Breast Milk Substitutes Market Report 2025

The breast milk substitutes market size has grown strongly in recent years. It will grow from $16.23 billion in 2024 to $17.55 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to rising demand for organic and clean-label substitutes, increasing healthcare recommendations, growing concerns over breastfeeding challenges, expanding e-commerce distribution, and supportive government regulations for infant nutrition.

The breast milk substitutes market size is expected to see strong growth in the next few years. It will grow to $24.19 billion in 2029 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to increasing female workforce participation, rise in infant malnutrition awareness, growth in urbanization, aggressive marketing by manufacturers, and change in lifestyle patterns. Major trends in the forecast period include the surge in plant-based alternatives, a growing preference for hydrolyzed formulas, advancements in formula nutrition, expansion of probiotic-infused formulas, and increasing adoption of personalized nutrition solutions.

The forecast of 8.3% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff escalations are likely to burden U.S. pediatric care facilities by driving up costs of breast milk substitutes sourced from the Netherlands and Australia, exacerbating neonatal nutrition expenses and increasing neonatal intensive care unit operational burdens. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing participation of women in the workforce is expected to drive the growth of the breast milk substitutes market. Female workforce participation refers to the percentage of women who are either employed or actively seeking employment. This participation is rising primarily due to improved access to education, which equips women with the necessary skills and qualifications to pursue a wider range of employment opportunities and achieve economic independence. For working mothers, breast milk substitutes offer a convenient and nutritionally adequate feeding option for their infants when they are unable to breastfeed due to time constraints, workplace limitations, or lack of maternity leave. This ensures that infants receive essential nutrients while their mothers continue to focus on their professional responsibilities. For example, in February 2023, the Center for American Progress, a US-based think tank, reported that the labor force participation rate for prime-age women reached 77%, setting a new record for the proportion of women who are either employed or actively seeking work. As a result, the growing female workforce participation is driving the expansion of the breast milk substitutes market.

Key players in the breast milk substitutes market are focusing on creating innovative products, such as plant-based infant formulas, to provide dairy-free alternatives for infants with cow’s milk allergies, lactose intolerance, or families following vegan or plant-based diets. Plant-based infant formulas are dairy-free options made from plant-derived ingredients, specifically designed to provide essential nutrients for infant growth and development. For instance, in July 2022, Danone S.A., a France-based food company, launched the Dairy and Plants Blend infant formula, offering parents more feeding choices. This formula is tailored for vegetarian diets and is the first blended formula for healthy infants where over half of the required protein comes from soy. Using soy as a well-established plant-based protein source, the formula contains 60% high-quality, non-GMO soy protein and 40% dairy-based proteins, including casein and whey. Additionally, it incorporates lactose, an important dairy ingredient and essential carbohydrate found in breast milk, ensuring balanced nutrition for infant development.

In July 2023, Bobbie Baby Inc., a US-based infant formula company, acquired Nature’s One LLC for an undisclosed amount. This acquisition enables Bobbie to enhance its growth potential by expanding its domestic manufacturing capabilities and strengthening its supply chain. Nature’s One LLC is a US-based provider of breast milk substitutes.

Major players in the breast milk substitutes market are Nestlé S.A., Pfizer Inc., BASF SE, Abbott Laboratories, Danone S.A., The Kraft Heinz Company, Koninklijke FrieslandCampina N.V. (FrieslandCampina), Arla Foods Amba, Reckitt Benckiser Group plc, Fonterra Co-operative Group Limited, Perrigo Company plc, The Hain Celestial Group Inc., Hero Group AG, HiPP GmbH & Co. Vertrieb KG, Beingmate Baby & Child Food Co. Ltd., Bellamy's Organic Pty Ltd., Vitagermine SAS, Kendal Nutricare Ltd. (Kendamil), Cow & Gate, and Humana Inc.

North America was the largest region in the breast milk substitutes market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in breast milk substitutes report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the breast milk substitutes market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The breast milk substitutes market consists of sales of infant formulas, follow-on formulas, lactose-free formulas, and organic formulas. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the pharmaceutical sector. Companies are grappling with higher costs on imported active pharmaceutical ingredients (APIs), glass vials, and laboratory equipment - many of which have limited alternative sources. Generic drug manufacturers, already operating with minimal profit margins, are particularly affected, with some scaling back production of low-margin medications. Biotech firms are also experiencing delays in clinical trials due to shortages of specialized reagents linked to tariffs. In response, the industry is shifting API production to regions like India and Europe, building up inventory reserves, and advocating for tariff exemptions on essential medicines.

The breast milk substitutes market research report is one of a series of new reports that provides breast milk substitutes market statistics, including breast milk substitutes industry global market size, regional shares, competitors with a breast milk substitutes market share, detailed breast milk substitutes market segments, market trends and opportunities, and any further data you may need to thrive in the breast milk substitutes industry. This breast milk substitutes market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Breast milk substitutes are commercially produced products designed to provide essential nutrients for infants who are not breastfed, whether partially or fully. These substitutes include infant formulas made from cow’s milk, soy, or hydrolyzed proteins, which are enriched with vitamins, minerals, and essential fatty acids to support healthy growth and development. They serve as an alternative when breastfeeding is not possible due to medical, personal, or logistical reasons.

The primary types of breast milk substitutes are ready-to-use, powdered, and concentrated liquid formulas. Ready-to-use substitutes come in a pre-mixed liquid form that requires no preparation or dilution. They offer a variety of options, including milk-based formula, soy-based formula, hypoallergenic formula, and others, and are suitable for infants aged under 6 months and between 6 to 23 months. These substitutes are available through supermarkets, hypermarkets, pharmacies, and online retail channels, and are used by various end users such as hospitals, clinics, specialty clinics, and others.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.