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Infant Formula Ingredients Market Poised to Grow at a CAGR of 7.1% During the Forecast Period of 2022-2027

(Food-Beverage-News.Com, March 27, 2022 ) The Infant Formula Ingredients Market size is estimated to reach $27.7 billion by 2027. Furthermore, it is poised to grow at a CAGR of 7.1% over the forecast period of 2022-2027. Infant formula is predominantly publicized as baby formula. Infant food products have had always held a predominant market space owing to the prescribed dosing of such formulas to cover the overall loss of nutrition from breast milk. Additionally, formula ingredient manufacturers have readily adapted to the changing dietary needs within baby food products and have customized and created product lines sufficing unique demands. Bottle-feeding is the way through which infant formula or breast milk feeding should start. Protein hydrolysate formulas have been recommended as infant formula. Protein hydrolysate formulas are meant for babies who don't tolerate cow's milk or soy-based formulas. Extensively hydrolyzed formulas are an option for babies who have a protein allergy or have hypoallergenic protein foods. Soy-based formulas and cow milk protein-based formulas are some of the recommended infant formulas, which are approved by the FDA. The growing population of working women has in turn made baby food products common, additionally, plant-based protein as an ingredient is the key factor driving the Infant Formula Ingredients Industry in the projected period of 2022-2027.



Infant Formula Ingredients Market Segmentation Analysis- By Source



The infant formula ingredients market based on the source can be further segmented into cow milk, soy, protein hydrolysates, and others. The cow milk segment held the largest share in the year 2021. It is owing to the wide acceptability of cow’s milk as it contains, nutritionally everything and has been regarded by FDA as the “gold standard.” Additionally, cow’s milk nutritional components have aligned more closely to breast milk. Moreover, the production process has been extremely straightforward, with not many change inline assemblies. Lastly, cow’s milk is now being focussed to have been obtained from pasture-raised cows, as they are free from GMOs.



However, the soy and vegan segment is estimated to be the fastest-growing, with a CAGR of 7.9% over the forecast period of 2022-2027. Primarily, cow’s milk has shown signs to develop lactose intolerances in infants. Further, the major trade economy- the US, has forecasted that milk production to be on the lower side. The all-milk price for the fourth quarter of 2021 is projected to average $20.00 per hundredweight (cwt), an increase of $0.20 from last month’s forecast. Additionally, soy and vegan (rice starch) have seen new product launches, which would further aid the market growth.



Infant Formula Ingredients Market Segmentation Analysis- By Form



The infant formula ingredients market based on the form can be further segmented into powder, liquid, and semi-liquid or ready to use. The powdered segment held the largest market share in the year 2021. It is owing to the age-old dominance and ease through which the said formula is created. It is economical, environment-friendly- as it is served in re-usable boxes and doesn’t take much of the room. Moreover, the said category has been used by mothers’ who just need to use formulas as a supplement, and not totally depend.



However, the ready-to-use segment is estimated to be the fastest-growing, with a CAGR of 7.7% over the forecast period of 2022-2027. It is owing to the ease by which the formula can be delivered and has also been considered the most hygienic option. Further, research has shown that nearly 60 million Americans do not use the tap-water for drinking purposes owing to high fluoride and nitrite contents. Owing to such worries, the said segment would outpace the others.



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Infant Formula Ingredients Market Segmentation Analysis- By Geography



The infant formula ingredient market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The Asia Pacific held a share of 39% as compared to the other regions in 2021. It is owing to the presence of all the necessary ancillaries to produce infant formula. For example, India and China have been the predominant producers of milk. As per the FAO projections, Asian production increased by 2% in 2020 due to expected growth in India, Pakistan, and China, while Turkey may experience a decline. India, the world’s largest milk producer, is projected to increase production by 2.6 percent, or 5 million tonnes. Additionally, the necessary ingredients apart from milk, are processed within both countries. Lastly, the Asia-Pacific country offers the foreign players to invest FDIs as the output: input ratio is extremely favorable, which will further fuel the demand.



Infant Formula Ingredients Market Drivers



The growing population of working mothers around the globe has aided the growth of infant formula, thereby helping the ingredients market.



Globalization has been a ready topic around the philosopher, more so all major attributes felt in today’s world have been a result of globalization. Supplemented by globalization, the population of female literates scored high which in turn resulted in higher education. The weakness around the woman for their career enrichment has propelled the use of infant formulas, as they serve as a close substitute for the working mothers. Additionally, as the ingredients of the infant formulas are fulfilling and provide nutrition equivalent to breast milk, parents favor the use of such formulas. As per the Bureau of Labour Statistics, women within the US for the first time have outpaced the working men by holding a share of 50.04%. Moreover, a year back the said proportion was 49.7%. Owing to a continual rise in the population of working women, the formula ingredient market is said to grow.



The health benefits of infant formula have aided the market growth



Nutrition and Convenience have been the two pillars that make the ground of the said market strong. Infant formulas are manufactured by big pharmaceutical companies or processors, as due diligence is required, and FDA strictly stops the practice of making an infant formula at home. Breastfeeding, as a source of nutrients, can never be stressed up enough, but there are some challenges pertaining to breastfeeding which make the infant formula market strong. Some of the formulas contain prebiotic bacteria- Bifidobacterium Lactis, which has proven its substantial use in reducing diarrhea while also helping in the overall maintenance of the toddler’s gut. Furthermore, the composition of oligosaccharides has been shown to increase the discussed bacterial levels, which also reduces the number of disease-causing pathogens such as E. coli, clostridia, and eubacteria. The prevalence of childhood constipation has been contributed to 1-30%.



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Infant Formula Ingredients Market Challenges



Owing to low awareness pertaining to the availability of such products in low-income countries and potential disadvantages when compared to breast milk have hampered the overall market growthInfant formula provides relief to the feeding mothers in terms of convenience, flexibility, and dietary restrictions; however, they can not match the gold standard of breast milk, and that potentially is a major drawback for the ingredient market as well. For example, owing to COVID-19, researchers went ahead to find that antibodies can be transferred via breastmilk to the toddler, hence pregnant women were allowed to take their vaccine jabs. Over 300,000 vaccine jabs were given to pregnant women in India. Furthermore, the complexity of breast milk cannot be matched in infant formulas. Lastly, the cost of infant formulas can dent significantly on one’s wallet, as for a year-round expense pertaining to the feed of infant basic formula can cost close to $1500.



Infant Formula Ingredients Industry Outlook



Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in this market. Infant Formula Ingredients top 10 companies include:



Fonterra Co-Operative Group Limited



Dupont



DSM



ADM



Arla Foods



Saputo Inc.



Almarai



an Alpura



SK Food Enrichment



Sacco SRL



Recent Developments



In January 2021, BLC or Bunge Loders Croklaan, a specialist in fats and oils have launched a new premium lipid ingredient, especially for baby formula. The value addition for the same is to allow the manufacturers to get a notch closer to the actual gold standard breast milk. The solution is called Betapol Select which would allow adjusting the regional differences. Earlier, the product was lauded and based on Chinese baby’s requirements.



In January 2021, Bobbie, a brand lauded by Laura Modi became the first Organic European breast-feed milk alternative. Moreover, the said formula has been EU and FDA approved. It is sourced from the bovines who are pasture-raised on the family farms and then is manufactured in their facility present in Vermont. Bobbie was created with the idea that what you put in formula (adequate levels of DHA, a fatty acid that is not regulated in the U.S. but has been proven essential to eye and brain development in recent medical studies) is just as important as what you leave out (high-insulin spiking simple sugars and cheap carbohydrate additives, such as corn syrup, which are also not regulated in the U.S.)



In January 2021, An Australian company has claimed to launch the world’s first vegan and organic baby formula. Importantly, soy has been used as a common ingredient has in fact been a common allergen. So Sprout Organic has started using rice starch, and it has been proven safe even for the youngest of youngest. Sprout Organic formula is set to launch in Western Australia and New South Wales in May. The company has partnered with distributors Total Health and Global by Nature to make the formula available at health food stores, pharmacies, and independent supermarkets.



Key Takeaways



Geographically, Asia-Pacific held a dominant market share in the year 2021. It is owing to the wide prevalence of having a job, thereby ensuring proper nutrition. In order for continuing a job, women have to rely on other nutrition sources such as infant formula. Moreover, the predominant ingredient manufacturers are in India and China, which further provides a tight grip over the market. Moreover, Asia-Pacific is expected to offer lucrative growth opportunities in the projected period of 2022-2027. It is owing to favorable policies of the government which allow for easy access and flow of FDI, additionally, local manufacturers are provided with incentives that allow them to take hold of the market.



The growing population of working women has in turn made baby food products common, additionally, plant-based protein as an ingredient are the key factor driving the Infant Formula Ingredients Market. However, low awareness and trust pertaining to the availability and use of such products have impeded market growth.



A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Infant Formula Ingredients Market Report.



Relevant Title:



Infant and Mother Nutrition Market

https://www.industryarc.com/Report/15007/infant-mother-nutrition-market.html



For more Food and Beverage Market reports, please click here



About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

IndustryARC

Venkat Reddy

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venkat@industryarc.com

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