Baby Food & Infant Formula Market Strategy 2019 | Industry Key Players, Global Trends, Sales, Supply, Demand and Analysis by Forecast to 2023

Baby Food & Infant Formula Market Global Information by Baby Food Type (Ready to Eat, Milk Formula, Dried Baby Food), Infant Formula Type (Starting Milk, Follow-On Milk, Special Milk), Packaging (Can, Box, Sachet, Bottle), and Region Forecast till 2023

Market Overview:

Baby Food and Infant Formula, as the name suggests is all about infant’s dietary food requirements to be consumed or eaten for meals or breakfasts. It’s not only about the convenience; sometimes there may be multiple reasons or health issues that forbid mothers from breastfeeding. May it be the physiological or physical reason; baby food & infant formula seem to be a great option, to meet baby’s nutritional needs. As a result, the baby foods & infant formula market witness huge demand and uptake, worldwide. Moreover, trends such as the increasing awareness of adequate nutrition, the growing population of women professionals, food safety concerns, and rising urbanization are escalating the market on the global platform.

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Leverage to the day’s hustle bustle of life with the growing number of working mothers; baby food is proving to be a boon, and due to its convenience, it has completely replaced the conventional and traditional baby food.  Today, an increasing number of parents strive to provide optimal nutrition to their infants. For which, they opt for packaged baby food products to supplement breastfeeding. Resultantly, this, along with the increased concerns of parents for the health, and nutritional requirements of their babies have significantly contributed to the increase in the demand for baby food and infant formula, over the last few years.

On the other hand, factors such as the declining birth rates, the increasing number of government initiatives to popularize breastfeeding and home cooked meals for babies are expected to restrict the growth of the market. Nevertheless, factors such as the extensive uptake of advanced technologies for production, innovations in baby food products, and substantial investments in the emerging economies would support the growth of the market over the forecast period.

The baby food and infant formula market has been increasing due to the augmenting demand from the downstream markets; the key drivers for the market are the rise in disposable income and demand for high-quality products. Supermarkets, hypermarkets, small grocery retailers, and health & beauty retailers are the key distribution channels in the baby food and infant formula industry.  Supermarkets are the primary preferred distribution channel among consumers, followed by the health and beauty retailers. Other distribution channels include discounters, non-grocery retailers, and non-store retailing.

Competitive Analysis:

Highly competitive, the baby food and infant formula market appear fragmented mainly due to the constantly changing consumer demands and preferences while the presence of numerous players having regional and global presence makes the market to seem competitive. This further encourages manufacturers operating in the baby food and infant formula market to compete based on price, quality, innovation, reputation, and distribution.

Key players leading the global baby food and infant formula market include Heinz Nature, Abbot Nutrition, Hipp organic, Nestle Cow&Gate, Mead Johnson Nutrition, Danone, and Danalac among others.

Industry/Innovation/Related News:

February 19, 2019 —- Jennewein Biotechnologie GmbH (Germany), a leading global company involved in the research and manufacture of human milk oligosaccharides (HMO), and Inner Mongolia Yili Industrial Group (Yili Group – China), a leading national dairy company, announced the signing of a Memorandum of Understanding (MoU) on infant microbiome and human milk oligosaccharides, with the goal to develop an innovative infant formula and dairy products specifically tailored for the Chinese market.

February 08, 2019 —- Bellamy’s Organic (Australia), organic infant formula and baby food producer launched a baby formula, making it a likely winner with mothers to boost sales and earnings. The new baby formula is said to have twice as much as the omega-3 of its rivals. The company has been looking to rebuild the business and regain investor trust after several tumultuous years that almost led to the collapse of the organic baby food and formula maker.

Market Segments:

For enhanced understanding, the report has been segmented into four key dynamics.

By Baby Food Type: Baby Ready to Eat, Milk Formula, Dried Baby Food Cereals & Dry Meals, Baby Meals, and Finger foods among other baby foods.

By Infant Formula Type : Starting Milk, Follow-On Milk, Special Milk, Cow Milk Formula, Soy-Formula, Protein Hydrolysate Formula, and Lactose Free Formula among others. 

By Packaging: Can, Box, Sachet, and Bottle among others.

By Regions: Asia Pacific, North America, Europe, and the Rest-of-the-World.

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Regional Analysis:

The Asia Pacific region is expected to retain its dominance over the global baby food and infant formula market, which was once exclusively dominated by the well-developed regions such as North America & Europe.  The development of key distribution channels in the regional baby food and infant formula market is the key force behind the market growth.

Supermarkets, hypermarkets, small grocery retailers, and health & beauty retailers are the key distribution channels in the baby food and infant formula industry. Considering the scenario in a few developing countries in Asia such as India, where small grocery retailers and health & beauty retailers hold a significant share of sales in the region. These small grocery retailers account for comparatively a smaller share in the baby food market but would witness rapid growth over the forecast period.

Moreover, factors such as the increase in the per capita disposable income and the growth in the number of working women alongside the inclination towards convenience foods drive the growth of the regional market.

The North American and European region accounts for other lucrative markets for baby food and infant formula, Globally. Huge technological advancements in the formulation techniques and process are one of the key driving forces leading the market growth in these regions. Additionally, factors such as the huge consumer inclination for the convenience food fosters the growth of the markets in these regions.

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