Infant Formula Ingredients Market Size & Outlook, 2025-2033

Infant Formula Ingredients Market Overview

The global Infant Formula Ingredients Market size was valued at USD 26.09 Billion  in 2024 and is projected to reach from USD 28.3 Billion in 2025 to USD USD 54.15 Billion by 2033, growing at a CAGR of 8.45% during the forecast period (2025-2033).The growth of the market is attributed to increasing demand for infant nutrition.

Key Market Indicators

• Asia-Pacific dominated the Infant Formula Ingredients Market and accounted for a 28.7% share in 2024
• Based on  ingredient type, carbohydrates dominate the ingredient type segment. 
• Based on product type , powder dominates the form segment. Powdered infant formula ingredients
• Based on source, cow milk dominates the source segment. 
• Based on application type, standard Infant Formula dominates the application segment. 

Market Size & Forecast

• 2024 Market Size: USD 26.09 Billion
• 2033 Projected Market Size:USD 106.13 Billion
• CAGR (2025-2033): 8.45%
• Asia-Pacific: Largest market in 2024
• North America: Fastest growing market

The global infant formula ingredients market has grown rapidly due to the rising demand for infant nutrition owing to the surging birth rate globally, especially in developing economies. Furthermore, the rise in urbanization and busy lifestyles, along with a surge in dual-income families, create opportunities for the global infant formula ingredients market growth.

Infant Formula Ingredients Market Trend

Infant formula ingredients are the essential components used to create baby formula, a manufactured food designed to feed infants under 12 months of age. These ingredients are carefully selected to mimic the nutritional profile of human breast milk and ensure proper growth and development of infants. Key ingredients typically include a blend of proteins (such as whey and casein), carbohydrates (primarily lactose), fats (like vegetable oils), vitamins, and minerals.

Additionally, some formulas may contain probiotics, prebiotics, and other functional ingredients to support digestive health and immunity. The composition of infant formula ingredients is strictly regulated by health authorities to meet the specific nutritional needs of infants and to ensure safety and quality. The industry continuously evolves, incorporating the latest scientific research to improve formulations and address the diverse dietary requirements and potential allergies of infants.

Highlights

1. Carbohydrates dominate the ingredient type segment.
2. Powder dominates the form segment.
3. Cow milk dominates the source segment.
4. Asia-Pacific is the highest shareholder in the global market.

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Infant Formula Ingredients Market Growth Factor

Increasing Demand for Infant Nutrition

The global infant formula ingredients market is witnessing robust growth, driven primarily by the increasing demand for infant nutrition. As the global birth rate continues to rise, especially in developing countries, the need for infant formula to supplement or replace breast milk becomes more pressing. This trend is particularly notable in urban regions, where working mothers require convenient and reliable sources of nutrition for their infants. According to the World Bank, the global birth rate was approximately 18.5 births per 1,000 people in 2021, highlighting the vast potential market for infant formula products.

Moreover, advancements in nutritional science have led to the development of infant formula ingredients that closely mimic the nutritional profile of human breast milk. These advancements include the addition of essential fatty acids, prebiotics, probiotics, and nucleotides, which are crucial for the healthy development of infants. The World Health Organization (WHO) underscores the importance of these nutrients in early childhood development, further driving the demand for high-quality infant formula. Additionally, rising awareness among parents regarding the nutritional needs of their infants is bolstering market growth.

Market Restraint

Stringent Regulatory Environment

One of the primary restraints facing the global infant formula ingredients market is the stringent regulatory environment governing the production and sale of infant formula. Regulatory bodies such as the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), and the China Food and Drug Administration (CFDA) impose rigorous standards to ensure the safety and nutritional adequacy of infant formula products. These regulations cover various aspects, including ingredient sourcing, manufacturing processes, labeling, and marketing claims.

Compliance with these regulations often requires significant investments in quality control and assurance, which can be cost-prohibitive for smaller manufacturers. For instance, the FDA's Infant Formula Act mandates specific nutrient levels and safety testing protocols, adding to the production costs. Moreover, any non-compliance can lead to severe penalties, product recalls, and damage to brand reputation, posing a substantial risk to manufacturers. The complexity and variability of regulations across different regions also add to the compliance burden, potentially hindering market expansion. This regulatory landscape can act as a deterrent for new entrants and slow down the pace of innovation in the market.

Market Opportunity

Growing Urbanization and Lifestyle Changes

One of the significant opportunities for the infant formula ingredients market is the rapid urbanization and changing lifestyles across the globe. Urbanization is associated with an increase in the number of working mothers who often face time constraints when breastfeeding their infants. According to the United Nations, 56.2% of the world's population lived in urban areas in 2020, and this number is expected to grow to 68% by 2050. This demographic shift is creating a substantial demand for convenient and reliable infant nutrition solutions, propelling the growth of the infant formula ingredients market.

Furthermore, the rise of dual-income households has led to higher disposable incomes, allowing parents to invest in premium infant nutrition products. This increase in spending is partly due to the availability of diverse product offerings tailored to different dietary needs, such as hypoallergenic, lactose-free, and organic formulas. The convenience of the prepared formula also fits well with the fast-paced urban lifestyle, further creating opportunities for global market growth.

Regional Analysis

Asia Pacific:- Dominates Region

Asia Pacific is the most significant global market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region is experiencing the fastest growth in the global infant formula ingredients market, driven by several factors, including high birth rates, increasing urbanization, and rising disposable incomes. Countries like India and China, which together account for a substantial portion of the global population, have high birth rates that drive the demand for infant formula. According to the World Bank, India had a birth rate of 17.4 births per 1,000 people in 2020, while China had a birth rate of 10.5 births per 1,000 people. This large base of infants necessitates reliable nutrition solutions, fueling the market for infant formula ingredients. Additionally, economic development across the region has led to increased disposable incomes, particularly in urban areas. This financial improvement allows parents to invest in premium and specialized infant formulas that offer enhanced nutritional benefits.

Furthermore, there is a growing trend towards premium and organic infant formula in the Asia-Pacific region. For instance, the Chinese market has seen a significant rise in demand for organic and high-quality infant formulas, driven by concerns over food safety and a preference for natural products. In 2021, the market value of infant formula in China was estimated to be USD 23 billion, reflecting a robust growth trajectory. Moreover, governments in the region are increasingly focusing on improving infant nutrition through various initiatives and awareness programs. For example, India's National Nutrition Mission (Poshan Abhiyaan) aims to reduce undernutrition and promote healthy feeding practices, thereby boosting the demand for fortified infant formulas. These factors collectively contribute to the Asia-Pacific region's prominence in the global infant formula ingredients market, making it a key area of focus for market players looking to expand their footprint.

North America:-Growing Region

The North American infant formula ingredients market is characterized by a strong demand for high-quality, innovative products. The United States, being the largest market in the region, drives much of this demand. The trend towards organic and clean-label products is particularly pronounced in North America. Consumers are increasingly seeking infant formulas made from organic ingredients, free from synthetic additives, pesticides, and GMOs. This shift is reflected in the market, with sales of organic infant formula in the U.S. growing by 11% in 2021 alone, as reported by the Organic Trade Association. The preference for organic products aligns with the broader consumer trend towards health and wellness, driving innovation and product development in the market.

Moreover, the region's advanced regulatory framework ensures the safety and quality of infant formula products. The U.S. Food and Drug Administration (FDA) imposes stringent standards on the manufacturing and labeling of infant formulas, which assures parents of the safety and nutritional adequacy of the products they purchase. This regulatory rigor fosters consumer confidence and supports the steady demand for high-quality infant formula ingredients.

Ingredient Insight

Carbohydrates dominate the ingredient type segment. Carbohydrates are an important component of infant formula because they provide the primary source of energy for infants. The carbohydrates in infant formula are typically derived from lactose, a natural sugar found in breast milk. Lactose is an essential ingredient in infant formula because it promotes the growth of the infant's gut microbiome and the absorption of other nutrients. Carbohydrates account for a significant portion of the overall composition of infant formula, which explains their dominance. Infant formula is intended to mimic the nutritional profile of breast milk, and carbohydrates, particularly lactose, are a key macronutrient that must be present in sufficient quantities to ensure that infants receive complete and balanced nutrition.

Form Insight

Powder dominates the form segment. Powdered infant formula ingredients have emerged as the dominant form due to a number of key factors. The powdered formulas are easy to store and transport, making them an ideal choice for parents. They have a longer shelf life than liquid forms, allowing for easier stockpiling and less waste. Additionally, the powder form is less expensive to produce and purchase in bulk, which benefits both manufacturers and consumers. Furthermore, powdered formulas are versatile and easily reconstituted with water, giving caregivers a more flexible feeding option. Moreover, the powder form allows for precise measurement control, ensuring that infant formula is prepared correctly.

Source Insight

Cow milk dominates the source segment. Cow milk is a key ingredient in many infant formulas because it provides protein and nutrients. Cow milk is known for its nutritional value and protein content, making it a close substitute for breast milk. This familiarity and acceptance among consumers has made cow milk a preferred infant formula ingredient. Additionally, cow milk is cheap and readily available, making it a good choice for mass-producing infant formulas. Furthermore, cow milk's safety and regulatory approval help it dominate the market and reassure consumers of its quality and suitability for infants. Moreover, cow milk-based formulas are versatile and widely accepted in the infant formula market because they are suitable for a wide range of infants, including those without dietary restrictions.

Application Insight

Standard Infant Formula dominates the application segment. High birth rates in emerging countries have increased demand for infant formula as a substitute for breastfeeding, with standard infant formula being widely accepted. This segment can replace breastfeeding for non-breastfed infants who need supplementation. Standard infant formula also dominates the market in North America and Europe, where it meets the rising demand for infant nutrition products. As Europe's second-largest producer of standard infant formula, Germany is expected to see growth in this application segment. This widespread adoption and production of standard infant formula in key regions contributes to its market dominance. Demand for infant formula is rising rapidly in the Middle East, Africa, and Asia Pacific due to urbanization, changing lifestyles, and exposure to Western lifestyles. Demand for infant formula, especially standard, is driving the market.

List of key players in Infant Formula Ingredients Market

1. Arla Foods Ingredients Group P/S (Denmark)
2. Plum PBC (U.S.)
3. The Honest Company, Inc. (U.S.)
4. AAK AB (Sweden)
5. Abbott (U.S.)
6. Carbery Food Ingredients Limited (Ireland)
7. BASF SE (Germany)
8. DSM (Netherlands)
9. Glanbia PLC. (Ireland)
10. Vitablend Nederland B.V. (Netherlands)
11. Co-operative Group Limited (U.K.)
12. FrieslandCampina (Netherlands)
13. Lactalis Ingredients (France)
14. Kerry Group plc (Ireland)
15. Chr. Hansen A/S

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Recent Development

• June 2025 –Abbott FDA’s “Operation Stork Speed” begins comprehensive ingredient review.
• April 2025 – Arla Foods Ingredients: Launches “Whey360” MFGM campaign beyond infant formula.
• April 2025 – Abbott: Resumes Similac production at Sturgis with enhanced testing.
• April 2025 - AAK AB No fresh public updates, though their INFAT®/Akonino® offerings remain relevant.
• August 2025- Plum PBCupdate on heavy-metals lawsuit legal developments, not ingredient launches.
• August 2025-The Honest Company No new ingredient-driven developments in past 7 months; prior recognitions remain older.