According to "The Insight Partners" latest market study, titled "The global Infant Formula Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Category, and Distribution Channel," the market is expected to grow from US$ 70.00 billion in 2021 to US$ 130.00 billion by 2028 with an estimated CAGR of 9.5% from 2022 to 2028.
The infant formula has been profoundly growing over the past decade, with increasing consumer inclination toward plant-based and clean label products. The consumers are shifting from products infused with chemical ingredients to plant-based and all natural ingredients. With increased demand for clean-label and plant-based products, the key players in the region are engaged in research and development activities with crucial ingredients such as human milk oligosaccharides and probiotics. Therefore, the aforementioned factors are propelling the infant formula market growth.
Nestlé, Abbott, Danone SA, Arla Foods amba, Bellamy's Organic, The Kraft Heinz Company, Perrigo Company plc, Reckitt Benckiser Group PLC, Burt's Bees, and HiPP GmbH & Co. Vertrieb KG are among the key market players profiled during the study. Several other major companies were also studied and analyzed in this research study to get a holistic view of the infant formula market and its ecosystem.
All the types of infant milk formulae, starting milk formula apparently contains significantly high protein content and is typically formulated for infants from 0 to 12 months. Regardless of low biological value than cow's milk, it contributes significantly to infant nutritional requirement. The growth in the starting milk formula segment is attributed by limited availability of nutrient-dense and convenient products, increasing number of working women, and rising cases of malnutrition among infants. However, the infant formula market was hit by the COVID-19 pandemic owing to interruption in supply chain resulting in shortage and increased price of the products. This reflected a substantial loss among the infant formula manufacturers, resulting in reduced infant formula production due to supply chain constraints in 2020.
The global infant formula market is segmented into type, category, and distribution channel. Based on type, the market is further segmented into starting milk formula, follow-on milk formula, toddler’s milk formula, and specialty milk formula. By category, the market is bifurcated into organic and conventional. In terms of distribution channel, the market is categorized into supermarkets and hypermarkets, convenience stores, online retail, and others.
The COVID-19 outbreak resulted the significant shortage of infant formula globally. The shortage was led owing to disruption in supply chain and recent recalls of several infant formula products over contamination issue. According to the study conducted by UC Merced Lactation Attachment Technology and Child Health (LATCH) Lab in collaboration with UC Irvine and the University of Toronto in May 2022, stated that 69% of families had trouble accessing infant formula. Supply chain disruptions created a shortage of raw materials, which affected the production and distribution of various products, leading to increased prices. Above mentioned factors, hampered the profitability of various small-scale and large-scale producers. However, since 2021, the demand for infant formula has surged owing to rising focus on infant nutrition for proper development and improve immunity. This would propel the procurement of infant formula, which would eventually result in a notable growth of the market during the forecast period.
Read More: https://www.theinsightpartners.com/reports/infant-formula-market
