The Infant Formula Market is estimated to be valued at US$ 38983.06 Mn in 2023 and is expected to exhibit a CAGR of 10.6%over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Infant formula is a substitute for breastmilk designed for feeding babies less than one year of age when they are not breastfed. It is produced according to the guidelines and rules specified by various authorities like WHO, FDA, etc. Infant formula provides nutrition to babies when breastmilk is unavailable or insufficient.
Market Overview:
Infant formula contains proteins, fats, carbohydrates, vitamins, and minerals necessary to support an infant's growth and development. It comes in powder, liquid, and concentrated liquid forms. Infant formula is chosen by working mothers who cannot breastfeed their babies due to lack of time, convenience, or personal preferences. The growing number of working women increases the demand for infant formula.
Market key trends:
The rise in working women population is a key trend driving the growth of the infant formula market. With increasing career opportunities for women and dual-income households becoming common, more women choose to return to work post-maternity leaves. This reduces the time available for breastfeeding and raises the demand for infant formula as a substitute. According to recent data, over 60% of women in developed nations are employed outside their homes. The increasing participation of women in the workforce globally is expected to positively influence the infant formula market during the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements to establish manufacturing facilities and distribution networks. Strict regulations by food authorities further increase entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of various substitutes and brand options. However, switching costs are relatively low.
Bargaining power of suppliers: Major players contract suppliers from own farms or have long-term supply agreements ensuring consistent quality supply of raw materials.
Threat of new substitutes: Substitutes like breast milk present minimal threat due to unique nutritional profile offered by infant formula products.
Competitive rivalry: Intense competition exists among key players to gain market share through new product launches, branding & promotions.
SWOT Analysis
Strengths: Strong brand recognition, dedicated R&D for product innovations, global distribution networks.
Weaknesses: Vulnerable to price wars, regulatory non-compliance could impact brand image.
Opportunities: Penetration in emerging markets, expanding product portfolio to target toddlers.
Threats: Stringent regulations, social media campaigns against marketing practices, rising raw material costs.
Key Takeaways
The Global Infant Formula Market Size is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing number of working mothers opting for convenient feeding options.
Regional analysis: Asia Pacific dominates the global market with over 50% share due to large population and rising disposable incomes in China and India. North America and Europe also offer lucrative prospects supported by advanced healthcare infrastructure.
Key players: Nestle S.A., Groupe Danone, Abbott Nutrition, Mead Johnson Nutrition, The Kraft Heinz Company, Meiji Holdings Co. Ltd., Beingmate Baby & Child food Co. Ltd., Synutra International Inc., Pfizer Inc., and FrieslandCampina. N.V. are some leading players operating in the infant formula. Key players are investing heavily in R&D and new product launches catering to different nutritional needs.
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