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Infant Nutrition Market - Growths, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 170 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4591309
UP TO OFF until Sep 30th 2023

Quick Summary:

In the dynamic world of the Infant Nutrition Market, comprehensive, accurate and up-to-date knowledge is crucial for informed decision making. As global perspectives shift and new trends emerge, staying updated with thorough market research becomes all the more essential for key business strategies. From the rise in the working mother population to growing demand for organic baby foods, this report covers all the practical determinants playing a role in shaping the Infant Nutrition Market.

This market research report aims to be your guide, providing essential information, key market trends, and the potential obstacles in this sector. With the rise of e-commerce and changing consumer buying patterns, our projections encapsulate the burgeoning growth in the industry - with a specific focus on the growth of the infant dried food sub-sector and the North American market. This report not only highlights trends but also provides a competitive analysis to help you comprehensively understand the business landscape.

Designed to support your business in these changing times, the report ensures that you stay abreast of the latest market insights in order to leverage opportunities and navigate potential challenges effectively.

The Infant Nutrition Market was valued at USD 77,448.15 million in the base year, and it is expected to register a CAGR of 7.01% during the forecast period.

The rising cases of COVID-19 in the initial phase of the pandemic have had a short-term adverse impact on the export-import activities in the nutrition sector. The direct short-term impact on the nutrition sector was less prominent; however, the effect of COVID-19 on the global economy had a significant indirect influence on the nutrition-related divisions of several manufacturers. During COVID-19, healthcare facilities, market players, and the government invested heavily in maintaining the supply of essential nutrition and food. Most baby food manufacturers were found to focus on ramping up the production of baby food to ensure availability. The AAP in May 2020 also recommended that during the pandemic, people should buy no more than 10 days to two weeks' supply of formula to ensure its availability across the population. However, the post-pandemic era witnessed a substantial change in the consumer buying patterns of infant formula products. With the upsurge in e-commerce, tier three and four cities globally observed an increase in the uptake of infant nutrition products, thereby propelling the market’s growth. Therefore, COVID-19 had an adverse effect on the infant nutrition market initially, but the growing initiatives after the pandemic are expected to boost the growth of the market over the forecast period.

Certain factors propelling the growth of the market include an increase in the working mother population, higher spending on baby health, and the rising demand for organic baby food. For instance, over the past few years, there has been a remarkable increase in the population of young working mothers. This has worked as a key factor in propelling the growth of the infant nutrition market, as these working mothers are heavily dependent on processed infant nutrition products. For instance, in the United Kingdom, the number of working mothers has increased to one of the highest levels in recent decades. In 2021, the Office for National Statistics (ONS) of the United Kingdom published data on families and the labor market. The data revealed that the number of mothers in the labor market had grown substantially over the last two decades. From April to June 2021, three in four mothers (75.6%) were working in the United Kingdom, reaching its highest level in the equivalent quarter over the last 20 years, up from 66.5% in 2002. In 2021, the employment rate for mothers (75.6%) was greater than that for women without dependent children (69.1%). The low wages and high cost of living in cities have increased the number of women working to support their families. Therefore, this factor plays a key role in driving the infant food nutrition market, as working mothers are primarily dependent on processed child nutrition products.

Stress is also currently one of the most common problems working women face, which causes low milk production in them. These factors have encouraged the adoption of convenience-oriented lifestyles, making infant formula and baby foods more desirable. Additionally, factors such as the growth of the middle class, rapid urbanization, and rising rates of female participation in the labor force in many developing markets have encouraged the adoption of convenience-oriented lifestyles, making prepared baby foods and baby formula more desirable.

The increasing middle-class population in emerging and developing countries has opened new horizons in the infant nutrition market, as the need for products compatible with a working mom’s schedule is growing. However, increasing approval from the US FDA and product launches by key players are expected to boost the market. For instance, in January 2021, Timios launched its new category of 'Made to Order Porridge' for infants and toddlers.

Similarly, in August 2022, Danone launched a new dairy and plant blend baby formula to meet parents’ desire for more plant-based foods. Therefore, these factors are expected to boost the growth of the infant nutrition market.

However, concerns regarding food safety and stringent regulations for infant food are expected to hinder the growth of this market.

Infant Nutrition Market Trends

The Infant Dried Food Sub-segment is Expected to Show High Growth over the Forecast Period

Dried Baby Food is either refrigerated or powdered form products that have a comparatively higher shelf life than traditional packaged food. These products are easy to carry and consume. Meeting government standards in terms of food safety, hygiene, and nutritional value, along with an attractive flavor variety, will drive the demand for dried baby food. Nutrient-rich formula and the option of lactose- and soy-free milk versions make this a good option, especially for working women.

The rising COVID-19 pandemic and lockdown measures introduced to reduce the spread of COVID-19 resulted in a rapid change in circumstances for pregnant women, new mothers, and their infants. The global food and beverage industry is one of the major industries suffering due to the outbreak of COVID-19. These factors have severely affected the infant formula market. There was a huge loss found disrupting the sales of market products, and market players were found investing heavily in maintaining the supply of essential nutrition and food to children.

The American Academy of Pediatrics (AAP) recommends iron-fortified cow’s milk infant formula as it is most appropriate for babies (0 to 12 months old) who are not breastfed or who are partially breastfed.

The market players resort to various strategic initiatives, such as new product launches, to strengthen their foothold in the market and expand their product offerings. For instance, in February 2021, the company planned to launch instant baby cereal, pureed fruits and vegetables, freeze-dried finger foods, and teething biscuits in the near term.

Due to changing lifestyles and the need to supply additional nutrients to infants apart from breastfeeding, the demand for infant-dried food is expected to grow.

North America is Expected to Witness High Growth Throughout the Forecast Period

The market in North America is expected to grow due to the increasing number of working women and the increasing demand for baby food. The presence of high per capita healthcare expenditure, coupled with high awareness levels and rising disposable income, is also contributing to the growth of the market in the region.

The rising COVID-19 pandemic disrupted the sales of infant nutrition products due to the lockdown. There were rising efforts to mitigate the transmission of COVID-19, which is disrupting food systems, upending health and nutrition services, devastating livelihoods, and threatening food security. However, the market players are found to invest heavily in maintaining the supply of essential nutrition and food to children.

The percentage of working women is high and rising in the United States. As per a report by the Catalyst Organization published in August 2022, there were 75,699,000 women aged 16 and above in the labor force, representing 56.1% of all women in the United States population and making up close to half (47.0%) of the total labor force in 2021. As a result of these factors, working women find infant/baby nutrition helpful, which can be fed to their babies even in their absence.

According to the 2020-2025 United States DGAs provided by the INCA, USDA, and HHS, commercial, iron-fortified infant formula was the only safe and recommended alternative for those who cannot or chose not to use breast milk in the United States.

Additionally, in August 2022, Reckitt received approval from the US FDA to import 150 metric tons (approximately 331,000 pounds) of infant formula base powder from Reckitt’s nutrition facility in Delicias, Mexico.

There is also a rising number of start-ups in the United States that work with existing infant nutrition companies to improve their blends. A start-up called Sugarlogix is using cutting-edge gene-editing tools to recreate the most common breast milk sugars in a lab, which are known to be associated with boosting the baby’s immune system. Moreover, in October 2022, Bobbie launched Bobbie Labs, its research and development hub dedicated to evolving infant feeding. Bobbie Labs is a core element of Bobbie's commitment to invest USD 100 million to increase infant formula access, quality, and options for all US families by 2030, via funding critical research that will reimagine the future of infant feeding through the lens of research and data. Several more such initiatives are expected to boost the growth of the market. Hence, the robust guidelines and new initiatives and start-ups have helped the increasing demand for infant nutrition be met, which has helped the overall market growth in the region.

Moreover, consumers, especially in developed countries, are willing to pay premium amounts for such products, owing to the general perception that these products are healthier and safer than conventional products.

Infant Nutrition Market Competitor Analysis

The infant nutrition market is competitive in nature. Some of the companies currently dominating the market studied are Abbott Laboratories, Baby Gourmet Foods Inc., Bellamy's Australia Limited, Danone SA, Royal FrieslandCampina NV, Reckitt Benckiser (Mead Johnson), Nestlé SA, Perrigo Company PLC, Parent's Choice Infant Formula, the Kraft Heinz Company, Meiji Holdings, Beingmate Group, Synutra International Inc., Glanbia PLC, and Dana Dairy Group Ltd.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Working Mother Population
4.2.2 Higher Spending on Infant Health
4.2.3 Rising Demand for Organic Baby Food
4.3 Market Restraints
4.3.1 Concerns Regarding Food Safety
4.3.2 Stringent Regulations for Infant Food
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD million)
5.1 By Product
5.1.1 Infant Formula First Infant Formula Follow-on Formula Growing-up Formula Specialty Baby Formula
5.1.2 Baby Food Prepared Food Dried Food Other Baby Foods
5.2 Geography
5.2.1 North America United States Canada Mexico
5.2.2 Europe Germany United Kingdom France Italy Spain Rest of Europe
5.2.3 Asia-Pacific China Japan India Australia South Korea Rest of Asia Pacific
5.2.4 Middle East & Africa GCC South Africa Rest of Middle East & Africa
5.2.5 South America Brazil Argentina Rest of South America
6.1 Company Profiles
6.1.1 Abbott Laboratories
6.1.2 Baby Gourmet Foods Inc.
6.1.3 Bellamy's Australia Limited
6.1.4 Danone SA
6.1.5 Royal FrieslandCampina NV
6.1.6 Reckitt Benckiser (Mead Johnson)
6.1.7 Nestlé SA
6.1.8 Perrigo Company PLC
6.1.9 Parent's Choice Infant Formula
6.1.10 The Kraft Heinz Company
6.1.11 Meiji Holdings
6.1.12 Synutra International Inc.
6.1.13 Dana Dairy Group Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Abbott Laboratories
  • Baby Gourmet Foods Inc.
  • Bellamy's Australia Limited
  • Danone SA
  • Royal FrieslandCampina NV
  • Reckitt Benckiser (Mead Johnson)
  • Nestlé SA
  • Perrigo Company PLC
  • Parent's Choice Infant Formula
  • The Kraft Heinz Company
  • Meiji Holdings
  • Synutra International Inc.
  • Dana Dairy Group Ltd