- South Korea
- North America
- Middle East & Africa
- Latin America