Infant formula is a manufactured infant food product that imitates breast milk. Infant formula is designed to feed babies up to 12 months of age. These formulas can be safely used to partly or wholly replace breastfeeding. They are usually based on cow milk with additional functional ingredients.
An increasing number of working women globally is resulting in less attention towards the child. This has created an opportunity for the infant formula ingredients market to fill in this gap. Furthermore, there has been an increase in the investments by companies in research and development, further bolstering the market growth during the forecast period.
The global infant formula ingredients market is expected to grow at a CAGR of 5.0% during the forecast period, 2023–2031.
One of the essential parts of infancy is to ensure adequate nutrition for the development of the child. Early nutritional deficiency increases the risk of illness and infections, such as pneumonia. Mother’s milk is essential for a newborn, and the World Health Organization (WHO) recommends at least 6 months of breastfeeding. However, inadequate breastfeeding is prevalent across the globe, which is subsequently increasing the occurrence of infection in children. Thus, infant nutritional formulas are designed to meet all the nutritional requirements of a child and are an ideal alternative to breastfeeding. Infant Formula ingredients have several health benefits for infants, such as improving gut health, boosting immune function, removal of meconium, among other benefits. Infant mortality rate, though on the decline, has still been plaguing for a long time. Furthermore, the issue of infant health is still of significant concern, especially when the baby is either prematurely born or has low birth weight.
The increasing number of congenital disabilities such as gastrointestinal disorders, lactose intolerance, celiac disease, allergies reduced fat metabolism, and other deficiencies require specialized infant nutrition that assists in the holistic growth of the child and mitigates instances of child mortality. As per the Centers for Disease Control and Prevention, the U.S. Department of Health & Human Services, congenital disability affects one in every 33 babies born in the United States. This highlights the demand for infant formula ingredients to meet the nutrition requirements of the babies with defects that can be cured with proper holistic nutrition. Also, specialized infant formula ingredients help meet the vitamin, protein, mineral, prebiotic requirements when there is insufficient breastfeeding.
As per the Federal Food, Drug, and Cosmetic Act (FFDCA) of the United States, infant formula ingredients support a unique dietary application for newborns for its depiction of breast milk or as an alternative to breast milk. Infant formula ingredients are generally used in the powdered form due to its ease in handling as compared to the liquid type. Furthermore, a rise in the number of working women globally have a paucity of time, due to which, powdered form of infant nutrition is preferred and is likely to grow in demand during the forecast period.
Most of the infant formulas are derived from cow milk. The market in China and India is driven by an expanded dairy herd to improve milk collection systems and higher productivity and the increasing number of infant formula ingredient players operating in this region. As per the Department of Animal Husbandry and Dairying, the 20th livestock census showed the total livestock population increased by 4.6% from 2012 to reach 535.78 million in 2018. This increase in the number of cattle will positively create upswings for market growth.
New Zealand is one of the primary producers of infant formula ingredients in the region; this is due to the presence of prominent industrial players in the market, such as Fonterra co-corporative group and Good Health New Zealand, among others, that are global leaders in the cow milk production. As per the European Dairy Association (EDA), in 2014, the New Zealand dairy exports recorded 17.7 million tons of milk, which was equivalent to 88% of the total milk production in the country.
Countries such as China and India have the highest population globally. As per the UNICEF, around 400,000 babies were born during the New Year 2020, out of which India accounted for around 67, 385. This was followed by China that accounted for about 46,229.
The infant formula ingredient market is driven by Asia-Pacific, owing to the increase in the middles class population, rising number of working women, and increasing knowledge about infant nutrition due to internet penetration and government intervention.
Proper infant nutrition provides vitamins, minerals, proteins that are necessary for the building block for the child development, and assists in the development of a proper cognitive function. As per the World Health Organization, the infant mortality rate globally reduced from an anticipated rate of 65 deaths per 1000 live births in 1990 to almost 29 deaths per 1000 live births in the year 2017. Also, the annual infant deaths declined from around 8.8 million in 1990 to 4.1 million in 2017.
Governments globally are aggressively working towards the elimination of malnutrition and decreasing infant mortality rates. For instance, the Ministry of Women and Child Development, in accordance with the provisions of Section 4(b) of the National Food Security Act, has rolled out a scheme called Maternity benefit Programme, which is a conditional cash transfer scheme likely to increase the market demand during the forecast period. Furthermore, rising disposal incomes, convenient feeding to newborns, reduced inability of new mothers to lactate adequately will further create upswings for the market growth. However, the recent Coronavirus pandemic has created a blip in the financial markets globally and disrupted the supply chain. This has led to an increase in the costs of raw materials that go into the manufacturing of infant formula ingredients, which will further increase the prices of the end products.
Report Metric | Details |
---|---|
CAGR | 5.0% |
Forecast Period | 2023-2031 |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
Segments Covered |
|
Geographies Covered |
|
North America
Europe
Asia-Pacific
Central and South America, and the Caribbean
The Middle East
Africa